Sector Specific Accounting Standard?
The Australian Accounting Standards Board is liaising with the sector concerning the publishing of an accounting standard which would be sector specific. This would replace the dilemma many charities face as to whether they need to prepare general purpose or special purpose accounts.
There is a view that the special purpose/general purpose accounting regime used by many charities could be improved, however there is pushback from the sector concerning suggestions that a sector specific standard would require measurement of effectiveness and success of charities. For some charity subtypes, especially those advancing religion, measuring efficiency and effectiveness of service delivery may be too difficult.