New Financial Statement Requirements For Not-For-Profit Entities

The new Canada Not-For-Profit Corporations Act has been in effect since 2011. Transition from the old Act to the new Act is required by October 17, 2014.

The new Act contains significant changes, including which type of financial statement engagement (compilation, review and audit), is appropriate. A comparison and explanation of the three choices is provided in this publication from the Chartered Accountants of Canada: Understanding Reports on Financial Statements.

The new Act imposes review and audit requirements where compilations may have previously been satisfactory. For example, under the new Act, a soliciting corporation with revenues over $50,000 and under $250,000 is required by default to have an audit, but a review is possible. Where revenues are greater than $250,000, an audit is required.

A soliciting corporation is one that has received $10,000 of income from a public source in any of the last three fiscal years. This includes donations from non-members, government grants of any kind and funds from another corporation that has received public source income.

To discuss your financial statement needs, please call to book an appointment.

Ammo Baines, BBA, CA
250-381-2400

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