Accounting Standards for Non-Profit Organizations (ASNPO)

Revised standard – Agriculture

The AcSB issued amendments to Section 3041, Agriculture in November 2025 that removed certain disclosure requirements for agricultural inventories and clarify the amortization requirement in paragraph 3041.66 for productive biological assets managed on a collective basis. The amendments also clarify the accounting when there is a change to the useful life of productive biological assets.

Consequential amendments have also been made to Section 1520, Income Statement to remove the requirements to present or disclose certain amounts pertaining to agricultural inventories.

These amendments apply to private enterprises applying the standards in Part II of the CPA Canada Handbook - Accounting and to not-for-profit organizations applying the standards in Part III of the Handbook, as relevant.

Effective for annual reporting periods beginning on or after January 1, 2027, with early application permitted.

New accounting guideline – Accounting for Life Insurance Contracts with Cash Surrender Value

The AcSB issued new Accounting Guideline AcG-21, Accounting for Life Insurance Contracts with Cash Surrender Value in September 2024. The Guideline provides guidance on recognition and measurement of cash surrender value of a life insurance policy, presentation and disclosure of policy premiums and changes in cash surrender value.

Effective for annual periods beginning on or after January 1, 2026, with earlier application permitted.

Section 1501, First-time Adoption by Not-for-Profit Organizations has been amended to permit a first-time adopter to apply the transitional provisions in AcG-21.

Section 4410, Contributions – Revenue Recognition has been amended to provide an exception to the requirement to measure contributions at fair value when a not-for-profit organization receives a contribution of a life insurance policy with cash surrender value.

Section 1582, Combinations by Not-for-Profit Organizations has been amended to provide an exception to the requirement to measure identifiable assets at their acquisition-date fair values for cash surrender value.

Revised standard – Revenue – Upfront non-refundable fees or payments

The AcSB issued amendments to Section 3400, Revenue to indefinitely defer the effective date of application guidance for upfront non-refundable fees or payments that were issued in December 2019. Earlier application is permitted, including in financial statements not yet authorized for issue.

The amendments also require an enterprise to disclose the nature and amount of upfront non-refundable fees or payments recognized in revenue when the enterprise recognizes the fee or payment in revenue upon entering into the arrangement.

The disclosure requirement is effective for annual financial statements relating to fiscal years beginning on or after January 1, 2025, with earlier application permitted.

New standard – combinations by not-for-profit organizations

The AcSB issued a new standard (Section 4449) that:

• provides accounting requirements for the recognition, initial measurement and disclosure of a combination
• applies to combinations involving two or more NFPOs that are unrelated or related parties
• outlines criteria to determine when a combination is accounted for as a merger or as an acquisition
• provides guidance on how to account for a merger or an acquisition

New accounting guideline – customer’s accounting for cloud computing arrangements

The AcSB issued new accounting guideline (AcG-20) on accounting for cloud computing arrangements that is applicable to private enterprises and not-for-profit organizations. The guideline provides guidance on:

• accounting for a customer’s expenditures in a cloud computing arrangement; and
• determining whether a software intangible asset exists in the arrangement.

The guideline also includes an optional simplification approach to permit an enterprise to expense as incurred the expenditures related to the elements in the arrangement within the scope of Section 3064, Goodwill and Intangible Assets.

Effective for annual periods beginning on or after January 1, 2024, with earlier application permitted.

Section 1501, First-time Adoption by Not-for-Profit Organizations has been amended to permit a first-time adopter to apply the transitional provisions in AcG-20.

Section 4434, Intangible Assets Held by Not-for-Profit Organizations has been amended to clarify that the application of AcG-20 is required for intangible assets.

Exposure Draft – Relief from Recognition of Acquired Intangible Assets and Amortization of Goodwill

The AcSB issued an exposure draft in October 2025 proposing amendments to Sections 1582, Business Combinations, and Section 3064, Goodwill and Intangible Assets. These proposals would allow private enterprises and not-for-profit organizations to amortize goodwill and provide optional relief from recognizing intangible assets acquired in a business combination.

The proposed amendments include:

• an accounting policy choice to amortize goodwill over a default period of five years (up to 10 years if justified); and
• optional relief from recognizing intangible assets acquired in business combinations. Entities electing the relief must amortize goodwill.

Comments are requested by January 31, 2026. Feedback can be provided by written response. 

Exposure Draft – Amendments to Section 3041, Agriculture

The AcSB issued an exposure draft in March 2025 proposing narrow-scope amendments to Section 3041, Agriculture. The amendments would apply to private enterprises applying the standards in Part II of the Handbook and to not-for-profit organizations applying the standards in Part III of the Handbook, as relevant. The AcSB proposes to remove certain disclosure requirements for agricultural inventories and clarify the amortization requirement for productive biological assets managed on a collective basis. The proposals also clarify the accounting when there is a change to the useful life of productive biological assets.

The comment period is closed. Final amendments are expected to be issued in November 2025.

Revised standard – revenue: upfront non-refundable fees or payments

The AcSB issued amendments to Section 3400, Revenue, applicable to private enterprises and not-for-profit organizations, to defer the effective date of previously issued application guidance for recognizing revenue from upfront non-refundable fees or payments from fiscal years beginning on or after January 1, 2022, to fiscal years beginning on or after January 1, 2025.

The application guidance for recognizing revenue from upfront non-refundable fees or payments included in Section 3400 is effective for annual reporting periods beginning on or after January 1, 2025, with early application permitted.

The AcSB has conducted further research since it issued the amendments in November 2022 and is proposing to indefinitely defer the effective date of these amendments, with early application permitted, until its project on Evaluating the Preface is complete. The Board is also proposing a new disclosure requirement for entities recognizing upfront non-refundable fees or payments in revenue entirely up front. The AcSB expects to issue an exposure draft in October 2023.

Request for input – Subsequent Measurement of Goodwill and Acquired Intangible Assets

Join the AcSB for a virtual roundtable discussion to share your feedback with them to inform future exposure draft proposals on providing relief from recognizing intangible assets acquired in business combinations and allowing entities to amortize goodwill. The English roundtable is taking place on June 12, 2024, and the French roundtable is taking place on May 30, 2024. Register now to save your spot.

Exposure draft – Contributions – Revenue Recognition and Related Matters

The AcSB issued an exposure draft in 2023 proposing to issue new Section 4411, Contributions Received by Not-for-Profit Organizations and accompanying amendments to Section 4400, Financial Statement Presentation by Not-for-Profit Organizations. Proposed Section 4411 provides NFPOs with guidance on accounting for contributions and would replace Section 4410, Contributions – Revenue Recognition and Section 4420, Contributions Receivable.

The proposals would:

• replace the current guidance with a single approach for recognizing revenue from restricted contributions
• provide specific guidance on special types of contributions, including contributed materials and services, capital asset contributions, and endowments and
• amend the current guidance on financial statement presentation and disclosures by NFPOs.

On May 14, 2024 the AcSB issued a feedback statement, discussing how AcSB considered feedback received and, through targeted outreach and consultation with its Not-for-Profit Advisory Committee, explored various options to address the feedback heard on the Exposure Draft. After thorough consideration, the AcSB decided to take the Contributions project in a new direction.

In May 2024, the AcSB discussed and approved a revised project plan for a new exposure draft that will continue to allow an accounting policy choice for the recognition of restricted contributions and propose improvements to the two existing methods. This new exposure draft will also incorporate relevant proposals and feedback from the first Exposure Draft. The AcSB is currently field-testing the preliminary proposals.

Upcoming webinar

AcSB Webinar – Domestic Accounting Standards Update (Fall 2024)

Learn about recently issued or amended accounting standards and updates on current accounting standards projects.

• English – November 6, 2024 – 2:00 p.m. – 3:00 p.m. EST
• French – November 12, 2024 – 2:00 p.m. – 3:00 p.m. EST

Additional non-authoritative guidance

To stay ahead of the curve, find additional non-authoritative guidance to help you navigate the application of the Accounting Standards for Not-for-Profit Organizations.

Complimentary Resources

• Guidance: Attention Management and Auditors: Revised CAS 570, Going Concern Brings Changes to the Auditor’s Expectation for Management’s Going Concern Assessment Timeline (AASB, AcSB & PSAB, 2025)
• Project Summary – Evaluating the Preface (AcSB, 2025)

CPA Canada resources available by subscription

• ASNPO Briefing: Section 4449, Combinations by not-for-profit organizations (CPA Canada, 2022)
• What not-for-profit organizations need to know about annual reporting (CPA Canada, 2020)
• ASNPO Alert: Tangible capital assets, intangible assets and collections (CPA Canada, 2019)
• ASNPO Alert: Accounting Standards applicable to Private Sector Not-for-Profit Organizations (CPA Canada, 2019)

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