Specific Financial Statement Items

The guidance for reporting in accordance with generally accepted accounting principles (GAAP) has been based on the Handbook of the Canadian Institute of Chartered Accountants (CICA), and other sources. The focus of this material is for non-profit organizations and certain comments may not be applicable to for-profit organizations.

While every attempt has been made to convey appropriate accounting treatment for non-profit organizations, this material should not be seen as a substitute for professional advice and care should be taken to consider the applicability of this guidance in individual circumstances. This information should not be seen as a substitute to the CICA Handbook, however the more significant recommendations of the CICA Handbook have been summarized and separately identified by section number and paragraph. A reconciliation of the guidance here with the accounting recommendations of the CICA Handbook has been provided.

Reconciliation to the CICA Handbook
Under Generally Accepted Accounting Principles, recommendations of the Handbook are expected to be followed unless the application of the recommendation would result in misleading presentation.

Sources of GAAP

The first source of GAAP in Canada is the recommendations of the CICA Handbook. Where matters are not covered by the handbook, accounting principles may be generally accepted by virtue of their use in similar circumstances by a significant number of similar entities in Canada, or they may be generally accepted where the principles used are consistent with the recommendations of the CICA Handbook, in consideration of other authoritative and non-authoritative literature.

Where a recommendation of the handbook is not followed, the policy followed should be disclosed along with any reasons for not following the recommendation. (1500.06)