General Reporting Matters

The guidance for reporting in accordance with generally accepted accounting principles (GAAP) has been based on the Handbook of the Canadian Institute of Chartered Professional Accountants (CPA), 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 CPA Handbook, however the more significant recommendations of the CPA Handbook have been summarized and separately identified by section number and paragraph.

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 primary source of GAAP in Canada is the recommendations and guidelines of the CPA Handbook. Where a matter is not addressed by the Handbook, an organization should develop accounting policies that are consistent with the guidance of the Handbook. For Non Profit Organizations, the primary Handbook section are sections 1401-4470 in the not-for profit part III, and 1505 - 3870 in the small enterprise part II, and the accounting guidelines in Part III. (1101.03,.04)