Helping NGOs do more with their money

Applicable accounting standards

Which accounting standards apply to NGOs in the developing world?

In fact there are no global accounting standards that apply to all NGOs. This is an area that standard setting bodies are trying to address. There are four main standards which are likely to form the basis for any future global standard for NGOs.

Until such time as a global applicable standard is developed, IFRS (or your own country's accounting standards if they exist) is probably the most useful framework to give a true and fair view, although adjustments may be needed to consider cash accounting, non capitalisation of assets, tracking of restricted and unrestricted funds, basis of recognition of grant income and narrative reporting.

Policies on grant income and fixed assets

Accounting policies on grant income and fixed assets are often contentious in NGOs.  For more guidance on these areas, follow the links below: