Accounting standards and not-for-profit and public sector entities Accounting standards are designed to:
measure financial performance accurately and consistently
report the financial position accurately and consistently
account for the directors' stewardship of resources and assets.
Not-for-profit and public sector organisations:
do not aim to achieve a profit but have to account for their income
and costs
have to account for their effectiveness, economy and efficiency
do not have to produce financial statements for the public (but in
many cases may do so).
Some measurement accounting standards will be relevant such as
those relating to inventory, non-current assets, leasing, etc. Others
relating purely to reporting such as earnings per share (eps) will not be
so relevant.
