Saturday, October 22, 2011
Financial Reporting Framework for NPOs
Researchers from the Accounting Research Institute (ARI) and senior officers from the Registrar of Societies (ROS)met yesterday to discuss on the development of a suitable financial reporting framework for non profit organisations that are registered with the ROS. ROS director-general Datuk Abdul Rahman Othman, who was heading the delegation from ROS indicated in the meeting that the pilot project using the new reporting framework will be launched by its Selangor branch in March 2012. Currently, there are more than 90000 NPOs who are registered with ROS. In general, the main classifications of ROS's NPOs are in the category of namely: Religous, Education, Health, Culture, IT, Youth and politic. In Selangor alone, there's more than 9000 registered members. The new financial reporting framework will be digital and system-based. NPOs can submit online, relevant information that are required under the Society Act and ROS, in turn can produce customised NPO reports for different stakeholders. The ARI team comprised of researchers from different research clusters namely: Financial Reporting Research Centre (FRRC), Corporate Governance Research Centre (CGRC) and the Accounting Information System research group.