General Purpose and Special Purpose Financial Statements

A charity’s financial statements must be either General Purpose Financial Statements (GPFS) or Special Purpose Financial Statements (SPFS).

General Purpose Financial Statements

GPFS are prepared by applying all relevant accounting standards and are normally intended for a wide range of users.

The accounting standards are issued by the Australian Accounting Standards Board (AASB), and provide guidance for the presentation, measurement and disclosure of financial information for your charity.

Special Purpose Financial Statements

SPFS refers to all financial statements that are not GPFS and are usually intended for a narrow range of users.

Charities submitting Special Purpose Financial Statements must apply the following six accounting standards as a minimum:

• AASB 101, Presentation of Financial Statements.
• AASB 107, Statement of Cash Flows.
• AASB 108, Accounting Policies, Changes in Accounting Estimates and Errors.
• AASB 124, Related Party Disclosures.
• AASB 1048, Interpretation of Standards.
• AASB 1054, Australian Additional Disclosures.

Comparing GPFS and SPFS

The following table compares the key features of GPFS and SPFS.

For more information about the Simplified Disclosure requirements, refer to AASB 1060 on the AASB website and the ACNC’s guidance on the Standards and financial reporting.

Which financial statement type should your charity prepare?

The following decision tree can help a charity to decide whether it needs to prepare a GPFS or SPFS.

This decision tree is drawn from one by Chartered Accountants Australia and New Zealand (CA ANZ) in Enhancing not-for-profit reporting: Part B Enhancing financial reporting (Australia) on page 14.

Resources

• The ACNC has been working closely with the AASB to provide further guidance. For more, visit the AASB Staff FAQs on New Standards for Not-For-Profit entities.
• The ACNC also provides general guidance on the new Australian Accounting Standards that impact charities, including AASB 1058 Income for Not-for-Profit Entities.

Can you see your charity using the resources and downloads available in this step? Provide reasons for your answer.