Non-Profit Organizations and the Future: Framework for the Preparation and Presentation of Annual Reports

Authors: Nadzira Yahaya, Saunah Zainon, Marshita Hashim, Ruhaya Atan

Abstract:

Non-profit organizations (NPOs) in Malaysia are diverse in their origins, structures, objectives, and stakeholders. The largest category of NPOs is from charity and religious category while many other categories such as youth, professionals, women, education and mutual benefits either operate independently or controlled by governments. NPOs have stewardship obligations to their stakeholders and other users of their annual reports, including the public at large. The existing accounting practices without the proper framework of the preparation and presentation of annual reports resulted in a lack of uniformity in the preparation and presentation of NPOs annual reports. Furthermore, a lack of awareness of the applicability of accounting standards and the adoption of different bases of accounting resulted in the need for framework in the preparation and presentation of financial statements for true and fair view of the state of affairs and the operating result of the NPOs activities. This study presents the proposed framework for the preparation and presentation of NPOs annual reports to help the organizations provide high-quality reporting for them to be accountable for good stewardship.

Keywords: annual reports, framework, NPOs, preparation and presentation