Church wants choice on proposed accounting rules

Published May 1, 2009

The General Synod office of the Anglican Church of Canada is leading what it hopes will be a co-ordinated response with dioceses and parishes across the country voicing opinions on proposed changes to the rules governing the way they report their financial information.

The Accounting Standards Board (AcSB) in Canada has invited not-for-profit organizations to comment on a proposal that would see them use the same system of financial reporting that publicly traded corporations will soon be using. “There’s been a movement to try to align accounting standards across the world, so when one person looks at a set of financial statements in one country, they are using the same standards that are used in another country,” said Michael Herrera, interim treasurer for the Anglican Church of Canada. “That is the whole basis for IFRS, which is the International Financial Reporting Standards,” he said, but “when you try to put charitable organizations in the same realm as publicly traded organizations it becomes a challenge because the users of the financial statements have very different needs than a shareholder would have.”

If the church was required to use IFRS, Mr. Herrera said it would greatly increase the amount of financial reporting required, and the accounting and audit costs associated with it would increase “at least ten-fold.” The additional information generated would be of no benefit to end users, he added. For example, potential donors wanting to give money to a diocese would have to sift through consolidated financial statements that include all of the information for individual churches in the diocese as well. “They are interested in seeing what the diocese did as a separate entity. Picking up all the individual churches is not a meaningful number for the user,” said Mr. Herrera.

Some not-for-profit organizations might want to use the IFRS system, particularly if they have an international donor base, said Mr. Herrera, but there should be a reasonable and comparable alternative similar to what the AcSB is developing for private enterprise, adapted for the not-for-profit sector. “Not-for-profits and charitable organizations need to be given a choice because we’re not all alike,” he said. “There are size issues, user differentials. A university or a college is very different from a faith-based organization which is very different from the Girl Guides, and all of their users have very different needs.”

The national office is writing a response which will be posted on the Anglican Church of Canada’s Web site,, this month, and it plans to share the document with all of the dioceses, encouraging them to submit their own responses. “We hope it will have a trickle-down effect with the dioceses sharing their responses with the parishes. We don’t expect all of the various levels of the church to have the same technical savvy so if you see what our response is or the diocese’ response is you can simply make some minor editorial changes if you agree and then submit your letter,” said Mr. Herrera.

The church has also had preliminary meetings with the United Church of Canada and the Presbyterian Church in Canada and agreed to share their responses with each other “so that it is not seen as an Anglican issue or a Presbyterian issue, but as a faith-based issue,” said Mr. Herrera. The deadline for submitting responses is June 30. More information is available at


  • Leigh Anne Williams

    Leigh Anne Williams joined the Anglican Journal in 2008 as a part-time staff writer. She also works as the Canadian correspondent for Publishers Weekly, a New York-based trade magazine for the book publishing. Prior to this, Williams worked as a reporter for the Canadian bureau of TIME Magazine, news editor of Quill & Quire, and a copy editor at The Halifax Herald, The Globe and Mail and The Bay Street Bull.

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