| Co-Investigator(Kenkyū-buntansha) |
SAITO Shinya School of Business Administration, Aoyama Gakuin University, Professor, 経営学部, 教授 (40215538)
KATAYAMA Satoru School of Commerce, Waseda University, Professor, 商学部, 教授 (90063742)
AIDA Kazuo Faculty of Policy Management, Keio University, Professor, 総合政策学部, 教授 (30159264)
FURUSHO Osamu School of Business Administration, Junior College of Asia University, Associate Professor, 短期大学部, 助教授 (90219113)
SUZUKI Yutaka School of Business Administration, Aoyama Gakuin University, Professor, 経営学部, 教授 (00077877)
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| Budget Amount *help |
¥9,400,000 (Direct Cost: ¥9,400,000)
Fiscal Year 2002: ¥700,000 (Direct Cost: ¥700,000)
Fiscal Year 2001: ¥3,000,000 (Direct Cost: ¥3,000,000)
Fiscal Year 2000: ¥5,700,000 (Direct Cost: ¥5,700,000)
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| Research Abstract |
The purpose of this is to explore the theoretical framework for appropriate financial information disclosure in Not-for-Profit (NFP) organizations, through current studies of issues such as bookkeeping systems, accounting standards, auditing and taxation. Our study is greatly influenced by the recent developments such as an increase in social concern towards NFP organizations' activities and the enactment of the information disclosure and the collective decentralization laws, which create the necessity of accounting standards or its theoretical framework for the purpose of financial information disclosure by NFP organizations.
We distinguished NFP organizations into two sectors, that is, the private and the public, according to the types of ownership. In the private sector, our study covers associations and foundations, colleges and universities, social welfare organizations, specified nonprofit organizations and religious organizations. Regarding the private sector, there are currently
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no uniform accounting standards in practice that apply to all entitles. In other words, each has its own unique accounting standards and practices.
Recently, factors affecting NFP organizations have been changing, especially in the area of accounting standards, such as the introduction of the concepts of business accounting in NFP organizations. For example, in social welfare organizations, there was a drastic change in their accounting and reporting standards, which were set by the government and were effective for annual financial statements issued for fiscal years beginning after April 1, 2000. It is believed that this change can make it possible to more accurately measure the efficiency of such an organizations' activities and management.
These changes that have been introduced or are to be introduced are intended to help NFP organizations to pursue and accomplish the same level of efficiently as business organizations in terms of management and fulfilling organizations' missions. We can find this concept in studies and works of the Financial Accounting Standards Board (FASB) such as the Statement of Accounting Concepts No. 4 and the statement of Financial Accounting Standards No. 117, which assume that there is no significant distinction between business organizations and NFP organizations in their financial reporting. In addition, the FASB's concept implies comparing business and NFP organizations based upon efficient use of resources as one of the benchmarks without mentioning the differences of the two. Our group spent much time and energy considering the ideas of the FASB. However, we could not reach a consensus since there was another strong opinion that stated that accounting and reporting principles and practices, because there are significant differences between businesses and NFP organizations' missions.
In the public sector, there is also a movement to establish uniform accounting standards for the financial statements of local governments, which are based upon modified business accounting techniques in accordance with the situation of each local government. These accounting standards have been established separately by the Ministry of Home Affairs and several local governments, and are currently in practice on an experimental basis. After thorough research and analysis, we reached the conclusion that there is a need for further studies in practice and are currently in practice and theory for establishing accounting standards. For example, there is not sufficient explanation about the meaning of the difference of assets and liabilities on the balance sheet.
In the present situation, it is clear that ideas and techniques of business accounting will be introduced into NFP organizations in all probability. Therefore, in conclusion, we would like to point out two things here. First of all, there are theoretical problems to be solved in order to introduce business accounting to NFP organizations. Secondly, although the necessity of such standards should be recognized from the point of view of comparability, we should distinguish introducing business accounting into NFP organizations from establishing a uniform accounting and reporting standard. Less
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