CFDG welcomes latest from ASB on valuing donated goods

27th October 2011

CFDG welcomes a statement published this week by the Accounting Standards Board (ASB) on how donated stock and incoming resources from non-exchange transactions should be measured.

In the summer the ASB closed a consultation on new reporting requirements for public benefit entities (FRSPBE). This included proposals for valuing incoming resources from non-exchange transactions. Worryingly, this would have included estimations of stock value for goods donated to charity shops.

The ASB now state: “The Board tentatively agreed that incoming resources from non-exchange transactions should only be recognised when the resource (i.e. donated goods) can be measured reliably, and where consideration is given to the benefits and costs. Consequently, where it is not practical to estimate the value of donated goods with sufficient reliability or benefit the income is recognised when the donated goods are sold.”

Jane Tully, head of policy and public affairs at CFDG said: “The wording of this ‘tentative’ decision is promising as it reflects the two main elements of the CFDG argument against the original proposals. These are the fundamental issues of practicality and reliability of such estimations of value, and importantly, significant doubts over the usefulness of such information to the users of accounts when the stock has no replacement cost and therefore no value to the charity until sold. We hope that the wording we see in the next draft of the standards continues to reflect this perspective and does not place unnecessary bureaucracy on charities that receive such donations.”

- Ends -

 Notes to Editors:

1. CFDG is the charity that promotes best practice in charity finance management, supporting finance managers with conferences, training and a wealth of web-based information. CFDG is also active in the policy arena, working on issues that affect charity finances. CFDG’s circa 1700 members are responsible for the finances of charities with a wide variety of income levels. Between them our members manage some £21.75 billion in charity income per year, around half of the sector’s income.

If you would like to discuss any of these issues further please contact the CFDG policy team at or on 0207 2508347.

2. CFDG's response to the FRSPBE which contains further information on the ASB's original proposals and the CFDG position can be found here.

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