Inventory held for use or distribution

NPOs may receive donated inventory, or hold inventory for use or distribution rather than for sale - so how should it be valued?

What is the issue?

How should low value, high volume inventory, such as donated items for re-sale be treated? How about donated or purchased inventory such as pharmaceuticals close to their ‘use by’ date and potentially not usable?

Click ‘watch in You Tube’ to access the playlist, with videos in Spanish and French.

Deep dive

Proposals relating to inventory were published on 26 September 2023. This video explains the proposals included in INPAG Section 13, found on page 55 of INPAG Exposure Draft 2.

The journey so far

The issue of inventories was included in the list of 10 topics where there were NPO-specific issues that were prioritised for consideration in the first stage of INPAG. You can see the various papers and resources below.

Webinar resources

Check out these video extracts from our webinar on inventory in July 2021, and view all the resources here.

Financial reporting challenges
Inventory alternatives

Shape the future, share your voice