Inventory held for use or distribution

To deliver services, inventory can be provided to and held by non-profit organisations (NPOs) for their own use or to pass on to service recipients.

What are the issues?

Should low value, high volume inventory, such as donated items for re-sale be recognised? If so, how should they be measured, both initially and subsequently? How should donated inventory such as pharmaceuticals be measured if close to their ‘use by’ date and potentially not usable? What disclosures should be made about the nature of such inventory? If inventory is impaired, how is the value of the impairment calculated? When an impairment has been recognised, what disclosures should be made?

Explore this issue further

The Consultation Paper material for this topic is under development.

The TAG is due to discuss this topic at its meeting on 2 June 2020.

What are your opinions on this issue?

If you would like to contribute to the discussion in advance of the Consultation Paper, join the conversation.

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