CFDG has expressed concern at some of the proposed changes to UK financial reporting standards, particularly the onerous requirement to place a value on charity shop donations.

Responding to the Accounting Standards Board’s consultation on the FRSPBE (Financial Reporting Standard for Public Benefit Entities), which details how charities will tailor their reporting to wider accounting standards, CFDG said some of the requirements are unnecessarily demanding.

While CFDG’s response acknowledges that the new standard contains “many positive aspects”, it says that the requirement to value shop donations and include them in financial statements could lead to increased stock-take and audit costs.

Jane Tully (pictured), head of policy and public affairs, said: “This will be a resource heavy and costly change for those charities that have charity shops.

“In addition to the practical issues and costs, there are very sound technical reasons why stock donated should not be included in the balance sheet.

“We are concerned that this will make accounts less useful and transparent to the public.”

Tully added that further discussion is needed on recognising legacy income, making funding commitments to other organisations and valuing volunteering.