The Accounting Standards Board has abandoned plans to require charity shops to value their stock at the point it is received.
The ASB is currently drawing up an accounting standard for all organisations that provide public benefit, including charities, universities and housing associations, as part of wider reforms of accounting standards.
It had proposed that the value of all donated goods would have to be included in charity accounts. Charity accountants had said compliance would cost time and money and achieve little.
A statement from the ASB last week said it had "tentatively agreed that incoming resources from non-exchange transactions should only be recognised when the resource [donated goods] can be measured reliably, and where consideration is given to the benefits and costs."
It said that when it was difficult to value donated goods, as is the case with charity shops, the income should be recognised at the point of sale, as is currently the case.
Jane Tully, head of policy at the Charity Finance Directors’ Group, said: "This is a sensible, effective and practical decision. We’re pleased to see it."