Читать книгу Annual Accounting and Auditing Workshop - Kurt Oestriecher - Страница 57

A collection-holding entity must disclose its policy for the use of proceeds from when collection items are deaccessioned (that is, removed from a collection). If a collection-holding entity has a policy that allows proceeds from deaccessioned collection items to be used for direct care, it should disclose its definition of direct care.

Current GAAP defines collections as

Works of art, historical treasures, or similar assets that meet all of the following criteria:

 They are held for public exhibition, education, or research in furtherance of public services rather than financial gain.

 They are protected, kept unencumbered, cared for, and preserved.

 They are subject to an organization policy that requires the proceeds from sales of collection items be used to acquire other items for collection

This update will modify the last condition to allow the proceeds to support the direct care of existing collections in addition to the above policy. Note that the effect of this definition change will allow more assets that are donated to be considered a collection. GAAP does not require the recognition of revenue or capitalization of a collection.