Collections Held by Not-For-Profit Organizations
ASNPO 4440
Collections Held by Not-For-Profit Organizations
ASNPO 4440
Definition
Collections are works of art, historical treasures or similar assets that are:
- held for public exhibition, education or research;
- protected, cared for and preserved; and
- subject to an organizational policy that requires any proceeds from their sale to be used to acquire other items to be added to the collection or for the direct care of the existing collection
Nature of collections
- Assets that meet the definition of a collection do not have to be accounted for using section 4431 and 4431 (therefore, they do not have to be capitalized as an asset and amortized)
- If an asset meets the definition of a collection, the NPO can
- Expense the costs entirely
- Capitalize it and not amortize it; or
- Capitalize it and amortize it per Section 4431 or 4432
- Must disclose the following for collections
- Description of its collection
- Accounting policy followed for collections
- Details of significant changes to the collection
- Expenditures on collection items
- Proceeds from sale of collection and how the proceeds were used