A donor gave artwork to a nongovernmental,not-for-profit museum. The artwork qualified as a "collection," under FASB rules. The not-for-profit could:

Question

Quizplus · Accepted Answer

The not-for-profit museum has the option to record the artwork at its fair market value at the time of receipt as an increase in permanently restricted net assets or not record the artwork, but provide information about the artwork in the notes. The specific policy adopted by the not-for-profit organization will determine which option to choose. Recording the artwork as both a contribution and an expense (option D) would not be appropriate, as it would result in double-counting the transaction.

A Donor Gave Artwork to a Nongovernmental,not-For-Profit Museum