Drye Township has received a donation of a rare painting worth $1,000,000.For Drye's government-wide financial statements, three criteria must be met before Drye can opt not to recognize the painting as an asset.Which of the following is not one of the three criteria? (1.) The painting is held for public exhibition, education, or research in furtherance of public service, rather than financial gain.
(2)) The painting is scheduled to be sold immediately at auction.
(3)) The painting is protected, kept unencumbered, cared for, and preserved.

Question

Quizplus · Accepted Answer

Item 2 is not one of the three criteria. The three criteria that the painting must meet before Drye can opt not to recognize it as an asset are: it is held for public exhibition, education, or research in furtherance of public service, rather than financial gain; it is protected, kept unencumbered, cared for, and preserved; and it is subject to an organizational policy that requires the proceeds from sales of collection items to be used to acquire other items for collections.

Drye Township Has Received a Donation of a Rare Painting