Museum, accounting, collection, Financial Accounting Standards Board, FASB
Accounting | Business
Accounting by museums was changed because some believed that museums did not report their collection items in a useful manner because of discrepancies in accounting for capitalized assets and revenues. The valuation methods employed needed to contain relevant and reliable figures in order to have understandability of museum financial statements. Museums varied widely in their capitalization and revenue recognition policies related to contributions and collection items. A number of donors required certain conditions to be met when donating monetary funds (as they still do). Lack of adequate and uniform guidance over these specified conditions caused differences in the timing of the recognition of contribution revenue, either as current or deferred revenue.
Department 1 Awarding Honors Status
Rebman, A. (2002). FASB Statement No. 116: Its development and impact on comparability in museum accounting for contributions and collection items (Undergraduate honors thesis, University of Redlands). Retrieved from https://inspire.redlands.edu/cas_honors/185