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GAAP For Non-Profits › Specific Financial Statement Items

Collections

Because of the unusual nature of collections of art, historical treasures and similar assets, organizations holding these items are given significant leeway in the accounting policies they may employ.

The accounting policies followed should be described, and there should be a description of the collection, which might include the number of items and a description of the items. Any significant changes in the collection during the period should be described. This description would include the fair value of contributed items, if known, and the method of disposal of items removed from the collection. Any expenditures, and sales proceeds for the period should also be disclosed. Also the organization must explain how any sales proceeds were or will be used. (4432.07)