Proposed Standard Addresses Diversity in Accounting Practice that Exists Between the Application of the Definition of Collections
- help eliminate the diversity in practice between the application of the definition in GAAP compared with the definition that many entities use for operational and accreditation purposes,
- better align with many organizations’ missions to maintain their collection,
- and, be consistent with the conclusions in Statement of Financial Accounting Standards No. 116 about the care and preservation of the collections as the basis for permitting entities to not recognize contributed collections.