FASB Adds Collections Definition Project to Agenda

April 9, 2018

At its meeting last week, the Financial Accounting Standards Board (“FASB”) agreed to undertake a project to revise the definition of “collections.” The FASB will attempt to align the collections definition in its Codification’s Master Glossary with the definition in the American Alliance of Museums’ Code of Ethics for Museums. Specifically, the FASB’s updated definition would include the concept of direct care. The FASB said the definition change should have a prospective application.

FASB staff members will draft a proposed Accounting Standards Update with a 45-day comment period.

The Misalignment of Collections Definitions project is in response to museums’ struggles to determine the value of art collections and artifacts in complying with the American Alliance of Museums’ policies.