FASB Issues Guidance on the Definition of Collections

The FASB has issued an Accounting Standards Update (ASU), Updating the Definition of Collections.

The ASU amends the definition of the term “collections” in U.S. GAAP by aligning it with the definition used in the Code of Ethics for Museums of the American Alliance of Museums. The amendments in the ASU “require that a collection-holding entity disclose its policy for the use of proceeds from when collection items are deaccessioned (that is, removed from a collection).”

For more information, see the ASU on the FASB’s Web site.