A local museum has its historical collections on display for the museum visitors. The majority of these items were donated and were worth several million dollars when they were donated.   After visiting the museum you decide to look at the Statement of Financial Position to see the amount that has been recognized for these collections.  The amount listed in the Statement of Financial Position is $1.  How/why would the not for profit only show this amount for these collections?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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A local museum has its historical collections on display for the museum visitors. The majority of these items were donated and were worth several million dollars when they were donated.   After visiting the museum you decide to look at the Statement of Financial Position to see the amount that has been recognized for these collections.  The amount listed in the Statement of Financial Position is $1.  How/why would the not for profit only show this amount for these collections?

 
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