Accounting Policy & Practice Series
Accounting for Museums
Portfolio Description
Portfolio 5201, Accounting for Museums (Accounting Policy and Practice Series), describes how not-for-profit museums should prepare financial statements and related disclosures in conformity with U.S. generally accepted accounting principles (GAAP). Various recognition, measurement, and disclosure alternatives also are discussed in situations where acceptable alternative accounting principles exist. Other portfolios available from BNA Tax Management Inc. analyze in detail various tax aspects related to museum operations.
After introducing the financial reporting model and GAAP used by museums in sections I-II, the Portfolio analyzes accounting for museums' most important assets in sections III-VI-contributions receivable, collections, investments and derivatives, and long-lived tangible assets. Sections VII-XIV discuss various aspects related to reporting museums' operations including contributions received and made, agency transactions, special events, auxiliary activities, advertising, and joint costs. Sections XV-XVII discuss the basis for presentation in museums' financial statements, including how to report measures of operations, the use of fund accounting for internal purposes, accounting for for-profit and not-for-profit related entities, and the preparation of consolidated financial statements. The last two sections describe various regulatory, tax, and other requirements and discuss processes museums' managements and boards can use to assess financial performance and develop financial plans.
The Portfolio contains numerous examples of the application of accounting principles to transactions that museums typically undertake and illustrates the appropriate recognition, measurement, and disclosure of those transactions. The Working Papers included in the Portfolio contain a full set of illustrative financial statements and related notes, as well as various other materials useful in preparing and analyzing a museum's financial statements. A comprehensive Bibliography includes the most significant authoritative pronouncements applicable to museums.
This Portfolio may be cited as BNA Tax and Accounting Portfolio 5201, Benson and Glazer, Accounting for Museums (Accounting Policy and Practice Series).
Martha L. Benson, CPA, has 20 years of experience as an auditor, administrator, author, professor, and conference speaker in the not-for-profit industry. She has worked as an Audit Manager with Arthur Andersen, Chief Financial Officer of the Dallas Museum of Art, and Chief Financial Officer of the Fort Worth Museum of Science and History. She is a member of the Texas Society of Certified Public Accountants and the American Institute of Certified Public Accountants and has served on the latter's Not-for-Profit Organizations Committee. Her publications include articles in the Journal of Accountancy and three books on accounting for nonprofit organizations. A certified public accountant, licensed in Texas, Ms. Benson teaches at Franklin & Marshall College and the Fels Institute of the University of Pennsylvania.
Alan S. Glazer, Ph.D., University of Pennsylvania; M.A., University of Pennsylvania; A.B., Franklin & Marshall College. Dr. Glazer assisted in drafting the AICPA's Audit and Accounting Guide, Not-for-Profit Organizations, and served as associate director of the Independence Standards Board's conceptual framework project. He has authored articles on auditor independence and accounting ethics and co-authored a book, Accounting for Museum Collections and Contributions of Collection Items. Dr. Glazer is a member of the American Association of University Professors, the American Accounting Association, and the American and Pennsylvania Institutes of Certified Public Accountants, and serves on the editorial board of the Journal of Accountancy. A certified public accountant, licensed in Pennsylvania, Dr. Glazer is Henry P. and Mary B. Stager Professor of Business and Chair of the Department of Business, Organizations and Society at Franklin & Marshall College.
