| VOLUME: I |
POLICIES RELATED TO ACCOUNTING ADMINISTRATION |
| SUBJECT: |
Capitalization of Art and Museum Objects |
| SOURCE: |
American Institute of Public Accountants (AICPA) Guidelines for Colleges and Universities, GAAP
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| DATE ISSUED: |
July 1992, Revised May 2003 |
| POLICY NO.: |
I-240 |
| RATIONALE: |
To establish what art objects will be capitalized as capital art and museum objects.
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| POLICY: |
Any art and museum piece purchased or donated to the university shall be capitalized if the value is $5,000 or greater. If a collection is greater than $5,000 then it will be capitalized as a collection
In order to assign a book value, donations to the university must be appraised. If the unit unto whom the item has been donated feels that the item is not worth an appraisal, the nominal value of One Dollar ($1.00) shall be assigned. The Indiana University Foundation Planned Giving office is prepared to assist the university and donors in connection with the appraisal requirements and documentation of such in-kind gifts.
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| PROCEDURE REFERENCE: |
In order for an item to be capitalized as an art and museum piece the correct object code must be utilized on the purchase and disbursement documents.
A list of the current object codes (income and expense classes) is available by contacting the Campus Chart Manager (see listing; http://www.fms.indiana.edu/) or the Financial Information System's Object Code References Tables.
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| CROSS REFERENCE: |
For more detail and definition on this policy, refer to the Indiana University Capital Asset Manual, Accounting for Assets at Indiana University, distributed by the Financial Management Support department.
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| RESPONSIBLE ORGANIZATION: |
Financial Management Services |
