[whitesoxfancpa]

Page 13 of Becker’s F-9 lecture is confusing me. It states:

Governments should capitalize works of art, historical treasures, and similar assets as their historical cost or fair value at date of donation (estimated if necessary) whether they are held as individual items or in a collection. Governments are encouraged, but not required, to capitalize a collection (and all additions to that collection), whether donated or purchased, when that collection meets all of the following conditions:

It goes on to list three conditions.

So, the very first sentence says they SHOULD capitalize them whether individual or in a collection. Then it says they are ENCOURAGED, but not required, to capitalize if three conditions are met. So if the conditions are met, they don’t have to capitalize, but they are encouraged. How about if the conditions are not met?

So, that tells me basically nothing! Can anybody clear this up for me? Perhaps I’ve just read it wrong 10 times.

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