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of a database that includes other information about the donors, such as their donation histories and demographic information. A donor list may but does not always arise from contractual or other legal rights. However, donor lists are frequently leased or exchanged. Therefore, a donor list acquired in an acquisition by a not-for-profit entity normally meets the separability criterion (see paragraph 805-20-55-4). However, a donor list would not meet the separability criterion if the terms of confidentiality or other agreements prohibit an entity from selling, leasing, or otherwise exchanging information about its donors. [FAS 164, paragraph A67, sequence 168]

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      > Example 1: Collection Items Received in an Acquisition by Gift

958-805-55-49 This Example illustrates application of the guidance in paragraphs 958-805-25-23 through 25-24. Museum B, which has a policy of not capitalizing its collection, acquires Museum A without transferring consideration. As part of the transaction, Museum B acquires 500 paintings owned by Museum A. Museum B adds 450 of Museum A’s paintings to its collection. The remaining 50 paintings acquired from Museum A are not suitable for Museum B’s collection. They are not subject to donor restrictions, and Museum B expects to sell them. The fair values of Museum A’s assets and liabilities other than collection items (the 450 paintings) at the acquisition date follows. [FAS 164, paragraph A87, sequence 188.1]

Cash Accounts receivable Contributions receivable Property, plant, and equipment Paintings (50 paintings) Liabilities Identifiable net assets other than collections



200 400 200 800 100 (200) 1,500

[FAS 164, paragraph A87, sequence 188.2]

958-805-55-50 An NFP acquirer needs to determine whether acquired collection items were purchased or contributed and, if purchased, the cost to attribute to them. [FAS 164, paragraph A86, sequence 187.3] Because Museum B transferred no consideration, it would recognize a separate credit to its statement of activities (contribution received) of $1,500 in accordance with paragraph 958- 805-25-31. No measurement of the collection items (the 450 paintings) would be required because it is evident that those items were contributed as part of the acquisition. It is evident that the items were contributed because the fair value of the identifiable assets (excluding the collection items) exceeds the fair value of the liabilities assumed and no consideration was transferred for the acquiree. Any value that might be ascribed to the newly acquired collection items would


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