CLASSIFYING PROPERTY - COLLECTIONS - 8610.8

Collections include a grouping of works of art, historical treasures, or similar items whose purpose is public exhibition, education, or research. Agencies/departments are not required to capitalize a collection (and all additions to that collection), whether donated or purchased, that meets all of the following three conditions:

1. Held for public exhibition, education, or research in furtherance of public service, rather than financial gain.
2. Protected, kept unencumbered, cared for, and preserved.
3. Subject to an organizational policy that requires the proceeds from sales of collection items to be used to acquire other items for collections.

Collections that meet the above three criteria are considered inexhaustible and are not depreciated.

A collection that does not meet the above conditions is capitalized in accordance with SAM section 8602.

Capitalized collections or individual items that are exhaustible, such as library collections, or exhibits whose useful lives are diminished by display or educational or research applications, should be depreciated over their estimated useful lives.