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Section PS 4240 - Collections held by not-for-profit organizations

Effective date:

January 1, 2012

Published by the PSAB:

December 2010


This Section establishes disclosure standards for collections held by not-for-profit organizations.

Collections are works of art, historical treasures or similar assets that are:

  1. held for public exhibition, education or research;
  2. protected, cared for and preserved; and
  3. subject to an organizational policy that requires any proceeds from their sale to be used to acquire other items to be added to the collection or for the direct care of the existing collection.

The cost of capitalizing collections often would exceed the incremental benefit of the information gained, especially for organizations that have been in existence for several decades. Accordingly, although the capitalization of collections is not precluded, it is not required.

History of Section PS 4240




December 2010

New Section

This new Section is part of the new accounting standards for government not-for-profit organizations establishing recognition, measurement and disclosure standards.

Sections 4200 to 4270 are effective only for government not-for-profit organizations that elect to follow the standards for not-for-profit organizations in the CPA Canada Public Sector Accounting Handbook and are effective for fiscal periods beginning on or after January 1, 2012.

Note: The above summary does not include details of consequential amendments made as the result of other projects.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.