The Wharton Esherick Museum

“As required by the fasb accounting standards codification, entities are required to determine whether it is more likely than not that a tax position will be sustained upon examination by the appropriate taxing authorities before any part of the benefit can be recorded in the financial statements. It also provides guidance on the recognition, measurement and classification of income tax uncertainties, along with any related interest or penalties. This standard had no impact on the organization's financial statements. The organization's federal tax return is subject to audit by taxing authorities. The organization's returns open audit periods are for the fiscal years ending december 31, 2011-2013.”

“Easements: the museum received an easement in 2012 for the museum building and land. Easements are legal restrictions that permanently protect land while leaving it in private ownership. A landowner donated the easement to the museum, which in turn ensures that the conditions of the easement are met over time. While the owner still retains the fee interest in the land, it is the museum's responsibility to monitor compliance with restrictions as set forth in the easement and to take action, including legal measures if necessary, to correct violations.”

“Collections - the collections, which were acquired through contributions since the museum's inception, are not recognized as assets on the statement of financial position. Proceeds from sales would be reflected as increases in the appropriate net asset class. The museum's collections are made up of art and craft objects held for educational and other purposes. The items are catalogued and cared for, and activities verifying their existence and assessing their condition are performed continuously. The collections are subject to a policy that requires proceeds from sale of collection items to be used to acquire other items for the collection.”

“Endowment funds are intended for the use to maintain the art work of wharton esherick.”