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Glenn Hegar  ·  Texas Comptroller of Public Accounts

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Asset Categories
Works of Art & Historical Treasures

Works of art and historical treasures are collections or significant individual items that are owned by a state agency and held for public exhibition, education or research as part of a public service rather than for financial gain. Collections or individual items protected and cared for or preserved are subject to an organizational policy that requires the proceeds from the sale of such items to be used to acquire similar items.

Exhaustible collections or items are items whose useful lives are diminished by display, educational or research applications. Exhaustible collections are depreciated.

Inexhaustible collection or items are items whose economic benefit or service potential is used up so slowly that the estimated useful lives are extraordinarily long. Because of their cultural, aesthetic or historical value, holders of the asset protect and preserve the asset more than that for similar assets without such value. Inexhaustible items are not depreciated.

All works of art and historical treasures acquired by or donated to the state are capitalized unless held for financial gain.

  • Record acquired works of art and historical treasures at historical cost
  • Record donated works of art at acquisition value (per GASB 72, paragraph 79) at the time of donation

Collections already capitalized as of June 30, 1999, remain capitalized and all additions to those collections are capitalized, even if they meet the conditions for exemption from capitalization.

If a collection is held for financial gain and not capitalized, include a disclosure in the Other Text field in the DINSS web application, which provides agencies the opportunity to enter a description of the collection and the reasons these assets are not capitalized. The collection is classified as an “investment” and is not recorded in SPA. When donated collection items are added to noncapitalized collections, recognize the program expense equal to the amount of revenues.

Glenn Hegar
Texas Comptroller of Public Accounts
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