An article published in The New York Times (May 1, 1990) entitled “Pricing the Priceless: Museums Resist, Accountants Insist” states that “many museums’ most valuable assets, from moon rocks to Michelangelos, are nowhere on their books.” In response, the FASB “is drafting tough new accounting rules that would require museums to state the value of their collections on their balance sheet to earn an unqualified opinion from their auditors . . . most museums are concerned because they have long found it useful to have audited financial statements for fund raising and other purposes.” REQUIRED:

a. Do you believe that museums, non-profit institutions, should be required to have their art objects appraised and the values be placed on their balance sheets? Discuss.

b. Why would museums resist such a rule, and be concerned about receiving unqualified opinions from their auditors?