What must be met to avoid recording the donation of works of art or historical treasures?

To avoid recording the donation of works of art or historical treasures, the conditions outlined in option C are particularly critical. Under accounting standards, specifically those adhered to by non-profit organizations, contributions of works of art or historical treasures do not need to be recorded as assets if they are held for display purposes and the organization specifies that any proceeds from the eventual sale of these items will be designated for acquiring more items in the same category. This reflects the organization’s intent to maintain a collection for public benefit rather than generate profit, thus allowing for potential exemptions from the requirement to recognize these items as assets in the financial statements.

While the other options provide alternative scenarios regarding donations, they do not align with the specific accounting treatment described in guidance for non-profits regarding donated artwork or historical items. For instance, the first option mentions the intent to sell, which typically requires recognizing the asset since it indicates a shift in use from display to potential sale. The second option discusses fairness in valuation; however, if the items are intended to remain as part of a collection or for display, valuation becomes less critical for the purpose of asset recognition. The last option relates to donor recognition, but it does not address the criteria for treating the donated items in financial records explicitly. Thus,