Informe Anual, 2005 - Museo de Arte de Ponce

and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Basis of Accounting
The accompanying financial statements are presented on the accrual
basis of accounting.
Support and Revenues
The Museum receives a substantial amount of its support from government
agencies and the general public. Admission revenues are recognized
when earned. Pledges are recognized when these are legally enforceable.
All contributions are considered to be available for use unless specifically
restricted by the donor. A donor restriction expires when a stipulated
time restriction ends or when a purpose restriction is accomplished. Upon
expiration, temporarily restricted net assets are reclassified to unrestricted
net assets and are reported in the statement of activities as net assets
released from restrictions. However, if a restriction is fulfilled in the same
time period in which the contribution is received, the Museum reports the
support as unrestricted.
The Museum recognizes contribution revenue for certain services and
assets received at their fair value.
Allocation of Revenues and Expenses
It is the Foundation’s policy to allocate to the Museum those revenues and
expenses which are directly related to the Museum’s operations. General
and administrative expenses which are common to the Foundation and
the Museum are allocated based on management’s best estimate.
Accounts Receivable
Accounts receivable consist of balances collectible within one year.
Investments
Investments in debt securities are carried at market value.
Property and Equipment
Expenditures for property and equipment are recorded at cost. Depreciation
is provided on the straight-line basis over the estimated useful lives of the
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