The IPSASB has released for comment a consultation paper on financial reporting for heritage in the public sector.
”There is currently a variety of financial reporting practices for heritage items, which reduces the comparability of public sector entities’ general purpose financial reports (GPFRs),” said IPSASB Chair Ian Carruthers. “Many public sector entities have heritage responsibilities and this Consultation Paper is a first step toward developing financial reporting guidance to support accountability and decision making in this area.”
The paper describes heritage items as items that are intended to be held indefinitely and preserved for the benefit of present and future generations because of their rarity and/or significance. It proposes that:
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heritage items’ special characteristics do not prevent them from being assets for the purposes of financial reporting;
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heritage items should be recognized in the statement of financial position if they meet the recognition criteria in the Conceptual Framework; and
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in many cases, it will be possible to assign a monetary value to heritage assets.
The paper also discusses:
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initial and subsequent measurement of heritage assets;
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whether heritage preservation responsibilities could involve present obligations for entities, which should be recognized as liabilities in the financial statements; and
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presentation of information for heritage in GPFRs.
Comments on the Consultation Paper are requested by September 30, 2017.
Full press release
Full consultation paper
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