Heritage and Biological Assets
According to the Accounting Standards Board (UK, 2006), a heritage asset
was defined as ‘an asset with historic, artistic, scientific, technological, geophysical or
environmental qualities that is held and maintained principally for its contribution to
knowledge and culture and this purpose is central to the objectives of the entity holding it’. It
also has been defined by Canadian Institute of Chartered Accountants (1989) as ‘fixed assets
that a government intends to preserve indefinitely because of their unique historical, cultural
or environmental attributes’. In accordant with the auditor-general of NSW, a common
characteristic of heritage assets is that they cannot be replaced. As UK ASB listed some
heritage assets and with the definitions above, examples of heritage assets are national parks,
national monuments, museum and library collections, and historical buildings and sailing
vessels. Therefore, it is hard to restrict access to heritage assets and the assets have limited
ways of use.
Heritage assets are unique. Main difference is that, unlike assets which are
commonly held by private-sector entities, these assets will never generate significant
cashflows in the future. On the contrary, they are likely to decrease future cashflows in
order to ensure they are maintained at their current value to society. Also, their value is
likely to increase over time and as they age, in contrast with most private sector assets (i.e.
depreciation & amortisation). Moreover, by definition, heritage assets do not exist to produce
wealth to individuals who ‘own’ them while typical assets ‘owned’ by entities usually benefit
the holders of the assets. The difficulties related to determining the appropriate measurement
and disclosure of heritage assets would raise another difference with typical assets that are
held by private-sector entities.
Generally a biological asset is defined as ‘a living animal or plant’.
was defined as ‘an asset with historic, artistic, scientific, technological, geophysical or
environmental qualities that is held and maintained principally for its contribution to
knowledge and culture and this purpose is central to the objectives of the entity holding it’. It
also has been defined by Canadian Institute of Chartered Accountants (1989) as ‘fixed assets
that a government intends to preserve indefinitely because of their unique historical, cultural
or environmental attributes’. In accordant with the auditor-general of NSW, a common
characteristic of heritage assets is that they cannot be replaced. As UK ASB listed some
heritage assets and with the definitions above, examples of heritage assets are national parks,
national monuments, museum and library collections, and historical buildings and sailing
vessels. Therefore, it is hard to restrict access to heritage assets and the assets have limited
ways of use.
Heritage assets are unique. Main difference is that, unlike assets which are
commonly held by private-sector entities, these assets will never generate significant
cashflows in the future. On the contrary, they are likely to decrease future cashflows in
order to ensure they are maintained at their current value to society. Also, their value is
likely to increase over time and as they age, in contrast with most private sector assets (i.e.
depreciation & amortisation). Moreover, by definition, heritage assets do not exist to produce
wealth to individuals who ‘own’ them while typical assets ‘owned’ by entities usually benefit
the holders of the assets. The difficulties related to determining the appropriate measurement
and disclosure of heritage assets would raise another difference with typical assets that are
held by private-sector entities.
Generally a biological asset is defined as ‘a living animal or plant’.