Heritage Assets are assets of cultural, environmental, or historical significance such as works of art, historical buildings, and statues of value that also contributes to a nation’s society, knowledge, and/or culture.
Heritage Assets means all assets and properties of every kind, character, and description, whether tangible, intangible, real, personal, or mixed, which are owned, used, or held for use by heritage entities as of the period under review.
Here are some common examples of heritage assets;
- Assets collectibles, such as museum collections, artworks, and library collections.
- Non-collectible assets, such as parks, monuments, and buildings.
The accounting standards necessitate recording heritage and cultural items as assets in an entity’s balance sheet when the definitional and recognition criteria are met in line with PPE IAS 16.
However, it’s very difficult to depreciate these assets due to the fact that they have a very long useful life hence making the calculation of depreciation impossible.
The above being said, the asset will be recognized in the financial statements and subject to revaluation and review for impairment on the same basis as PPE.
Thanks for reading.