Read the article and answer the questions that follow.

In 2006, the United Kingdom Accounting Standards Board proposed that heritage assets such as art collections and buildings be shown on the balance sheets on the institutions which hold them. Barker (2006) explains that heritage assets are defined as assets with historic, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture when this purpose is central to the objectives of the reporting entity. She adds that since most heritage assets do not move through the market place frequently, there is a problem in valuing heritage assets. The UK exposure draft proposed that heritage assets should be capitalized if it is practicable to obtain valuations and such valuations provide useful and relevant information.

Required:

Answer the following questions about the issue of recognizing the value of heritage assets in the financial statements of the organizations which are responsible for the assets.

Question One

In what waysare heritage assets similar to the assets of for-profit entities and in what ways are

they different?

Question Two

Is it appropriate to recognize a heritage asset in the financial statements of the entity which has

custody of and responsibility for the asset?

Question Three

Are there users for the information about the value of heritage assets?

Question Four

Can a financial value be assigned to heritage asset?