[et_pb_section admin_label=”Header – All Pages” global_module=”1221″ transparent_background=”off” background_color=”#1e73be” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”||0px|”][et_pb_row global_parent=”1221″ admin_label=”row”][et_pb_column type=”4_4″][et_pb_post_title global_parent=”1221″ admin_label=”Post Title” title=”on” meta=”off” author=”on” date=”on” categories=”on” comments=”on” featured_image=”off” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”light” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” title_all_caps=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” title_font=”|on|||” title_font_size=”35″ custom_padding=”10px|||”]
[/et_pb_post_title][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” global_module=”1228″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row global_parent=”1228″ admin_label=”Row” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”0px||0px|” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on”][et_pb_column type=”4_4″][et_pb_text global_parent=”1228″ admin_label=”Text” background_layout=”light” text_orientation=”left” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[breadcrumb]
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off”][et_pb_row admin_label=”Row”][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[button link=”https://ie.frs102.com/members/premium-toolkit/” type=”big” color=”red”] Return to Main Index[/button]
[/et_pb_text][/et_pb_column][et_pb_column type=”1_2″][et_pb_text admin_label=”Text” background_layout=”light” text_orientation=”center” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
[button link=”https://ie.frs102.com/members/premium-toolkit/section-34/” type=”big” color=”red”] Return to Section 34 Home[/button]
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section admin_label=”Section” fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″][et_pb_row admin_label=”Row”][et_pb_column type=”4_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color=”#ffffff” border_style=”solid”]
Heritage Assets
Extract from FRS102: Section 34.49-.34.56
34.49 All heritage assets shall be accounted for in accordance with the requirements of paragraphs 34.50 to 34.56. These paragraphs do not apply to investment property, property, plant and equipment or intangible assets which fall within the scope of Section 16 Investment Properties, Section 17 Property, Plant and Equipment and Section 18 Intangible Assets other than Goodwill.
34.50 Works of art and similar objects are sometimes held by commercial entities but are not heritage assets because they are not maintained principally for their contribution to knowledge and culture. These assets shall therefore be accounted for in accordance with Section 17. Heritage assets used by the entity itself, for example historic buildings used for teaching by education establishments, shall also be accounted for in accordance with Section 17. This is based on the view that an operational perspective is likely to be most relevant for most users of financial statements. However, entities that use historic buildings and similar assets may wish to consider whether it is appropriate to apply the disclosures required by paragraphs 34.55 and 34.56.
Recognition and measurement
34.51 An entity shall recognise and measure heritage assets in accordance with Section 17 (i.e. using the cost model or revaluation model), subject to the requirements set out in paragraphs 34.52 to 34.53 below.
34.52 Heritage assets shall be recognised in the statement of financial position separately from other assets.
34.53 Where heritage assets have previously been capitalised or are recently purchased, information on the cost or value of the asset will be available. Where this information is not available, and cannot be obtained at a cost which is commensurate with the benefits to users of the financial statements, the assets shall not be recognised in the statement of financial position, but must be disclosed in accordance with the requirements below.
34.54 At each reporting date, an entity shall apply Section 27 Impairment of Assets to determine whether a heritage asset is impaired and, if so, how to recognise and measure the impairment loss. A heritage asset may be impaired, for example where it has suffered physical deterioration, breakage or doubts arise as to its authenticity.
Disclosure
34.55 An entity shall disclose the following for all heritage assets it holds:
(a) An indication of the nature and scale of heritage assets held by the entity.
(b) The policy for the acquisition, preservation, management and disposal of heritage assets (including a description of the records maintained by the entity of its collection of heritage assets and information on the extent to which access to the assets is permitted).
(c) The accounting policies adopted for heritage assets, including details of the measurement bases used.
(d) For heritage assets that have not been recognised in the statement of financial position, the notes to the financial statements shall:
(i) explain the reasons why;
(ii) describe the significance and nature of those assets; and
(iii) disclose information that is helpful in assessing the value of those heritage assets.
(e) Where heritage assets are recognised in the statement of financial position the following disclosure is required:
(i) the carrying amount of heritage assets at the beginning of the reporting period and the reporting date, including an analysis between classes or groups of heritage assets recognised at cost and those recognised at valuation; and
(ii) where assets are recognised at valuation, sufficient information to assist in understanding the valuation being recognised (date of valuation, method used, whether carried out by external valuer and if so their qualification and any significant limitations on the valuation).
(f) A summary of transactions relating to heritage assets for the reporting period and each of the previous four reporting periods disclosing:
(i) the cost of acquisitions of heritage assets;
(ii) the value of heritage assets acquired by donations;
(iii) the carrying amount of heritage assets disposed of in the period and proceeds received; and
(iv) any impairment recognised in the period.
The summary shall show separately those transactions included in the statement of financial position and those that are not.
(g) In exceptional circumstances where it is impracticable to obtain a valuation of heritage assets acquired by donation the reason shall be stated.
Disclosures can be aggregated for groups or classes of heritage assets, provided this does not obscure significant information.
34.56 Where it is impracticable to do so, the disclosures required by paragraph 34.55(f) need not be given for any accounting period earlier than the previous comparable period, and a statement to the effect that it is impracticable shall be made.
OmniPro comment
Heritage assets are accounted for under the rules of Section 17 Property, plant and equipment i.e. on a cost or revaluation basis but in addition:
- Where the cost cannot be measured then this fact should be disclosed.
- It should be identified separately from other tangible assets
- And reviewed for indicators of impairment under Section 27 annually.
Works of art and similar objects are sometimes held by commercial entities but are not heritage assets because they are not maintained principally for their contribution to knowledge and culture. These assets shall therefore be accounted for in accordance with Section 17 in full and the above 3 exceptions are not applied.
[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]