A concern associated with the capitalisation of heritage assets is that it will lead to financial statement users believing that the assets could be readily sold when this is not the case.

Question

Quizplus · Accepted Answer

Capitalisation of heritage assets may lead to their inclusion on financial statements as assets with a monetary value. However, the heritage value of these assets may not be easily quantifiable, and they may not be readily saleable. This could lead financial statement users to overestimate the company's ability to generate cash from these assets.

A Concern Associated with the Capitalisation of Heritage Assets Is