A Broader Issue Raised by the Measurement of Heritage Assets

A broader issue raised by the measurement of heritage assets in the financial statements of government entities is the appropriateness of the AASB Framework Project for not-for-profit entities.Among other things,writers have argued that:

A) It is not clear that the social objectives of not-for-profit enterprises are compatible with the approach to accountability implied in the qualitative disclosures the Conceptual Framework Project gives rise to.
B) The heritage 'assets' held by not-for-profit entities should be de-accessioned and valued at cost if they are to fit within the definitions of assets in the Conceptual Framework. Where this is not feasible they fall outside the Conceptual Framework's objectives.
C) Accrual accounting concepts form the basis of the Conceptual Framework Project. These concepts are fundamentally based on the historical-cost approach to accounting and are therefore flawed in relation to heritage assets, which clearly should be valued using a market-based measure.
D) It is not clear that 'assets' held by not-for-profit entities should be defined in terms of their probability of generating future economic benefits.