Measuring the value of heritage assets to be reported in the statement of financial position raises difficulties because:

Question

Quizplus · Accepted Answer

Obtaining a reliable valuation for heritage assets is difficult because there is no active market for such assets, and they are often unique, which makes comparing them with other assets almost impossible. The cost of maintaining and improving the value of heritage assets may also be high, but this is not the primary reason for the difficulty in measuring their value. While the carrying value of such assets can sometimes be zero, this is not always the case, and the cost of obtaining expert valuations is not necessarily prohibitive for government departments.

Measuring the Value of Heritage Assets to Be Reported in the Statement