Financial accountability and Reporting Assignment

The assignment focuses on the topic of heritage(assets and it is based on understanding the nature of heritage assets, the issues of measuring such assets and a practical case study on accounting for heritage assets in National Gallery of Victoria.

QUESTIONS:

1) Briefly outline (max 15 lines):

• What are heritage assets;
• Two examples of heritage assets;
• The main issues related to whether heritage assets should be reported in financial accounting terms.

2) In consideration of the two conditions for recognition of assets (AASB116 Property, plant and equipment), which are:

a. It  is  probable  that  the  future economic  benefits embodied  in  the  asset  will eventuate;

b. The asset possesses a cost or other value that can be measured reliably.

Provide  1  (one)  reason  why  these  conditions  MAY  apply  to  heritage  assets  and  1 (one) reason why these conditions MAY NOT apply to heritage assets.

3) Looking inside the NGV Annual Report 2014Q2015 and the "cultural assets" that are recognized and reported in it:

a. Present the categories of "cultural assets" as identified by National Gallery of Victoria.

b. Explain how these assets are measured and depreciated.

4) You have studied that accounting rules may have implications (positive or negative) on society (people, environment etc...). As an example, the requirement to expense research costs (AASB138 Intangible  Assets)  may  reduce  the  opportunities  for discoveries and breakthroughs in medicine.

Assignment link -

https://www.dropbox.com/s/1yt3c5vza5assf1/Research%20Assignment.zip?dl=0.