Should an entity assess whether a value becomes available for a heritage asset if one was not available on initial recognition?

­GRAP 103 on Heritage Assets currently requires that a heritage asset for which a reliable value cannot be determined on its acquisition date should not be recognised as an asset. An entity is not required to re-assess if a value can be determined subsequently. However, should preparers assess if a value becomes available for a heritage asset if  there was no value on initial recognition? 

It was this question that led the ASB to propose amending the existing requirements in GRAP 103. ED 195 on Proposed Amendments to the Standard of GRAP 103 on Heritage Assets proposes that an entity should re-assess if a value can be determined subsequently if it could not be valued on initial recognition. As it will be onerous to require an annual assessment, ED 195 proposes that the assessment  be done when triggered by an indicator. These indicators could include:

• changes in the condition of the heritage asset, for example, when the heritage asset is restored into a useable condition. The restored heritage asset can now be compared to similar heritage assets sold in a market;
• information about the fair value of a heritage asset becomes available through using new valuation techniques; or
• changes in the market’s demand for a specific heritage asset as a result of new technology available to authenticate the asset.

The ASB is of the view that users would like to understand the events or circumstances that led to the entity being able to subsequently value the asset. As a result, ED 195 proposes  disclosure of these events or circumstances, along with a description of the heritage asset and the value at which it is subsequently recognised.

Do you agree with the proposed changes and disclosures? Are there any other indicators that could trigger a re-assessment? 

Share your views by accessing  ED 195.

This has been prepared by the Secretariat of the ASB and not the Board.