Should The Public Heritage Collections Be Done?

997 Words Apr 8th, 2015 4 Pages
Accounting can be done in several different ways and the way it is done may result in consequences for organizational behavior and management. (O 'Hare, n.d.) One issue is the failure of museum to capitalize their collections and report them as assets. According to the Australian Accounting Standards, annual general-purpose financial reports will be misrepresented if heritage and collections are included as assets. One of the criteria’s of an asset is to bring future economic benefit. The question raised in relation to museum is whether the public heritage collections have any future economic benefits deriving from the collections which is economic to the museum? These arguments are very extensive and many museums can argue about the fact that there collections will provide economic benefits but can they provide a degree of certainty that it will happen?
The essay will have three parts. First part will be about assets and its characteristics and also its recognition. The second part will be heritage assets and collections of museums. At last will see about some scholars what they have to say about this topic. In the end we can come to a conclusion about heritage and collections whether to be recorded as assets or not.
Assets are defined as per AASB framework as a resource controlled by the entity as a result of past events and from which future economic benefit is expected to flow in the entity. (Leo, Hoggett & Sweeting, 2012) There are three key characteristics of this…
Open Document