Heritage assets in the due process of the International Public Sector Accounting Standards Board (IPSASB)

This paper assesses whether the IPSASB’s consultation paper (CP), ‘Financial Reporting for Heritage in the Public Sector’ might actually end academic debates about how to report on heritage assets. Similarities and differences in the position of the IPSASB, previous academic literature and the CP’s respondents are examined by the authors. IPSASB proposed that heritage be recognized and measured in financial statements, whereas the academic literature has supported reporting largely through disclosure notes. Most respondents agreed with the IPSASB, but raised the same difficulties as discussed in the academic literature. The respondents were mainly public sector entities and professional associations, mostly from Europe, Oceania and Africa. Though the CP asks the right questions, it does not provide the needed guidance which indicates it will not be able to end the ongoing debate.IMPACTThis research offers fresh knowledge about financial reporting on heritage items, offering financial statement users and preparers information about possible future stages of heritage accounting policy. The paper will be useful for policy- and decision-makers, as well as the standard setting boards (SSBs). It provides insight into respondents’ behaviour in consultation processes and the influence of a respondent’s background on participation, which should help SSBs improve their consultation processes. First steps were made regarding research into the influence of different variables (for example geographical locations, affiliation and legislative background) on opinions regarding the topic of the CP. This paper points the way forward for new discussions about accounting for heritage.