Accounting for Public Heritage Asset

ACCOUNTING FOR PUBLIC HERITAGE ASSET

A controversial issue in the development of the conceptual framework is the disclosure and measurement of public heritage assets.  A discussion paper, issued by the Accounting Standards Board defined public heritage asset as “assets with historic, artistic, scientific, technological, geophysical or environmental qualities that are held and maintained principally for their contribution to knowledge and culture” (Deegan, 2012).With regards to the definition of tangible asset in IAS 16, the focus is to prescribe the accounting treatment for property, plant, and equipment (AASB, 1992).  

This submission wishes to discuss on public heritage asset in its definition, disclosure and measurement regarding one of the heritage sites in Fiji, the Sigatoka Sand Dunes.  The Sigatoka sand dune is conserved by law, and is covered with rich archaeological history of the first settlers in Fiji.  The Fiji government in conjunction with autonomous patrons have funded the National Trust of Fiji; a statutory body that administers and manages the heritage sites in Fiji (National Trust of Fiji Islands, 2002).  Encompassing the definition of public heritage asset Allan Barton highlights two approaches to accounting treatment of public heritage asset that is, as a public good and as an asset held in trust (Barton, 2005).

Firstly, Barton emphasises that public heritage assets (PHA) should be collectively disclosed as public goods (Barton, 2005).  The Sigatoka Sand dunes National Park is of great importance for educational and recreational use.  The dune is a large archaeological library that contains a lot of information about the history of Fiji (National Trust of Fiji Islands, 2002).  Educational tours for primary schools, scientific explorations by institutions create a social value that the public benefits from.  The National park offers beauty and attracts visitors from around the globe to learn about the history of the dunes and the ecology of the region (National Trust of Fiji Islands, 2002).  As Barton argues the PHA is an asset that does not have a competitive market and it cannot exclude people from using it or enjoying benefits from it (Barton, 2005).  

Secondly, Barton suggests that PHA should be managed and administered by the government or a government trustee, for the benefit of the nation as a whole (Hooper, Kearins, & Green, 2005).  The Sigatoka Sand dunes National Park is administered by the National Trust of Fiji Islands.  It is a statutory body established by the National Trust Act Cap 265 sec 4 of 1978(Fiji).   Currently, the Trust has gone further to educate the need to conserve the threatened wild life and cultural values. The Sigatoka Sand Dunes acts as host to 22 species of birds, eight of which are endemic species, a variety of indigenous trees and runs an awareness program about the importance of trees.  Researches use it as a platform to uncover more about the history of the Pacific region, which gives it more value as discoveries are made in the future (National Trust of Fiji Islands, 2002).  This marries Barton’s approach that “commercial values ignore the social benefits and hence understates the social values of heritage assets” (Hooper, Kearins, & Green, 2005).