FRS30 Heritage Assets in Annual Accounting
Financial Reporting Standard 30 -Heritage Assets
Discussion started by Gavin Edwards , on 325 days ago
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Things seems to have come to some sort of conclusion for this year, so I thought I would just add a short comment about our experiences. It wasn
Not that I am aware of, but I believe the nationals went through this process last year and that it was always intended to take in local authorities this year. At this point I have to admit to being naive or negligent as it wasn't until our own internal Finace Dept. contacted me that I became aware of this issue, and through my discussions with them to recognised how their opertional requirements could have a significant impact on our own. As things have developed it does appear that both sides are on a steep learning curve and that consequently, for this year at least, we just have to muddle our way through and take stock on how to formalise procedures at a future date. In that regard I am increasingly hopeful that it will be a pragmatic solution but I still believe we need to share experineces and observations so that we develope the right vocabluary ad understanding in order to influence and shape the outcome.
Many thanks for that and I just wish others had a similar interpretation of the term 'asset' and what it means in this situation.
I am entirely happy with the idea that the collections can be considered to be an 'asset' in terms of what a museum does, after all we wouldn't exist without them, but for some of those in local authority Finance Departments they do seem to consider collections as a realisable financial 'asset'. It would also appear that some of those who are charged with populating the required spreadsheets are just as surprised by this clash of worlds as I am, but still hold to the belief that the solution must ultimately conform to their reality. I may be doing them an injustice and that clarification and guidelines are filtering down on both sides, but for the moment I have no idea what information has been passed (with or without explanation / qualifictaion) onto the Audit-Commission who now wish to test the veracity of the information they have been supplied.
I certainly do not feel that we are controlling the process, and are therefore in danger of being forced into diverting a lot of staff time towards accumulating entirely irrelevant information about an 'asset' , i.e. the collections, which is NOT a realisable or convertible 'asset'. I will now be seeking some further clarification on the rational and purpose of defining collections in terms of their potential market value and will keep you posted.
I am entirely happy with the idea that the collections can be considered to be an 'asset' in terms of what a museum does, after all we wouldn't exist without them, but for some of those in local authority Finance Departments they do seem to consider collections as a realisable financial 'asset'. It would also appear that some of those who are charged with populating the required spreadsheets are just as surprised by this clash of worlds as I am, but still hold to the belief that the solution must ultimately conform to their reality. I may be doing them an injustice and that clarification and guidelines are filtering down on both sides, but for the moment I have no idea what information has been passed (with or without explanation / qualifictaion) onto the Audit-Commission who now wish to test the veracity of the information they have been supplied.
I certainly do not feel that we are controlling the process, and are therefore in danger of being forced into diverting a lot of staff time towards accumulating entirely irrelevant information about an 'asset' , i.e. the collections, which is NOT a realisable or convertible 'asset'. I will now be seeking some further clarification on the rational and purpose of defining collections in terms of their potential market value and will keep you posted.
I have (so far) managed with the support of my senior managers headed this one of by going back to basics.
Assets are defined as items that can be sold in the event of someone's death to clear the debts of the estate. Museum collections are therefore not "assets" in accountancy terms. Museum collections are held in trust by local authorities for the people of the area. They are not available to sell as assets, and it is unlikely that the local authority will "die"
Not sure how this woudl work in private, independant or uni museums, do they too have to comply with this new standard?
Hope this helps add something to the debate, because I too think this is not an exercise a museum wishes to go through or sustain. Here in Dundee something similar was carried out I think in the mid to late 80s onto a main frame computer. It has been of subsequently.no use to us as a museum.
Assets are defined as items that can be sold in the event of someone's death to clear the debts of the estate. Museum collections are therefore not "assets" in accountancy terms. Museum collections are held in trust by local authorities for the people of the area. They are not available to sell as assets, and it is unlikely that the local authority will "die"
Not sure how this woudl work in private, independant or uni museums, do they too have to comply with this new standard?
Hope this helps add something to the debate, because I too think this is not an exercise a museum wishes to go through or sustain. Here in Dundee something similar was carried out I think in the mid to late 80s onto a main frame computer. It has been of subsequently.no use to us as a museum.