| ASB proposes changes to the Standard on heritage assets |
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The Board issued proposed amendments to GRAP 103 on Heritage Assets for comment in September 2021. The changes to GRAP 103 were proposed by the Board in response to feedback received from stakeholders during the post-implementation review of GRAP 103.
A range of comments were received during the post-implementation review. Not all the feedback received required changes to the Standard. Some of the issues can be addressed through new or revised FAQs, while others require more detailed implementation guidance from the National Treasury. |
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| What changes are proposed to GRAP 103? |
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The key changes proposed to the Standard are as follows: - Definition of a heritage asset – The definition has been amended to align it more closely with the definition of a heritage asset in legislation. The definition focuses on assets with cultural significance, and explains what cultural significance means in legislation.
- Accounting for heritage assets with an alternative use – Heritage assets could have cultural significance while being used for operational or other purposes by an entity. Previously, heritage assets with another purpose were accounted for based on this other use. The new proposal is that all heritage assets should be accounted for using GRAP 103.
- Measurement of heritage assets – Stakeholders raised concerns about the measurement of heritage assets. These issues related to (a) initial recognition using fair value, and in what circumstances a reliable measure cannot be determined, (b) determining fair value, and (c) the valuation process. Guidance has been added to GRAP 103 to explain when a reliable measure is not available, and additional methods that could be used to determine fair value. The Board also agreed that entities should keep assessing whether a reliable value becomes available after initial recognition. The National Treasury is working on a project to develop guidance for preparers on the practical issues to consider when obtaining external valuations.
- Encouraged disclosures – The encouraged disclosures were reviewed by stakeholders during the review. They indicated that the information, even if provided by entities, is unlikely to be of value to users of the financial statements. The Board proposes deleting most of the encouraged disclosures.
- Additional disclosures – Additional disclosures are proposed for an entity’s custodial responsibilities, particularly relating to the disposal of heritage assets, and when heritage assets are borrowed from or on loan to others.
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| The proposed changes are outlined in ED 195. Access the full Exposure Draft and Invitation to Comment on the ASB’s website. The comment deadline is 28 January 2022. |
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