Pothecary Witham Weld Solicitors

Our convent has a valuable collection of art which we have only valued in the accounts at an estimated original cost value, depreciated now to a nominal £1. Under the new SORP, it is understood that Heritage Assets have to be valued on a collection basis and that this can be avoided completely if a valuation is ‘impracticable’. What should we do?

Answer

What are Heritage Assets?

Heritage assets are assets of historical, artistic or scientific importance that are held to advance preservation, conservation and educational objectives of the charities through public access contribute to the nation’s culture and education either at a national or local level. Such assets are central to the achievement of the purposes of such charities and include the land, buildings, structures, collections, exhibits or artefacts they are preserved or conserved and are central to the educational objectives of such charities.

They can be excluded from the Balance Sheet if:

1.  reliable cost information is not available and conventional valuation approaches lack sufficient reliability; or
2. significant costs are involved in the reconstruction or analysis of past accounting records or in valuation which are onerous compared with the additional benefit derived by users of the accounts in assessing the trustees’ stewardship of the assets.