Measuring the Value of Heritage Assets to Be Reported in the Balance

question 47

Multiple Choice

Measuring the value of heritage assets to be reported in the balance sheet raises difficulties because:

• A) While reliable valuations may be made, the cost of maintaining and improving the value of the assets is so high that the capitalisation of these amounts often distorts the valuations.
• B) The cost of heritage assets is the most reliable measure, but because heritage assets may be very old their carrying value will often be zero under the requirements of AAS 29.
• C) Obtaining a reliable valuation for heritage assets is problematic because there will generally be no sales or purchases and no valid market comparison to use.
• D) The cost of obtaining detailed valuations by experts in the area of the specific type of heritage asset is prohibitive for most government departments.
• E) None of the given answers.

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Definitions:

Advanced Economies

Countries with highly developed industrial infrastructures, high standards of living, and significant levels of income and economic growth.

Salespeople

Individuals who sell products or services to customers, often working on commission and focusing on meeting customer needs and closing sales.

Missionary Salespeople

Sales representatives who generate sales by promoting the firm and encouraging demand for its products.

Order-Takers

Sales personnel whose primary role is to facilitate transactions by taking orders from customers rather than actively seeking new sales.