Should the encouraged disclosures on heritage assets be eliminated?

Do you present all the GRAP 103 encouraged disclosures in your financial statements? Or do you only present some of the disclosures – and why?

Stakeholders questioned the limited informational value of some of the encouraged disclosures in GRAP 103 during ASB’s post-implementation review of GRAP 103 on Heritage Assets. Specifically, the disclosures on:

• information about the age and condition of a heritage asset; and
• the range of estimates within which fair value is likely to lie when a heritage asset is not recognised on initial recognition or when the cost model is applied as a subsequent measurement basis.

The ASB also learned that in many instances, there is insufficient information to support these disclosures. The insufficiency of the disclosures often resulted in audit queries.

As part of ED 195 on Proposed Amendments to the Standard of GRAP 103 on Heritage Assets, the ASB proposes removing these encouraged disclosures.

Stakeholders indicated that the disclosures on heritage assets borrowed from or on loan to other entities are useful. ED 195, therefore, proposes that entities should be required to include a description of any heritage assets borrowed from or on loan to the other entity where these arrangements exist. An entity will also be required to disclose the entity from which the heritage asset is borrowed or the entity to which the heritage asset is on loan, along with the period of the arrangement.

Do you agree with removing the GRAP 103 encouraged disclosures? And do you agree with GRAP 103 requiring an entity to disclose heritage assets borrowed from or on loan to other entities?

Let the ASB know your views. Access ED 195 by following the link.

This has been prepared by the Secretariat of the ASB and not the Board.