Are the IPSASB and ASB proposals adequate for public heritage assets?

Abstract

Accounting systems of Public Administrations are the object of a reformation process in order to adequate them to the new informative demands, which emerge from the need, with independence of the sector they belong to, for the articulation of a homogeneous informative structure in the field of economic activities. This means the incorporation to the accounting systems of all patrimonial elements of public entities, among which are some with special particularities, as in the case of �Heritage Assets�. In this paper the different approaches adopted on these type of goods by two of the most important normalising professional worldwide organisms in the field of public accounting information: the �International Public Sector Accounting Standard Board� (IPSASB) of the �International Federation of Accountants�(IFAC) and the �Accounting Standards Board� (ASB) of U.K. are analysed. The approaches followed by these institutions are the latest tendencies related to the application of the accrual basis which, as we will explain in our paper, it shows significant limitations when applied to some accounting concepts in the public environment. A detailed analysis of the main controversial aspects of the application suggested by these approaches with regard to the incorporation of economic information of �Heritage Assets� to the financial statements of public administrations is presented in this paper. The revision done of the accounting literature concerning this point shows the particulars difficulties which arise from the application of these currents on elements, as the ones already mentioned, especially relevant in the activity of public entities. The analysis realized reveals, in the authors� opinion, the need for the search of new approaches when it comes to present real useful accounting public information for the users� needs, beyond a mimetic application of approaches originated and developed in different environments for which rule management principles absolutely clash with the objectives pursued by public administrations.