The conceptual arguments concerning accounting for public heritage assets: a note
Abstract
Purpose
This paper seeks to reply/comment on the paper by Keith Hooper et al., titled “‘Knowing the price of everything and the value of nothing’: accounting for heritage assets”.
Design/methodology/approach
This note uses the economic theory of public goods to complement the explanation and analysis of Hooper et al's article on accounting for public heritage assets by New Zealand museums.
Findings
Using public goods theory from economics, the paper explains why the “sector neutral” approach, which underlies the application of commercial accounting standards to public heritage assets, is unsound; why “fair market prices” cannot be obtained for public heritage assets because of their being public goods; and why they should be accounted for outside the statement of financial position as assets held in trust by the custodial entities.
Originality/value
The opposition of some of the museums to the accounting standards being imposed on them is soundly based in the economic theory of public goods.
Keywords
Citation
Barton, A. (2005), "The conceptual arguments concerning accounting for public heritage assets: a note", Accounting, Auditing & Accountability Journal, Vol. 18 No. 3, pp. 434-440. https://doi.org/10.1108/09513570510600774
Publisher
:Emerald Group Publishing Limited
Copyright © 2005, Emerald Group Publishing Limited