Problems of asset recognition and measurement in IFRS financial

Critically consider asset recognition and measurement drawing on:
• the accounting policy for property held by a chosen FTSE 350 company; and the • recognition and
measurement of a specific heritage asset held by a UK public
sector organisation consolidated in Whole of Government Accounts. Should your chosen heritage asset be
included in the financial statements?
The Brief
The essay should consider the problems of recognition and measurement for Property held for commercial
purposes by the FTSE company and your chosen heritage asset held by the public service entity. Both
organisations will be subject to IFRS accounting requirements either directly or as modified for public services.
You should show an awareness of both accounting regulatory requirements and wider academic debate and
insights. Support your arguments with illustrations from the most recent annual financial reports of the FTSE
350 company and the UK public sector body.
Background
In the UK, large listed companies have used IFRS in the preparation of consolidated financial statements and
reports since 2005. IFRS, with minimum modifications for a public sector context, has been applied since 2010
across central government bodies, the National Health Service and local authorities together with many other
bodies such as museums and galleries that are consolidated into Whole of Government Accounts (WGA).
IFRS determines when assets are recognised and measured. Measurement of non-current assets is a
contentious area; IFRS can require specific or permit different measurement bases in company annual reports.
There has been a long-standing international academic debate about whether government and public sector
bodies should prepare their annual financial statements and reports according to accounting frameworks and
standards designed for commercial entities. There is also a more specific debate in relation to recognition and
measurement of heritage assets.