Question

what is heritage asset and what is the purpose of purchasing heritage asset?

Answer 1

HERITAGE ASSET:

Heritage asset is a kind of tangible asset which has cultural, historical, geographical sand national significance.These assets are maintained in order to provide knowledge and culture. Examples of heritage assets are historical monuments, historical buildings, natural landscape,works of arts etc.

The holders of these assets can't sell the asset without external consent because there are laws governing the heritage assets.

PURPOSE OF PURCHASING HERITAGE ASSETS:

Heritage assets usually form an important part of the financial statements under an organization's control. Therefore, if we completely remove these assets from a company's financial statements, an incomplete picture of an organization will be formed. Moreover there will be many shareholders who would be interested to know about the complete picture of your company's assets and liabilities. If you can communicate about the heritage assets to them, they will be impressed by your company's position and can invest in your shares more resulting into the increase of share capital.

One more important point is that keeping record  of heritage assets in the financial statements ensures proper insurance coverage is in place.