Annual Report & Accounts 2007-2008 - Historic Scotland

The sources of information and assumptions made in producing the various valuations
are set out in the Valuation Certificate which is not published in the Annual Report and
Accounts.
The valuation figures incorporated in the Annual Report and Accounts are the aggregate
of separate valuations of parts of the portfolio, not a valuation or apportioned valuation of
the portfolio valued as a whole.
The feuhold property comprising the monument estate is not included in the rolling
programme of valuations as it would be impossible to obtain a reliable valuation for these,
and Historic Scotland has included these at nil value.
Expenditure of a capital nature incurred in pursuance of the agency’s commercial
activities on works integral to the fabric of the historic sites is initially identified as assets
under construction within the fixed asset note. Thereafter it is transferred to the relevant
asset category. Similar works of a non-commercial nature are written off in the year of
expenditure.
Land related to operational assets is capitalised where it can be clearly separated from the
heritage asset.
Depreciated historic cost has been used as a proxy for the current value of motor vehicles
and plant and machinery. All of the assets in these categories have
1. low values and short useful economic lives which realistically reflect the
life of the asset and;
2. A depreciation charge which provides a realistic reflection of
Consumption.
Computer equipment is stated at cost.
Works of art which are new works and have only recently been completed have been
included at cost. Once the assets reach more than five years of age, they will be subject to
professional valuation and their value will be amended accordingly.
Additions to collections purchased during the year, which are defined as non-operational
heritage assets, have been capitalised at purchase price.
The capitalisation thresholds for the principal categories of assets are: -
Land £10,000
Buildings and dwellings £10,000
Plant and motor vehicles £5,000
Office equipment £5,000
Computer equipment £1,000
Development costs £5,000
Antiques and works of art £5,000
(non-heritage)
(e) Depreciation
Depreciation is provided on tangible fixed assets, excluding historical assets and archives,
on a straight line basis at rates sufficient to write down their cost over their estimated
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