Heritage Buildings

[Sherrill]

Council has several buildings that are listed as heritage buildings, and every 5 years we get these buildings valued using the depreciable replacement cost method. Every 5 years the cost to replace these buildings goes up. These buildings are in very good condition and maintained as and when required. Council has given these buildings a useful life of 100 years but in reality maybe we should be putting 200, 500 years, because the only thing that is going to knock them down would be an Act of God or criminal activity. Just curious as to what other Councils do with regards to these buildings and residual value and useful lives. Do you give these buildings a high residual value in order to keep the depreciation expense very low or perhaps more accurately give the building a very long useful life. Maybe they should be treated like a painting owned by the art gallery and not depreciated and the only time the WDV would be impacted would be from the recording of an impairment should that ever happen.

Curious as to the thoughts of others in this matter.