ACCOUNTING MODELS FOR RECOGNITION AND MEASUREMENT OF HERITAGE ASSETS IN FINANCIAL STATEMENTS OF PUBLIC SECTOR ENTITIES

Abstract This study aims to develop accounting models for the initial recognition and measurement of tangible cultural heritage in the financial statements of public sector entities. The proposed models are based on a comprehensive theoretical and methodological review of the existing literature, supported by an analysis of international accounting practices. Their implications are considered in the context of sustainable public sector development and adaptation to the evolving global economic environment. The study argues that Bulgaria lacks a modern accounting framework for the recognition, measurement, and disclosure of tangible cultural heritage that is aligned with the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities and the requirements of the International Public Sector Accounting Standards (IPSAS). To address this gap, a two-component accounting model for tangible cultural heritage is proposed. The research applies systemic, historical, and logical approaches, together with observation, comparative analysis, and analogy. It evaluates the Conceptual Framework and IPSAS requirements related to heritage asset accounting and examines current accounting practices in Bulgaria to assess their consistency with internationally accepted standards.