Valuing your assets

This article outlines new guidance material introduced in the UK in July 2005 to provide a logical process for asset valuation. The guidance is designed to assist local authorities in starting to develop asset management. Key drivers in determining the need for asset valuation include preserving the highway infrastructure; demonstrating asset stewardship; and supporting whole-of-government accounts and highway asset management. Asset valuation is defined as the calculation of the current monetary value (depreciated replacement cost) of the assets. Two different approaches are recommended for depreciation: conventional approach, depreciating each asset separately over its estimated service life; and renewals accounting where the level of annual expenditure on the operating capacity is treated as the depreciation and deducted from current asset value. The conventional approach should be used for individual items, and land; renewals accounting is recommended for roads and structures. Sudden impairment of assets is also considered in the valuation guidance.

Language

  • English

Media Info

  • Pagination: 16-8
  • Serial:
    • SURVEYOR
    • Publisher: Hemming Group, Limited
    • ISSN: 0039-6303

Subject/Index Terms

Filing Info

  • Accession Number: 01018221
  • Record Type: Publication
  • Source Agency: Transport Research Laboratory
  • Files: ITRD
  • Created Date: Feb 2 2006 8:14AM