FIXED ASSET ACCOUNTS AND PROPERTY LEDGERS FOR STATE HIGHWAYS

HIGHWAY DEPARTMENTS IN THE PAST HAVE NOT KEPT DETAILED RECORDS OF THE INVESTMENT IN HIGHWAYS NOR CALCULATED THE ANNUAL HIGHWAY DEPRECIATION COST, EITHER FOR THE SYSTEM AS A WHOLE OR FOR UNITS THEREOF. TO ILLUSTRATE ONE METHOD OF KEEPING A CONTINUOUS RECORD OF HIGHWAY INVESTMENT, TWO LEDGER FORMS ARE DEVELOPED AND ILLUSTRATED FOR A TYPICAL SECTION OF HIGHWAY 11.74 MILES LONG. THIS SECTION IS CALLED A "CONTROL SECTION" AND IS RECOMMENDED AS A PROPERTY UNIT NECESSARY TO ANY SYSTEM OF KEEPING A CONTINUOUS RECORD OF CONSTRUCTION INVESTMENT, RETIREMENT OF INVESTMENT, ANNUAL DEPRECIATION, AND MILEAGE OF THE STATE SYSTEM. FOR THE CONTROL SECTION, A GRAPHICAL LOG IS DRAWN TO SHOW THE CONSTRUCTION HISTORY AND TO AID IN THE DETERMINATION OF RETIREMENTS CAUSED BY RECONSTRUCTION. THE LEDGERS ARE BASED UPON HIGHWAY COSTS ITEMS AS FOLLOWS; RIGHT OF WAY; ENGINEERING; DRAINAGE, GRADING AND EARTHWORK; DRAINAGE STRUCTURES, SURFACE AND BASE; SHOULDER AND APPROACH SURFACING; BRIDGE AND OTHER STRUCTURES; TRAFFIC AND PEDESTRIAN SERVICES; AND ROADSIDE DEVELOPMENT. THE ANNUAL CONSTRUCTION COST, COST RETIRED, AND EXISTING INVESTMENT ARE SHOWN ON THE LEDGER FOR EACH YEAR FROM THE EARLIEST CONSTRUCTION. THE ENTRIES FOR EACH ACCOUNT ITEM ARE SHOWN IN PROGRESSIVE TOTALS TO AFFORD ADDITIONAL INFORMATION. THE SECOND LEDGER IS FOR THE PURPOSE OF ESTIMATING ANNUAL DEPRECIATION AND THE CURRENT VALUE OF THE CONTROL SECTION. THE GENERAL PROCEDURE OF DOING THIS IS BY ESTIMATING EACH YEAR THE EXPECTANCIES OF SERVICE FOR EACH ITEM AND CALCULATING THE ANNUAL DEPRECIATION AND CURRENT VALUE ACCORDINGLY. THE ADJUSTMENTS WHICH ARE NECESSARY BECAUSE OF CHANGING THE EXPECTANCIES AS NEW CONDITIONS EXIST AND TO CORRECT FOR THE RETIREMENT OF PROPERTY BEFORE IT IS FULLY DEPRECIATED ARE MADE EACH YEAR WITHOUT SPECIAL CALCULATIONS, SINCE THEY ARE A PART OF THE NORMAL PROCEDURE. /AUTHOR/

  • Supplemental Notes:
    • Vol 18, Pt 1, PP 61-75, TABS; part of Report of Department of Highway Transportation Economics
  • Authors:
    • Winfrey, R
  • Publication Date: 1939

Media Info

  • Monograph Title: Proceedings of the Eighteenth Annual Meeting of the Highway Research Board Held at Washington, D.C. November 28-December 2, 1938. Part I
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00201017
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Jun 1 1971 12:00AM