This paper was presented at the session titled `Assessment of user costs in pavement infrastructure life-cycle costing'. It first provides the framework for asset valuation and then discusses the alternative accounting bases and methodologies. Both financial accounting, and correspondingly a book value methodology, and management accounting, and correspondingly a written down replacement cost methodology, are described, along with their pros and cons. Other methods, including market value, equivalent present worth in place and productivity realised value are also briefly described. Performance indicators for agencies for pavements within the general transportation context are defined. Finally, depreciation functions and performance models, including common features and differences, are then discussed for all assets under agency ownership. This paper is based largely on an asset valuation and performance indicators project carried out for the Transportation Association of Canada. (A)
Abstract