The paper argues for the inclusion of roads and bridges as assets in the Balance Sheets of State Road Authorities. Traditionally expenditure on roads was expensed because roads were not classed as an asset as they were on Crown Land, they had no resale value and they earned no money directly for the Authority. Recent Accounting Standards have changed the definition of an asset from requiring ownership to control. Roads are controlled by Road Authorities. Capitalising roads will highlight the real costs of maintaining and preserving the road infrastructure, helping State Road Authorities compete for funds, raise the profile of road funding requirements and assist moving towards commercial commercial accounting principles. Roads should be valued at current replacement cost, depreciated, and a provision for refurbishment established for programmed maintenance (A).
Samenvatting