INFRASTRUCTURE ASSET MANAGEMENT: THE VALUATION OF COMPLEX OBJECTS

Works and Water Management, is required to have a financial administration, which is based on accrual accounting principles. This involves the use of a balance sheet and the equivalent of a profit and loss statement. These documents will the basis for planning and controlling of public spending. The question to be answered is: Will it be possible to calculate a ‘generally accepted ’ value for infrastructure over its useful life by using sound accounting principles? The research is based on economic and accounting theory as applied internationally. Preliminary results indicate, that existing accounting principles are suitable for use in infrastructure management, enabling better control of public spending on infrastructure. Interviews with infrastructure providers in the Netherlands show that the transition towards an accrual-based administration will take more time than planned. Further test cases will be used for verification. Keywords: accountancy, asset management, infrastructure, life cycle costing, valuatio