Please use this identifier to cite or link to this item:
https://hdl.handle.net/1959.11/29792
Title: | Accounting Problems in Infrastructure Asset Valuation and Depreciation in New South Wales Local Government |
---|---|
Contributor(s): | Ivannikov, Igor (author); Dollery, Brian (author) |
Publication Date: | 2020-06 |
Early Online Version: | 2018-12-13 |
DOI: | 10.1111/auar.12275 |
Handle Link: | https://hdl.handle.net/1959.11/29792 |
Abstract: | The aim of this paper is twofold: (i) to investigate whether New South Wales (NSW) local government councils comply with Australian Accounting Standards in accounting for revaluation of their infrastructure assets and (ii) to assess any consequences for the reliability of financial reporting in NSW local government. Using road assets as an example, we analyse the results of revaluations of road assets undertaken by 89 NSW councils as reported in their financial statements during the period 2013 to 2016. In this analysis we focus on the effect of a change in accumulated depreciation and impairment loss component of fair value as a percentage of the gross replacement cost of the revalued assets. The analysis reveals that in most cases this effect is significant. However, the accounting and reporting of this effect is strikingly inconsistent between the councils. Based on a critical analysis of the accounting framework and disclosure of the revaluation effects, we conclude that the main reason for the change in the fair value of assets is altered estimates of remaining useful life. Furthermore, we argue that councils did not comply with the requirements of AASB 116 in determining the useful life of the assets. |
Publication Type: | Journal Article |
Source of Publication: | Australian Accounting Review, 30(2), p. 105-115 |
Publisher: | Wiley-Blackwell Publishing Asia |
Place of Publication: | Australia |
ISSN: | 1835-2561 1035-6908 |
Fields of Research (FoR) 2008: | 140218 Urban and Regional Economics |
Fields of Research (FoR) 2020: | 380118 Urban and regional economics |
Socio-Economic Objective (SEO) 2008: | 940204 Public Services Policy Advice and Analysis |
Socio-Economic Objective (SEO) 2020: | 230204 Public services policy advice and analysis |
Peer Reviewed: | Yes |
HERDC Category Description: | C1 Refereed Article in a Scholarly Journal |
Appears in Collections: | Journal Article UNE Business School |
Files in This Item:
File | Size | Format |
---|
Items in Research UNE are protected by copyright, with all rights reserved, unless otherwise indicated.