Asset valuation guide

Better practice guide for consultation: Valuing public infrastructure at current replacement cost

The guide

QAO has prepared a better practice guide to help public sector not-for-profit entities with measuring the fair value of their infrastructure assets using current replacement cost.

From our extensive experience in auditing public sector entities with contrasting valuation approaches, we have identified better practices and solutions to some common challenges

Our aim is to share our insights and advice, and help entities comply with Australian accounting standards.

This guide has been prepared for a wide range of users including:

  • those without accounting backgrounds
  • preparers of financial statements
  • senior management and others charged with governance (such as audit committees)
  • auditors
  • asset managers and asset accountants
  • valuers
  • engineers.

It has five parts—a main guide and four supplementary documents.

The main document provides an overview of the valuation technique, explores common challenges, provides detail for practitioners, and advice for management.

The Glossary provides definitions of key accounting concepts relating to property, plant and equipment, and fair value.

Part 3: Application of concepts to specialised buildings provides examples of how entities can practically apply the theory in the Guide to the valuation of specialised buildings.

Part 4: Application of concepts to roads provides examples of how entities can practically apply the theory in the Guide to the valuation of specialised buildings.

Part 5: Application of concepts to audit committee papers provides examples of better practice for audit committee papers.

 

Consultation is now closed.

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