Has the management of infrastructure assets (IAs) improved with the use of the accrual method in local government?
Author InfoAllan Molland Robert Clift Abstract Purpose – The purpose of this study was to investigate how senior accounting staff in Victorian local authorities are recording and reporting infrastructure assets (IAs) with their relevant depreciation in General Purpose Financial Reports (GPFRs) and the decisions made from this information. IAs are long-lived assets such as roads, drains and bridges. The introduction of Australian Accounting Standard No. 27 Financial Reporting by Local Governments (AAS27), which applies to all Australian local authorities require IAs to be reported in the balance sheet and depreciation to be charged in the operating statement in order to reflect the loss of service potential in the operating period concerned. Before AAS27, the purpose of public sector accounting was to demonstrate that funds have been raised and expended strictly within the authority of the annual budget on a cash basis. The efficiency and effectiveness of decision-making by users of thi
