A methodology for integrating asset valuation in transportation asset management

Asset valuation is an essential component of effective asset management. It is an important method to demonstrate proper management of public assets and effective utilization of governments budgets. In addition, it allows agencies to demonstrate justifications of funds needed to preserve its assets. Asset valuation is used in standard reporting, depreciation schedules, auditor requirements and condition assessments. Several government regulatory bodies mandate agencies to report their Capital Tangible Assets' (CTA) values within their annual statement. For example, the Canadian Public Sector Accounting Board (PSAB), the Governmental Accounting Standard Board (GASB) and the New Zealand International Financial Reporting Standards (NZ IFRS) to name a few. Integrating asset valuation in asset management is imperative to manage assets in the most optimized cost-effective ways while maintaining or enhancing the value of these assets. Furthermore, the increased movement towards Public Private Partnerships (PPP) raises the question of how to identify the optimum or practical asset value criteria in performance based specifications that provide the required Level of Service (LOS). The objective of this paper is to present a research overview to develop an asset management methodology to integrate asset value and valuation concepts and techniques with performance measures, prediction models, life-cycle cost analysis, prioritization and optimization tools as well as decision-making tools of asset management state-of-the-practice.