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Infrastructure Reporting: Attitudes of Preparers and Potential Users
Author(s) -
Walker R.G.,
Dean G.W.,
Edwards P.J.
Publication year - 2004
Publication title -
financial accountability and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.661
H-Index - 44
eISSN - 1468-0408
pISSN - 0267-4424
DOI - 10.1111/j.1468-0408.2004.00199.x
Subject(s) - legislation , accounting , government (linguistics) , relevance (law) , business , local government , public relations , public administration , political science , law , linguistics , philosophy
Legislation requires some Australian local governments to provide to a State government minister an annual assessment of the physical condition of infrastructure, together with estimates of the cost of restoring that infrastructure to a satisfactory condition. This 1993 legislation predates other accounting standards providing for disclosures or use of condition assessments, notably the USA's FASAB 6 (1996) and GASB 34 (1996), and the UK ASB's FRS 15 (1999). Utilising structured interviews, this study investigates the extent to which information from those reports has been disseminated within local councils. It also investigates whether accounting or engineering staff, or both, were involved in preparation of these reports, and explores the relative attitudes of staff and elected councillors, to the relevance of information in infrastructure reports. The study also reports comments volunteered by respondents about the relative merits of capitalising (and then depreciating) infrastructure assets, versus reporting on infrastructure condition. Findings suggest that those working in local government see merit in the compilation of reports on infrastructure condition and the cost of upgrading it, though opinion is divided as to the weight actually placed on those reports in decision‐making. Both accounting and engineering staff perceive that engineers have far greater involvement in the preparation of these reports. The findings also suggest a failure on the part of technical specialists to share information, and collaborate in the compilation of management plans and budgets.