Calculating asset value for TAM is consistent with best practices in TAM. Also, it is required of state Departments of Transportation (DOTs). Title 23 of the United States Code (USC), Section 119 (e)(4) requires state DOTs to develop a risk-based Transportation Asset Management Plan (TAMP) for National Highway System (NHS) pavement and bridges in their state. The TAMP is required to detail the state DOT’s financial plan and investment strategies. Title 23 of the Code of Federal Regulations (CFR) Part 515.7(d)(4) further stipulates that the TAMP financial plan should include asset value for NHS pavement and bridges, and the cost to maintain value. In addition to using asset value to satisfy reporting requirements, agencies can use asset valuation as one component in calculating the costs and benefits of their investment decisions, particularly if an agency calculates asset value based on the economic perspective described in the guidance.

To comply with the Government Accounting Standards Board (GASB) Statement 34, agencies also record their assets’ book value in annual financial reports. GASB 34 allows for either a standard (i.e., historic cost with straight-line depreciation) or modified approach. Frequently U.S. agencies use different approaches for calculating asset value in financial reports than that used for their TAMP given differences in the requirements for and applications of these documents.