The scope of an asset value analysis is thoroughly described in Chapter 3.
Information on asset value and how it is changing may support a number of different applications related to both TAM and financial reporting. When establishing the approach to calculating asset value, it is important to consider which applications the calculation is intended to support. This will then guide subsequent decisions concerning how specifically to calculate asset value.
Table 31. Implications of Different Asset Value Drivers on the Calculation Process
Asset Value Driver  Initial Asset Value (Chapter 4)  Treatment Effects (Chapter 5)  Depreciation (Chapter 6)  Measure Calculation (Chapter 7) 

Maintaining Financial Reporting Consistency  Calculate value based on historic cost.  Establish cost, useful life and treatment history for construction, reconstruction and replacement.  Depreciate value linearly based on asset age.  Asset Value Asset Consumption Ratio 
Reporting Asset Value for TAM  Calculate value based on replacement cost or market value.  Establish cost and useful life for construction, reconstruction and replacement. Avoid analysis of historic treatments by using condition data where available.  Depreciate value based on effective age determined using condition data. Use linear depreciation unless a nonlinear depreciation pattern has been established.  Asset Value Cost to Maintain Value Asset Consumption Ratio Asset Sustainability Ratio Asset Funding Ratio 
Evaluating Treatment Decisions  Calculate value based on replacement cost  Establish cost, useful life and treatment effects for all treatments being compared. Avoid analysis of historic treatments by using condition data where available.  Depreciate value based on effective age determined using condition data. Evaluate the benefit consumption pattern in determining how to depreciate.  Asset Value Cost to Maintain Value Net Present Value Asset Consumption Ratio 
Determining Benefits to Users and Society  Calculate value using an economic perspective.  Establish cost and useful life for construction, reconstruction and replacement.  Calculate costs and benefits expected over the life of the asset in lieu of depreciation.  Net Present Value Benefit/Cost Ratio 
For more information go to Section 3.1
Data needs and data quality play an important role in the scope of the asset value calculation. Explore the table below to identify which data your agency needs, and consider applying a data assessment to your data in order to determine it’s quality and completeness.
Table 32. Data Needs for Asset Value Calculation
Inventory Data  
Always Needed Asset quantity by:
 May Be Needed

Challenges


Condition Data  
Always Needed
 May Be Needed

Treatment Data  
Always Needed
 May Be Needed Historic data on treatments performed by:

Challenges


Other Data and Parameters  
Always Needed
 May Be Neeeded

Challenges

Consider the following set of asset types when determining which assets to include in the valuation: pavement, structures, traffic & safety assets, vehicles, fixed guideway, and facilities.
Componentization provides greater accuracy in the asset value calculation, for it separates an asset into component pieces which allows for the application of different depreciation and treatment effects. Typical assets componentized are pavements and bridges, as these assets are more complex and have specialized treatments.