This section details a set of worked examples illustrating application of the asset valuation guidance presented in Chapters 3 to 8. The examples include calculation of asset value for: 1.) a highway agency based on cost and market perspectives; 2.) a transit agency based on a cost perspective; and 3.) a highway agency based on an economic perspective. The examples are drawn from a set of four validation tests performed using a draft version of the guidance. Together, the examples illustrate the application of many of the different concepts and options described in the previous chapters, including different perspectives on what value represents, different approaches for calculating initial value, and different approaches for calculating depreciation.
Note that the data from the agencies participating in the testing has been adapted for the purpose of providing examples. In some instances, data from different validation tests have been combined or simplified to best illustrate the asset value calculation process.
This section describes cases studies profiling the asset valuation approaches of two highway agencies from Britain and Australia. Each case study demonstrates how the agency defines its asset hierarchy, establishes replacement costs, and calculates depreciation. The agencies profiled in the case studies follow the asset valuation guidance established in their respective countries, and their work in this area predates the development of this document. Nonetheless, both agencies use approaches that are very consistent with the guidance presented here, illustrating the common philosophy between the guidance, international standards for calculating asset value, and the state of the practice worldwide.