This section provides examples of “emerging,” “strengthening,” and “advanced” practices with respect to calculation of depreciation. Maturity levels are defined for each of the for two basic cases described in the guidance, that one has age data, or that one has condition data. In both cases there is an additional option to assume a linear pattern of depreciation with respect to age/effective age, or to perform a supplemental analysis to analyze the pattern of benefit consumption for the asset. In the table an emerging practice is one that supports the guidance with minimal complexity, an advanced practice illustrates a “state of the art” example in which an agency has addressed some aspect of the asset value calculation in a comprehensive manner, and strengthening practice lies between these two levels.
This section provides examples of “emerging,” “strengthening,” and “advanced” practices with respect to calculation of depreciation. Maturity levels are defined for each of the for two basic cases described in the guidance, that one has age data, or that one has condition data. In both cases there is an additional option to assume a linear pattern of depreciation with respect to age/effective age, or to perform a supplemental analysis to analyze the pattern of benefit consumption for the asset. In the table an emerging practice is one that supports the guidance with minimal complexity, an advanced practice illustrates a “state of the art” example in which an agency has addressed some aspect of the asset value calculation in a comprehensive manner, and strengthening practice lies between these two levels.
Asset age is not well established. Costs by asset class are calculated by year and depreciated without associating costs to specific assets.
Asset or component age is known or can be estimated based on inventory and treatment data, supporting calculation of depreciation at an asset class, asset and/or component level.
Asset age or component age is known or can be estimated based on inventory and treatment data. An analysis is performed of the consumption of asset benefits. A custom pattern of benefit consumption is used if supported by the analysis. Depreciation is calculated based on the selected approach by asset class, asset and/or component.
Condition data are sufficient for estimating the condition distribution at a network level. Condition is mapped to effective age and depreciation is calculated by asset class based on current condition.
An assessment is performed to determine how best to calculate effective age, potentially using actual age and/or condition. Depreciation is calculated based on effective age by asset class, asset and/or component.
An analysis is performed of the consumption of asset benefits. A custom pattern of benefit consumption is used if supported by the analysis. Otherwise, an assessment is performed to determine how best to calculate effective age, potentially using actual age and/or condition. Depreciation is calculated based on the selected approach by asset class, asset and/or component.