Asset Management

Asset Management Accounting for Local Government – The Australian Experience

March 28, 2007 | Peter Way – Chair, National Asset Management Strategy Group of the Institute of Public Works Engineering Australia

  Introduction At the invitation of the Public Service Digest, this article has been written to share experience from Australia on the introduction of accrual accounting for local government and how that has impacted on asset management practices in Australian local government. Given the impending introduction of new accounting standards in Canada which will require a move from “cash” based accounting to “accrual” accounting, this sharing of lessons learned, is hopefully timely. Such a move follows a world wide trend towards greater transparency, accountability and longer term financial planning to ensure sustainability of services required to be provided by long life assets.   Australian Local Government Australian governmental arrangements are similar to Canada in that Australia has a National or Commonwealth Government under which sit the six State and two Territory Governments, (similar to Canada’s Provi...