Asset Componentisation

Asset Componentisation is the process/practice of (notionally) breaking up complex assets into parts with similar useful lives.

Image: Steven Leckart

Thoughtful componentisation, should make it easier to manage the accounting aspects of asset renewal, and may reduce the amount of residual value that needs to be assigned to complex assets.


Roads are typically broken up into three or four components, namely:

Kerb and Channel can also be considered to be a road component.

Sewage Pump Stations

An active asset such as a sewage pump station may need to be broken up into many different components. Bundaberg Regional Council for example breaks its pump stations up into the following components:

  • Flowmeter
  • Motor Starter
  • Odour Control
  • Pipework and Valves
  • Pump Stool
  • Slide Rail
  • Pump Well Structure
  • SCADA RTU Installation
  • Submersible Pump
  • Switchboard
  • Dry Well Submersible Pump
  • Line Shaft
  • Electric Motor
  • Ventilation Fan
  • Verticle Split Casing Pump

Stormwater Pipes

Stormwater pipes are typically not componentised (pits are usually considered to be a separate asset to the pipe), but where an existing concrete pipe is given an in-situ lining, the lining may be treated as a separate component.


Buildings are one of the most complex asset types owned by a typical Council, and there are many ways they can be componentised.

Some examples of possible building components include:

Collaborators & Contributors

The following people have contributed to this page and/or have indicated (via the Local Government Collaboration Topics Survey) that they have an interest and/or expertise in the topic of 'asset componentisation' and are willing to collaborate with their peers at other councils and organisations to identify challenges and resources relating to the topic and to look for ways to work together to overcome any challenges that are identified.

Related Pages

External Links & References

  1. Google Search
  2. Fair Value Pro
  3. ACCA
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