Asset Componentisation

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

Roads are for example typically broken up into at least three components, namely:

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.

Related Pages

External Links & References

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