Submitted in fulfillment of the requirement for the Degree of Master of Technology: Cost and Management Accounting, Durban University of Technology, 2013. / Property, plant and equipment (PPE) constitute a significant portion of total assets of South African public higher education institutions. It is therefore important to keep proper records of the assets and to account for them accurately in the Annual Financial Statements. The aim of this study therefore was to investigate the accounting treatment of property, plant and equipment at public higher education institutions (PHEIs) in South Africa. The following objectives were addressed in this study, to: determine how assets are classified; find out how asset transactions are recorded; and to determine the accounting treatment of assets in terms of cost, depreciation, impairment and disposal. Based on the International Financial Reporting Standards, this study used a mixed-methods research approach to collect data regarding the accounting treatment of PPE at the 23 PHEIs in South Africa. Analysis of results indicated that some institutions: apply different useful lives for the same asset classes; use threshold amounts for the recording and depreciating of assets; use the same value for the recording and depreciating of assets while others record at one value but depreciate at a higher value; and depreciate PPE at different rates as they apply varying useful life to different asset classes. This study also found that while some institutions do impairment testing on an annual basis, others do not, as they do not have a policy in place for impairment testing. Given that the activities or business of educational institutions are similar in nature, this study recommends that PHEIs need to apply consistent recording of assets in terms of their useful life as the useful life of an asset has direct correlation with the surplus or deficit of an institution. This study makes further recommendations regarding the accounting treatment of PPE at PHEIs in South Africa based on the findings of this study. Suggestions for further research are also presented.

Due to scarce financial resources, over-stretched budgets, pressures for service delivery and the dynamic nature of local government, asset management plays a key strategic role in enhancing local municipal functionality and efficiency. Asset management is the management of physical assets, infrastructure, and immoveable assets. It is an evolving discipline that is enhanced by the understanding of asset conditions and performance. It improves decision-making within local government. Every year, local government announces millions of Rands’ worth of assets that are unaccounted for and that go missing in annual reports. It was the purpose of this study to assess the asset management function at the Nelson Mandela Bay Municipality (NMBM). The aim is to improve the management of moveable assets by investigating the following variables: strategic management of assets, knowledge management, governance, leadership, the impact of corruption and skills management. The approach to the study is a qualitative research paradigm with a case study methodology and an interview as a research instrument. The sample chosen comprised people from the top level of municipal management down to municipal asset controllers. The two forms of data that were collected in the study were primary data and secondary data. Primary data was collected from municipal workers and collated together for analysis purposes. Secondary data was gathered from library sources such as journals, books, conference papers, government acts, municipal policies and local newspapers. This data informed the interview questions. The interview strategy was chosen as the best way to conduct the empirical part of this research and was guided by an interview guide. The study found that there are operational defects in the way asset management is organised. This makes the function seem unimportant. The results also indicated a lack of staff members and skills shortages; such as management and computer skills. Indications are that theft, negligence, corruption and carelessness negatively impact the management of assets. Recommendations include the filling of vacant posts, tightening of internal controls, providing the necessary training and improving the asset management. The study makes a contribution to the current body of knowledge.