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The purpose of this study is to investigate how senior accounting staff in Victorian local councils are recording and reporting infrastructure assets (IAs) with their relevant depreciation in General Purpose Financial Reports (GPFRs). Infrastructure assets are long-lived assets such as roads, drains and bridges. Historically, the purpose of public sector accounting in Western countries has been to demonstrate that funds have been raised and expended strictly within the authority of the annual budget. This short-term charge/discharge objective, involving the use of a cash-based system of accounting, has effectively prevented the provision of information for long-term decision making and the assessment of those decisions. The major disadvantage for management purposes is the loss of information relating to the longterm benefits of expenditures with one of the major issues being the failure to record IAs and their relevant depreciation. The introduction of Australian Accounting Standard No. 27 Financial Reporting by Local Governments (AAS27), which applies to all Australian local authorities and the Statements of Accounting Concepts (SACs) require IAs to be reported in the Statement of Financial Position and depreciation to be charged in the Statement of Financial Performance in order to reflect the loss of service potential in the operating period concerned. It is anticipated that the study will report the implications for the accountability of the implementation of IA accounting and the utility and relevance of IA information and depreciation for decision-making by both internal and external users. Conclusions on the consequences of current practices and recommendations for change will be developed to assist local government authorities and accounting bodies.

Thesis (doctoral)--Universität Köln.

Thesis (Ph. D.)--University of Wisconsin--Madison, 1969. / Typescript. Vita. eContent provider-neutral record in process. Description based on print version record. Includes bibliographical references.

The objective of this thesis was to estimate the rate at which four types of farm machinery lose value in Canada. Specifically, Canadian data on used machinery prices was utilized to produce estimates of economic depreciation for two-wheel-drive tractors, combines, square balers and large round balers. The data used in this thesis to make these estimates are special for two reasons. First of all, they represent the only extensive record of Canadian used farm equipment prices available. Most previous studies have based their estimates on American data, assuming that they apply equally well to the Canadian situation. Secondly, these data record actual transactions in the used market and these transactions have been reported in an unaveraged format. This is valuable because information on options, horsepower, condition, and, most importantly, hours of use was retained for each machine. The availability of this information permitted richer and more specific estimates of depreciation. In particular, the inclusion of hours of use in the models enabled a distinction to be made in this thesis between the component of depreciation which is directly attributable to age and that component which is directly attributable to accumulated hours of use. It is felt that this distinction provides a beginning point for the study of depreciation due to simple "wear and tear", and that depreciation which is due to obsolescence and technological change. As well, this thesis extensively reviewed the literature on depreciation in an effort to determine the best approach to follow. The method finally adopted was the "remaining value approach"; however, the thesis went further than the typical remaining value approach because an attempt was made to estimate the pattern as well as the rate of depreciation. This was done by initially adopting a functional form which was flexible enough to let the data "choose for themselves" between the commonly used depreciation rules of thumb (declining balance, straight-line and one-hoss-shay patterns). This was possible by using the Box-Tidwell procedure. This Box-Tidwell procedure when applied to the extensive tractor data indicated that tractors in Canada follow a declining balance (geometric) pattern of depreciation. This was taken as support for the adoption of semi-log models to estimate depreciation. The main findings of this thesis are, first, that depreciation rates vary among assets (from approximately 9% for tractors to nearly 16% for large round balers), and, secondly, that these rates are less than those allowed by the government for tax purposes. It was concluded that this generosity on the part of the government would be acceptable if it applied equally to all depreciable assets, but the divergence in depreciation rates found in this thesis indicate that generous blanket depreciation charges give more advantage to some than to others. / Land and Food Systems, Faculty of / Graduate

Technological obsolescence has a more profound impact on the future economic life of long-term operating assets today than it had in the past. Therefore, the periodic capacity costs required to sustain current revenues should not only include the wear and tear costs of using long-term operating assets but also the costs related to their technological obsolescence. In reality, however, firms often record depreciation and amortization (D&A) expense that do not capture the effect of technological changes, resulting in misleadingly low D&A expense and overstated earnings. In this paper, I propose a measure of maintenance capex that attempts to measure the economic capacity cost required for a firm to sustain its current level of revenue. I find that the median firm recognizes 25% lower D&A expense compared to the estimated level of maintenance capex. This results in overstatement of operating income by 7%. I show that under-depreciating firms, which report lower D&A expense than their estimated maintenance capex, experience future write-offs and negative future earnings. Moreover, under-depreciation is also associated with significantly negative future abnormal stock returns, suggesting that stock prices do not fully reflect the implications of the under-depreciation for future earnings. In sum, my measure can help financial statement users identify under-depreciating firms, anticipate negative future earnings, and adjust reported earnings for valuation purposes. Additionally, I show that the well-documented negative relationship between investment and future stock returns is partly attributable to investors’ inability to differentiate between maintenance and growth capex.

Thesis: Ph. D., Massachusetts Institute of Technology, Department of Economics, 1977 / Vita. / Includes bibliographies. / Ph. D. / Ph. D. Massachusetts Institute of Technology, Department of Economics

Syftet med denna uppsats är att identifiera vilka konsekvenser som uppstått i och med den praktiska implementeringen av komponentavskrivningarna i bostadsrättsföreningar. För att uppnå studiens syfte har vi utgått från en kvalitativ metod med en abduktiv ansats. Insamlingen av empirin har skett genom semistrukturerade individuella intervjuer från sex stycken ekonomer inom förvaltningsbranchen. Detta material har sedan analyserats med hjälp av teori för att slutligen uppfylla syftet. Vår slutsats är att K3-regelverket medför brister i redovisningen i Bostadsrättsföreningar och att ett nytt regelverk anpassat för den branschen är önskvärt. / The purpose of this paper is to identify the consequences of the practical implementation of ”component depreciations komponentavskrivningarna” in housing cooperatives. To acquire this purpose, we have practice a qualitative method with an abductive hypothesis. When collecting the empirical data we have been conducting semi-structured individual interviews with six economists in the investment management industry. This data has been analyzed, tied to the theological data, to satisfy the purpose The conclusion of this research implies that the implement of the regulation of K3 has caused deficiencies in the accounting in housing associations and that a new regulation, more accommodated to the industry, is desirable.

Problem: Från och med januari 2014 är det obligatoriskt för K3-redovisande företag att göra komponentavskrivning på sina anläggningstillgångar. Argumenten kring komponentavskrivningen går isär och frågan är om bristen på vägledning leder till oklar tillämpning och skillnader i redovisningen. Syfte: Uppsatsens syfte har en deskriptiv och normativ form varav det deskriptiva syftet ämnar skapa en bild av aktuella redovisningssituationer för att sedan ställa dem mot den normativa teorin. Referensram: Referensramen består av en allmän referensram där vi redogör för de grundläggande begrepp som berör avskrivningar samt de ekonomiska effekter avskrivningsmetoderna leder till. I den teoretiska referensramen redogör vi först allmänt om redovisningsteori och sedan mer utförligt om den normativa teorin. Metod: Studien består av en kvalitativ metod med semistrukturerade intervjuer. Simuleringar används sedan för att göra jämförelser mellan ett verkligt företags och två fiktiva företag. Empiri: Det empiriska materialet är hämtat ifrån intervjuer med två representanter från ett fastighetsbolag som innehar förvaltningsfastigheter samt material i form av bokslut och företagets avskrivningsplaner över sina komponenter. Slutsats: Olika nyttjandeperioder har visat sig leda till betydelsefulla skillnader i redovisningen. Med påverkan från den normativa teorin bör emellertid valfriheten och därmed skillnaderna minska. / Problem: From January 2014 it is obligatory for K3-reporting companies to make component depreciation on its fixed assets. The arguments surrounding the component depreciation differs greatly and the question is whether the lack of guidance in the transition leads to a difference in application and accounting. Purpose: The purpose of this thesis has a descriptive and normative form of which the descriptive purpose aims to create an image of actual accounting situations and then set them against the normative theory. Framework: The framework consists of a general reference framework in which we describe the basic concepts related to depreciation and the economic impact of the methods. In the theoretical framework we begin with presenting general accounting theory and in more detail about the normative theory. Method: The study consists of a qualitative approach with semi-structured interviews. Simulations have been used to make comparisons between a real company and two fictitious corporations. Empirical data: The empirical data are drawn from interviews with two representatives from a real estate company that owns investment properties and materials in form of financial statements and the company´s depreciation schedules over its components. Conclusion: Different useful lives have been shown lead to significant differences in the accounts. However should the freedom of choice and thereby the disparities be reduced under the influences from the normative theory.

I början av 2014 infördes ett nytt regelverk för hur företag och ekonomiska föreningar ska avsluta sina räkenskapsår. Inte förrän media började rapportera om problemet tidigare i år har diskussionen satts igång och flera organisationer har gjort uttalande och förenklingar. De har visat sig vara svåra att tolka och implementera och för en del bostadsrättsföreningar kan tillämpningen vara ödesdiger. Valet står mellan två regelverk i det så kallade K-projektet. Syftet med studien är att utifrån bostadsrättsföreningarnas perspektiv utforska vilka faktorer som påverkar och hur de påverkas beroende av redovisningsvalet styrelsen gör. Detta kommer utföras genom att studera ekonomiska förvaltare som förser föreningarna med rekommendationer och information. Studiens problemformulering är därför vilka faktorer påverkar föreningarnas val av regelverk. Studien kommer utgå från ett abduktivt resonemang vilket är väsentligt för en explorativ studie. Tillsammans med teorier om rationella beslut, principal-agent förhållande, intressenter och risk, kommer vi att skapa en förståelse för hur föreningar fattar beslut. För att uppnå detta mål och få en bra helhetsbild kommer vi att utgå från kvalitativa undersökningar med semi-strukturerade intervjuer. För att styrka studiens tillförlitlighet utgick vi ifrån tillförlitliga metoder som är en central del för en god forskning. Vi har varit konsekventa och opartiska där vi utgick från samma material vid samtliga intervjuer för att forskningsfrågan ska anses korrekt framförd. Genom att analysera empirin har vi kunnat skapa exempel på möjliga scenario i resultaträkningar för att enklare kunna göra kopplingar till teorin. Resultatet av studien konstaterade att det är flera faktorer som påverkar valet som styrelsen gör. Det visade sig att styrelsen är beroende av information utifrån och att det finns flera intressenter som har ett egenintresse i valet. / In early 2014 introduced a new framework for how companies and economic associations must end their fiscal year. Not until the media began to report on the issue earlier this year, the debate has been launched and several organizations have made statements and simplifications. They have proven to be difficult to interpret and implement, and for some housing associations, the application may be fatal. The choice is between two sets of rules in the K-project. Depending on the choice that the Board make, the consequences of the different choices differ markedly. The purpose of the study is that the basis of condominium associations' perspective, exploring the factors that influence and how they are affected, depends on the accounting elections board does. This will be carried out by studying financial managers that provide boards with information and recommendations. The problem of the study is therefore what factors affect board election of the regulations. The study will be based on an abductive reasoning which is essential for an exploratory study. Along with theories of rational decisions, the principal- agent relationship, stakeholders and risk, we will create an understanding of how associations make decisions. To achieve this goal and get a good overall picture, we will start from qualitative research with semi-structured interviews. In order to prove the reliability of the study, we started from reliable methods that are a central part of good research. We have been consistent and impartial where we started from the same material at all interviews, to research the matter shall be correctly performed. By analyzing empirical data, we have been able to create examples of possible scenarios in the financial statements for easier linkage to theory. Results of the study found that there are several factors affecting the choice that the board does. It turned out that the Board is dependent on information from outside and that there are multiple stakeholders who have a vested interest in the election.