3.3 Asset Valuation

The purpose of asset valuation is the calculation of the financial value of an organization's assets reported at the end of a financial period. The valuation of road infrastructure assets is a business reporting requirement for many transportation organizations and an important component for the financial management of roads. Road assets support economic growth, but this is not considered as part of an asset's value and is measured separately through investment planning, as discussed in Chapter 3.2.  Asset valuation is therefore primarily an accounting exercise, but it should also be used by engineers to support investment planning.