Economics and Financing

Governments are moving away from the traditional cash accounting framework to adopting accrual accounting, the method of accounting used in the private sector. This will require the capitalisation of the road infrastructure, which is an area of considerable diversity of opinion. As a consequence, policies have been developed to facilitate the consistent reporting across road authorities of the value of the road infrastructure. In developing these policies, the National Financial Management Liaison Group consulted with the Australian Accounting Research Foundation, major accounting firms and Local Government associations.