1 minute read
Asset Management Strategy 2022 - 2026
3 Council’s Asset Portfolio and Current Status
3.1 Current Asset Replacement Costs
Advertisement
The total value of the asset portfolio is approximately $2.03 billion, and the annual depreciation expense is $29.5 million.16 The break-up of Council’s asset portfolio by replacement value is illustrated in Table 4
The annual depreciation (asset consumption) is considered a measure of the wearing out or other loss of value of the asset that arises from its use, passing of time or obsolescence through environmental changes.
It should be acknowledged that depreciation is not an ideal measure and is seldom recommended now in a modern practice with the focus more on sustainability-based analysis of asset service level (long term financial plans based on strategic lifecycle modelling and planning).
16 Excludes Land, Plant & Equipment, Office Equipment, Furniture & Fittings and Domestic Waste Vehicles
17 Source: Inner West Council Annual Report 2020-21
Inner West Council Asset Management Strategy 2022 Page 14
