Code of Practice on the Highways Network Asset: Guidance Notes (2016 Edition)

If you are a CIPFA Publications subscriber, have you downloaded the Briefing Note to accompany this title?

This guidance was updated in 2016 to reflect the decision taken by CIPFA/LASAAC to measure local authority Highways Network Asset (HNA) in accordance with the Code of Practice on the Highways Network Asset.

This publication, when combined with the updated Code of Practice on the Highways Network Asset and the associated Accounting for the Highways Network Asset will provide practitioners with the tools they need to effectively implement the new measurement requirements.

The local HNA is one of the most valuable assets held by local authorities and the change when their value comes onto balance sheets will be by far the biggest change seen since the introduction of IFRS.

When compared to other property, plant and equipment there are some fundamental differences to both the valuation and financial reporting processes. This guidance provides more details on these differences which include:

• A fundamental principle in the Code of Practice on Transport Infrastructure Assets is that the same information should be used for asset management, financial management and financial reporting. This means that the valuation will use asset management data, with the details stored on asset management systems rather than on the corporate asset register.
• Accumulated depreciation is not written out on revaluation.
• The top section of the Note to the Balance Sheet is Gross Replacement Cost unlike for other property, plant and equipment assets valued using DRC, where this is the DRC value.

The guidance aims to:

• provide finance teams with the details of the valuation approach taken by engineers and the systems and processes involved
• give engineers details of the information required by accountants.

These Guidance Notes are available in hard copy and online.

The digital, online version is available as both searchable HTML and a bookmarked downloadable PDF of the publication that can be shared throughout your organisation.

Details of licensing arrangements for other categories of purchaser, which includes those organisations operating shared service arrangements, are available from CIPFA’s Publications Department.