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The measurement of non-financial assets that are held for their service potential rather than for a financial return can be challenging in the public sector. In some cases, the information is not available about the historical cost for the initial measurement and there is not an active market neither that could allow inferring a value for those non-financial assets. In response to this problem, this chapter analyses the newly developed measurement base current operational value (COV) to measure assets in the public sector. This measurement base is part of the proposals in Exposure Draft (ED) 76 – Conceptual Framework Update: Chapter 7, Measurement of Assets and Liabilities in Financial Statements, and ED 77 – Measurement. This chapter was developed using evidence obtained through participant observation to the IPSASB meetings from the authors and the desk analysis of the comment letters (CLs) to the ED 76 and ED 77. The findings from this study reveal that comparability is a major concern of the stakeholders. The CLs also highlighted the need for further guidance on a number of issues and suggested the way forward for the future standard-setting process that address the concerns identified in the proposed COV.

This paper documents the Government Accounting Standards Board (GASB) 34 literature, primarily in the areas of (1) accountability and improved reporting, (2) government-wide financial statements and accrual accounting and (3) infrastructure asset capitalization and the modified approach. The paper also evaluates the state of the research, recognizes implications for practice and standard setting, identifies knowledge gaps and proposes avenues for future research.

The authors identified the articles in this narrative review by searching Google Scholar and EBSCO for the years 2000 through 2023, using the keywords GASB 34, government-wide financial statements, government fund statements, infrastructure assets and modified approach.

This review finds that GASB 34 requirements improved accountability and reporting, but GASB can still make improvements. The addition of the MD&A section requirement improved readability but placed a burden on preparers. Analysis of government-wide statement research indicates that the accrual-based Statement of Net Assets provides value in credit decisions, while the accrual-based Statement of Activities does not. The research on infrastructure accounting requirements shows limited adoption of the modified approach and some comparability issues with choices involving capitalization thresholds, baselines and asset management systems (AMSs). Based on this review, the authors also present suggestions to further this line of research.

To the best of the authors’ knowledge, this is the first article that reviews over 20 years of GASB 34 related literature. The review and suggestions for future research are timely as GASB is in the process of reexamining some of GASB 34's requirements.

A previous attempt to implement the use of historical measures of asset management effectiveness – as part of a value improvement model (VIM) for repetitive processes – had not been 100 percent successful within an airport operational engineering environment. Taking into account the more holistic approach realised through applying a soft systems methodology (SSM), the purpose of this paper was to use the CATWOE (Customers, Actors, Transaction, World View, Owner and Environment) tool to gain an understanding of the root definition of the problem statement developing a conceptual model used to facilitate an improvement to the implementation process.

The research methodology taken incorporated an action research approach combining case study research with an action research process of planning, observing and reflecting summarized as taking an action case research design.

This research has developed a visual and systematic framework that enables managers to understand, analyse and improve value in their asset management repetitive processes. The CATWOE root definition tool has been used to create a conceptual model of the problem area providing a holistic view of the stakeholders and the internal and external environmental constraints that the VIM for asset management sits within.

The research was completed in‐situ at a single airport focused on a single group of assets managed by a single group of stakeholders. Future research should look to further develop the VIM and CATWOE approach in other asset management environments such as manufacturing as well as asset intensive service industries.

This research has taken a soft systems approach and successfully applied it to the implementation of hard systems measurements of asset management effectiveness within an airport operational engineering environment. Other managers with asset management responsibilities will find this approach useful in achieving their core objective to improve the effectiveness and efficiency of their assets and the teams employed to maintain them at minimal total cost.

Research undertaken by the authors over the last two years has revealed a number of problems in valuing non‐market, non‐investment properties in the public sector. The first part of the article draws together some of the literature in the area of public sector asset valuation and management. This is intended, first, to highlight current thinking about the issues involved in the valuation exercise, second, to focus on some of the unresolved aspects and, finally, to suggest areas for further consideration to help resolve these.The second part of the article provides an introduction to, and critical examination of, the valuation methodology commonly used to value specialised property assets. Possible alternative approaches are suggested, which may better enable authorities to assess the performance of their assets and integrate these into the management processes.

This chapter addresses the general process of determining the value of a particular company, with additional detail on how valuation processes might be adapted to produce credible value conclusions of emerging technology ventures. There are three primary approaches to business valuation. There is the income approach, which indicates that value is a product of expected future cash flows – cash flows that are discounted to equate them to dollars in-hand (present value). There is the market approach, which attempts to draw conclusions of value based on the market prices of similar companies in the public and/or private markets. Finally, there is the asset approach, which indicates that the value of a company is equal to the sum of the values of its net assets. Specific adjustments are appropriate with respect to each of these approaches where the value of an emerging technology company is concerned. Professional valuation standards require that all of these approaches be considered in the valuation, even if the available information does not permit their credible application. Often, multiple approaches and techniques can be applied. The results of applying multiple techniques often do not overlap, and it is the analyst’s very important task to reconcile differing valuation results, or to decide which result or results should be discarded.

A misplaced reliance on value at risk (VaR) has been focused on in the media as one of the main reasons for the current financial crisis, and the recently published Turner Review by the UK Financial Services Authority concurs. The purpose of this paper is to present an introductory overview of VaR and its weaknesses which will be easily understood by non‐technical readers.

Simple numerical examples utilising real and simulated data are employed to reinforce the main arguments.

This paper explains that some of the main approaches employed by banks for computing VaR have serious weaknesses. These weaknesses have contributed to the current financial crisis.

Consistent with the introductory nature of this paper, the empirical research is limited to simple examples.

The evidence here suggest that if VaR is to play a major role under future financial regulation then research is required to develop improved estimation techniques and backtesting procedures.

This paper differs from many academic papers on VaR by assuming only a very basic knowledge of mathematics and statistics.

These troubled economic times call for fresh approaches to asset management. Executives have to pay more attention to cash flows, dividend policies, returns, investment selection, and asset monitoring.

Framed within global policy debates over the need for private financial flows to align with the capital requirements of the Paris Agreement, this paper examines UK asset managers in their approaches to disclosing and managing climate risk. This paper identifies and evaluates climate risk management practices among this under-researched investor group in their capacity to address fundamental behavioural obstacles to low-carbon investment.

This paper takes an inductive approach to document analysis, applying content and thematic analysis to the annual disclosures of the 28 largest UK asset managers (by assets under management), including the investment management arms of insurance and pension companies.

The main takeaway from this research is that today’s climate risk management strategies hold potential to effectively address traditionally climate risk-averse investor behaviour and investment processes in the UK asset management context. However, this research finds that the use of environmental, social and governance (ESG) investment strategies to mitigate climate risks is a “grey area” in which climate risk management practices are undefined within broad sustainability and responsible investment agendas. In doing so, this paper invites further research into the extent to which climate risks are considered in ESG investment.

This paper contributes to research in sustainable finance and behavioural finance, by identifying the latest climate risk management techniques used among UK-headquartered asset managers and uniquely evaluating these in their capacity to address barriers to low-carbon investment arising from organisational behaviours and processes.

Recognition, measurement and disclosure of public sector assets constitute relevant matters for national and international public sector accounting standard-setting. This chapter develops a theoretical analysis drawing upon a dualistic approach contrasting current value and historical cost accounting models. Accordingly, the latter should be adapted and then preferred to cope with public sector specificities, with a view to providing information for and enforcing accountability to citizens and their political representatives. Drawing upon this theoretical setting, our analysis develops a consistent design for the overarching conceptual framework for assets in general, providing illustrative examples for specific categories such as financial, heritage, natural and military assets.

The aim of the paper is explore issues related to the intangible assets in libraries and provide first results regarding their identification, categorization, valuation and reporting.

A review of the literature for the intangible assets in academic libraries is provided and a number of important approaches related to the management of intangible assets are discussed.

Library and information services include both tangible and intangible assets. In the economic reality of the twenty‐first century, the intangible assets critically contribute, in combination with the tangible assets, to the overall value and performance of academic libraries. Specific management actions and activities related to intangible assets are required.

This paper contributes to the discussion of the significance of intangible assets and some initial results are exhibited. The intention of this work however is to stimulate further research on the management of intangible assets in libraries and information services.

A theoretical discussion of intangible assets in academic libraries is provided and a number of issues for their management are raised.