Circular No. 2015-008, dated November 23, 2015 provides that “After recognition,
road networks shall be carried at its cost less any accumulated depreciation and
any accumulated impairment losses.”
1.5 Pursuant to the abovementioned requirements, it is Management’s responsibility
to provide for the estimated useful life of its assets. Since the Department of Public
Works and Highways (DPWH) is the government agency in-charged of planning,
design, construction and maintenance of infrastructure facilities, which include the
road network system, it issued DPWH Department Order (DO) No. 176, series of
2015, dated November 23, 2015, otherwise known as the Guidelines and
Procedures in the Recognition and Derecognition of Infrastructure Assets, which
Management shall use as reference to the estimated useful life. The
aforementioned DO provides the following table of Estimated Useful Life of
Infrastructure Assets:
Estimated
Public Infrastructure Assets
Useful Life
(DPWH is responsible for Construction and Maintenance)
Road Networks:
• Concrete 20
• Asphalt 10
• Bridges (Concrete or Steel) 40
• Box Culvert (Highway Drainage) 25
• Pipes Culvert 15
Rehabilitation, Repairs and Maintenance
• Concrete Re-blocking 10
• Asphalt Overlay (Asset Preservation) 5
• Bridges (Major Repairs):
1. Concrete 20
2. Steel 10
3. Lined Canals (Concrete or Grouted Riprap) 2
Flood Control Systems 25
(DPWH is responsible for Construction but turned over to
appropriate agencies)
Water Supply Systems 15
Seaport Systems (Port, Lighthouses, etc.) 20
Parks, Plazas and Monuments 20
Other Infrastructure Assets
• Multi-purpose Pavement 5
• Solar Dryer 5
1.6 It is also emphasized in the DO that no residual value shall be recognized when
calculating the depreciation of infrastructure assets, since there is no scrap or
salvage expected to be recovered from these assets at the end of their useful life or
when they are demolished or destroyed.
1.7 The neglect of the Office of the Accountant to provide appropriate depreciation of
the abovementioned depreciable assets is a clear departure from accounting
standards, especially the IPSAS. As a result, the Municipality’s asset and equity
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