Asset Componentisation is the process/practice of (notionally) breaking up complex assets into parts with similar useful lives.
Image: Steven Leckart
Thoughtful componentisation, should make it easier to manage the accounting aspects of asset renewal, and may reduce the amount of residual value that needs to be assigned to complex assets.
Roads are typically broken up into three or four components, namely:
Kerb and Channel can also be considered to be a road component.
Stormwater pipes are typically not componentised (pits are usually considered to be a separate asset to the pipe), but where an existing concrete pipe is given an in-situ lining, the lining may be treated as a separate component.
Buildings are one of the most complex asset types owned by a typical Council, and there are many ways they can be componentised.
Some examples of possible building components include:
An active asset such as a sewage pump station may need to be broken up into many different components. Bundaberg Regional Council for example breaks its pump stations up into the following components: