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Earthworks


Earthworks are engineering works involving the moving or removal of soil, for example in the construction of channels, tunnels, roads, dams, airports etc. Earthworks often require earth moving and hauling vehicles such as bull dozers, scrapers, bucket loaders and dump trucks.



Many Council's depreciate earthworks, but according to AASB Urgent Issues Group Interpretation 1055 - Accounting for Road Earthworks, the depreciation of earthworks isn't always necessary. The interpretation states that: "Road earthwork assets that are assessed as not having a limited useful life shall not be depreciated. Such an assessment shall be based on engineering reviews of the expected physical wear and tear and technical obsolescence of the particular earthworks and on consideration of commercial obsolescence and legal or other limits on the use of the earthworks."


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