| Abstract: | This paper critically reviews and rejects the requirement that councils value the land under their roads and include it in their financial statements. Land under roads is a public good which does not satisfy the requirements for recognition as an asset. Moreover, it does not need to be valued financially for purposes of road management. Councils are cowect in opposing the requirement of AAS 27. The inclusion of land under roads as a council asset distorts the representation of their financial position. |
