Accounting Treatment
Accounting for firm-specific infrastructure investment varies by jurisdiction. The GAAP framework is the most generally applied, though not followed everywhere.
In Canada, one focus of accounting reform efforts is to match Capital Cost Allowance for asset depreciation to either actual, or desirable, asset lifecycle of each type of asset. There are numerous tradeoffs in policy including the dangers of encouraging waste if assets too easily become a "writeoff", or failing to keep up with the technology of a rapidly changing industrial base.
With respect to information technology in particular this is a cogent concern, as toxic e-waste is becoming an increasing problem everywhere computers and cell phones are used.
In Canada the rapid writeoff of new technology has been linked to the goal of sustainability, so that only those assets which aid in energy conservation, materials conservation and waste reduction quality for favourable accounting treatment. With respect to public infrastructure, this goal is being pursued a different way - via best practice exchange in sustainable municipal infrastructure, and government performance auditing.
Read more about this topic: Firm-specific Infrastructure
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