TANGIBLE AND INTANGIBLE FACTORS INCORPORATED FOR INFRASTRUCTURE ASSET VALUATION

Infrastructure asset requires high building capacity for its operations. Its functions are also linked to other infrastructures. In this light, an asset’s uniqueness in its design, operations, stakeholders’ interest, and business growth affects its overall value. Therefore, valuation is a critical component of infrastructure assets. This is because specific components incorporate the approaches for valuing assets. This paper highlights the valuation method for infrastructure assets and identifies the tangible and intangible perspectives incorporated in infrastructure asset valuation. Thus, each tangible and intangible perspective were investigated and critically detailed in this paper. Identifying the tangible and intangible components in an asset is essential because it will affect the valuation methods that will be used to value the asset. Then, it will also be affected on the final value of the asset. The research findings are derived from a critical review of literature on tangible and intangible assets. This study adopted the qualitative approach, where a series of in-depth interviews were conducted with experts to get an insight into how these tangible and intangible perspectives influence asset valuation. This paper will enrich the current body of knowledge and benefit practitioners who could apply the study’s output to real practice.