- Firm-specific infrastructure
In
macro-economics the terminfrastructure usually refers topublic infrastructure . That is, that which provides or supportsstate services . There is also firm-specific infrastructure such as factories, private roads, capital equipment, and other infrastructuralcapital asset s underprivate ownership .The related term "
firm-specific human capital " applies to the development ofindividual capital ,social capital andinstructional capital to specifically enable the activities of a particular firm or enterprise.May be critical
So-called
critical infrastructure includes some public and some firm-specific assets, for example, a privateelectric power utility would include assets such astransmission tower s andtransformer s. For purposes of determining if they are "critical", it is their function, not their ownership, that matters.Types of infrastructure
Information technology
Special terminology has evolved to deal with infrastructure that is devoted to information and communication. In this area in particular,
public infrastructure may rely on a large number of private operators, e.g.Internet service provider s, telcos,computer support andboot image service providers. The management of these assets is usually described in terms like:
*total cost of ownership and of operations
*technology lifecycle management
*information technology asset management
*supply chain management
*technology deployment methodology
*service level agreement .According to Harry Zarek, a Canadian
systems integration expert, these and "many other concepts are important to running a modern technology infrastructure." Such assets all would be considered firm-specific infrastructure.Accounting treatment
Accounting for firm-specific infrastructure investment varies byjurisdiction . TheGAAP framework is the most generally applied, though not followed everywhere.In Canada, one focus of
accounting reform efforts is to matchCapital Cost Allowance forasset depreciation to either actual, or desirable,asset lifecycle of each type of asset. There are numerous tradeoffs in policy including the dangers of encouragingwaste if assets too easily become a "writeoff ", or failing to keep up with the technology of a rapidly changingindustrial base .With respect to information technology in particular this is a cogent concern, as toxic
e-waste is becoming an increasing problem everywherecomputer s andcell phone s are used.In
Canada the rapid writeoff of new technology has been linked to the goal ofsustainability , so that only those assets which aid inenergy conservation ,materials conservation andwaste reduction quality for favourable accounting treatment. "With respect to public infrastructure, this goal is being pursued a different way - viabest practice exchange insustainable municipal infrastructure , andgovernment performance auditing ."
Wikimedia Foundation. 2010.