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Risks that accumulate through underinvestment, misaligned renewal timing, or loss of institutional memory that do not appear on financial statements until they manifest as failures or emergency expenditures. Systems that quietly degrade look fiscally healthy until failure, while systems investing continuously in renewal appear fiscally demanding. Accounting inverts the signal of prudence.
Decades of deferred infrastructure maintenance appear as 'fiscal responsibility' in annual reports. When bridges fail or water systems collapse, accounting records a sudden shock rather than the long chain of deferrals that made the shock inevitable.
ABS Section 5.3