The Governmental Accounting Standards Board (GASB) allows governments to use the modified approach to account for qualifying networks or subsystems of infrastructure assets. Under the modified approach, infrastructure is treated as an inexhaustible capital asset, thereby eliminating the need for depreciation accounting. Governments must demonstrate that they are maintaining networks or subsystems of infrastructure assets at a selected condition level to qualify to use the modified approach.
Governments should consider the factors identified in this primer in the process of deciding whether to use depreciation accounting or the modified approach for a given network or subsystem of infrastructure assets.
- Publication date: January 2019