If a government elects the modified approach with regard to capitalization of infrastructure

Question

Quizplus · Accepted Answer

DUnder the modified approach, governments do not capitalize costs to preserve infrastructure assets; instead, these costs are expensed as incurred. However, governments must disclose the condition of the infrastructure assets and the estimated amount necessary to preserve them at the condition level established and disclosed by the government (choice B). Additionally, if a government elects to capitalize costs under the modified approach, these costs are not depreciated, but the government must still disclose the assessed condition of the infrastructure assets (choice D).

If a Government Elects the Modified Approach with Regard to Capitalization