A government may elect not to report depreciation expense on which type of capital assets?

Question

Quizplus · Accepted Answer

Infrastructure capital assets are not required to be depreciated by the government. According to GASB Statement 34, infrastructure assets are defined as "long-lived capital assets that normally are stationary in nature and normally can be preserved for a significantly greater number of years than most capital assets. Examples include roads, bridges, tunnels, drainage systems, water and sewer systems, dams, and lighting systems." Because infrastructure assets generally have longer useful lives and their preservation is critical to the operation of a government entity, depreciation is not reported on them.

A Government May Elect Not to Report Depreciation Expense on Which