Governments do not have to depreciate infrastructure assets if they can demonstrate they are preserving them at a specified condition level.

Question

Quizplus · Accepted Answer

Governments can apply an alternative method called the 'maintenance approach' which allows them to report infrastructure assets at their current condition levels rather than depreciated values, as long as they can demonstrate that they are maintaining them at a specified condition level. This method is allowed under International Public Sector Accounting Standards (IPSAS) and Governmental Accounting Standards Board (GASB) guidelines.

Governments Do Not Have to Depreciate Infrastructure Assets If They