Governments must capitalize infrastructure assets in the government-wide statements

Question

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Governments are required to capitalize infrastructure assets in the government-wide statements, in accordance with Generally Accepted Accounting Principles (GAAP). This means that these assets must be recorded as assets on the government's balance sheet and depreciated over their estimated useful lives. This requirement ensures that the cost of infrastructure assets is recognized over time, rather than in a single year, and reflects the economic reality of the government's investments in these assets.

Governments Must Capitalize Infrastructure Assets in the Government-Wide Statements