In addition to required disclosures about general capital assets,a government is required to allocate the depreciation expense on all of its general capital assets to functional categories.

Question

Quizplus · Accepted Answer

Depreciation is to be included as an expense of a functional category if it can be specifically identified with a function or program, or is a shared capital asset. Depreciation can be reported as a separate line item for capital assets that essentially serve all functions of government (such as city hall). Depreciation on infrastructure can also be reported as a separate line item.

In Addition to Required Disclosures About General Capital Assets,a Government