What must a government do to avoid depreciating its infrastructure assets and still meet the GASB's financial reporting standards?

Question

Quizplus · Accepted Answer

The government must have an asset management system and document that its assets are being preserved at a condition level that it establishes and discloses to avoid depreciating its infrastructure assets and still meet the GASB's financial reporting standards. This will ensure that the infrastructure assets are maintained properly and not subject to depreciation. Option B is incorrect because estimating the dollar amount of infrastructure assets does not necessarily ensure its preservation. Option C is incorrect as it goes against the financial reporting standards set by GASB. Option D is not necessary as taking a complete inventory every year may be costly and time-consuming.

What Must a Government Do to Avoid Depreciating Its Infrastructure