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Local governments

Infrastructure - Criteria for Modified Approach

Infrastructure assets that are part of a network or subsystem of a network (referred to herein as eligible infrastructure assets) are not required to be depreciated if certain criteria are met. This worksheet is designed to assist the accountant in determining (and documenting) if these criteria are met. Governments that meet the criteria are not permitted to depreciate eligible infrastructure assets under what the GASB refers to as the modified approach. Because the criteria must be met annually for governments to continue to use the modified approach, it may be helpful to complete this worksheet annually.
If a government chooses to apply the modified approach for a subsystem of a network and not an entire network, it must meet the criteria to use the modified approach for that subsystem. It may be necessary to prepare a worksheet for each system or subsystem.
All of the responses needed to determine if the criteria for the modified approach are met are entered on the Criteria worksheet. The first section of the worksheet requests information for report headers: the governmental unit, the network or subsystem of a network to be evaluated, preparer's name, financial statement date, and the date prepared. Next, the worksheet provides a series of "yes/no" questions. As each question is answered, the template will indicate how you should proceed through the worksheet or will provide a conclusion regarding whether the modified approach may or may not be used.