The reporting of depreciation is required for the government-wide financial statements. Capital assets except for Land, Land Preparation, Library Books, and Construction in Progress must be depreciated over the useful lives as indicated in Section XIV.14.E - Recording General Capital Assets of this Chapter, or the modified approach may be used for certain infrastructure assets that meet the criteria of:

• Maintaining an asset management system that includes a current inventory of eligible infrastructure assets;
• Conducting condition assessments of eligible assets and summarizing the results using a measurement scale;
• Estimating each year the annual amount necessary to maintain and preserve the eligible assets at the condition level established and disclosed by the State; and
• Documenting that the assets are being preserved approximately at, or above, the established condition level.

Guide to Financial Operations

REV. 01/05/2021