The project seeks to address the demand for improved information regarding the condition and maintenance of infrastructure assets. Credit: Vladimir Muravin/Shutterstock.

The Governmental Accounting Standards Board (GASB) has released a preliminary views (PV) document seeking public comment in the US, focusing on proposed changes in accounting and financial reporting for infrastructure assets.  

This initiative aims to enhance the current guidance on recognition, measurement, and information disclosure related to these long-lived capital assets. 

As per the pre-agenda research, the GASB’s project seeks to address the demand for improved information regarding the condition and maintenance of infrastructure assets. 

The proposed definition for infrastructure assets includes components within a network, such as roads and bridges. 

Under the board’s preliminary views, “infrastructure assets would be defined as individual assets that may consist of multiple components that are part of a network of long-lived capital assets that are utilized to provide a particular type of public service, that are stationary in nature, and that can be maintained or preserved for a significant number of years.”  

The PV suggest maintaining the historical cost net of accumulated depreciation as the measurement basis, with periodic reviews of estimated useful lives and salvage values.  

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It also recommends separate depreciation for significant components with differing useful lives.  

For those using the modified approach, it is proposed that governments must document the preservation of asset conditions. 

The document proposes changes to the note disclosures and supplementary information, including the removal of some existing disclosures and the addition of new ones, such as maintenance expenses and the condition of assets near the end of their useful lives.  

A ten-year schedule of maintenance expenses is also suggested for inclusion. 

Stakeholders are invited to review the proposals and submit their feedback by 17 January 2025. The GASB is accepting comments through both comment letters and an electronic input form.