All capital assets including infrastructure, subject to defined levels of materiality, are included in the State’s government-wide financial statements as required by GASBS 34. These assets are reported in a very similar manner to capital assets in a commercial accounting environment and are also subject to depreciation and/or the modified approach as a method to reflect asset condition.
The purpose of recording capital assets in the Statement of Net Position is to record the value of these assets, as reduced by appropriate depreciation, as general assets of the State. Capital assets will be depreciated over defined useful lives as indicated in Section XIV.14.E - Recording General Capital Assets of this Chapter.
Guide to Financial Operations