Answer:
I, II and III
Explanation:
Approaches to Accounting for Infrastructure by State or Local Government
Traditional Depreciation Approach
This approach depreciates infrastructure assets consistently with other assets. This approach lists infrastructure assets as part of depreciable assets
Modified Approach
This approach treats infrastructure assets under a few criteria:
- Maintenance and Preservation costs are reported as expenses and depreciation expenses are not required
- Infrastructure Assets are listed as Capital Assets and non-depreciable assets
- There is an asset management network or subsystem in place that preserves the assets. This system is committed to maintaining the infrastructure at a specific condition level
Combined Approach
This system combines both the traditional depreciation methods and the modified approach for infrastructure assets. The Infrastructure system can be divided into sub-systems and the traditional depreciable approach can be used for a sub-system while the modified approach is used for an other sub-system
Modified Approach to accounting for infrastructure assets
Based on the Criteria for Modified approach system:
Option 1: Accumulation of information about all infrastructure assets within either a network or subsystem of a network will allow the use of the modified approach
Option 2: The Capitalization of infrastructure assets is also a feature of the Modified Approach
Option 3: Grouping maintenance cost of infrastructure assets as expenses also allow the use of the Modified Approach
Option 4: The Depreciation of Infrastructure assets will only allow the use of the Tradtitional Depreciation Approach
