Modified Approach

Home » CMA Glossary Term » Financial Statements and Reporting » Modified Approach

The Modified Approach for infrastructure assets is an accounting method allowing governments to report certain infrastructure assets without depreciating them, provided they maintain these assets at a predetermined condition level. This approach requires detailed documentation of asset management systems and condition assessments. It is an alternative to the traditional depreciation method, emphasizing maintenance over asset lifespan.

CMA Exam Academy 16-Week Accelerator Program