GASB 34 gives government owners of water storage vessels a choice of either (a)reporting the current value of capital assets based on historical acquisition costs and calculated depreciation expenses as traditionally has been done in private enterprise, or (b) adopting a “Modified Approach” relying on an asset management system capable of showing that the conditions of their capital assets are being maintained at or above explicitly stated minimum acceptable standards.
The USCI Full Service Professional Maintenance Program is the only product allowing government owners to adopt the “Modified Approach” for depreciation. The American Public Works Association recommends the use of the “Modified Approach” in lieu of full depreciation.
