GASB 34 Infrastructure Valuation Workshop.pptVIP

GASB 34 Infrastructure Valuation Workshop What We Have Learned One Year Later Survey Who has implemented GASB Stmt #34? Survey Who has implemented GASB Stmt #34? Retroactive infrastructure? Survey Who has implemented GASB Stmt#34? Retroactive infrastructure? How many are Phase II entities? Survey Who has implemented GASB Stmt#34? Retroactive infrastructure? How many are Phase II entities? How many are Phase III entities? Overview Brief review of GASB Stmt #34 requirements Implementation options Depreciation or Modified? Tips Resources Capital Asset Reporting No matter what your opinion of Capital Asset reporting It is GAAP You shouldn’t just ignore it Isn’t just infrastructure - all capital assets What is Infrastructure? Long-lived capital assets that normally are stationary in nature and normally can preserved for a significantly greater number of years than most capital assets Examples of Infrastructure Roads Bridges Tunnels (in AZ??) Drainage systems Water systems Wastewater systems Dams Lighting systems Buildings are generally not infrastructure Networks/Subsystems Network - All assets that provide a type of service Water Distribution System Wastewater Collection System Road System Subsystem - Assets that make up a portion of a network Wells, pumping stations, tanks, lines Pumping stations, transmission lines Pavement, signals, signage, lighting Networks/Subsystems Networks and subsystems may consist of dissimilar assets Networks and subsystems are determined by grouping that best suit the governmental entity Application ALL 80,000 + Governments (not federal) All major infrastructure 10% rule for networks and 5% rule for subsystems Year Ends 2002, 2003, 2004 Retroactive Assets What Really Needs to be Done This Year? $10 Revenue or Less: Nothing $10 million and above in Revenue: This Year’s New Infrastructure Over $100 million should have reported last year as well. Decisions What infrastructure do you need to capture? Records available? Retroactive now o