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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Capital Asset Categories
Infrastructure

Infrastructure consists of long-lived capital assets that are normally stationary in nature and can be preserved for a significantly greater number of years than most capital assets. Infrastructure assets are often linear and continuous.

Prospective reporting of general infrastructure assets with a value of $500,000 or more is required. Also required is the retroactive reporting of:

Each agency is encouraged to report its entire infrastructure, if possible.

Infrastructure improvements are capital events that materially extend the useful life or increase the value of the infrastructure, or both. Infrastructure improvements are capitalized and recorded as an addition of value to the infrastructure if the improvement or additional value meets the capitalization threshold.

If ownership cannot be determined for infrastructure paid for jointly by multiple parties (the state of Texas and other governmental entities), the party responsible for future maintenance must capitalize it.

The modified approach is an alternative to reporting depreciation for infrastructure assets that meet the following criteria:

Depreciation is not reported for infrastructure assets reported using the modified approach. Only infrastructure assets that comprise a network or subsystem of a network can be reported using the modified approach.

Infrastructure assets can have three types of costs:

Examples of expenditures to be capitalized as infrastructure: