Which is not a requirement to elect the modified approach to reporting eligible infrastructure assets?

• A. Documented asset management practices.
• B. The government gets the permission of the Government Accounting Standards Board.
• C. A plan for asset preservation.
• D. Annual reporting of asset condition.

Answer: (B)

The question tests understanding that the modified approach for infrastructure reporting is an elective option that a government adopts by meeting specific internal criteria, not by obtaining approval from GASB. To elect it, the government must show it has: documented asset management practices for infrastructure, a plan for asset preservation, and annual reporting of asset condition. These elements demonstrate ongoing management, preservation planning, and regular condition information, which justify using the modified approach instead of standard depreciation.

There is no requirement to seek permission from the Governmental Accounting Standards Board to elect this approach, so that option is not a valid requirement.