1. If a government elects the modified approach with regard to capitalization of infrastructure

		Costs to preserve infrastructure assets are expensed as incurred with no additional disclosure required.
		The costs of general government infrastructure assets should be recognized as expenditures in governmental fund statements as the costs are incurred.
		Governments that choose to apply the modified approach to accounting for infrastructure need not capitalize infrastructure assets.
		Under the modified approach, governments should capitalize both the initial costs of infrastructure assets and subsequent outlays intended to preserve and extend the assets useful lives. A IS INCORRECT