Use Case
GASB 34 Reporting & the Modified Approach
How agencies use asset condition and a defensible capital plan to support GASB 34 modified-approach infrastructure reporting — without re-keying numbers into a spreadsheet at year-end.
Quick answer. The GASB 34 modified approach lets a government report eligible infrastructure by maintaining and disclosing its condition instead of depreciating it — provided the agency keeps an up-to-date asset inventory, performs condition assessments at least every three years, documents a target condition level, and shows assets are preserved at or above it. InfraMind turns that condition data and capital plan into defensible, audit-ready documentation.
What the GASB 34 modified approach requires
The GASB 34 modified approach is an accounting option that lets a state or local government report eligible infrastructure assets — roads, bridges, drainage, and similar networks — based on their preserved condition rather than by recording annual depreciation. It was established by GASB Statement No. 34. To use it, an agency must meet two ongoing conditions: maintain an asset-management system with an up-to-date inventory and periodic condition assessments, and document that the eligible assets are being preserved at or above a condition level the government itself establishes and discloses.
The reporting burden, in other words, is not a one-time entry — it is a continuous discipline of measuring condition, setting a target, and proving the network is held there. That is exactly the data a modern capital planning platform already produces.
Modified approach vs. depreciation
The choice under GASB 34 is between reporting infrastructure by depreciation or by the modified approach. The modified approach can better reflect a well-run preservation program, but only if the agency can substantiate condition and maintenance every reporting cycle.
| Dimension | Depreciation approach | Modified approach |
|---|---|---|
| Basis of reporting | Capitalize and depreciate assets over estimated useful life. | Report condition; expense preservation costs as incurred. |
| Ongoing requirement | Track cost and accumulated depreciation. | Asset inventory + condition assessment at least every 3 years. |
| Condition disclosure | Not required. | Disclose target condition level and assessed condition results. |
| What it rewards | Simplicity of accounting. | Documented, sustained preservation of the network. |
How capital planning software produces GASB 34 documentation
Capital planning software supports GASB 34 reporting by maintaining the condition record and the preservation plan that the modified approach is built on. InfraMind is the owner-side planning layer that sits on top of the EAM and GIS systems an agency already runs, so the inventory and condition data flow in rather than being re-entered. From there it can:
- Keep a current, cross-asset inventory with the most recent condition assessment for each asset.
- Track each asset against the target condition level the agency established, and flag where the network is drifting below it.
- Forecast deterioration so the preservation plan funds the right treatments before condition falls below target.
- Produce a defensible, exportable record an auditor can trace — condition in, target, plan, and the spend that holds the line.
The same condition data and prioritization that satisfy the modified approach also drive a stronger capital plan — see how to build a defensible capital improvement plan and how InfraMind quantifies the deferred maintenance backlog.
Where GASB 34 fits the rest of your reporting
GASB 34 condition reporting overlaps with the asset-management disciplines other mandates require. State DOTs maintaining a risk-based TAMP under MAP-21 and water utilities running an AWIA asset-management program are already collecting the condition data the modified approach needs. Centralizing it in one planning layer means the same numbers serve the audit, the council, and the grant application. See how InfraMind serves cities and counties.
Frequently asked questions
Make GASB 34 reporting a by-product of good planning
See how InfraMind turns asset condition into both audit-ready documentation and a defensible multi-year capital plan.