Abstract
In this paper, we study the evolution of state and local governments’ capital asset accounting policies from the adoption of GASB Statement No. 34 through the fiscal year ending in 2016. We document substantial cross-sectional and time-series variation in the capitalization thresholds and estimated useful lives pertaining to major classes of capital assets, including buildings, equipment, improvements, and infrastructure assets. Diversity in capital asset accounting policies potentially diminishes the comparability of capital asset accounting information across governments and over time. We also discuss matters related to the implementation and ongoing use of the modified approach for reporting infrastructure assets. Our findings are useful to the GASB as well as to users of government financial reports.