Under the modified approach to capitalizing infrastructure, governments apply the following principles to recording current year additions:

A$.$

Roads and streets are recorded as capital additions only when they are both measurable and available.

B$.$

All infrastructure expenditures are reflected as capital outlay expenditures.

C$.$

All infrastructure expenditures are capitalized and depreciated over their useful lives.

D$.$

Infrastructure expenditures are reported as expenses except for outlays that result in additions or improvements, which would be capitalized.