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Since various assets perform differently over time, it is important to understand how those assets will affect the system\u2019s accounting and finances. Asset\u00a0types\u00a0have different\u00a0<\/span>performance or decay curves<\/span>.\u00a0<\/span>\u00a0<\/span><\/p>\n The condition of gray assets typically begins to deteriorate as soon as they are put into service.\u00a0<\/span>\u00a0<\/span><\/p>\n Green assets can be the opposite. A green asset\u2019s condition\u00a0might\u00a0improve over the first few years of the asset\u2019s\u00a0life,\u00a0and\u00a0then flatten out for\u00a0a period\u00a0(possibly\u00a0an\u00a0extended period) and eventually begin to decay.\u00a0<\/span>\u00a0<\/span><\/p>\n For either type of asset, intervening with maintenance, repair and\/or rehabilitation returns functionality to the asset and extends its life.\u00a0Utility\u00a0staff\u00a0must think about how the asset condition will impact the accounting records for the system.\u00a0Be aware that\u00a0maintaining\u00a0an asset not owned by the system can affect the way accounting recognizes those expenditures. This situation\u00a0might\u00a0not be a major issue for small maintenance expenditures, but for\u00a0large expenditures\u00a0on\u00a0natural assets, such as forest thinning, it\u00a0might\u00a0be difficult for\u00a0expenditures to be seen as a\u00a0capital expense.\u00a0<\/span>\u00a0<\/span><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Appreciation and Depreciation of Assets Since various assets perform differently over time, it is important to understand how those assets will affect the system\u2019s accounting and finances. Asset\u00a0types\u00a0have different\u00a0performance or decay curves.\u00a0\u00a0 The condition of gray assets typically begins to deteriorate as soon as they are put into service.\u00a0\u00a0 Green assets can be the opposite. A green asset\u2019s condition\u00a0might\u00a0improve over the first few years of the asset\u2019s\u00a0life,\u00a0and\u00a0then flatten out for\u00a0a period\u00a0(possibly\u00a0an\u00a0extended period) and eventually begin to decay.\u00a0\u00a0 For either type of asset, intervening with maintenance, repair and\/or rehabilitation returns functionality to the asset and extends its life.\u00a0Utility\u00a0staff\u00a0must think about how the asset condition will impact the accounting records for the system.\u00a0Be aware that\u00a0maintaining\u00a0an asset not owned by the system can affect the way accounting recognizes those expenditures. This situation\u00a0might\u00a0not be a major issue for small maintenance expenditures, but for\u00a0large expenditures\u00a0on\u00a0natural assets, such as forest thinning, it\u00a0might\u00a0be difficult for\u00a0expenditures to be seen as a\u00a0capital expense.\u00a0\u00a0<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"class_list":["post-6871","page","type-page","status-publish","hentry"],"yoast_head":"\n