Final answer:
The statement is false as under the modified approach, expenditures that extend the useful life of infrastructure assets are capitalized, not expensed.
Step-by-step explanation:
The statement is false. When using the modified approach to account for infrastructure assets, expenditures that extend the useful life of the infrastructure are not expensed, but are capitalized. This is a method used by governmental entities to account for certain infrastructure assets like roads and bridges. Under this approach, infrastructure assets that are being preserved at or above a specified condition level do not need to be depreciated. Instead, all costs associated with maintaining these assets at the specified condition level are expensed, whereas costs that increase the asset’s life expectancy or improve its condition beyond the established condition level are capitalized.