How should land associated with infrastructure be reported?

Land associated with infrastructure should be reported as a separate asset. This approach acknowledges that land is distinct from the infrastructure itself and has a different character as an asset.

When reporting land separately, it reflects its appreciation value and allows for better financial transparency regarding how much value the land contributes independently of the infrastructure. This separation is significant because it also permits clearer maintenance and operational decision-making themes, such as whether to redevelop, sell, or maintain the land separately from any existing infrastructure.

In addition, this adherence to separate reporting aligns with accounting principles that emphasize the differentiation between tangible assets, as land does not depreciate in the same way that infrastructure assets do. Overall, this method of classification helps stakeholders understand the financial position of a government entity or organization more effectively.