Note 2.2 Non-Financial Assets

    2016
$'000
2015
$'000
Note 2.2: NON-FINANCIAL ASSETS
2.2A Property, Plant and Equipment
Office Machines and Equipment
Work in progress 68 0
Fair value 6,709 6,675
Accumulated depreciation (5,508) (5,258)
Total office machines and equipment 1,269 1,417
Leasehold Improvements
Work in progress 36
Fair value 23,622 24,952
Accumulated depreciation (10,368) (12,682)
Total leasehold improvements 13,290 12,270
Motor Vehicles
Fair value 17 41
Accumulated depreciation (12) (41)
Total motor vehicles 5 -
Property, Plant and Equipment
Work in progress 104 -
Fair value 30,348 31,669
Accumulated depreciation (15,888) (17,982)
Total property, plant and equipment (non-current) 14,564 13,687

 

Property, plant and equipment are subject to revaluation. Revaluations are conducted in accordance with the revaluation policy stated below. In 2015/16 an independent valuation was conducted (2015: No independent valuation was conducted).

No indications of impairment were found for property, plant and equipment.

Some computer equipment and leasehold improvements are expected to be sold or disposed of within the next 12 months.

 

 

  2016
$'000
2015
$'000
2.2B Intangibles
Computer software purchased
Work in progress 576 -
At cost 18,413 18,272
Accumulated amortisation (15,000) (13,272)
Total computer software 3,989 5,000
   
Total intangibles 3,989 5,000

No indicators of impairment were found for intangible assets.

 

2.2C Reconciliation of the opening and closing balances of property, plant and equipment and intangibles (2016)

  Other property,
plant and equipment
$'000
Computer software
purchased and
internally developed
$'000
Total
$'000
As at 1 July 2015
Gross book value 31,669 18,272 49,941
Accumulated depreciation/amortisation (17,982) (13,272) (31,254)
Net book value 1 July 2015 13,687 5,000 18,687
Additions:
By purchase or internally developed 306 769 1,075
Depreciation/amortisation expense (3,882) (1,780) (5,662)
Disposals:
Cost of assets disposed (2,257) (51) (2,308)
Add write back of depreciation on disposals 2,252 51 2,303
Net asset disposals (5) - (5)
Revaluations:
Revaluation of assets - net value cost adjustment 733 - 733
Add write back of depreciation on revaluation of assets 3,725 - 3,725
Net revaluation 4,458 - 4,458
Net book value 30 June 2016 14,564 3,989 18,553
Net book value 30 June 2016 represented by:
Gross book value 30,452 18,989 49,441
Accumulated depreciation/amortisation (15,888) (15,000) (30,888)
Net book value 30 June 2016 14,564 3,989 18,553

Reconciliation of the opening and closing balances of property, plant and equipment and intangibles (2015)

  Other property, plant and equipment
$'000
Computer software purchased and internally developed
$'000
Total
$'000
As at 1 July 2014
Gross book value 31,723 18,511 50,235
Accumulated depreciation/amortisation (12,748) (11,296) (24,044)
Net book value 1 July 2014 18,975 7,215 26,191
Additions:
By purchase or internally developed 109 10 119
Depreciation/amortisation expense (5,391) (2,225) (7,617)
Disposals:
Other (6) - (6)
Net book value 30 June 2015 13,687 5,000 18,687
Net book value 30 June 2015 represented by:
Gross book value 31,669 18,272 49,941
Accumulated depreciation/amortisation (17,982) (13,272) (31,254)
Net book value 30 June 2015 13,687 5,000 18,687

Accounting Policy

Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they are recognised in the transferor’s accounts, immediately prior to the restructuring.

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $5,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by Comcare where there exists an obligation to restore the property to its original condition. These costs are included in the value of Comcare’s leasehold improvements with a corresponding provision for the ‘make good’ recognised.

Revaluations

Following initial recognition at cost, property, plant and equipment are carried at fair value less accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not materially differ from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Depreciation has been restated to reflect the change in the net carrying amount of the asset after revaluation.

Depreciation

Depreciable property, plant and equipment is written off to its estimated residual values over its estimated useful life to Comcare using, in all cases, the straight-line method of depreciation.Depreciation rates (useful lives), residual value and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

 

The aggregate amount of depreciation allocated for each class of asset during the reporting period is disclosed at Note 2.2C.

Impairment

All assets were assessed for impairment at 30 June 2016. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if Comcare were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Intangibles

Comcare’s intangibles comprise purchased software for internal use with an initial cost of $30,000 or more. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. Useful lives are estimated at 3 to 10 years (2015: 3 to 10 years).
All software assets were assessed for indications of impairment as at 30 June 2016.

Sale of Assets

Gains/losses from disposal of assets are recognised when control of the asset has passed to the buyer.

 

 

    2016
$'000
2015
$'000
2.2D Other non-financial assets
Prepayments 1,771 2,007
Total other non-financial assets 1,771 2,007
Other non-financial assets are expected to be recovered in:
    No more than 12 months 1,571 1,689
    More than 12 months 200 318
Total other non-financial assets 1,771 2,007
No indicators of impairment were found for other non-financial assets.