Meeting papers

The valuation method applicable to each asset class subsequent to initial recognition is as follows:

 Asset Class                 Measurement      Measurement / Frequency
                             Model
 Land                        Revaluation      1. Full asset class revaluation by external independent
 Buildings                   Revaluation         valuer every 5 years.
 Other Infrastructure        Revaluation      2. Desktop asset class revaluations (either by external
 Assets                                          independent valuer or internally) undertaken at least
                                                 once between full revaluation cycles.
 Plant and Equipment         Cost             Annually
 Intangible Assets           Cost             Annually
 Network Assets
 Roads and Bridge            Revaluation      1. Full asset class revaluation by external independent
 Network                                         valuer every 5 years.
 Storm Water                 Revaluation      2. Desktop asset class revaluations (either by external
                                                 independent valuer or internally) undertaken at least
                                                 once between full revaluation cycles.

Cost model - Assets are carried at their initial cost, less any accumulated depreciation and any
accumulated impairment losses.

Revaluation model – Assets that are in their first year of capitalisation are carried at their initial cost,
less any accumulated depreciation and any accumulated impairment losses. Subsequent to their
first year of capitalisation, assets are carried at their depreciated current replacement cost. For
assets that have not yet been subject to a formal appraisal, depreciated current replacement cost
increment or decrement factors will be applied to the initial asset cost.

5       Depreciation

The straight-line depreciation or amortisation method is adopted by Council to reflect patterns of
consumption for all non-current assets other than those assets considered not subject to
depreciation.

6       Periodic Review of Asset Assumptions

Asset depreciation and amortisation rates, useful lives, asset condition (used to assess remaining
useful lives), residual values and potential asset impairment are to be reviewed periodically to ensure
the assumptions are reflective of current conditions and expectations at the end of each financial
year. The remaining useful life of an asset should be reassessed whenever a major addition or any
significant partial disposal of the asset occurs.

7       Asset Revaluations

All asset classes subject to a revaluation process are to be revalued at Fair Value. When an asset
is revalued, the accumulated depreciation is restated proportionately with the change in the gross
carrying amount of the asset and any change in the estimate of the remaining useful life.

With the exception of assets that remain valued at cost, a full revaluation is required every five years.
Full revaluations for applicable asset classes are completed simultaneously for all underlying assets
within the asset class. Such revaluations should be completed within one financial year; however, it
is permissible to complete the process over two concurrent financial years whenever deemed
necessary due to resource or data management limitations. Council’s Audit and Risk Committee is
to endorse the scope and methodology of all comprehensive valuations.




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