Meeting papers

In assessing materiality, the size and nature of the omission or misstatement are usually evaluated
together. The surrounding circumstances will also be considered.

DEFINITIONS

The following definitions inform this policy and related guidelines.

 Accumulated                The aggregate portion of an assets total service capacity (excluding any
 depreciation               residual value) that has been consumed to date.
 Active market              A market in which all the conditions exist:
                            a) Homogeneous market of traded assets
                            b) Willing buyers and sellers available
                            c) Prices are available to the public.
                            A market in which transactions for the sale of similar assets or liabilities take
                            place with sufficient frequency and volume to provide pricing information on an
                            ongoing basis
 Amortisation               The systematic allocation of the cost of an intangible asset (less any residual
                            value) over its useful life to reflect patterns of periodic consumption
 Asset                      Future economic benefits controlled by Council as a result of past transactions
                            or other past events.
 Asset class                A grouping of assets of a similar nature and use in any entities operations
 Asset custodian            The Council Officer responsible for managing an asset
 Asset recognition          The process whereby an asset is included in the financial asset register and
                            Council’s Statement of Financial Position as a non-current asset
 Capital expenditure        The amount of cash (or cash equivalents) paid or the fair value of the other
                            consideration given to acquire an asset at the time it is acquired or
                            constructed. Paragraphs 16 to 28 of AASB 116 Property, Plant and Equipment
                            provide guidance about the elements of cost and measurement of cost. The
                            cost of an item of property, plant and equipment includes:
                            •   its purchase price, including taxes and duties
                            •   if self-constructed, the purchase price will include the labour, materials and
                                resources incurred, but will exclude internal profit margins
                            •   the direct costs of bringing the asset to its intended operating location and
                                condition
                            •   the initial estimate of the costs of dismantling and removing the item and
                                restoring the site on which it is located (eg landfill sites), where the
                                obligation is recognised and measured in accordance with AASB 137
                                Provisions, Contingent Liabilities and Contingent Assets
 Carrying amount            The amount at which an assets value is recognised after deducting any
                            accumulated depreciation and accumulated impairment losses.
 Capitalisation threshold   The cost limit above which physical non-current assets are recognised in an
                            entity’s asset register as items of property, plant and equipment.
 Complex asset              Assets with multiple connected components that can be separately identified
                            and replaced.
 Component                  A significant part of a complex asset that is separable and has a different
                            useful life or pattern of consumption to other significant parts.
                            Connected asset parts that have different physical characteristics and which
                            can be separately replaced at different times over the assets life cycle.
 Comprehensive              A revaluation which entails significant levels of physical inspection and
 valuation                  evaluation of all inputs, such as methodologies, assumptions, condition, and
                            unit rates.
 Contributed asset          An asset that is acquired by Council at nominal or no cost, usually by way of an
                            agreement with property developers, through State Government arrangements
                            or bequeathed to Council.




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