Meeting papers

Cost model                 An accounting policy that may be applied for the measurement of an entire
(valuation)                asset class. After recognition as an asset, an item of property, plant and
                           equipment shall be carried at its cost, less any accumulated depreciation and
                           any accumulated impairment losses.
Control                    Ability for Council to obtain benefits flowing from the asset and to restrict the
                           access of others to those benefits.


Depreciable amount         The gross value of an asset, less residual value (where appropriate)
Depreciated current        Current cost of replacement or reproduction of an asset, less deductions for
replacement cost           physical deterioration of the asset.
Depreciation               The systematic allocation of the depreciable amount of an asset over the
                           assets useful life which reflects the pattern in which the future economic
                           benefits embodied in the asset are consumed.
Design life                The estimated period of time an asset can be used based on its design
                           characteristics. Council can intend to consume the economic benefits over a
                           longer or shorter period.
Desktop review             A desktop valuation review is an assessment of asset values which:
                           a) Does not involve inspection of the assets
                           b) Produces an indicative assessment (with conditions) of value of the asset
                           c) Is prepared by valuers using specified information and documents.
Disposal                   Removal, demolition, or elimination of an assets service potential, resulting
(decommissioning)          from a specific management decision. An asset is disposed when Council
                           loses control of the asset at the end of its useful life to the entity – the
                           relocation of an asset into another asset or location does not involve any loss
                           of control of the asset by Council.
Economic life              The period over which an asset is intended to be economically useful to
                           Council. This can be different to physical life and original design life.
Fair value                 The price that would be received to sell an asset or paid to transfer a liability in
                           an orderly transaction between market participants at the measurement date
                           (AASB 13 Fair Value Measurement).
Financial asset register   A enterprise subsidiary system that supports the reported values of property,
                           plant and equipment assets and intangibles controlled by Council that is
                           reconcilable to the general ledger.
Full revaluation           The process whereby the fair value of all assets within an asset class are
                           updated to reflect current market value or current replacement cost as well as
                           reassessing remaining useful life and residual value.
Future economic            With respect to not-for-profit entities such as Council, future economic benefits
benefits                   refer to the ability of an asset to provide goods or services in accordance with
                           the organisation’s objectives.
Gross carrying amount      The amount at which an asset is recorded (either at cost or fair value) within
(or gross value)           the financial asset register, excluding any deduction for accumulated
                           depreciation or accumulated impairment losses.
Highest and best use       The use of a non-financial asset by market participants that would maximise
                           the value of the asset or the group of assets and liabilities (for example, a
                           business) within which the asset would be used.
Impairment loss            The amount by which the carrying amount of an asset exceeds its recoverable
                           amount.2 Note, AASB 136 Impairment of Assets does not apply to assets
                           regularly revalued under the revaluation model in AASB 116 Property, Plant
                           and Equipment (AASB 2016-4 Amendments to Australian Accounting
                           Standards – Recoverable Amount of Non-Cash- Generating Specialised
                           Assets of Not-for-Profit Entities).




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