2021-02-09 S&O Agenda - Item 11 - Attachment 1 - Tourism Noosa Annual Report 2019-20

      Plant and Equipment

      Plant and equipment are measured on the cost basis and are therefore carried at cost less
      accumulated depreciation and any accumulated impairment losses. In the event the carrying
      amount of plant and equipment is greater than its estimated recoverable amount, the carrying
      amount is written down immediately to its estimated recoverable amount and impairment losses
      are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate
      to a revalued asset. A formal assessment of recoverable amount is made when impairment
      indicators are present (refer to Note 1(f) for details of impairment).


      Subsequent costs are included in the asset’s carrying amount or recognised as a separate
      asset, as appropriate, only when it is probable that future economic benefits associated with
      the item will flow to the company and the cost of the item can be measured reliably. All other
      repairs and maintenance are recognised as expenses in profit or loss in the financial period in
      which they are incurred.

      Plant and equipment that have been contributed at no cost, or for nominal cost are
      recognised at the fair value of the asset at the date it is acquired.

      Depreciation

      The depreciable amount of all fixed assets, including buildings and capitalised lease assets but
      excluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the
      entity commencing from the time the asset is available for use. Leasehold improvements are
      depreciated over the shorter of either the unexpired period of the lease or the estimated useful
      lives of the improvements.

      The depreciation rates used for each class of depreciable assets are:

      Class of Fixed Asset                               Depreciation Rate
      Plant and equipment                                   7.5 - 40%

      The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the
      end of each reporting period.

      Gains and losses on disposals are determined by comparing proceeds with the carrying
      amount. These gains or losses are recognised as income in profit or loss in the period in which
      they arise. When revalued assets are sold, amounts included in the revaluation surplus relating
      to that asset are transferred to retained surplus.

(d)   Leases
      Leases of property, plant and equipment where substantially all the risks and benefits incidental
      to the ownership of the asset (but not the legal ownership) are transferred to the entity, are
      classified as finance leases.

      Finance leases are capitalised, recognising an asset and a liability equal to the present value of
      the minimum lease payments, including any guaranteed residual values.

      Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is
      likely that the entity will obtain ownership of the asset. Lease payments are allocated between
      the reduction of the lease liability and the lease interest expense for the period.

      Lease payments for operating leases, where substantially all the risks and benefits remain with
      the lessor, are recognised as expenses on a straight-line basis over the lease term.

      Lease incentives under operating leases are recognised as a liability and amortised on a
      straight-line basis over the life of the lease term.