2017-06-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA   6 JUNE 2017




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SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                           6 JUNE 2017

   COUNCIL POLICY - NON CURRENT ASSET ACCOUNTING POLICY

   Non-Current Assets

   1     Asset Classes

   A ‘class’ of non-current assets is a grouping of assets of a similar nature and use in Council's
   operations and which, for the purposes of disclosure, is shown as a single item in Council’s general
   purpose financial statements. The classes of property, plant and equipment assets are:

    Asset Class                     Asset Type Examples
                                    Council owned or controlled land
   Buildings                        Corporate and Community buildings, housing, sheds, public amenities,
                                    sports & recreational buildings
    Other Infrastructure Assets     Includes park, beach access, sporting ground and waste management
                                    infrastructure i.e. BBQ shelters, gazebos, park furniture, playground
                                    equipment, recreational playing courts, shade covers and irrigation
                                    systems, internal roads and car parks, landscaping, fencing, fibre optics,
                                    boat ramps and pontoons
    Plant and Equipment             Office furniture and equipment, computer equipment (excluding ICT
                                    software), fleet including motor vehicles trucks, heavy equipment,
                                    trailers, mowers and boats
    Road and Bridge Network         Road structures, kerb and channel, footpaths, roundabouts, bus shelters
                                    and bridges
                                    Box Culvert, Pipes, manholes, stormwater pits
    Intangibles                     Information Communication Technology software and licences

   2     Non-Current Asset Recognition
   An asset is recognised as a non-current asset in the financial asset register if it meets all of the
   following criteria:
   °     Council has control over the asset;
   °     It is probable that future economic benefits associated with the asset will flow to the entity
         (including non-cash service benefits);
   °     The cost or fair value of the item can be measured reliably;
   °     The cost or fair value of the asset exceeds Council’s asset threshold; and
   °     Expected to be used for more than one financial year.

   An item of property, plant and equipment that qualifies for recognition as an asset shall initially be
   measured at cost.

   3     Recognition Thresholds for Non-Current Assets
   In accordance with the Local Government Regulation 2012, Council must, by resolution, set an amount
   for each different type of physical asset below which the value of the asset must be treated as an
   expense. The thresholds detailed in the table below must be disclosed by way of note in Council’s
   general purpose financial statements.

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