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 asset thresholds are as follows:

    Asset Class                                   Asset Threshold
  plang                                                            SY
  |Builldings                                                   $15,000
    Other Infrastructure Assets                                   $5,000
    Plant & Equipment *                                           $5,000
    Roads & Bridge Network
                                                           Network Asset
    Intangible Assets                                             $5,000
   * ICT Plant and Equipment has a recognition threshold of $1000.
   Only expenditure that meets the non-current asset recognition criteria and is equal to or above the
   threshold will be capitalised within Council's asset register.
   Complex Assets
   A complex asset (i.e. a building) can be apportioned to individual significant components. Assets will
   be recognised at component level where feasible.
   The significant components of a complex asset are identified and depreciated separately. This
   provides accurate and relevant information for users of general purpose financial statements and for
   asset management purposes.
   A significant component is one that meets the following criteria:
   °     Can be separately identifiable and measurable and is able to be separated from the complex
         asset;
   °     May require replacement and intervention at regular intervals during the life of the complex
         asset;
   °     Has a significant value in relation to the total cost of the complex asset; and
   «     May have a different estimated useful life from the complex asset so that failure to depreciate
         it separately would result in a material difference in the annual depreciation expense for that
         asset.

   When replacing a component of a complex asset and if applicable the existing written down value of
   the original component should be written off.
   Components will be capitalised as long as the total capital project expenditure meets the asset
   recognition threshold.
   Networked Asset

   A network is a grouping of multiple assets that are individually below the capitalisation threshold. These
   assets perform a whole service and require recognition in the financial statements due to their
   collective value (i.e. roads and stormwater).
   Operating Asset
   Assets below the threshold may still be taken up in the asset register where required for asset
   management purposes as operating (non-financial) assets, including highly attractive items such as
   electrical equipment and small plant.

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