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

  The depreciation method used shall reflect the pattern in which the asset’s future economic benefits
  are expected to be consumed by the entity. Council has adopted the straight-line method of
  depreciation to reflect patterns of consumption for all non-current assets other than non-depreciable
  land, waste disposal assets and some road components.
  Work in progress cannot be depreciated as the assets are not available for use.
  Useful Lives and Rates

  The useful life of an asset is the estimated period over which a depreciable asset is expected to be
  able to provide future service potential. The estimation of the useful life of the asset is a matter of
  judgement based on the experience of the entity with similar assets.

  13   Asset Review

  Asset depreciation rate, remaining useful life and impairment are to be reviewed at least on an annual
  basis by asset custodians and management to ascertain if any amendments are required.

  14   Valuation of Assets

  Measurement after recognition
  Once assets have been initially recognised, assets are to be measured under either the cost or the
  revaluation model as required by AASB 116 Property Plant and Equipment and the Local Government
  Act 2009 and the Local Government Regulations 2012 and shall apply to an entire class of property,
  plant and equipment.
  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.
  Revaluation Model

  An item of property, plant and equipment whose fair value can be measured reliably shall be carried
  at a revalued amount, being its fair value at the date of the revaluation less any subsequent
  accumulated depreciation and subsequent accumulated impairment losses.
  Cost Model

  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.
  Council applies the following valuation methodology across its asset classes:

   Asset Class                         Valuation Methodology

 [Buildings                         sd Revaluation
   Other Infrastructure
   Plant & Equipment - General
   Roads & Bridges
   Stormwater & Drainage
   Intangible Assets

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