Annual Report 2016-17

                                                                                            Financial Statements 2017



Noosa Shire Council

Notes to the Financial Statements
 for the year ended 30 June 2017

Note 11. Property, Plant and Equipment (continued)



Capital work in progress
The cost of property, plant and equipment being constructed by the Council includes the cost of purchased
services, materials, direct labour and an appropriate proportion of labour overheads.

Depreciation
Land is not depreciated as it has an unlimited useful life. Depreciation on other property, plant and equipment
assets is calculated on a straight-line basis so as to write-off the net cost or revalued amount of each depreciable
asset, less its estimated residual value, progressively over its estimated useful life to the Council. Management
believe that the straight-line basis appropriately reflects the pattern of consumption of all Council assets.

Assets are depreciated from the date of acquisition or, in respect of internally constructed assets, from the time an
asset is completed and commissioned ready for use.

Where assets have separately identifiable components that are subject to regular replacement, these components
are assigned useful lives distinct from the asset to which they relate. Any expenditure that increases the originally
assessed capacity or service potential of an asset is capitalised and the new depreciable amount is depreciated
over the remaining useful life of the asset to the Council.

The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated
useful lives of the improvements to the Council or the unexpired period of the lease, whichever is the shorter.

Depreciation methods, estimated useful lives and residual values of property, plant and equipment assets are
reviewed at the end of each reporting period and adjusted where necessary to reflect any changes in the pattern of
consumption, physical wear and tear, technical or commercial obsolescence, or management intentions. The
condition assessments performed as part of the annual valuation process for assets measured at depreciated
current replacement cost are used to estimate the useful lives of these assets at each reporting date. Road
formation has an unlimited life and is not subject to depreciation. Details of the range of estimated useful lives for
each class of asset are shown in the Table below.




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