2016-06-29 Special Meeting Agenda

COUNCIL POLICY – NON CURRENT ASSET ACCOUNTING POLICY


    Asset Class                      Asset Types
    Land                             Council owned or controlled land
    Buildings                        Corporate and Community buildings, housing, sheds, public
                                     amenities, Sports & Recreational buildings etc.

    Other Infrastructure Assets      Includes park, beach access, sporting ground and waste
                                     management infrastructure i.e. BBQ shelters, rotundas, gazebos,
                                     park furniture, playground equipment, recreational playing courts,
                                     shade covers and irrigation systems Car parks (off road), internal
                                     roads, landscaping, fencing, fibre optics,
                                     solar powered lights, boat ramps and pontoons, etc.
    Plant and Equipment              Office furniture and equipment, computer equipment (excluding
                                     software), fleet including motor vehicles trucks, heavy equipment,
                                     trailers, mowers, boats & motors etc.
    Road and Bridge Network          Road structures, kerb and channel, footpaths, roundabouts, bus
                                     shelters and bridges
    Stormwater                       Box Culvert, Pipes, manholes, stormwater pits.
    Intangibles                      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.
     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.

Non-current asset thresholds are as follows:

    Asset Class                                      Asset Threshold
    Land                                                                 $1
    Buildings                                                       $15,000
    Other Infrastructure Assets                                      $5,000
    Plant & Equipment                                                $5,000
    Roads & Bridge Network                                     Network Asset
    Stormwater                                                 Network Asset
    Intangible Assets                                                $5,000


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