2026/27 FINANCIAL POLICIES · Attachment 12 - Non-Current Asset Accounting Policy

Attachment 12 – Non-Current Asset Accounting Policy


Objective

The objectives of this policy are to:
•    Ensure compliance with Australian Accounting Standards, the Local Government Act 2009 and
     the Local Government Regulation 2012
•    Ensure all processes undertaken in relation to the content of this policy are appropriately
     documented and defensible to external audit
•    Ensure all asset movements are recorded in the financial asset register on a timely basis
•    Stipulate how an asset is accounted for on acquisition (including construction and contribution)
     at initial recognition stage for accounting and reporting purposes
•    Prescribe how to account for costs post initial asset recognition including when to expense or
     capitalise asset renewal, upgrade or expansion expenditure
•    Ensure the effective management and minimisation of capital work in progress balances
•    Stipulate the valuation methodology and timeframes to be used in valuing non-current assets
     for accounting and reporting purposes
•    Prescribe the circumstances as to when an asset can be derecognised from the financial asset
     register.

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 shown in the
following table:

 Asset Class                     Asset Class Examples
 Land                            Council owned land.
 Buildings                       Community, cultural and commercial buildings, housing, sheds, public
                                 amenities.
 Plant and Equipment             Office furniture and equipment, computer hardware, motor vehicles,
                                 trucks, yellow plant, trailers, mowers and boats.
 Other Infrastructure Assets     Internal roads and car parks, landscaping, fencing, structures (BBQ
                                 shelters, rotundas, gazebos), playground equipment, recreational
                                 playing courts, shade covers and irrigation systems, park furniture, fibre
                                 optics, boat ramps and pontoons, waste management and solar energy.
 Intangibles                     Software and licences where Council has exclusive rights to use the
                                 software or hold ownership of the intellectual property for the customised
                                 software. Software that meets the criteria as SaaS (Software as a
                                 Service Arrangement) must be expensed as utilised and reported in the
                                 Statement of Comprehensive Income.
 Network Assets
 Road and Bridge Network         Road structures, kerb and channel, footpaths, traffic calming devices,
                                 roundabouts, bus shelters bridges and major culverts.
 Storm Water                     Box culverts, pipes, manholes, stormwater pits and bio-retention basins.




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