Annual Report - COMPLETE - Australian Crime Commission
Annual Report - COMPLETE - Australian Crime Commission
Annual Report - COMPLETE - Australian Crime Commission
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1.11 Acquisition of Assets<br />
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes<br />
the fair value of assets transferred in exchange and liabilities undertaken.<br />
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and<br />
revenues at their fair value at the date of acquisition, unless acquired as a consequence of<br />
restructuring administrative arrangements. In the latter case, assets are initially recognised as<br />
contributions by owners at the amounts at which they were recognised in the transferor agency’s<br />
accounts immediately prior to the restructuring.<br />
1.12 Property, Plant and Equipment (PP&E)<br />
Asset Recognition Threshold<br />
Purchases of property, plant and equipment are recognised initially at cost in the Statement of<br />
Financial Position, except for purchases costing less than $2,000, which are expensed in the<br />
period of acquisition (other than where they form part of a group of similar items which are<br />
significant in total).<br />
Revaluations<br />
Basis<br />
Land, buildings, plant and equipment are carried at valuation. Revaluations undertaken up to 30<br />
June 2002 were done on a deprival basis; revaluations since that date are at fair value. This<br />
change in accounting policy is required by <strong>Australian</strong> Accounting Standard AASB 1041<br />
Revaluation of Non-Current Assets. Valuations undertaken in any year are as at 30 June.<br />
Fair value for each class of asset are determined as shown below:<br />
Under fair value, assets which are surplus to requirements are measured at their net realisable<br />
value.<br />
Frequency<br />
Asset class Fair value measured<br />
at:<br />
Land Market selling price<br />
Buildings Market selling price<br />
Leasehold<br />
Depreciated<br />
improvements replacement cost<br />
Plant<br />
equipment<br />
& Market selling price<br />
Land, buildings, plant and equipment were last revalued as at 30 June 2003. The updated useful<br />
lives of the respective revalued assets were not updated in the Fixed Assets Register for the year<br />
ended 30 June 2003 to fair value.<br />
The Fixed Assets Register has been updated for the financial year ended 30 June 2004 to reflect<br />
the adjusted useful lives based on the <strong>Australian</strong> Valuation Office revised useful lives.<br />
The associated depreciation expense has been recognised in the financial statements for the year<br />
ended 30 June 2004.<br />
Leasehold improvements are each revalued on a fair value basis.<br />
ACC ANNUAL REPORT 2003–04 I 105<br />
6A<br />
APPENDIX A: FINANCIAL STATEMENTS