Annual Report - COMPLETE - Australian Crime Commission

1.12 Property, Plant and Equipment (PP&E) (continued)
Conduct
All valuations are conducted by the independent qualified valuer the Australian Valuation Office.
Depreciation
Depreciable property plant and equipment assets are written-off to their estimated residual values
over their estimated useful lives to the ACC using in all cases, the straight line method of
depreciation. Leasehold improvements are amortised on a straight-line basis over the lesser of the
estimated useful life of the improvements or the unexpired period of the lease.
Depreciation rates (useful lives) and methods are reviewed at each balance date and necessary
adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Residual values are re-estimated for a change in prices only when assets are revalued.
Depreciation rates applying to each class of depreciable asset are based on the following useful
lives:
2004 2003
Leasehold improvements Lease term Lease term
Plant and equipment 3 to 5 years 3 to 5 years
Computer Equipment 3 years 3 years
Intangibles 3 years 3 years
The aggregate amount of depreciation allocated for each class of asset during the reporting period
is disclosed in Note 5D.
1.13 Intangibles
ACC’s intangibles comprise purchased software for internal use. These assets are carried at cost.
Software is amortised on a straight-line basis over its anticipated useful life. The useful lives of the
ACC’s software are three years.
1.14 Bad and Doubtful debts
A provision is raised for any doubtful debts based on a review of all outstanding amounts at period
end.
Bad debts are written off during the period in which they are identified.
1.15 Taxation
The ACC is exempt from all forms of taxation except fringe benefits tax and the goods and services
tax.
Revenues, expenses and assets are recognised net of GST:
• except where the amount of GST incurred is not recoverable from the Australian Taxation
Office; and
• except for receivables and payables.
106 I ACC ANNUAL REPORT 2003–04