2009-10 Annual Report - Australia Post

notes to And ForminG PArt oF the FinAnCiAl rePort For the year ended 30 June 2010
an item of property, plant and equipment is derecognised upon disposal
or when no further future economic benefits are expected from its use
or disposal. any gain or loss arising on derecognition of the asset
(calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the statement of
comprehensive income in the year in which the asset is derecognised.
depreciable property, plant and equipment assets are written off to
their estimated residual values over their estimated useful lives using
the straight-line method of depreciation.
depreciation rates (useful lives) and methods are reviewed annually
and necessary adjustments are recognised in the current, or current
and future reporting periods, as appropriate.
depreciation rates applying to items in each class of depreciable asset
are based on the following useful lives:
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2010 2009
Buildings – Gpos 70 years 70 years
Buildings – other facilities 40–50 years 40–50 years
leasehold improvements lower of lease
term and 10 years
lower of lease
term and 10 years
Motor vehicles 3–10 years 3–10 years
specialised plant and equipment 10–20 years 10–20 years
other plant and equipment 3–10 years 3–10 years
the aggregate amount of depreciation allocated for each class
of asset during the reporting period is disclosed in note 3.
(t) investment properties
investment properties are measured initially at cost, including
transaction costs. the carrying amount includes the cost of replacing
part of an existing investment property at the time that cost is incurred
if the recognition criteria are met and excludes the costs of day-to-day
servicing of an investment property. subsequent to initial recognition,
investment properties are measured at fair value, which is based on
active market prices, adjusted if necessary, for any difference in the
nature, location or condition of the specific asset at the reporting date.
Gains or losses arising from changes in the fair values of investment
properties are recognised in profit or loss in the year in which they arise.
investment properties are derecognised either when they have been
disposed of or when the investment property is permanently withdrawn
from use and no future economic benefit is expected from its disposal.
any gains or losses on the retirement or disposal of an investment property
are recognised in profit or loss in the year of retirement or disposal.
transfers are made to investment property when there is a change in
use, evidenced by ending of owner-occupation, commencement of an
operating lease to another party. transfers are made from investment
property when and only when, there is a change in use, evidenced by
commencement of owner-occupation or commencement of
development with a view to sale.
For a transfer from investment property to owner-occupied property or
inventories, the deemed cost of property for subsequent accounting is
its fair value at the date of change in use. if the property occupied by the
group as an owner-occupied property becomes an investment property,
the group accounts for such property in accordance with the policy
stated under property, plant and equipment up to the date of change
in use.
AustrAliA Post AnnuAl rePort 2009–10 | Financial and statutory reports
(u) investments and other financial assets
investments and financial assets in the scope of aasB 139: Financial
Instruments: Recognition and Measurement are categorised as either
financial assets at fair value through profit or loss, loans and receivables,
held-to-maturity investments or available-for-sale financial assets. the
classification depends on the purpose for which the investments were
acquired or originated. designation is re-evaluated at each financial year
end, but there are restrictions on reclassifying to other categories. When
financial assets are recognised initially, they are measured at fair value
plus, in the case of assets not at fair value through profit or loss, directly
attributable transactions costs.
recognition and derecognition
all regular way purchases and sales of financial assets are recognised
on the trade date; that is, the date on which the group commits to
purchase the asset. regular way purchases or sales are purchases
or sales of financial assets under contracts that require delivery of
the assets within the period established generally by regulation or
convention in the marketplace. Financial assets are derecognised when
the right to receive cashflows from the financial assets have expired or
when the entity transfers substantially all the risks and rewards of the
financial assets. if the entity neither retains nor transfers substantially all
of the risks and rewards, it derecognises the asset if it has transferred
control of the asset.
subsequent measurement
(i) Financial assets at fair value through profit or loss
Financial assets classified as held for trading are included in the category
“financial assets at fair value through profit or loss”. Financial assets
are classified as held for trading if they are acquired for the purpose of
selling in the near term with the intention of making a profit. derivatives
are also classified as held for trading unless they are designated as
effective hedging instruments. Gains or losses on financial assets
held for trading are recognised in profit or loss.
(ii) held-to-maturity investments
non-derivative financial assets with fixed or determinable payments and
fixed maturity are classified as held-to-maturity when the group has the
positive intention and ability to hold to maturity. investments intended
to be held for an undefined period are not included in this classification.
investments that are intended to be held-to-maturity, such as bonds, are
subsequently measured at amortised cost. this cost is computed as the
amount initially recognised minus principal repayments, plus or minus
the cumulative amortisation using the effective interest method of any
difference between the initially recognised amount and the maturity
amount. this calculation includes all fees and points paid or received
between parties to the contract that are an integral part of the effective
interest rate, transaction costs and all other premiums and discounts.
For investments carried at amortised cost, gains and losses are
recognised in profit or loss when the investments are derecognised
or impaired, as well as through the amortisation process.
(iii) loans and receivables
loans and receivables are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market. such
assets are carried at amortised cost using the effective interest rate
method. Gains and losses are recognised in profit or loss when the loans
and receivables are derecognised or impaired, as well as through the
amortisation process. these are included in current assets, except those
with maturities greater than 12 months after balance date, which are
classified as non-current.