CQUniversity Annual Report - Central Queensland University

CQUniversity ANNUAL REPORT 2012
(n)
(o)
Central Queensland University
and Controlled Entities
Notes to the Financial Statements
for the year ended 31 December 2012
Rental revenue from the leasing of investment properties is recognised in the income statement in the periods in which it is
receivable, as this represents the pattern of service rendered through the provision of the properties.
Property, plant and equipment
Land and buildings (except for investment properties – refer to note 1(m) above), infrastructure, library heritage and art
collections are shown at fair value, based on periodic, but at least triennial, valuations by external independent valuers less
subsequent depreciation for buildings and infrastructure. During intervening years a management assessment of fair value
using indices supplied by external valuers which are specifically tailored assessments of market trends occurring at the
time. Buildings, infrastructure and land indices and assessment were supplied by G Pyman (FAPI, MRICS) Registered
Valuer No. 1856; B MacAulay (AVAA No. 336) provided a specific assessment for Artworks. The University Heritage
Collection was independently revalued during 2012 by J Harbeck, an Australian Government Cultural Gifts Program
Valuer.
Any accumulated depreciation at the date of revaluation is restated proportionately with the change in the gross carrying
amount of the asset so that the carrying amount of the asset after valuation equals its revalued amount. All other property,
plant and equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly
attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item
can be measured reliably. All other repairs and maintenance expenses are charged to the income statement during the
financial period in which they are incurred.
Increases in the carrying amounts arising on revaluation of land, buildings, infrastructure, library heritage and art collections
are credited to reserves in equity. To the extent that the increase reverses a decrease for that class previously recognised
in profit or loss, the increase is first recognised in profit and loss. Decreases that reverse previous increases of the same
asset class are first charged against revaluation reserves directly in equity of the remaining reserve attributable to the asset
class; all other decreases are charged to the income statement.
Asset classes land, library heritage and art collections are not depreciated. Depreciation on other assets is calculated
using the straight-line method to allocate their cost or revalued amounts, net of their residual values, over their remaining
useful lives as follows:
freehold buildings 2 to 59 years
infrastructure 2 to 39 years
leasehold improvements 1 to 16 years
plant and equipment 4 to 25 years
The assets’ residual values and useful lives are reviewed annually, and adjusted if appropriate.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount. Gains and losses on disposal are determined by comparing proceeds with carrying
amount. These are included in the income statement. Where revalued assets are sold, it is Group policy to transfer the
amounts included in other reserves in respect of those assets to retained earnings.
Intangible assets
Intangible assets with a cost or other value equal to or greater than $100,000 are recognised in the financial statements,
items with a lesser value being expensed. Each intangible asset is amortised over its estimated useful life to the Group,
less any anticipated residual value. The residual value is zero for all the Group’s intangible assets.
It has been determined that there is no active market for any of the Group’s intangible assets. As such, the assets are
recognised and carried at cost less accumulated amortisation and accumulated impairment losses.
No intangible assets have been classified as held for sale or form part of the disposal group held for sale.
Purchased software
Software development costs in excess of $100,000 are recognised as an asset on acquisition only when the consolidated
entity controls future economic benefits as a result of the costs incurred that are probable and can be measured reliably.
Costs attributable to feasibility assessments are expensed as incurred. The costs capitalised include the cost of materials,
direct labour, directly attributable overheads and other incidental costs incurred. The purchase cost of this software is being
amortised on a straight-line basis over the period of the expected benefit to the university, namely 3 to 5 years.
17
ANNUAL FINANCIAL STATEMENTS