2002 - 2003 Annual Report - Tourism Australia

Notes to and forming part of the Financial Statements
For the year ended 30 June 2003 Australian Tourist Commission
1.9 Financial instruments
Accounting policies for financial instruments are stated at note 15.
1.10 Property, plant and equipment
Asset recognition threshold
Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for
purchases costing less than $5,000, which are expended in the year of acquisition (other than where they form part of a group
of similar items which are significant in total).
Revaluations
Plant and equipment are carried at valuation. Revaluations undertaken up to 30 June 2002 were done on a deprival basis;
revaluations since that date are at fair value.This change in accounting policy is required by Australian Accounting Standard
AASB 1041 Revaluation of Non-Current Assets.
Leasehold improvement and Furniture and fittings were revalued in 2002-03.The financial effect for 2002-03 of this change in
policy relates to those assets to be recognised at fair value at 30 June 2003.The financial effect by class for the assets class
revalued is as follows:
Asset Class Adjustment $000 Contra Account
Leasehold Improvements 188 Asset Revaluation Reserve
Furniture and fittings (109) Asset Revaluation Reserve
Total financial effect was a net credit to the asset revaluation reserve of $ 78,988.
Accounting Standard AAS 6 Accounting Policies requires, where practicable, presentation of the information that would have
been disclosed in the 2001-02 Statements had the new accounting policy always been applied. It is impracticable to present
this information.
Frequency
Plant and equipment are each revalued progressively by asset type in successive three-year cycles as follows:
• leasehold improvements were revalued in full in 1998-99 and in 2002-03;
• plant and equipment (P&E) assets were initially revalued during the financial year 1998-99 by type of asset. In 2001-02 all
information technology assets were revalued;
• in 2000-01, other equipment was revalued; and
• in 2002-03, furniture and fittings were revalued.
Assets in each class acquired after the commencement of a progressive revaluation cycle are not captured by the progressive
revaluation then in progress.
Conduct
All valuations are conducted by an independent qualified valuer.
Recoverable amount test
From 1 July 2002, Schedule 1 no longer requires the application of the recoverable amount test in AAS 10 Recoverable
Amount of Non-current Assets to the assets of the Commission when the primary purpose of the asset is not the generation of
net cash inflows.
No property plant and equipment assets have been written down to recoverable amount per AAS 10. Accordingly, the change
in policy has had no financial effect.
Depreciation and Amortisation
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful
lives to the Commission 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 expected unexpired period of the lease.
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