2012 wintec annual report

WINTEC ANNUAL
REPORT 2012
47
Work in progress is recognised at cost less impairment and is not
depreciated.
In most instances, an item of property, plant, and equipment is
initially recognised at its cost. Where an asset is acquired at no
cost, or for a nominal cost, it is recognised at fair value as at the
date of acquisition.
Disposals
Gains and losses on disposals are determined by comparing the
disposal proceeds with the carrying amount of the asset. Gains and
losses on disposals are reported net in the surplus or deficit. When
revalued assets are sold, the amounts included in the property
revaluation reserves, in respect of those assets, are transferred to
general funds.
Depreciation is provided on a straight-line basis on all property,
plant, and equipment other than land and heritage collections,
at rates that will write off the cost (or valuation) of the assets to
their estimated residual values over their useful lives. Heritage
collections are not depreciated because they are maintained
such that they have indefinite or sufficiently long useful lives that
depreciation is considered negligible.
Class of assets
Rate (pa)
Land 0%
Furniture and equipment 5% - 33.33%
Motor vehicles 20%
Library 20%
Computer hardware 20% - 33.33%
Buildings
Structure
1 - 84 years
Fit out
1 - 19 years
Services
1 - 22 years
Infrastructure
10 - 50 years
Leasehold improvements are depreciated over the shorter of the
unexpired period of the lease or the estimated remaining useful
lives of the improvements.
The residual value and useful life of an asset is reviewed, and
adjusted if applicable, at each financial year end.
Held for sale
Property, plant and equipment is re-classified as a current asset
held for sale when its carrying amount will be recovered principally
through a sale transaction rather than through continuing use.
The re-classification takes place when the asset is considered to be
available for immediate sale in its present condition subject only
to the usual and customary terms for sales of such assets and the
sale is considered highly probable.
Intangible assets and goodwill
Computer software
Acquired computer software licenses are capitalised on the
basis of the costs incurred to acquire and bring to use the
specific software.
Costs that are directly associated with the development of
software for internal use are recognised as an intangible asset.
Direct costs include the software development employee costs and
an appropriate portion of relevant overheads.
Staff training costs are recognised as an expense when incurred.
Costs associated with maintaining computer software are
recognised as an expense when incurred.
Course development costs
Course development costs are recognised as an expense in the
Statement of Comprehensive Income in the year in which they
are incurred.
Intellectual Property Development
Research costs are recognised as an expense in the surplus or
deficit in the year in which they are incurred.
Amortisation
The carrying value of an intangible asset with a finite life is
amortised on a straight-line basis over its useful life. Amortisation
begins when the asset is available for use and ceases at the date
that the asset is derecognised. The amortisation charge for each
period is recognised in the surplus or deficit.
FINANCIAL PERFORMANCE
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