NIPS Annual Report and Accounts 2012-13 - Department of Justice

2012-2013
Component Definition
Building Substructure, Frame, Upper Floors,
Structure Roof, Stairs, External Walls,
Windows & external doors, Internal
walls & partitions, Internal doors,
Floors/wall/ceiling finishes
Engineering Sanitary appliances, services
Systems equipment, disposal installation,
water installation, heat source,
space heating, & air treatment,
ventilation systems, electrical, gas,
lift and protective installations.
Equipment & CCTV, access control, alarm
Security systems, control rooms including all
Installations associated ICT hardware &
software; Fixed furniture, fittings,
equipment & appliances.
External Roads, footpaths, drainage, fences,
Works gates, boundary walls, street
furniture, landscaping and
external lighting.
Property, Plant and Equipment, other than Land and
Buildings are carried at current cost using indices
compiled by the Office for National Statistics. The
standard threshold for capitalisation is £1,000.
Lower thresholds apply to certain types of IT
equipment.
Expenditure on office furniture and equipment is
classified as capital expenditure if the purchase cost
of an individual item is over the standard threshold
of £1,000. An exception to this is if, as the result
of a refurbishment or the establishment of a new
office or project, a pool of new office furniture
or equipment is purchased with individual items
costing less than £1,000 but the total purchase
costs are more than £1,000.
Properties regarded by the Northern Ireland Prison
Service as operational are valued on the basis of
existing use, or where this could not be assessed
because there is no market value for the property, its
depreciated replacement cost. Properties regarded
by the Northern Ireland Prison Service as nonoperational
are valued on the basis of open market
value.
1.4 Intangible Assets
Purchased computer software licences are
capitalised as intangible assets where expenditure
of £1,000 or more is incurred. Intangible assets are
stated at their market value. Intangible assets are
amortised on a straight-line basis over the expected
useful lives of the assets concerned.
1.5 Financial Instruments
Under IAS 39 and IFRS 7, the Northern Ireland
Prison Service is required to recognise, measure and
disclose the elements of its 0% interest Housing
Loan Scheme at fair value. These elements have
been identified within both Non-current and
Current Financial Assets. The carrying value has been
discounted at a rate of 3.5% in line with Treasury
guidelines. The Northern Ireland Prison Service does
not hold any other financial instruments.
1.6 Depreciation and Amortisation
Freehold land is not depreciated. NIPS has
depreciated separately identified components of
its buildings assets according to the useful life
of that component, with individual lives applied
to each component. Provision for depreciation
and amortisation is made to write-off the cost
of property, plant and equipment and intangible
assets on a straight-line basis over the expected
useful lives of the assets concerned. Land, assets
under construction or assets awaiting disposal are
not depreciated. The overall expected useful lives of
assets are as follows:
75