Department of Transport Annual Report 2010 - 2011

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(e) Income Revenue recognition Revenue is recognised and measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows: Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the significant risks and rewards of ownership transfer to the purchaser and can be measured reliably. Provision of services Revenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction. Revenues are received in the form of various registration, examination and licence fees (including Stamp Duty and Third Party Motor Vehicle Insurance). These revenues are received for services provided including undertaking inspections and/or issuing licences associated with the fees. As no part of these charges is refundable, revenues are recognised at the time they are received. Revenues collected from traffic and cannabis infringements are administered on behalf of the Western Australian Police and are recognised when the cash is received. The revenue from other operating activities including rendering of services and the sale of assets are recognised when the Department has passed control of the goods or other assets or delivery of the service to the customer. Recoups of operating activities are recognised when invoiced. Interest Revenue is recognised as the interest accrues. Service appropriations Service appropriations are recognised as revenues at nominal value in the period in which the Department gains control of the appropriated funds. The Department gains control of appropriated funds at the time those funds are deposited into the Department’s bank account or credited to the Amounts receivable for services (holding account) held at Treasury. See note 14 Income from State Government for further detail. Net appropriation determination 54 The Treasurer may make a determination providing for prescribed receipts to be retained for services under the control of the Department. In accordance with the determination specified in the 2010-11 Budget Statements, the Department retained $183 million in 2011 ( $172 million in 2010) from the following: Boat registration fees, Indian Ocean Territories Program, jetty licences, marine examinations, duplicate motor drivers licence fees, motor vehicle transfer fees, motor vehicle plate fees, proof of age card, recoup for services provided, temporary permits, and other revenue. Grants, donations, gifts and other non-reciprocal contributions Revenue is recognised at fair value when the Department obtains control over the assets comprising the contributions usually when cash is received. Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated. Royalties for regions funds are recognised as revenue at fair value in the period in which the Department obtains control over the funds. The Department obtains control of the funds at the time the funds are deposited into the Department’s bank account. Gains Gains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non-current assets and some revaluations of non-current assets.
(f) Property, plant and equipment and infrastructure Capitalisation/expensing of assets Items of property, plant and equipment and infrastructure costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment and infrastructure costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income. Initial recognition and measurement All items of property, plant and equipment and infrastructure are initially recognised at cost. For items of property, plant and equipment and infrastructure acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition. Subsequent measurement Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land and buildings, and the cost model for all other property, plant, equipment and infrastructure. Land and buildings are carried at fair value less accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant, equipment and infrastructure are stated at historical cost less accumulated depreciation and accumulated impairment losses. Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. Where market-based evidence is not available, the fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the depreciated replacement cost. When buildings are revalued, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. Independent valuations of land and buildings are provided annually by the Western Australian Land Information Authority (Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period. The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. Refer to note 21 Property, plant, equipment, vehicles and vessels for further information on revaluations. Derecognition Upon disposal or derecognition of an item of property, plant and equipment, any revaluation surplus relating to that asset is retained in the asset revaluation surplus. Asset revaluation surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 21 Property, plant, equipment, vehicles and vessels. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Land is not depreciated. Depreciation on other assets is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Buildings 40 years Computer hardware 4 to 7 years Refurbishments, furniture and fittings 3 to 20 years Maritime infrastructure 5 to 100 years Plant and equipment 5 to 20 years Vehicles 5 to 20 years Vessels 10 years Leased plant, equipment and vehicles 2 years Assets under construction are not depreciated until commissioned. 55
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Annual Report 2010 - 2011
Page 3 and 4:
Contents Overview of agency ii Stat
Page 5 and 6:
Director General’s foreword The D
Page 7 and 8: In the Passenger Services Business
Page 9 and 10: 1,815 23,241 Income by category $18
Page 11 and 12: Department of Transport Executive D
Page 13 and 14: Other legislation and regulations a
Page 15 and 16: Outcome 2: Vehicles and road users
Page 17 and 18: Services and key effectiveness indi
Page 19 and 20: Milligan Street Secure Taxi Rank up
Page 21 and 22: New managing contractor agreement -
Page 23 and 24: Driver safety The new novice driver
Page 25 and 26: Aquatic use review DoT, in partners
Page 27 and 28: Cycling infrastructure The Perth Bi
Page 29 and 30: Implementation of rail and road inv
Page 31 and 32: Development of new port capacity Th
Page 33 and 34: Transport energy Growing concerns a
Page 35 and 36: Financial targets: Actuals compared
Page 37 and 38: Comparative industry benchmarks DoT
Page 39 and 40: Compliance with public sector stand
Page 41 and 42: Employment and industrial relations
Page 43 and 44: Freedom of information Freedom of i
Page 45 and 46: Requirement 3 - The efficiency and
Page 47 and 48: Opinion In my opinion, the financia
Page 49 and 50: Financial Statements Statement of C
Page 51 and 52: Statement of Changes in Equity For
Page 53 and 54: Schedule of Income and Expenses by
Page 55 and 56: Summary of Consolidated Account App
Page 57: (c) Reporting entity The reporting
Page 61 and 62: (k) Financial instruments In additi
Page 63 and 64: (ii) Provisions - other Employment
Page 65 and 66: Correction of prior period error Mo
Page 67 and 68: 7. Accommodation expenses 2011 $ 00
Page 69 and 70: 14. Income from State Government 20
Page 71 and 72: 18. Receivables 2011 $ 000 2010 $ 0
Page 73 and 74: 21. Property, plant, equipment, veh
Page 75 and 76: 24. Construction in progress 2011 $
Page 77 and 78: 29. Other liabilities 2011 $ 000 20
Page 79 and 80: 32. Resources provided free of char
Page 81 and 82: 35. Events occurring after balance
Page 83 and 84: (d) Operating revenues Total income
Page 85 and 86: (d) Operating revenues Total income
Page 87 and 88: 37. Financial Instruments (a) Finan
Page 89 and 90: (b) Financial instrument disclosure
Page 91 and 92: 38. Remuneration of senior officers
Page 93 and 94: Perth Parking Licensing Account 201
Page 95 and 96: Taxi Industry Development Account 2
Page 97 and 98: 45. Administered assets and liabili
Page 99 and 100: Departmental desired outcome 1: An
Page 101 and 102: Percentage of regional airports rec
Page 103 and 104: Rate of serious rail accidents per
Page 105 and 106: Key efficiency indicators Average c
Page 107 and 108: Departmental desired outcome 2: Veh
Page 109 and 110:
The key efficiency performance indi
Page 111 and 112:
Departmental desired outcome 3: Int
Page 113 and 114:
Efficiency key performance Indicato
Page 115 and 116:
Driver and Vehicle Service Centres
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Department of Transport Annual Report 2010 - 2011

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