Department of Education

(b) Reconciliation of movements
Reconciliations of the carrying amounts of each class of property, plant and equipment, library book stock and
heritage at the beginning and end of the current and previous financial year are set out below. Carrying value
means the net amount after deducting accumulated depreciation and accumulated impairment losses.
Land
$’000
Buildings
$’000
Work in
progress
$’000
Plant
and
equipment
$’000
Library
book
stock
$’000
Heritage
$’000
Total
$’000
2011
Carrying value at 1 July 352,746 520,912 177,224 5,232 13,880 58,320 1,128,314
Additions – – 194,843 1,361 1,923 14 198,141
Disposals (455) (618) – (82) – – (1,155)
Revaluation increments 3,156 54,183 – – – 1,983 59,322
Transfers to assets held for sale (10,393) – – – – – (10,393)
Net transfers free of charge 23,570 232,521 4,648 4,363 5,130 20 270,252
Depreciation expense – (27,265) – (1,573) (2,443) – (31,281)
Capitalised works to building assets – 145,040 (145,040) – – – –
Carrying value at 30 June 368,624 924,773 231,675 9,301 18,490 60,337 1,613,200
Land
$’000
Buildings
$’000
Work in
progress
$’000
Plant
and
equipment
$’000
Library
book
stock
$’000
Heritage
$’000
Total
$’000
2010
Carrying value at 1 July 291,541 472,219 42,591 5,290 14,452 45,760 871,853
Additions – – 214,793 965 1,422 13 217,193
Disposals (96) (126) – (133) – – (355)
Revaluation increments 71,364 (15,105) – – – 12,547 68,806
Transfer to assets held for sale (8,204) 14 – – – – (8,190)
Transfers from held for sale 202 187 – – – – 389
Net transfers free of charge (2,061) 8,050 – 369 158 – 6,516
Depreciation expense – (24,487) – (1,259) (2,152) – (27,898)
Capitalised works to building assets – 80,160 (80,160) – – – –
Carrying value as at 30 June 352,746 520,912 177,224 5,232 13,880 58,320 1,128,314
(c) Valuation of land and building assets at fair value
The department values its land and building asset classes at fair value. To determine fair value of these asset classes
at 30 June 2010, the department engaged an independent valuer during 2009–10. The valuation of the assets was
undertaken by Liquid Pacific Holdings Pty Ltd, effective 30 June 2010.
An inflation factor is applied each year in between the last formal valuation to determine fair value each year. For
2010–11, this inflation factor was 1.0% for land, 1.5% for buildings and 3.0% for heritage assets.
During 2010–11 the department obtained further evidence to assess the appropriateness of its current valuation
methodology for specialised buildings. As a result of this further evidence, the department made an adjustment
which increased the value of specialised buildings by $35.074m. The adjustment arose after specifically considering
the application of utility factor designed to address the underutilisation of specialised school buildings and
application of the above indexation. The revised methodology now reflects that the reduction in replacement cost
does not correlate in a linear manner with the reduction in the capacity of the school should the department be
deprived of the asset and that assets would be replaced.
The department will continue to review this current methodology and in 2011–12 will undertake further
assessments to validate ongoing appropriateness of this method.
114
Financial Statements – Notes