Annual Report 2017-18 | Monash Health

Note 4.3: Depreciation and amortisation
Notes to the Financial Statements
Monash Health Annual Report 2017/2018
Consolidated Consolidated
2018 2017
$'000 $'000
Depreciation
Buildings 43,072 39,893
Plant & Equipment 5,460 3,567
Medical Equipment 12,831 11,319
Computers and Communication Equipment 3,017 1,819
Furniture and Fittings 1,351 285
Motor Vehicles 7 8
Leased Assets i 8,161 7,841
Total Depreciation 73,899 64,732
Amortisation
Intangible Assets 3,411 2,331
Total Amortisation 3,411 2,331
Total Depreciation and Amortisation 77,310 67,063
(i) Of the balance disclosed under 'Depreciation Leased Assets', $6.5m ($6.5m 2017) relates to leased buildings
contracted under a PPP arrangement.
All buildings, plant and equipment and intangible produced assets that have finite useful lives are
depreciated. Depreciation begins when the asset is available for use, which is when it is in the location
and condition necessary for it to be capable of operating in a manner intended by management.
Depreciation is generally calculated on a straight line basis, at a rate that allocates the asset value, less
any estimated residual value over its estimated useful life. Estimates of the remaining useful lives and
depreciation method for all assets are reviewed at least annually, and adjustments made where
appropriate. This depreciation charge is not funded by the Department of Health and Human Services.
Assets with a cost in excess of $1,000 are capitalised and depreciation has been provided on
depreciable assets so as to allocate their cost or valuation over their estimated useful lives.
Intangible produced assets with finite lives are depreciated as an expense on a systematic basis over
the asset’s useful life.
The following table indicates the expected useful lives of non-current assets on which the depreciation
charges are based.
2018 2017
Buildings
– Structure Shell Building Fabric 45 to 70 45 to 70 years
– Site Engineering Services and Central Plant 22 to 30 22 to 30 years
– Fit Out 22 to 30 22 to 30 years
– Trunk Reticulated Building Systems 22 to 30 22 to 30 years
Plant & Equipment 3 to 10 years 3 to 10 years
Medical Equipment 3 to 10 years 3 to 10 years
Computers and Communication 3 years 3 years
Furniture and Fitting Up to 10 Up to 10 years
Motor Vehicles 4 years 4 years
Leased Buildings 45 Years 45 Years
Intangible Assets 5 years 5 years
As part of the building valuation, building values were separated into components and each component
assessed for its useful life which is represented above.
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