YMAC Annual Report 2022

1.11. Other Financial Liabilities
Notes to the Consolidated Financial Statements
as at 30 June 2022
Trade creditors and accruals are recognised at their nominal amounts, being the amounts at which
the liabilities will be settled. Liabilities are recognised to the extent that the goods or services have
been received (and irrespective of having been invoiced).
1.12. Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes
the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are
initially measured at their fair value plus transaction costs where appropriate.
1.13. Property, Plant and Equipment
Revaluations Basis
Land, buildings and infrastructure are carried at valuation, being revalued with sufficient frequency
such that the carrying amount of each asset class is not materially different, as at reporting date,
from its fair value. Valuations undertaken in any year are as at 30 June.
Asset class
Land
Buildings
Fair value measured at:
Market selling price
Market selling price
Land and building assets are valued every three years. Formal valuations are carried out by an
independent qualified valuer. In FY2022, the revaluations of 171 Marine Terrace, Geraldton and 45
Forrest Street, Geraldton were conducted by an independent valuer Tony Gorman (Acumentis (WA)
Pty Ltd). A valuation of 8 Manganese St, Wedgefield was not conducted
as it was purchased within the last three years. Land and buildings are measured at fair cost less
accumulated depreciation.
Plant and equipment is stated at cost less accumulated depreciation and any impairment in value.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity
under the heading of asset revaluation except to the extent that it reverses a previous revaluation
decrement of the same asset class that was previously recognised in the surplus/deficit.
Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to
the extent that they reverse a previous revaluation increment for that class.
Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying
amount of the asset and the asset restated to the revalued amount.
Depreciation
Depreciable property plant and equipment assets are written-off to their estimated residual values
over their estimated useful lives to YMAC using, in all cases, the straight-line method of
depreciation.
Depreciation rates (useful lives) and methods are reviewed at each reporting date and necessary
adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Residual values are re-estimated for a change in prices only when assets are revalued.
Depreciation rates applying to each class of depreciable asset are based on the following useful
lives:
Buildings on freehold land 2%
Leasehold improvements 25%
Plant and equipment 25%
IT equipment 33.3%
Motor Vehicles 25%
The aggregate amount of depreciation allocated for each class of asset during the reporting period
is disclosed in Note 8B.
Yamatji Marlpa Aboriginal Corporation | Annual Report 2022 | 61