QUEENSLAND PERFORMING ARTS CENTRE ANNUAL REPORT ...

QUEENSLAND PERFORMING ARTS CENTRE
NOTES TO THE FINANCIAL REPORT
For the Year Ended 30 June 2012
Note 2 Signifi cant Accounting Policies (Continued)
(d) Leases
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Operating leases
Lease payments for operating leases are recognised as an expense in the years in which they are incurred as this
refl ects the pattern of benefi ts derived by the Trust.
Finance leases
The Trust has not entered into any fi nance leases.
(e) Depreciation and Amortisation of Property, Plant and Equipment
(f) Intangibles
Land is not depreciated as it has an unlimited useful life.
Depreciation on buildings, infrastructure and equipment and motor vehicles, is calculated on a straight-line
basis so as to write-off the net cost or revalued amount of each depreciable asset, less its estimated residual
value, progressively over its estimated useful life to the Trust.
Capital work-in-progress is not depreciated until it reaches service delivery capacity.
Where assets have separately identifi able components, these components are assigned useful lives distinct
from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service
potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful
life.
The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated
useful lives of the improvements to the Trust or the unexpired period of the lease, whichever is shorter.
Major depreciation rates used are listed below and are consistent with the prior year unless otherwise stated:
Buildings and leasehold improvements 4 to 20%
Motor vehicles 20%
Plant and equipment 1 to 33%
Concert Hall Grand Organ 2%
All intangible assets with a cost or other value greater than $100,000 are recognised in the fi nancial statements,
with items of a lesser value being expensed. Each intangible asset is amortised on a straight line basis over its
estimated useful life to the Trust, less any anticipated residual value. Current amortisation rates are either 20%
or 33.3%.
It has been determined that there is not an active market for any of the Trust’s intangible assets. Therefore the
assets are recognised at cost less accumulated amortisation and any impairment loss.
There have been no disposals of intangible assets during the year ended 30 June 2012, nor does any intangible
asset form part of a disposal group held for sale at 30 June 2012.