Reconciliation of opening and closing balances (2019–20)

Property, furniture and equipment

Accounting policy

Property, furniture and equipment

Capitalisation threshold

Purchases of fixtures, fittings and equipment are recognised in the Statement of Financial Position, except for purchases costing less than $1,000, which are expensed in the year of acquisition, other than where they form part of a group of similar items which are significant in total.

Carrying amount

Fixtures, fittings and equipment are carried at cost less, where applicable, accumulated depreciation and impairment losses. Cultural artwork is carried at fair value.

AITSL holds a lease agreement to occupy premises at 440 Collins Street, Melbourne. The application of accounting standard AASB 16 has resulted in the premises being accounted for as a right-of-use asset. The asset is depreciated over the term of the lease.

The lease agreement contains a clause to make good on the company vacating the premises. These costs include the costs of dismantling and removing an asset and restoring the site on which the asset was created.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading reserves except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through surplus and deficit. Revaluation decrements for a class of assets are recognised directly through other comprehensive income 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

The depreciable amount of all fixed assets is depreciated on a straight line basis over the asset's useful life to AITSL commencing from the time the asset is held ready for use. The depreciation rates used for each class of asset are based on the following estimated useful lives for current and comparative periods:

Building – right-of-use asset – 6 years

Fixtures, fittings and equipment

• Computer and office equipment – 3 years
• Furniture and fittings – 10 years

Depreciation methods, useful lives, and residual values are reviewed at each financial year end and adjusted if appropriate.

Cultural

Artworks – Infinite life (2019: Infinite life)

AITSL has two paintings (2019: 2) with an aggregate fair value of $12,000 (2019: $12,000) painted by Australian artists Bessie Sims and Yumutjin Wununmurra. AITSL has classified them as cultural assets as they are primarily held for purposes that relate to their cultural significance. The paintings are deemed to have indefinite useful lives and hence are not depreciated. AITSL is responsible for ensuring the preservation of these assets.