1. The carrying amount of computer software includes $0.456 million purchased software and $4.330 million internally generated software.
Management is currently reviewing its property needs for the Canberra office, and may result in leasehold improvements, property, and plant and equipment being sold or disposed of within the next 12 months.
Revaluations of non‐financial assets
On 30 June 2016, an independent valuer conducted the revaluations, which remains current for three years. However, as the Armidale offices are newly occupied, and management has yet to decide on the future of the existing Canberra offices, the revaluation exercise has been deferred until the 2019‐20 financial year reporting period.
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in an exchange and any liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.
Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of a restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.
Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $5 000, 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).
The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make good’ provisions in property leases taken up by the APVMA where there exists an obligation to restore the property to its original condition. These costs are included in the value of the APVMA’s leasehold improvements with a corresponding provision for ‘make good’.
Non-financial Asset Revaluations
All non‐financial assets are initially recognised at cost. Property, plant and equipment are then carried at fair value once they have been revalued in accordance with policy. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values at reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Assets are presently revalued on a three year cycle.
All assets (except for intangibles) were revalued as at 30 June 2016 by an independent valuer. This year, a revaluation exercise was not conducted as the majority of assets acquired were commissioned in June 2019. Management has deferred the revaluation exercise until the 2019‐20 financial year reporting period.
Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised through the operating result. Revaluation decrements for a class of assets are recognised directly through the operating result 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.
Depreciable property plant and equipment assets are written‐off to their estimated residual values over their estimated useful lives to the APVMA using, in all cases, the straight‐line method of depreciation.
Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.
Depreciation rates applying to each class of depreciable asset are based on the following useful lives: