Assets are recorded at cost on acquisition.
ASPI acquired assets at no cost from the Department of Defence in 2001/2002. These assets were initially recognised as contributions by owners at their fair value at the date of acquisition.
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 $1,000, which are expensed in the year of acquisition.
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 where there exists an obligation to restore the property to its original condition. These costs are included in the value of leasehold improvements with a corresponding provision for the 'make good' recognised.
Depreciable property plant and equipment assets are written off to their estimated residual values over their estimated useful lives to ASPI 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:
Furniture & Fittings
5 to 20 years
5 to 10 years
5 to 12 years
5 to 12 years
Building right-of-use asset
Plant & Equipment
4 to 10 years
3 to 10 years
All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount. No indicators of impairment were identified (2019: Nil).
The recoverable amount of an asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if ASPI were deprived of the asset, its value in use is taken to be its depreciated replacement cost.
ASPI's intangibles comprise purchased software, an internally developed database and website. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.
Software is amortised on a straight line basis over its anticipated useful life. The useful lives of ASPI's software are 3 to 4 years (2019: 3 to 4 years). All software assets were assessed for indications of impairment as at 30 June 2020 and no idicators of impairment were identified, (2019: Nil).
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. No property, plant, equipment and intangibles are expected to be disposed in the next 12 months.
Building right-of-use asset
Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by ASPI as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned. On initial adoption of AASB 16 ASPI has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset. As at 30 June 2020, no indicators of impairment were identified. Leased ROU assets continue to be measured at cost after initial recognition in the financial report.