This section analyses the CGC’s assets used to conduct its operations and the operating liabilities incurred as a result. Employee-related information is disclosed in the ‘People and relationships’ section.

Note 3.1: Financial assets

3.1A: Cash and cash equivalents

Accounting policy
Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand and deposits in bank accounts.

Accounting policy
Receivables
Trade receivables and other receivables that have fixed or determinable payments and that are not quoted in an active market are classified as ’receivables’. Receivables are measured at amortised cost using the effective interest method less impairment. No impairment allowance has been recognised as at balance date.

Note 3.2: Non-financial assets

Reconciliation of the opening and closing balances of property, plant and equipment for 2019

Accounting policy
Asset recognition threshold
Purchases of non-financial assets are recognised initially at cost in the statement of financial position, except for purchases costing less than $6,000, 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 cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

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 CGC where there exists an obligation to restore the property to its original condition. These costs are included in the value of the CGC’s leasehold improvements with a corresponding provision for the ’make good’ recognised.

Revaluations
Following initial recognition at cost, non-financial assets are carried at fair value less subsequent accumulated depreciation. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depended upon the volatility of movements in market values for the relevant assets.

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 reversed 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. Upon revaluation, any accumulated depreciation is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Depreciation
Depreciable plant and equipment assets are written off to their estimated residual values over their estimated useful lives to the CGC using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated over the lesser of the estimated useful life of the improvement or the lease term. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Fair value
All property, plant and equipment are measured at fair value in the statement of financial position. When estimating fair value, market prices (with adjustment) were used where available. Where market prices were not available, depreciated replacement cost was used.

Level 3 measurements use inputs to estimate fair value where there are no observable market prices for the assets being valued.

The future economic benefits of the CGC’s plant and equipment and leasehold improvements are not primarily dependent on their ability to generate cash flows. The CGC has not disclosed quantitative information about the significant unobservable inputs for the level 3 measurements in these classes.

Impairment
All assets were assessed for impairment at 30 June 2019. 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.

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 the entity were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition
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.

Accounting judgements and estimates
In the process of applying the accounting policy, the CGC has made assumptions or estimates for the fair value of leasehold improvements and property, plant and equipment. Leasehold improvements and property, plant and equipment are assessed at the market value or depreciated replacement cost as determined by an independent valuer and are subject to management assessment between valuations.

No accounting assumptions or estimates have been identified that have a significant risk of causing material adjustments to the carrying amount of the assets within the next reporting period.

Note 3.3: Payables

Accounting policy
Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced). Supplier payables are settled within 30 days.

Note 3.4: Other provisions

The CGC currently has an agreement for the leasing of premises which has a provision requiring the CGC to restore the premises to their original condition at the conclusion of the lease. The CGC has made a provision to reflect the present value of this obligation.