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Notes to the financial statements - 3.2 Non-Financial Assets

3.2A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

Land

Buildings

Leasehold improvements

Heritage and cultural1

Plant and equipment

Computer
Software

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

As at 1 July 2018

Gross book value

1,255

365

17,228

2,254

36,379

8,760

66,241

Accumulated depreciation and amortisation

0

(20)

(797)

0

(5,554)

(8,505)

(14,876)

Total as at 1 July 2018

1,255

345

16,431

2,254

30,825

255

51,365

Additions - Purchase

0

34

7,053

0

5,394

1,923

14,404

Additions - Donation/Gift

0

0

0

75

0

0

75

Revaluations and impairments recognised

in other comprehensive income

0

0

0

640

0

0

640

Depreciation and amortisation

0

(20)

(1,583)

0

(5,498)

(376)

(7,477)

Other movements - reclassification

0

0

(5)

0

5

0

0

Disposals - other

0

0

0

0

(41)

0

(41)

Total as at 30 June 2019

1,255

359

21,896

2,969

30,685

1,802

58,966

Total as at 30 June 2019 represented by

Gross book value

1,255

399

24,276

2,969

41,717

10,612

81,228

Accumulated depreciation and amortisation

0

(40)

(2,380)

0

(11,032)

(8,810)

(22,262)

Total as at 30 June 2019

1,255

359

21,896

2,969

30,685

1,802

58,966

1. Land, buildings and other property, plant and equipment that met the definition of a heritage and cultural item were disclosed in the heritage and cultural asset class.

Heritage and cultural item were assessed for impairment in accordance with the impairment policy stated below. No indicators of impairment were found in 2019 (2018: nil).

Land, buildings and leasehold improvement assets were assessed for impairment in accordance with the impairment policy stated below. No indicators of impairment were found in 2019 (2018: $1,441,000 Symonston leasehold fit out).

Plant and equipment assets were assessed for impairment in accordance with the impairment policy stated below. No indicators of impairment were found in 2019 (2018: $65,000).

Intangibles were assessed for impairment in accordance with the impairment policy stated below. No indicators of impairment for purchased software were found in 2019 (2018: nil).

Property, plant and equipment replaced in the building refurbishment will be disposed of over the next 12 months. No intangibles are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated below.

Land, buildings and leasehold improvement assets and Plant and equipment were last revalued in 2017. Heritage and cultural assets were revalued in 2019 with a revaluation increment of $640,000 credited to the Asset Revaluation Reserve and included in Other Comprehensive Income (2018: nil fair value changes). An independent valuer has conducted a review of the current values of all tangible assets and has determined that they do not differ materially from fair value at 30 June 2019. Refer to Note 6.3 for the full disclosure of fair value measurement.

Contractual commitments for the acquisition of property, plant, equipment and intangible assets

Property, plant, equipment and intangible assets commitments total $2,288,910.

Accounting Judgements and Estimates

Land and buildings

The fair value of land and buildings has been taken to be the market value of similar properties as determined by an independent valuer (JLL Public Sector Valuations Pty Ltd). It is estimated that the land will continue to be used for research activities and buildings held for specialised purposes.

Property, plant and equipment

The fair value of property, plant and equipment has been assessed by the independent valuer (JLL Public Sector Valuations Pty Ltd). In some cases, there is insufficient observable market evidence and non‐market approaches are utilised.

Accounting Policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. 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.

Tangible Assets

Asset Recognition Threshold

Purchases of leasehold improvements and plant and equipment are recognised initially at cost in the Statement of Financial Position, except for assets costing less than the relevant asset recognition threshold. Asset recognition thresholds can be found in the table below.

Revaluations

Following initial recognition at cost, property, plant and equipment are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets. Revaluation adjustments are made on a class basis.

Any accumulated depreciation and accumulated impairment as at the revaluation date are eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

Depreciation

Depreciable property, plant and equipment assets are written‐off to their estimated residual values over their estimated useful lives to the entity using, in all cases, the straight‐line method of depreciation. Leasehold improvements are amortised on a straight‐line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

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 and methods:

Threshold

Useful lives

Asset Type

2019

2018

2019

2018

Building on freehold land

N/A

N/A

40 years

40 years

Leasehold improvements

$25,000

$25,000

7 ‐ 15 years

7 - 15 years

Plant and equipment

$5,000

$5,000

3 ‐ 25 years

3 - 25 years

Collections

$5,000

$5,000

Indefinite

Indefinite

Impairment

All assets were assessed for impairment at 30 June 2019. Where indications of impairment exist, the asset recoverable amount is estimated and an impairment adjustment made if the asset 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.

Intangible Assets

GA's intangible assets comprise of software. Software assets are carried at cost less accumulated amortisation and accumulated impairment losses, except for assets costing less than the relevant asset recognition threshold.

Threshold

Useful lives

Intangible Asset Type

2019

2018

2019

2018

Purchased software

$10,000

$10,000

3 ‐ 15 years

3 ‐ 15 years

Internally developed software

$200,000

$200,000

3 ‐ 15 years

3 ‐ 15 years

All software assets were assessed for indicators of impairment at 30 June 2019.

Heritage and Cultural Assets

The key objective of GA's collection is to maintain geoscience knowledge and capability. GA’s heritage and cultural assets comprise:

  • a collection of minerals which are primarily held for research, public exhibition and education; and
  • the Commonwealth Paleontological Collection (CPC) – which includes internationally recognised reference specimens used to define fossil species under the International Codes of Botanical and Zoological Nomenclature. Such assets are irreplaceable and have indefinite useful lives as a reference, for further research as well as outreach activities.

GA's Collections Management Policy uses accepted best practice standards and guidelines including those of SPECTRUM1, ICOM2 and Museums Australia3 to manage the collection. Supporting procedures for the policy have been developed which detail daily management of the collections.

The Geoscience Australia museum is registered as a Deductible Gift Recipient (DGR) and the Cultural Gifts Program (CGP).

Collections not recognised as assets

Through the process of national geological mapping, both onshore and in Australia's marine jurisdiction, and the national stewardship of cores, cuttings, and other samples and data submitted to that agency under the Petroleum Search Subsidy Act [PSSA] 1957‐1961, Petroleum [Submerged Lands] Act 1967 amended, and the Offshore Petroleum and Greenhouse Gas Storage Act 2006 , GA has diverse and comprehensive geoscience collections used for scientific research and analysis purposes. The collections have been acquired since the inception of GA's forerunner organisation, the Bureau of Mineral Resources, Geology and Geophysics (BMS), in 1946.

The rock and core collections include:

  • geological reference samples of surface rock and cores collected during the mapping of Australia;
  • physical cores and cuttings samples from offshore petroleum wells and stratigraphic boreholes; and
  • oil, gas and other fluid samples submitted under the various petroleum legislation.

Numerous data collections are maintained including fundamental types such as:

  • two and three dimensional seismic and non‐seismic geophysical data;
  • satellite earth observation data;
  • geospatial data particularly geodetic data for positioning purposes; and
  • elevation and bathymetry.

The bulk fossil collection:

Palaeontological specimens collected and donated which are unprocessed from both Australia and overseas.

These are national, and in some cases international collections that have enduring scientific value for the nation. These collections are deemed irreplaceable, with an indefinite useful life. They are not recognised as assets of GA as their value is not reliably measureable.

  1. http://obs‐traffic.museum/spectrum‐uk‐museum‐documentation‐standard‐1
  2. http://icom.museum/fileadmin/user_upload/pdf/Codes/code_ethics2013_eng.pdf
  3. https://www.museumsaustralia.org.au/sites/default/files/uploaded‐content/website‐ content/SubmissionsPolicies/ma_code_of_ethics_1999.pdf