Go to top of page

Notes to the financial statements - 3.2 Non-Financial Assets

3.2 Non-Financial Assets

3.2A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles1

Land

$,000

Buildings

$,000

Leasehold

improvements1

$,000

Heritage and

cultural2

$,000

Plant and equipment

$,000

Computer

Software3

$,000

Total

$’000

As at 1 July 2019

Gross book value

1,255

399

24,276

2,969

41,717

10,612

81,228

Accumulated depreciation, amortisation and impairment

0

-40

-2,380

0

-11,032

-8,810

-22,262

Total as at 1 July 2019

1,255

359

21,896

2,969

30,685

1,802

58,966

Recognition of right of use asset on initial application of AASB 16

737

351,093

0

0

86

0

351,916

Adjusted total as at 1 July 2019

1,992

351,452

21,896

2,969

30,771

1,802

410,882

Additions

Purchase

0

0

1,126

215

6,784

98

8,223

Right-of-use assets

19

0

0

0

67

0

86

Donation/Gift

0

0

0

37

833

0

870

Revaluations and impairments recognised in other comprehensive income

-90

25

904

0

2,775

0

3,614

Revaluations recognised in net cost of services

0

0

0

0

162

0

162

Depreciation and amortisation

0

-20

-1,916

0

-5,533

-394

-7,863

Depreciation on right-of-use assets

-41

-27,445

0

0

-56

0

-27,542

Other movements of right-of-use assets - Remeasurement

0

10

0

0

0

0

10

Disposals

0

0

0

0

0

0

0

Other

0

0

0

0

-32

0

-32

Right-of-use assets

0

-58

0

0

0

0

-58

Total as at 30 June 2020

1,880

323,964

22,010

3,221

35,771

1,506

388,352

Land

$,000

Buildings

$,000

Leasehold

improvements1

$,000

Heritage and

cultural2

$,000

Plant and equipment

$,000

Computer

Software3

$,000

Total

$’000

Total as at 30 June 2020 represented by

Gross book value

1,921

351,401

22,010

3,221

35,827

10,710

425,090

Accumulated depreciation, amortisation and impairment

-41

-27,437

0

0

-56

-9,204

-36,738

Total as at 30 June 2020

1,880

323,964

22,010

3,221

35,771

1,506

388,352

Carrying amount of right-of-use assets1

715

323,600

0

0

97

0

324,412

  1. The above table includes Symonston building leasehold fitout, sub-leased for a small portion of the year. 21 work points were used for 3 months and 8% of office space was used for 9 days.
  2. 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.
  3. The carrying amount of computer software is for purchased software.
  4. The carrying amount of right-of-use assets included in the total as at 30 June 2020.

There were no indicators of impairment found for non-financial assets during 2020 (2019: nil).

Property, plant and equipment replaced in the building refurbishment and from decommissioning the inorganic laboratory will be disposed of over the next 12 months.

Revaluations of non-financial assets

All revaluations were conducted in accordance with the revaluation policy stated at Note 6.3. On 30 June 2020, an independent valuer conducted the revaluations.

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

Total commitments for property, plant, equipment and intangible $6,116,724 (2019: $2,288,910).

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, unless acquired as a consequence of 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.

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, 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). Asset recognition thresholds can be found in the table below.

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. These costs are included in the relevant asset class with a corresponding provision for the ‘make good’ recognised.

Lease Right of Use (ROU) Assets

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 Commonwealth lessees 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.

Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, GGS and Whole of Government financial statements.

Revaluations

Following initial recognition at cost, property, plant and equipment (excluding ROU assets) are carried at fair value (or an amount not materially different from fair value) less subsequent accumulated depreciation and accumulated impairment losses. 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 reversed 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

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.

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

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

Asset Type

2020

Threshold

2019

Useful lives

2020

2019

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 2020. 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

Geoscience Australia'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

2020

2019

2020

2019

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 2020.

Heritage and Cultural Assets

The key objective of Geoscience Australia's collection is to maintain geoscience knowledge and capability. Geoscience Australia’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.

Geoscience Australia'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 and the Cultural Gifts Program.

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 the 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 , Geoscience Australia has diverse and comprehensive geoscience collections used for scientific research and analysis purposes. The collections have been acquired since the inception of Geoscience Australia's forerunner organisation, the Bureau of Mineral Resources, Geology and Geophysics, 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 Geoscience Australia as their value is not reliably measureable.

Closing balance Opening balance

Closing balance

$’000

Opening balance

$’000

3.2B: Transfers to acquire or construct a non-financial asset

Accrued revenue

150

0

During the reporting period, other income of $337,000 was a result of acquiring or constructing non-financial assets to be controlled by Geoscience Australia. No liabilities existed in relation to these transfers at reporting date.

Geoscience Australia satisfies its obligations under these transfers and recognises revenue when it controls the asset, typically as the asset is constructed or when the asset acquired has been received.