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7C

7C. Inventory - property held for grant and provision for property held for grant

Property held for grant

109,811

106,968

Less:

Provision for property held for grant

(109,811)

(106,968)

Carrying amount 30 June

-

-

A summary of the movement in property held for grant is as follows:

Opening balance 1 July

106,968

100,447

Additions to 30 June

2,931

11,284

Reclassified from property, plant and equipment

-

9,843

Total Additions (Note 1A)

2,931

21,127

Granted to 30 June

-

(14,510)

Disposal of assets held for grant

(88)

(96)

Net movement

2,843

6,521

Carrying amount 30 June

109,811

106,968

Accounting Policy

Property held for grant is land and waters, improvements, plant and equipment held for grant which represents properties purchased for the purpose of grant to appropriate organisations in line with the legislative function and objectives of the Group. These assets are held for distribution at no consideration in the ordinary course of business of the Group. Accordingly, these assets are classified as inventory held for distribution in accordance with AASB 102 Inventories.

Property held for grant is initially recorded at cost. Property held for grant acquired for free, or for a nominal amount, is recognised initially at current replacement cost at the date of acquisition. Ongoing, the assets are valued at cost and adjusted when applicable for any loss of service potential. Any adjustment is expensed to the Statement of Comprehensive Income.

Property purchases (including the related improvements, plant, equipment, acquisition and holding costs) are capitalised on purchase.

At this time a provision is raised against the Statement of Comprehensive Income for the full cost of the purchase representing the sacrifice of the future benefits embodied in the assets.

On transfer, the asset and provision are offset against one another.

Where the infrastructure and plant and equipment are used in the production or supply of goods or services on an ongoing basis the corresponding asset is classified as property, plant and equipment in accordance with AASB 116 Property, Plant and Equipment.

7B
7D