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Notes - 3.2 Non-Financial Assets (Cont.)

3.2 Non-Financial Assets (Cont.)

Accounting Policy (Cont.)

Depreciation (cont.)

The NCA has items of property, plant and equipment that are heritage and cultural assets that have limited useful lives and are depreciated.

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.


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.

The recoverable amount of an asset is the higher of its fair value less costs to sell 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 NCA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.


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.

Heritage and Cultural Assets

The NCA’s departmental cultural assets comprise a number of individually valued artworks. Administered heritage assets comprise one heritage listed building and a number of memorials across the national estate.

Heritage management plans relating to these assets are available on the NCA’s website www.nca.gov.au.


The NCA's intangibles comprise purchased software for internal use. 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. All software assets were assessed for indications of impairment as at 30 June 2020.

Assets Held for Sale

Assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than continuing use and a sale is highly probable. These assets are measured at the lower of their carrying amount and fair value less costs to sell. Assets classified as held for sale are not depreciated or amortised.

Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the NCA has made the following judgement that has the most significant impact on the amounts recorded in the financial statements:

  • The fair value of land and building assets has been taken to be the market value of similar properties as determined by a qualified independent valuer. In some instances, the NCA buildings are purpose built and may realise more or less in the market.





Note 3.2B: Other Non-Financial Assets




Total other non-financial assets



Other non-financial assets are expected to be recovered in no more than 12 months.

No indicators of impairment were found for other non-financial assets.