Wreck Bay Aboriginal Community Council
ABN: 62 564 797 956
Notes to and forming part of the financial statements
for the period ended 30 June 2020
Assets are recorded at cost on acquisition except as
Any accumulated depreciation as at the revaluation date is
stated below. The cost of acquisition includes the fair value
eliminated against the gross carrying amount of the asset
of assets transferred in exchange and liabilities undertaken.
and the asset restated to the revalued amount.
Financial assets are initially measured at their fair value
plus transaction costs where appropriate.
Depreciable property, plant and equipment assets are
Assets acquired at no cost, or for nominal consideration,
written-off to their estimated residual values over their
are initially recognised as assets and income at their fair
estimated useful lives to Council, using in all cases, the
value at the date of acquisition.
straight line method of depreciation. Leasehold improvements
are amortised on a straight-line basis over the lesser of the
Asset Recognition Threshold
estimated useful life of the improvements of the unexpired
Purchases of property, plant and equipment are recognised
period of the lease.
initially at cost in the statement of financial position, except
for purchases costing less than $500, which are expensed
Depreciation rates (useful lives), residual values and
in the year of acquisition (other than where they form part
methods are reviewed at each reporting date and
of a group of similar items which are significant in total).
necessary adjustments are recognised in the current and
future reporting periods, as appropriate.
Lease Right of Use (ROU) Assets
Leased ROU assets are capitalised at the commencement
Depreciation rates applying to each class of depreciable
date of the lease and comprise of the initial lease liability
asset are based on the following useful lives:
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.
10 to 40 Years
10 to 40 Years
3 to 10 years
3 to 10 Years
Following intial recognition at cost, property, plant and
equipment (excluding ROU assets) are carried at fair value
The depreciation rates for the ROU assets are based on
less subsequent accumulated depreciation and accumulated
the commencement date to the earlier of the end of the
impairment losses. Valuations are conducted with sufficient
useful life of the ROU asset or the end of the lease term.
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
All assets were assessed for impairment at 30 June 2020.
depended upon the volatility of movements in market values
Where indications of impairment exist, the asset's
for the relevant assets.
recoverable amount is estimated and an impairment
adjustment made if the asset's recoverable amount is
Revaluation adjustments are made on a class basis. Any
less than its carrying amount.
revaluation increment is credited to equity under the heading
of asset revaluation reserve except to the extent that it
The recoverable amount of an asset is the higher of its fair
reversed a previous revaluation decrement of the same asset
value less costs of disposal and its value in use. Value in
class that was previously recognised in the surplus/deficit.
use is the present value of the future cash flows expected
Revaluation decrements for a class of assets are recognised
to be derived from the asset. Where the future economic
directly in the surplus/deficit except to the extend that they
reverse a previous revaluation increment for that class.
benefit of an asset is not primarily dependent on the
asset's ability to generate future cash flows, and the
An item of property, plant and equipment is derecognised
asset would be replaced if the Council were deprived of the
upon disposal or when no further future economic benefits
asset, its value in use is taken to be its depreciated
are expected from its use or disposal.