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the Group and have a short life and a ready
market. The written down value of these
assets is in line with their fair value.
All other property, plant and equipment are
stated at historical cost less accumulated
depreciation, and any accumulated
impairment. Historical cost includes
expenditure that is directly attributable
to the acquisition of the items.
Revaluation
The Group’s infrastructure assets were
revalued as at 30 June 2016. Infrastructure
assets are shown at fair value (inclusive
of revaluations and impairments) less
accumulated depreciation, based on periodic,
but at least triennial revaluations.
Any accumulated depreciation at the date
of revaluation is eliminated against the gross
carrying amount of the asset and the net
amount is restated to the revalued amount
of the asset.
Any revaluation increment is credited to
the asset revaluation reserve included in the
equity section of the consolidated balance
sheet, except to the extent that it reverses
a revaluation decrement of the same asset
previously recognised in the consolidated
income statement, in which case the
increase is recognised in the consolidated
income statement (net of tax). Revaluation
increments and decrements recognised are
allocated to the infrastructure asset carrying
amounts within the asset grouping on a pro
rata basis.
At the commencement of the application of
Australian International Financial Reporting
Standards the Group has elected that the
deemed cost of assets on hand at 30 June
2005 is the revalued amount of those
assets. Any accumulated depreciation as at
the revaluation date is eliminated against
the gross carrying amount of the asset and
the net amount is restated to the revalued
amount of the asset. Items of property, plant
and equipment are either derecognised on
disposal or when no further future economic
benefits are expected from its use. Gains
and losses on disposals are determined by
comparing proceeds with the carrying amount
and are included in the consolidated income
statement. Upon disposal or derecognition,
any revaluation reserve relating to the asset
is transferred to retained earnings.
Impairment
The carrying amounts of the Group’s non-
financial assets, other than inventories and
deferred tax assets, are reviewed at each
reporting date to determine whether there
is any indication of impairment. If any
indication exists, then the asset’s recoverable
amount is estimated. An impairment expense
is recognised if the carrying amount of an
asset or cash generating unit (CGU) exceeds
it recoverable amount.
As the Group applies fair value valuations
to most non-financial assets, the carrying
value will be the fair value which is the
estimated recoverable amount and therefore
a separate impairment calculation is not
required. See note 4(iii).
Cost
Subsequent costs are included in the asset’s
carrying amount or recognised as a separate
asset, as appropriate, only when it is probable
that future economic benefits associated with
the item will flow to the Group and the cost
of the item can be measured reliably. All other
repairs and maintenance are charged to the
consolidated income statement during the
financial period in which they are incurred.
Depreciation
Land is not depreciated. The cost of
improvements to or on leasehold properties
is amortised over the expected lease term
or the estimated useful life of the
improvement to the Group, whichever is
the shorter. Depreciation on other assets is
calculated using the straight line method to
NOTE 21 (CONTINUED)
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
104