70 / 116
Consolidated
2016
$’000
2015
$’000
Leasehold equipment
Cost written down value
-
363
Accumulated depreciation
-
(297)
Written down value of assets sold
-
(66)
Net book amount
-
-
(ii) Basis of valuation
At 30 June 2016 the Group undertook a fair value assessment using an income method approach as
there are no similar market quoted assets. ARTC’s policy is to revalue on a triennial basis or if in an
intervening year the fair value of the revalued asset class differs materially from its carrying amount.
Property, plant and equipment reviews are undertaken annually to ensure significant movements
are identified and accounted for. The net present value of the cash flows for each business unit
is compared with the current carrying value and any significant variance is taken to the financial
statements.
This resulted in an upward revaluation of the Interstate business unit’s assets. The result of
this year’s assessment is a $12.8m valuation increment (2015: $102.4m valuation decrement).
An additional impairment benefit of $3.0m (2015: $25.5m impairment expense) has been
recognised in the income statement as a reversal of prior year impairment charges.
The Hunter Valley business unit assets were previously revalued. The result of this year’s assessment
is a $210.3m valuation decrement (2015: $40.0m valuation increment). For further details on the
calculation refer to note 12(d).
If infrastructure assets were stated on the historical cost basis less impairment, the amounts would
be as follows:
Consolidated
2016
$’000
Restated
2015
$’000
Infrastructure assets
Plant & Equipment
Cost
791,081
762,715
Accumulated depreciation
(212,173)
(187,432)
Net book amount
578,908
575,283
Leasehold Improvements
Cost
3,546,660
3,393,958
Accumulated depreciation
(595,402)
(474,631)
Net book amount
2,951,258
2,919,327
(i) Leased assets
Plant and equipment includes the following amounts where the Group is a lessee under a finance lease:
NOTE 8 (CONTINUED)
NON-FINANCIAL ASSETS AND LIABILITIES
(b) Property, plant and equipment (continued)
68