All staff dealing with fixed assets must comply with the policies and procedures that relate to fixed assets.

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "All staff dealing with fixed assets must comply with the policies and procedures that relate to fixed assets."

Transcription

1 Fixed Assets Policy Purpose The purpose of the policy is to define fixed assets, the policy of capitalising expenditure at fair value and effectively controlling such assets (including contributed assets). The term fixed asset includes (and this policy covers) both tangible items of property, plant and equipment and intangible items such as software and easements. Tangible and intangible fixed assets are recognised separately in the balance sheet. Policy statement This policy is to comply with the Australian equivalents to International Financial Reporting Standards (AIFRS), Treasury Guidelines and Government Policy directives issued from time to time. All staff dealing with fixed assets must comply with the policies and procedures that relate to fixed assets. 1. Fixed Asset Definition A fixed asset is defined as a physical / intangible unit controlled by RailCorp providing service potential or future economic benefits on a continuing basis which is expected on acquisition to be used for more than a year, has a value that can be measured reliably and exceeds the capitalisation threshold. A fixed asset has the following characteristics: An independent operating unit whose components perform a specific function as a cohesive whole to provide services on a continuing basis; The item must be identifiable and measurable; The assets are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes and may include items held for the maintenance, construction or repair of such assets, and are capable of providing a future economic benefit on a continuing basis; The item acquired has a useful life expectancy greater than twelve months and is not intended to be sold in the ordinary course of business or service delivery; The total cost of the item acquired generally exceeds $5,000 or in the case of a network the sum of the components making up the network exceed $5,000. Individual items costing less than $5,000 are classified as 'Minor Equipment' and are covered in the Minor Equipment Policy and the Fixed Asset Procedure). A contributed asset (i.e. one that is not purchased) is a fixed asset as soon as RailCorp gains control over the asset. Contributed or vested assets are recorded at fair value which is usually based on transferor's book value. Page 1

2 A capital spare acquired specifically for a fixed asset, or class of fixed assets, which satisfy the above definition, is to be separately classified and is covered under a separate policy. 2. Capital expenditure Capital expenditure is incurred during the process of acquisition of non current assets. RailCorp acquires its assets as new assets, enhancement to existing assets, contributed and vested assets or Leasehold assets. All approved capital expenditure for acquisition or enhancement must be managed through the Project module in Ellipse. Specific delegations for the approval of capital works are listed in the Delegations Manual. 2.1 Determining expenditure of a capital nature Expenditure of a capital nature (refer to the Fixed Asset Definition in this policy) includes the following: Acquisition or construction of a new asset, including direct costs (which include plant hire and contractors) and allocation of overhead; Overhead costs include variable overheads such as indirect materials and indirect labour which vary in proportion to the capital projects and fixed overheads for construction work, and which may be allocated proportionally to each project. Overhead costs exclude administration and other general overhead costs which, by their nature, can not be directly attributed to preparing the asset for use; Replacement of an existing asset; Enhancement to an existing asset through an increase in service capacity, service quality (including technological advancement) or useful life; Capitalisation of computer software. Expenditure on the acquisition, development and initial configuration of computer software, or on initial data capture, is recognised as a fixed asset only if it can be demonstrated that the benefits of such software will be derived for more than one year. Software licenses for IT applications which are implemented as "enterprise " application systems for RailCorp are capitalised. All land regardless of cost. Leased assets where RailCorp has entered into a finance lease Expenditure which is not of a capital nature includes the following: The cost of feasibility studies, planning, and other preliminary costs incurred before a decision is actually made to acquire or construct a fixed asset. Routine maintenance to rail infrastructure assets. Training expenses. Immaterial inspection costs, e.g. where only sub components of an asset are replaced. Page 2

3 2.1.3 Capital expenditure is incurred to acquire, replace or enhance a fixed asset. Enhancement extends the asset s useful life or improves its capacity or quality. Maintenance expenditure is incurred to ensure the fixed asset operates throughout its assessed useful life at its predetermined capacity and level of quality While most capital expenditure is funded from the capital works program, it may also be funded from the major periodic maintenance (MPM) program. In some cases a particular project entails both capital and maintenance expenditure. Capital expenditure must always be distinguished and capitalised. Therefore, the Finance Manager of each division is responsible to ensure adequate controls are in place to identify such capital expenditure including the identification of MPM jobs that are capital in nature the categorisation of Infrastructure standard jobs which are capital in nature will assist in this process. Refer also to the procedure on Capitalisation of Rail Infrastructure Assets. 2.2 Capitalisation process Expenditure of a capital nature or a contributed asset must be capitalised as an asset if it complies with the following terms and conditions: Expenditure is to be capitalised as a fixed asset on the practical day of completion if the following conditions are met: The expenditure is identifiable, reliably measurable and it exceeds the threshold value of $5000, and The useful life expectancy of an item/expenditure capitalised as an asset is greater than twelve months and it is not intended to be sold in the ordinary course of business or service delivery, and An item of expenditure capitalised as an asset is commissioned for use in the production or supply of goods or services Where fixed assets form part of a network, their individual acquisition costs (or values) should be aggregated when applying the capitalisation threshold All contributed and vested assets should be capitalised as fixed assets when RailCorp gains control over those assets. In the case of vested assets, the date when the Minister issued the vesting order is the date assets were vested to RailCorp An asset created by incurring expenditure should be capitalised when it is commissioned for use unless a header project is incomplete. This may be the case in large projects which have several sub projects. When the header project (e.g. a turnback), is not complete it is not practicable to capitalise each component sub project (e.g. wiring) which may be completed because the entire project can not be commissioned until all sub projects are completed All assets or capital expenditure shall be capitalised exclusive of GST An item having an acquisition cost (or acquisition value) below the capitalisation threshold is recognised as minor equipment and charged to working expenses. See the Minor Equipment Policy In the case of uncertainty about the definition of capital expenditure the Group General Manager, Finance shall determine whether the fixed asset definition has been met. Page 3

4 3. Valuation of Fixed Assets 3.1 All fixed assets of RailCorp are measured at fair value, however, a purchased fixed asset is initially recorded at its historical cost (this is the cost of purchase plus any incidental costs required to make it ready for use) as this equates to fair value. Vested assets are recorded at written down value as that usually equates to fair value. 3.2 A constructed fixed asset is initially recorded at its historical cost. This is the aggregate cost of materials and direct labour expended in constructing it, together with associated labour on costs and overheads capable of being reliably attributed to it on a reasonable basis. 3.3 Interest and other finance costs incurred in acquiring a fixed asset are included in the acquisition cost if they can be reliably attributed to that fixed asset. Such costs are not capitalised if they are incurred after the fixed asset is held ready for use and has been commissioned. 3.4 In respect of not-for-profit entities, such as RailCorp, where an asset is acquired at no cost, for a nominal cost, the cost is its fair value as at the date of acquisition. For non-specialised assets such as some properties (vacant land and non-specialised building), used motor vehicles, and some forms of plant and equipment where an active and liquid market is available, fair value is measured at market buying price. 3.5 Fixed assets should be valued in accordance with NSW Treasury s accounting policy on Valuation of Physical Non-Current Assets at Fair Value. 3.6 Where current market prices cannot be determined, the fair value is the depreciated optimised replacement cost. Infrastructure assets including tunnels, stations, Rollingstock are valued on the basis of the depreciated replacement cost principle. 3.7 Depreciated optimised replacement cost is the current replacement cost of an asset less, where applicable, accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic benefits of the asset. 3.8 Optimised replacement cost is the lowest cost of replacing a technologically modern equivalent optimised asset, having regard to differences in the quality and quantity of outputs and operating costs, and adjusting for over-design over capacity and redundant components, i.e. the minimum cost of an optimised modern equivalent asset. 3.9 All classes of property plant and equipment must be revalued at least every five years Each class is revalued separately in a systematic manner Revaluations are made with sufficient regularity to prevent the carrying value of the fixed asset class differing materially from its fair value as at 30 June in any year. Some fixed asset classes may experience more significant and volatile changes in fair value, thus necessitating more frequent revaluation. Where changes in value of a fixed asset class are insignificant they only need to be revalued every five years Any increment on revaluation must be credited to the asset revaluation reserve unless the increment reverses a previously recognised decrement in the valuation of the same class of asset, in which case the increment is credited to the income statement to the extent it reversed the previous loss recognised in the income statement. Page 4

5 3.13 Any decrement on revaluation must first be written-off against the revaluation reserve of that class of asset before being written-off in the income statement Any changes to the carrying value of assets as a result of revaluation can only be made with the approval of the Board. 4. Depreciation of Fixed Assets 4.1 All fixed assets when available for use or first put into service, other than land, must be depreciated over their useful life. Land, while meeting the definition of a fixed asset, has an unlimited useful life and is, therefore, not subject to depreciation. 4.2 Useful life of an asset is the period of time over which the fixed asset is expected to provide service or economic benefit to RailCorp. Any changes to the useful life of a class of asset will result in a change in the rate of depreciation of that class. 4.3 The rate of depreciation is the inverse of the useful life of an asset and, therefore, is determined on the approved useful life of a class of assets and must take account of the net recoverable amount on ultimate disposal. 4.4 The useful life of various classes of assets approved by the Board is subject to annual review. 4.5 An annual review of depreciation should be completed with regard to such factors as fixed asset usage and the rates of technical and commercial obsolescence reflect the remaining useful life. 4.6 If an asset is fully depreciated, and is in use, the asset should be revalued to reflect the remaining useful life. 4.7 The rate of depreciation must be updated in the Fixed Asset Register to calculate the depreciation charge for the financial period or the period in use whichever is lower. 4.8 The depreciation charge is calculated on a straight-line basis on the cost or fair value of the asset. If the asset is revalued, depreciation charge is calculated on a straight-line basis on the remaining useful life of the revalued amount. 4.9 Any addition or extension to an existing depreciable fixed asset is depreciated over the remaining useful life of that fixed asset The depreciation charge of an asset is treated as the expenditure for the division/ cost centre which is the custodian of the asset Capital spares are depreciated over the remaining useful life of the individual asset, group or category to which they relate If an asset identified for disposal was not disposed of at the end of the reporting period, the value in the Fixed Asset Register should be adjusted. The asset is valued at fair value less estimated cost for disposal and disclosed separately. Page 5

6 4.13 Depreciation is to commence from the date the asset is first commissioned and charged to its operating statement for the balance of days in the month of commissioning. 5. Fixed Asset Control 5.1 All fixed assets are assigned to a custodian group. The assignment may be on an item by item basis or a group of assets. The custodian is the Officer who is responsible for an asset or a group of assets, i.e. the custodian is accountable for ownership of the fixed asset item. 5.2 In some instances, however, a fixed asset may be owned by the custodian but regularly used by someone else, e.g. the motor vehicle fleet may be under the custody of one Officer but the vehicles may be assigned to and used by others. 5.3 The custodian has the responsibility to ensure that: all assets in his/her custody are recorded in the Fixed Asset Register, all assets disposed of during the period are correctly removed from Fixed Asset Register, all assets are appropriately maintained, safeguarded against damage and physical protection is provided, a verification of the existence of the asset (other than the infrastructure assets, which are controlled through the Equipment Register, and Asset Maintenance Plan) is completed at least once a year and also assist the authorised party to perform any verification of assets, appropriate records are maintained for auditing purposes to record all actions taken in respect of the asset control function, all significant assets are adequately insured against all risk by coordinating with the General Manager Risk and Insurance. 6. Disposal and Retirement of Assets 6.1 Each division should perform assessment on an ongoing basis to determine an obsolete or surplus asset of property, plant and equipment. 6.2 When an asset is no longer fit for use (obsolete) or no longer required (surplus) for the business operation of RailCorp, the status of that asset is to be identified and reported to management for disposal and removal from the Fixed Asset Register when disposed. 6.3 The component or the section of an asset removed during MPM of a capital nature and during replacement of assets as part of the Capital program should be correctly determined and retired. 6.4 All identified surplus/obsolete assets should be approved for disposal before the end of the accounting period. 6.5 The disposal of an asset must be approved as per the delegation of authority. 6.6 Assets identified for disposal and which are not in use should not be depreciated. Page 6

7 6.7 The division responsible for the asset should either dispose of surplus or obsolete assets or transfer the asset to the division managing similar assets for disposal. 6.8 All assets should be disposed of at best market price available at the time and the most cost effective method of disposal is to be used. 6.9 The Road Fleet Management unit (RFM) manages the disposal of all Rail Corp road vehicles When an asset is disposed of or retired the manager of the division must ensure that they comply with the environmental policy and the contamination policy of RailCorp The elements of cost of an item of property, plant and equipment include the initial estimate for dismantling and removing the item and restoring the site where there is a legal or constructive obligation to do so. References The table below lists material that supports or is referred to in this document. Number Title Minor Equipment Policy Capital Spares Policy Capital Expenditure Procedure Fixed Assets Procedure Delegations Manual Business Case Manual Document control information The current status of this document is shown below. Title Document number Fixed Asset Policy RF24Y01 Version 1.0 Effective date 1 June 2006 Publisher Authorised by File name Finance RailCorp Board Fixed Asset Policy Last Review Date 1 Nov 2011 Next Review Date 1 Nov 2014 Page 7

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life. International Accounting Standard 16 Property, Plant and Equipment Objective 1 The objective of this Standard is to prescribe the accounting treatment for property, plant and equipment so that users of

More information

Property, Plant and Equipment

Property, Plant and Equipment STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 16 Property, Plant and Equipment SB-FRS 16 Property, Plant and Equipment applies to Statutory Boards for annual periods beginning on or after 1 January

More information

POLICY MANUAL. Financial Management Significant Accounting Policies (July 2015)

POLICY MANUAL. Financial Management Significant Accounting Policies (July 2015) POLICY 1. Objective To adopt Full Accrual Accounting and all other applicable Accounting Standards. 2. Local Government Reference Local Government Act 1995 Local Government (Financial Management) Regulations

More information

Accounting for Property Classification is Key!

Accounting for Property Classification is Key! Accounting for Classification is Key! Article by Helen Fee, BSc, PgD, FCA, Examiner in Professional 2 Advanced Corporate Reporting Introduction Entities hold land and buildings for a variety of reasons

More information

UNCONTROLLED IF PRINTED ACCOUNTING POLICY

UNCONTROLLED IF PRINTED ACCOUNTING POLICY UNCONTROLLED IF PRINTED NAVY CANTEENS ACCOUNTING POLICY Applicability: This procedure is applicable to all RANCCB directors and Navy Canteens, managers and staff in all Navy Canteens business units. Legislation:

More information

NEPAL ACCOUNTING STANDARDS ON PROPERTY, PLANT AND EQUIPMENT

NEPAL ACCOUNTING STANDARDS ON PROPERTY, PLANT AND EQUIPMENT NAS 06 NEPAL ACCOUNTING STANDARDS ON PROPERTY, PLANT AND EQUIPMENT CONTENTS Paragraphs OBJECTIVE 1 SCOPE 2-5 DEFINITIONS 6 RECOGNITION 7 14 Initial cost 11 Subsequent cost 12-14 MEASUREMENT AT RECOGNITION

More information

Property, Plant and Equipment

Property, Plant and Equipment Compiled AASB Standard AASB 116 Property, Plant and Equipment This compiled Standard applies to annual reporting periods beginning on or after 1 July 2009. Early application is permitted. It incorporates

More information

Sri Lanka Accounting Standard LKAS 16. Property, Plant and Equipment

Sri Lanka Accounting Standard LKAS 16. Property, Plant and Equipment Sri Lanka Accounting Standard LKAS 16 Property, Plant and Equipment CONTENTS paragraphs SRI LANKA ACCOUNTING STANDARD LKAS 16 PROPERTY, PLANT AND EQUIPMENT OBJECTIVE 1 SCOPE 2 DEFINITIONS 6 RECOGNITION

More information

GUIDELINES FOR CAPITALISATION OF EXPENDITURE ON PROPERTY, PLANT

GUIDELINES FOR CAPITALISATION OF EXPENDITURE ON PROPERTY, PLANT ACCOUNTING POLICY GUIDELINES FOR CAPITALISATION OF EXPENDITURE ON PROPERTY, PLANT AND EQUIPMENT TPP 06-6 June 2006 PREFACE The Guidelines for Capitalisation of Expenditure discuss the Accounting Standard

More information

FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET

FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET FP5 SIGNIFICANT ACCOUNTING POLICIES - BUDGET Adopted: Audit Committee 20 June 2013 Committee Decision No. 10 Audit Committee Minutes endorsed by Council OMC 18 July 2013 Council Decision No. 2753 AASB

More information

Revaluation of Non-Current Assets

Revaluation of Non-Current Assets Australian Accounting Standard AAS 38 December 1999 Revaluation of Non-Current Assets Prepared by the Public Sector Accounting Standards Board of the Australian Accounting Research Foundation and by the

More information

Property, Plant and Equipment

Property, Plant and Equipment Indian Accounting Standard (Ind AS) 16 Property, Plant and Equipment Property, Plant and Equipment Contents Paragraphs OBJECTIVE 1 SCOPE 2-5 DEFINITIONS 6 RECOGNITION 7 14 Initial costs 11 Subsequent costs

More information

Accounting and reporting by charities EXPOSURE DRAFT

Accounting and reporting by charities EXPOSURE DRAFT 10. Balance sheet Introduction 10.1. All charities preparing accruals accounts must prepare a balance sheet at the end of each reporting period which gives a true and fair view of their financial position.

More information

A Capital Expenditure Programme is an integral part of the annual budgeting process, and contains the following elements:

A Capital Expenditure Programme is an integral part of the annual budgeting process, and contains the following elements: 3 Capital Expenditure 1. Introduction A Capital Expenditure Programme is an integral part of the annual budgeting process, and contains the following elements: a) Major Capital Works Programme building

More information

EXPLANATORY NOTES. 1. Summary of accounting policies

EXPLANATORY NOTES. 1. Summary of accounting policies 1. Summary of accounting policies Reporting Entity Taranaki Regional Council is a regional local authority governed by the Local Government Act 2002. The Taranaki Regional Council group (TRC) consists

More information

Property, Plant and Equipment

Property, Plant and Equipment HKAS 16 Revised JuneAugust 2014 Hong Kong Accounting Standard 16 Property, Plant and Equipment HKAS 16 COPYRIGHT Copyright 2014 Hong Kong Institute of Certified Public Accountants This Hong Kong Financial

More information

Accounting and reporting by charities

Accounting and reporting by charities 10. Balance sheet Introduction 10.1. All charities preparing accruals accounts must prepare a balance sheet at the end of each reporting period which gives a true and fair view of their financial position.

More information

Non-Current Asset Accounting Policy

Non-Current Asset Accounting Policy DETAILS Council Admin Effective from: 1 July 2014 Contact officer: Coordinator Financial Accounting, Corporate Finance Branch Next review date: 30 June 2016 File reference: FN338/171/01 ispot This policy

More information

ACCOUNTING POLICY 1.1 FINANCIAL REPORTING. Policy Statement. Definitions. Area covered. This Policy is University-wide.

ACCOUNTING POLICY 1.1 FINANCIAL REPORTING. Policy Statement. Definitions. Area covered. This Policy is University-wide. POLICY Area covered ACCOUNTING POLICY This Policy is University-wide Approval date 5 May 2016 Policy Statement Intent Scope Effective date 5 May 2016 Next review date 5 May 2019 To establish decisions,

More information

FINANCE POLICY POLICY NO F.6 SIGNIFICANT ACCOUNTING POLICIES. FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002

FINANCE POLICY POLICY NO F.6 SIGNIFICANT ACCOUNTING POLICIES. FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002 POLICY NO F.6 POLICY SUBJECT FILE NUMBER FIN 2 ADOPTION DATE 13 June 2002 Shire of Toodyay Policy Manual FINANCE POLICY SIGNIFICANT ACCOUNTING POLICIES LAST REVIEW 22 July 2014 (Council Resolution No 201/07/14)

More information

INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS

INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS STATEMENT OF SFAS No. FINANCIAL ACCOUNTING STANDARD 16 INDONESIAN INSTITUTE OF ACCOUNTANTS FIXED ASSETS AND OTHER ASSETS Statement of Financial Accounting Standard (SFAS) No.16, Fixed Assets and Other

More information

TREASURER S DIRECTIONS ACCOUNTING LIABILITIES Section A3.6 : Leases

TREASURER S DIRECTIONS ACCOUNTING LIABILITIES Section A3.6 : Leases TREASURER S DIRECTIONS ACCOUNTING LIABILITIES Section A3.6 : Leases STATEMENT OF INTENT Assets required by Agencies to deliver outputs can be obtained by purchase or by lease. This Section provides the

More information

Accounting for Fixed Assets

Accounting for Fixed Assets 96 Accounting Standard (AS) 10 Accounting for Fixed Assets Contents INTRODUCTION Paragraphs 1-6 Definitions 6 EXPLANATION 7-17 Identification of Fixed Assets 8 Components of Cost 9 Self-constructed Fixed

More information

IAS 16 Property, Plant and Equipment

IAS 16 Property, Plant and Equipment IAS 16 Property, Plant and Equipment By: Martin Kelly, BSc (Econ) Hons, DIP. Acc, FCA, MBA, MCMI. Teaching Fellow in Accounting Queens University Belfast Examiner: Professional 1 Corporate Reporting This

More information

Property, Plant and Equipment

Property, Plant and Equipment International Accounting Standard 16 Property, Plant and Equipment This version includes amendments resulting from IFRSs issued up to 31 December 2008. IAS 16 Property, Plant and Equipment was issued by

More information

AS 10 : Accounting for Fixed Assets

AS 10 : Accounting for Fixed Assets AS 10 : Accounting for Fixed Assets IPCC Paper 1: Accounting Chapter 1 Unit 2 Fixed Assets - AS 10 Related ASI is 2 CA. Yagnesh Desai 1 Applicability This standards was introduced in 1985 It is applicable

More information

Asset Management Procedure

Asset Management Procedure 1 Purpose Effective asset management and capital expenditure are essential to the continuity, development and growth of Victoria University of Wellington ( the University ). They are closely linked to

More information

Statutory Financial Reporting Policy

Statutory Financial Reporting Policy Statutory Financial Reporting Policy Reference Number: 3.15 12/270185 Type: Council Category: Corporate Services Relevant Community Plan Outcome: Demonstrate effective leadership with strong community

More information

SHIRE OF CARNARVON POLICY

SHIRE OF CARNARVON POLICY SHIRE OF CARNARVON POLICY POLICY NO C010 POLICY SIGNIFICANT ACCOUNTING POLICIES RESPONSIBLE DIRECTORATE CORPORATE COUNCIL ADOPTION Date: 27.5.14 Resolution No. FC 5/5/14 REVIEWED/MODIFIED Date: Resolution

More information

Accounting Standard AASB 1041 July 2001. Revaluation of Non-Current Assets

Accounting Standard AASB 1041 July 2001. Revaluation of Non-Current Assets Accounting Standard AASB 1041 July 2001 Revaluation of Non-Current Assets Obtaining a Copy of this Accounting Standard Copies of this Standard are available for purchase from the Australian Accounting

More information

ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT ACCOUNTING FOR AND AUDIT OF PROPERTY, PLANT AND EQUIPMENT PRESENTED BY SOLOMON SIMEON MANAGER: PEAK PROFESSIONAL SERVICES IN HOUSE SEMINAR SERIES NO 2 PEAK PROFESSIONAL SERVICES (CHARTERED ACCOUNTANTS)

More information

The Town of Fort Frances POLICY SECTION ACCOUNTING FOR TANGIBLE CAPITAL ASSETS. ADMINISTRATION AND FINANCE NEW: May 2009 1. PURPOSE: 2.

The Town of Fort Frances POLICY SECTION ACCOUNTING FOR TANGIBLE CAPITAL ASSETS. ADMINISTRATION AND FINANCE NEW: May 2009 1. PURPOSE: 2. The Town of Fort Frances ACCOUNTING FOR TANGIBLE CAPITAL ASSETS SECTION ADMINISTRATION AND FINANCE NEW: May 2009 REVISED: POLICY Resolution Number: 05/09 Consent 156 Policy Number: 1.18 PAGE 1 of 11 Supercedes

More information

Statement of Accounting Policies

Statement of Accounting Policies Statement of Accounting Policies Statement of Responsibility & Cautionary Note The Draft 2015/2025 Long Term Plan was authorised for issue by Council on 22 April 2015. The purpose of this Long Term Plan

More information

SIGNIFICANT GROUP ACCOUNTING POLICIES

SIGNIFICANT GROUP ACCOUNTING POLICIES SIGNIFICANT GROUP ACCOUNTING POLICIES Basis of consolidation Subsidiaries Subsidiaries are all entities over which the Group has the sole right to exercise control over the operations and govern the financial

More information

The consolidated financial statements of

The consolidated financial statements of Our 2014 financial statements The consolidated financial statements of plc and its subsidiaries (the Group) for the year ended 31 December 2014 have been prepared in accordance with International Financial

More information

Principal Accounting Policies

Principal Accounting Policies 1. Basis of Preparation The accounts have been prepared in accordance with Hong Kong Financial Reporting Standards ( HKFRS ). The accounts have been prepared under the historical cost convention as modified

More information

G8 Education Limited ABN: 95 123 828 553. Accounting Policies

G8 Education Limited ABN: 95 123 828 553. Accounting Policies G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3

More information

FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2015 ABORIGINAL AND TORRES STRAIT ISLANDER HEALTH PRACTICE COUNCIL OF NSW

FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2015 ABORIGINAL AND TORRES STRAIT ISLANDER HEALTH PRACTICE COUNCIL OF NSW FINANCIAL STATEMENTS YEAR ENDED 30 JUNE 2015 ABORIGINAL AND TORRES STRAIT ISLANDER HEALTH PRACTICE COUNCIL OF NSW New South Wales Health Professional Councils Annual Report 2015 190 Aboriginal and Torres

More information

Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014

Summary of Significant Accounting Policies FOR THE FINANCIAL YEAR ENDED 31 MARCH 2014 46 Unless otherwise stated, the following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements. The Company and

More information

TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.3 : Depreciation and Amortisation

TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.3 : Depreciation and Amortisation TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.3 : Depreciation and Amortisation STATEMENT OF INTENT The objective in depreciating assets is to allocate the value of non-current assets over their

More information

Accounting and Reporting Policy FRS 102. Staff Education Note 5 Property, plant and equipment

Accounting and Reporting Policy FRS 102. Staff Education Note 5 Property, plant and equipment Accounting and Reporting Policy FRS 102 Staff Education Note 5 Property, plant and equipment Disclaimer This Education Note has been prepared by FRC staff for the convenience of users of FRS 102 The Financial

More information

STATEMENT OF COMPLIANCE AND BASIS OF MEASUREMENT

STATEMENT OF COMPLIANCE AND BASIS OF MEASUREMENT Accounting policies REPORTING ENTITY The Waikato Regional Council is a territorial local authority governed by the Local Government Act 2002, and is domiciled in New Zealand. The main purpose of prospective

More information

Area Standard AIFRS impact Management action First time Adoption of Australian Equivalents to IFRS

Area Standard AIFRS impact Management action First time Adoption of Australian Equivalents to IFRS First time Adoption of Australian Equivalents to IFRS AASB 1 An entity s first Australian-equivalents-to-IFRS (AIFRS) financial report applies for reporting periods beginning on or after 1 January 2005

More information

4.1 PROPERTY, PLANT AND EQUIPMENT

4.1 PROPERTY, PLANT AND EQUIPMENT 4.1 PROPERTY, PLANT AND EQUIPMENT 4.1.1 Introduction 4.1.1.1 Authorities shall account for tangible fixed assets in accordance with IAS 16 Property, Plant and Equipment, except where interpretations or

More information

EUROPEAN UNION ACCOUNTING RULE 6 INTANGIBLE ASSETS

EUROPEAN UNION ACCOUNTING RULE 6 INTANGIBLE ASSETS EUROPEAN UNION ACCOUNTING RULE 6 INTANGIBLE ASSETS Page 2 of 17 I N D E X 1. Objective... 3 2. Scope... 3 3. Definitions... 3 4. Definition of intangible assets... 4 5. Recognition and Measurement... 5

More information

Khâi-Ma Municipality NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

Khâi-Ma Municipality NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013 1. ACCOUNTING PRINCIPLES AND POLICIES APPLIED IN THE FINANCIAL STATEMENTS 1.1 BASIS OF PREPARATION The financial statements have been prepared on an accrual basis of accounting and are in accordance with

More information

Exposure Draft Accounting Standard (AS) 10 (revised) Property Plant and Equipment (Last date for Comments: December 18, 2014) Issued by

Exposure Draft Accounting Standard (AS) 10 (revised) Property Plant and Equipment (Last date for Comments: December 18, 2014) Issued by Exposure Draft Accounting Standard (AS) 10 (revised) Property Plant and Equipment (Last date for Comments: December 18, 2014) Issued by Accounting Standards Board The Institute of Chartered Accountants

More information

PROPERTY, PLANT & EQUIPMENT (ACQUISITIONS & DISPOSALS) UNSW Accounting Procedure

PROPERTY, PLANT & EQUIPMENT (ACQUISITIONS & DISPOSALS) UNSW Accounting Procedure PROPERTY, PLANT & EQUIPMENT (ACQUISITIONS & DISPOSALS) UNSW Accounting Procedure Linked UNSW Policy Responsible Officer Director, Corporate Finance & Advisory Services Contact Officer Senior Manager, Capital

More information

Department of Environment and Heritage Protection. Financial Statements. for the financial year ended 30 June 2014

Department of Environment and Heritage Protection. Financial Statements. for the financial year ended 30 June 2014 Department of Environment and Heritage Protection Financial Statements for the financial year ended 30 June 2014 Contents Page Number Statement of Comprehensive Income 2 Statement of Financial Position

More information

Small Company Limited. Abbreviated Accounts. 31 December 2007

Small Company Limited. Abbreviated Accounts. 31 December 2007 Registered number 123456 Small Company Limited Abbreviated Accounts 31 December 2007 Abbreviated Balance Sheet as at 31 December 2007 Notes 2007 2006 Fixed assets Intangible assets 2 Tangible assets 3

More information

POLICY ASSET MANAGEMENT - INVESTMENT PROPERTY FINANCE

POLICY ASSET MANAGEMENT - INVESTMENT PROPERTY FINANCE Document #:5968866 POLICY CP ID: OS Date adopted: 18/09/2012 File no: 416945-1 Minute number: 274/2012 Policy title: Stream: Branch: ASSET MANAGEMENT - INVESTMENT PROPERTY ORGANISATIONAL SERVICES FINANCE

More information

Asset Accounting. Policy Statement

Asset Accounting. Policy Statement Asset Accounting Policy Statement Policy name: Asset Accounting Policy number: Finance Key result areas: Finance Branch: HR and Corporate Services Responsibility for review: Accountant Location: Intranet

More information

Department of National Parks, Recreation, Sport and Racing. Annual Financial Statements for the financial year ended 30 June 2013

Department of National Parks, Recreation, Sport and Racing. Annual Financial Statements for the financial year ended 30 June 2013 Annual Financial Statements for the financial year ended 30 June 2013 Department of National Parks, Recreation, Sport and Racing Financial Statements for the financial year ended 30 June 2013 Contents

More information

Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements

Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2009 End date: 31st May 2010 Contents of the

More information

Asset management policy

Asset management policy Asset management policy POL-C-002 Version 3.1 26 February 2007 Contents 1. Title... 3 2. Introduction... 3 3. Scope... 3 4. Principles and guidelines... 3 5. Definition of responsibilities... 10 6. References...

More information

Note 2 SIGNIFICANT ACCOUNTING

Note 2 SIGNIFICANT ACCOUNTING Note 2 SIGNIFICANT ACCOUNTING POLICIES BASIS FOR THE PREPARATION OF THE FINANCIAL STATEMENTS The consolidated financial statements have been prepared in accordance with International Financial Reporting

More information

INTANGIBLE ASSETS IAS 38

INTANGIBLE ASSETS IAS 38 INTANGIBLE ASSETS IAS 38 Road Map on IAS 38 1. Definition of intangible asset 2. Recognition and measurement 3. Recognition of expense 4. Measurement after recognition 5. Useful life 6. Intangible assets

More information

ANNUAL FINANCIAL RESULTS

ANNUAL FINANCIAL RESULTS ANNUAL FINANCIAL RESULTS Directors Statement The directors of Air New Zealand Limited are pleased to present to shareholders the Annual Report* and financial statements for Air New Zealand and its controlled

More information

Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements

Jones Sample Accounts Limited. Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Company Registration Number: 04544332 (England and Wales) Report of the Directors and Unaudited Financial Statements Period of accounts Start date: 1st June 2008 End date: 31st May 2009 Contents of the

More information

Downloaded from Datalog http://www.datalog.co.uk

Downloaded from Datalog http://www.datalog.co.uk Downloaded from Datalog http://www.datalog.co.u Company Registration Number: 07438030 (England and Wales) Abbreviated (Unaudited) Accounts Period of accounts Start date: 01st November 2013 End date: 31st

More information

Fixed Assets Policy. Control over Assets

Fixed Assets Policy. Control over Assets Fixed Assets Policy Author Financial Control and Compliance The United Kingdom s international organisation for educational opportunities and cultural relations. We are registered in England as a charity.

More information

IAS 38 Intangible Assets

IAS 38 Intangible Assets 2012 Technical Summary IAS 38 Intangible Assets as issued at 1 January 2012. Includes IFRSs with an effective date after 1 January 2012 but not the IFRSs they will replace. This extract has been prepared

More information

SESSION 7 AUDIT OF NON CURRENT ASSETS AND CURRENT ASSETS

SESSION 7 AUDIT OF NON CURRENT ASSETS AND CURRENT ASSETS SESSION 7 AUDIT OF NON CURRENT ASSETS AND CURRENT ASSETS Learning objectives: Understanding the importance of audit of assets. explain the purpose of substantive procedures in relation to financial statements

More information

TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.11 : Construction (Work in Progress)

TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.11 : Construction (Work in Progress) TREASURER S DIRECTIONS ACCOUNTING ASSETS Section A2.11 : Construction (Work in Progress) STATEMENT OF INTENT Costs associated with the construction or development of an asset can be significant and should

More information

FIXED ASSET MANAGEMENT POLICY, PROCESSES & PROCEDURES

FIXED ASSET MANAGEMENT POLICY, PROCESSES & PROCEDURES FIXED ASSET MANAGEMENT POLICY, PROCESSES & PROCEDURES 1 RECOMMENDED THAT the Fixed Asset Management Policy and the contents thereof be tabled for approval at the Mayoral Committee. Version Version Date

More information

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting

INTERNATIONAL ACCOUNTING STANDARDS. CIE Guidance for teachers of. 7110 Principles of Accounts and. 0452 Accounting www.xtremepapers.com INTERNATIONAL ACCOUNTING STANDARDS CIE Guidance for teachers of 7110 Principles of Accounts and 0452 Accounting 1 CONTENTS Introduction...3 Use of this document... 3 Users of financial

More information

2015/16 EDUCATION PAYROLL LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS

2015/16 EDUCATION PAYROLL LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS 2015/16 EDUCATION PAYROLL LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS Published in August 2015 Education Payroll Limited 2015/16 EDUCATION PAYROLL LIMITED STATEMENT OF PERFORMANCE EXPECTATIONS CONTENTS

More information

International Accounting Standard 38 Intangible Assets. Objective. Scope IAS 38

International Accounting Standard 38 Intangible Assets. Objective. Scope IAS 38 International Accounting Standard 38 Intangible Assets Objective 1 The objective of this Standard is to prescribe the accounting treatment for intangible assets that are not dealt with specifically in

More information

Downloaded from Datalog http://www.datalog.co.uk REGISTERED NUMBER: 04615521

Downloaded from Datalog http://www.datalog.co.uk REGISTERED NUMBER: 04615521 REGISTERED NUMBER: 04615521 Abbreviated Accounts for the Year Ended 31 December 2012 for Chris Read Agricultural Contractor Ltd Chris Read Agricultural Contractor Ltd (Registered number: 04615521) Contents

More information

Management of Assets Policy

Management of Assets Policy CREST Management of Assets Policy Version No: Reason for Update Date of Update Updated By 1 Policy introduced April 2012 Finance Office 2 Review incorporates IT Security Internal Audit review February

More information

Asset Management for NFPs

Asset Management for NFPs Asset Management for NFPs September 2012 Presented by Rosemary Campbell, Director Merit Partners Pty Ltd Aim of this session What are assets and why manage them Considerations at each lifecycle stage Acquisition

More information

Transition to International Financial Reporting Standards

Transition to International Financial Reporting Standards Transition to International Financial Reporting Standards Topps Tiles Plc In accordance with IFRS 1, First-time adoption of International Financial Reporting Standards ( IFRS ), Topps Tiles Plc, ( Topps

More information

Total assets 16,045,875 12,923,365

Total assets 16,045,875 12,923,365 schedule of administered assets and liabilities as at 30 June 2001 Notes $ 000 $ 000 118 ASSETS Financial assets Cash 20a (832,168) 987,784 Receivables 20b 14,226,282 9,778,752 Investments 20c 2,388,423

More information

The Uniting Church in Australia - Queensland Synod UnitingCare Queensland. Financial Statements

The Uniting Church in Australia - Queensland Synod UnitingCare Queensland. Financial Statements The Uniting Church in Australia - Queensland Synod Financial Statements Contents Page Consolidated Statement of Profit or Loss and Other Comprehensive Income 1 Consolidated Statement of Financial Position

More information

Blueprint Dental Equipment Limited

Blueprint Dental Equipment Limited Registered number 05055354 Abbreviated Accounts 31 March 2014 Registered number: 05055354 Abbreviated Balance Sheet as at 31 March 2014 Notes 2014 2013 Fixed assets Tangible assets 2 42,974 28,921 Current

More information

AUDIT PLAN: RECEIVABLES

AUDIT PLAN: RECEIVABLES Audit procedures for receivables AUDIT PLAN: RECEIVABLES Completeness Agree the balance from the individual sales ledger accounts to the aged receivables listing and vice versa. Match the total of the

More information

NEPAL ACCOUNTING STANDARDS ON BUSINESS COMBINATIONS

NEPAL ACCOUNTING STANDARDS ON BUSINESS COMBINATIONS NAS 21 NEPAL ACCOUNTING STANDARDS ON BUSINESS COMBINATIONS CONTENTS Paragraphs OBJECTIVE 1 SCOPE 2-14 Identifying a business combination 5-10 Business combinations involving entities under common control

More information

Audit Program for Fixed Assets

Audit Program for Fixed Assets Form AP 35 Index Audit Program for Fixed Assets Legal Company Name Client: Balance Sheet Date: Instructions: The auditor should refer to the audit planning documentation to gain an understanding of the

More information

International Accounting Standard 11 Construction Contracts

International Accounting Standard 11 Construction Contracts International Accounting Standard 11 Construction Contracts Objective The objective of this Standard is to prescribe the accounting treatment of revenue and costs associated with construction contracts.

More information

Financial Reporting Requirements for Queensland Government Agencies

Financial Reporting Requirements for Queensland Government Agencies Financial Reporting Requirements for Queensland Government Agencies APG 4 Definition and Recognition of Expenses Introduction The purpose of this APG is to establish guidelines for the definition of and

More information

Statement of Accounting Policies

Statement of Accounting Policies Statement of Accounting Policies Reporting Entity Hurunui District Council is a territorial local authority as governed by the Local Government Act 2002 and is domiciled in New Zealand. The Hurunui District

More information

Fixed Asset Inventory

Fixed Asset Inventory Fixed Asset Inventory The purpose of the district-wide fixed asset inventory system is to gather information for the preparation of financial statements, including estimated annual depreciation costs of

More information

1. Parent company accounting policies

1. Parent company accounting policies Financial Statements Notes to the parent company financial statements 1. Parent company accounting policies Basis of preparation The separate financial statements of the Company are presented as required

More information

SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS. Year ended December 31, 2011

SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS. Year ended December 31, 2011 SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS Year ended SAMPLE MANUFACTURING COMPANY LIMITED CONSOLIDATED FINANCIAL STATEMENTS For the year ended The information contained in

More information

Sri Lanka Accounting Standard for Smaller Enterprises

Sri Lanka Accounting Standard for Smaller Enterprises Sri Lanka Accounting Standard for Smaller Enterprises The Sri Lanka Accounting Standards for Smaller Enterprises (SLASSE) was published in Year 2003. This needs to be revised to be in line with the revisions

More information

International Accounting Standard 40 Investment Property

International Accounting Standard 40 Investment Property International Accounting Standard 40 Investment Property Objective 1 The objective of this Standard is to prescribe the accounting treatment for investment property and related disclosure requirements.

More information

Management of Assets Procedure

Management of Assets Procedure Management of Assets Procedure Contents 1 Introduction... 3 2 Fixed Assets Register... 3 3 Inventory Registers... 3 4 Capital Asset Purchase... 7 5 Asset Physical Verification... 7 6 Asset Disposal...

More information

ACT ACCOUNTING POLICY. Accounting for Provision for Make Good Clauses within a Lease Agreement FOR THE REPORTING PERIODS ENDING ON OR AFTER

ACT ACCOUNTING POLICY. Accounting for Provision for Make Good Clauses within a Lease Agreement FOR THE REPORTING PERIODS ENDING ON OR AFTER ACT ACCOUNTING POLICY Accounting for Provision for Make Good Clauses within a Lease Agreement FOR THE REPORTING PERIODS ENDING ON OR AFTER 30 JUNE 2011 TABLE OF CONTENTS 1 INTRODUCTION... 2 1.1 APPLICATION...

More information

PINAL COUNTY POLICY AND PROCEDURE 8.8. Replaces Policy Dated: January 12, 1981, and subsequent revisions to date

PINAL COUNTY POLICY AND PROCEDURE 8.8. Replaces Policy Dated: January 12, 1981, and subsequent revisions to date PINAL COUNTY POLICY AND PROCEDURE 8.8 Subject: CAPITAL ASSETS Date: Effective as of July 1, 2009 Pages: 1 of 6 Replaces Policy Dated: January 12, 1981, and subsequent revisions to date Purpose: The purpose

More information

SB-FRS 38. Intangible Assets STATUTORY BOARD FINANCIAL REPORTING STANDARD

SB-FRS 38. Intangible Assets STATUTORY BOARD FINANCIAL REPORTING STANDARD STATUTORY BOARD FINANCIAL REPORTING STANDARD SB-FRS 38 Intangible Assets This version of the Statutory Board Financial Reporting Standard does not include amendments that are effective for annual periods

More information

Construction Contracts

Construction Contracts Compiled Accounting Standard AASB 111 Construction Contracts This compiled Standard applies to annual reporting periods beginning on or after 1 January 2009 that end on or after 30 June 2009. Early application

More information

Fixed Assets. Name: SudhirJain M. No.: 213157

Fixed Assets. Name: SudhirJain M. No.: 213157 Fixed Assets Name: SudhirJain M. No.: 213157 Agenda AS- 10 Accounting for Fixed Assets Introduction & Scope Definitions and other relevant provisions Relevant provisions of other Accounting Standards applicable

More information

Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1.

Volex Group plc. Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement. 1. Volex Group plc Transition to International Financial Reporting Standards Supporting document for 2 October 2005 Interim Statement 1. Introduction The consolidated financial statements of Volex Group plc

More information

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary.

Residual carrying amounts and expected useful lives are reviewed at each reporting date and adjusted if necessary. 87 Accounting Policies Intangible assets a) Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of identifiable net assets and liabilities of the acquired company

More information

APPENDIX 1: Statement of Current Accounting Policies

APPENDIX 1: Statement of Current Accounting Policies APPENDIX 1: Statement of Current Accounting Policies 1. REPORTING ENTITY KiwiRail Holdings Limited ( KiwiRail, the Parent ) is a company domiciled in New Zealand, registered under the Companies Act 1993

More information

MOTOR VEHICLE ACCIDENTS FUND

MOTOR VEHICLE ACCIDENTS FUND Republic of Namibia AUDIT REPORT ON THE ACCOUNTS OF THE MOTOR VEHICLE ACCIDENTS FUND FOR THE FINANCIAL YEAR ENDED 31 MARCH 2006 2006 Published by authority Price (Vat excluded): N$ 28.66 Report no: 487

More information

Downloaded from Datalog http://www.datalog.co.uk REGISTERED NUMBER: 04721985 (England and Wales)

Downloaded from Datalog http://www.datalog.co.uk REGISTERED NUMBER: 04721985 (England and Wales) Downloaded from Datalog http://www.datalog.co.u REGISTERED NUMBER: 04721985 (England and Wales) UNIVERSAL CLAIMS & CRASH REPAIRS LIMIT ED ABBREVIATED UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2014

More information

ACCOUNTING FOR PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING FOR PROPERTY, PLANT AND EQUIPMENT Issued 03/01, Revised 11/01 Revised 02/02, Revised 10/03 Institute of Chartered Accountants of New Zealand FINANCIAL REPORTING NO. 3 2001 ACCOUNTING FOR PROPERTY, PLANT AND EQUIPMENT Issued by the Financial

More information

In addition, Outokumpu has adopted the following amended standards as of January 1, 2009:

In addition, Outokumpu has adopted the following amended standards as of January 1, 2009: 1. Corporate information Outokumpu Oyj is a Finnish public limited liability company organised under the laws of Finland and domiciled in Espoo. The parent company, Outokumpu Oyj, has been listed on the

More information

The acquisition method of accounting is used to account for business combinations by the group.

The acquisition method of accounting is used to account for business combinations by the group. ABN 79 114 456 781 Summary of Significant Accounting Policies Basis of Preparation Huon produce general purpose financial statements which are been prepared in accordance with the Corporations Act 2001,

More information