Department of Corporate and Information Services annual report 2016-17
Annual report 2016-17
Northern Territory. Department of Corporate and Information Services
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Northern Territory. Department of Corporate and Information Services -- Periodical
Northern Territory Government
Department of Corporate and Information Services annual report; Annual report
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Northern Territory Government
Annual Report 2016-17 | Department of Corporate and Information Services 167 NT FLEET FINANCIAL REPORT Motor Vehicles Light $000 Motor Vehicles Heavy $000 Leasehold Improvements $000 Computer Software $000 Total $000 Carrying Amount as at 1 July 2015 70 1282 19 6533 68 642 90 491 Additions 29 575 4 793 13 390 34 771 Disposals (9 729) (843) - (2) (10 574) Depreciation (13 049) (3 440) (50) (313) (16 852) Assets held for sale1 (1 705) (182) - - (1 887) Additions/(Disposals) from asset transfers - - - - Other movements - - - - Carrying Amount as at 30 June 2016 75 220 19 981 31 717 95 949 1 Light and heavy vehicles held for sale as at 30 June 2016 were reclassified as Current Assets (-$1.9M). 2 The carrying amount as at 1 July 2015 ($70.1M) = the carrying amount as at 30 Jun 2015 ($69.1M) + Assets held for sale as at 30 Jun 2015 ($1.0M). 3 The carrying amount as at 1 July 2015 ($19.7M) = the carrying amount as at 30 Jun 2015 ($19.5M) + Assets held for sale as at 30 Jun 2015 ($0.2M). 2016 PROPERTY, PLANT AND EQUIPMENT RECONCILIATIONS A reconciliation of the carrying amount of property, plant and equipment at the beginning and end of 2015-16 is set out below: Acquisitions All items of property, plant and equipment with a cost, or other value, equal to or greater than $10 000 are recognised in the year of acquisition and depreciated as outlined below. Items of property, plant and equipment below the $10000 threshold except Global Positioning Systems (GPSs) are expensed in the year of acquisition. The construction cost of property, plant and equipment includes the cost of materials and direct labour, and an appropriate proportion of fixed and variable overheads. Complex Assets Major items of plant and equipment comprising a number of components that have different useful lives, are accounted for as separate assets. The components may be replaced during the useful life of the complex asset. Subsequent Additional Costs Costs incurred on property, plant and equipment subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to NT Fleet in future years. Where these costs represent separate components of a complex asset, they are accounted for as separate assets and are separately depreciated over their expected useful lives. Construction (Work in Progress) As part of the financial management framework, the Department of Infrastructure, Planning and Logistics (DIPL) is responsible for managing general government capital works projects on a whole of Government basis. Therefore appropriation for NT Fleet capital works is provided directly to DIPL and the cost of construction work in progress is recognised as an asset of DIPL. Once completed, capital works assets are transferred to NT Fleet. IMPAIRMENT Impairment of Assets An asset is said to be impaired when the assets carrying amount exceeds its recoverable amount. Non-current physical and intangible NT Fleet assets are assessed for indicators of impairment on an annual basis or whenever there is indication of impairment. If an indicator of impairment exists, NT Fleet determines the assets recoverable amount. The assets recoverable amount is determined as the higher of the assets depreciated replacement cost and fair value less costs to sell. Any amount by which the assets carrying amount exceeds the recoverable amount is recorded as an impairment loss. Impairment losses are recognised in the Comprehensive Operating Statement. They are disclosed as an expense unless the asset is carried at a revalued amount. Where the asset is measured at a revalued amount, the impairment loss is offset against the asset revaluation surplus for that class of asset to the extent that an available balance exists in the asset revaluation surplus.