Territory Stories

2009 Corporate total asset management plan



2009 Corporate total asset management plan

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Darwin City Council


City of Darwin reports; Reports; PublicationNT




Made available via the Publications (Legal Deposit) Act 2004 (NT).






Darwin(N.T.) -- Council -- Periodicals

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Darwin City Council

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50 Corporate Asset Management Plan CCoorrppoorraattee AAsssseett MMaannaaggeemmeenntt PPllaann 6.7 Valuations and Revaluations Council is required to revalue its assets every 3 years. Council typically uses a combination of straight line and condition based valuations. Straight line valuations are based on knowing when the asset was acquired and its useful life, to determine its age and therefore its value. Condition based valuations take into account the condition of the asset to assess the remaining useful life of the asset and then determine its value. An example of the different approaches is presented in the table below. Asset 1 Asset 2 Description Well Maintained Poorly Maintained Replacement Value $100,000 $100,000 Year of Acquisition 1980 1980 Useful Life 40 Years 40 Years Condition Average (50%) Failing (10%) Remaining Useful Life = 40 (2005 1980) = 15 Years = 40 (2005 1980) = 15 Years Straight Line Valuation Current Value = 15/40 * $100,000 = $37,500 = 15/40 * $100,000 = $37,500 Remaining Useful Life = 50% * 40 = 20 Years = 10% * 40 = 4 Years Condition Based Valuation Current Value = 20/40 * $100,000 = $50,000 = 4/40 * $100,000 = $10,000 Difference -$12,500 $27,500 Table 7 Straight Line and Condition Based Valuations

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