Assets policy
Audience
Department wide
Purpose
To ensure the consistent recognition, identification, safeguarding and recording of assets across the department.
Policy statement
Assets are property, plant or equipment, inventory, right-of-use and intangible assets that are owned by the department and have a future economic value that can be measured reliably.
The department recognises, manages, and reports assets in accordance with legislation, Australian Accounting Standards and Queensland Government policy.
Principles
Requirements
- Assets are reported, disclosed and recognised as per the Financial Reporting Requirements for Queensland Government agencies (FRRs), Non-current asset policies for the Queensland Public Sector (NCAP) and relevant Australian Accounting Standards.
- Acquisition of assets must be in accordance with the Expenditure policy.
- Approval must be sought prior to entering a lease arrangement.
- A comprehensive physical revaluation of land, building and heritage and cultural assets must be performed at five yearly intervals.
- A physical stocktake of plant and equipment and portable and attractive assets is conducted at least annually.
- An annual impairment test must be performed on land and buildings and software assets to ensure the carrying value of an asset does not exceed its recoverable amount.
- Assets are used only for authorised and permitted purposes.
- Assets are safeguarded to minimise losses from both internal and external events.
- Disposal of assets must be approved in accordance with the Finance delegations.
Definitions
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Term
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Definition
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Carrying value
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Cost of an asset less accumulated amount of depreciation or amortisation.
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Future economic benefit
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Potential to contribute, directly or indirectly, to the flow of cash, or used to provide goods and services that contribute to the department’s objectives.
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Fair value
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The price that would be received to sell an asset between market participants at the measurement date.
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Impairment test
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Assessment used to determine whether the asset's recoverable amount exceeds the carrying value.
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Intangible asset
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An asset that is not physical in nature, for example, software or intellectual property.
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Property, plant and equipment assets
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Assets that are physical in nature, for example land, buildings and equipment used in the delivery of the department's services.
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Recoverable amount
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Asset's fair value (market value) less costs of disposal.
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Rent-free lease
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An agreement developed in law as a lease for which there is not a stipulated rental payment or where the rental payment meets the minimum consideration required in law to validate a contract ($1 per annum). This is also commonly known as a 'peppercorn lease'.
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Revaluation
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Process to accurately recognise the fair value of capital assets owned by the department.
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Right-of-use asset
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Any lease arrangement through which the department has gained the right to use an underlying asset controlled by an external entity for a specified period of time.
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Legislation
Delegations/Authorisations
Other resources
Australian Accounting Standards and Interpretations, in particular:
- AASB 3 Business Combinations
- AASB 5 Non-Current Assets Held for Sale and Discontinued Operations
- AASB 13 Fair Value Measurement
- AASB 16 Leases
- AASB 101 Presentation of Financial Statements
- AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors
- AASB 111 Construction Contracts
- AASB 116 Property, Plant and Equipment
- AASB 123: Borrowing Costs
- AASB 136 Impairment of Assets
- AASB 138 Intangible Assets
- AASB 1004 Contributions
- AASB 1049 Whole of Government and General Government Sector Financial Reporting
- AASB 1059: Service Concession Arrangements: Grantors
- Interpretation 132 Intangible Assets - Web Site Costs
- Interpretation 1030 Depreciation of Long-Lived Physical Assets: Condition-based Depreciation and Related Methods
- Interpretation 1038 Contributions by Owners Made to Wholly-Owned Public Sector Entities
Superseded versions
Previous seven years shown. Minor version updates not included.
1.0 Assets policy