Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.6 Financial Assets (Continued)(iii) Other Financial AssetsOther financial assets are recognised and derecognised on trade date where purchase or sale of aninvestment is under a contract whose terms require delivery of the investment within the timeframeestablished by the market concerned, and are initially measured at fair value, net of transaction costs.Parks Victoria classifies its other financial assets between current and non-current assets based on thepurpose for which the assets were acquired. Management determines the classification of its otherfinancial assets at initial recognition.Parks Victoria assesses at each balance sheet date whether a financial asset or group of financialassets is impaired.All investments held by Parks Victoria are classified as being available-for-sale and are stated at fair value.Gains and losses arising from changes in fair value are recognised directly in equity, until the investmentis disposed of or is determined to be impaired, at which time to the extent appropriate.2.7 Non Financial Assets(i) InventoriesInventories comprise stores and materials and are valued at the lower of cost and net realisable value.Costs are assigned to inventory on hand at balance date on a first-in, first out basis. Net realisable valuerepresents the estimated selling price less all estimated costs of completion and costs to be incurred inmarketing, selling distribution.(ii) Property, Plant and EquipmentAll non-current physical assets except land under declared roads are measured initially at cost andsubsequently revalued at fair value less accumulated depreciation and impairment.Property, Plant and Equipment represent non–current assets comprising:❚ Crown Land, Land and Land Improvements❚ Buildings and Building Improvements❚ Piers, Jetties and River Improvements❚ Plant, Equipment, Machinery and Vehicles❚ Antiques❚ Works in Progressused by Parks Victoria in its operations.Items with a cost or value of $5,000 (previously $1,200 – refer to note 2.5 for information of the financialimpact of this change in accounting policy) or more, and a useful life of more than one year arerecognised as an asset. All other assets acquired are expensed.Parks Victoria - Annual Report 2009-10 63