Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.7 Non Financial Assets (continued)The financial statements list the location and values of Crown land over which Parks Victoria is thecommittee of management (refer note 18). This Crown Land remains the property of the State ofVictoria.Crown Land is used for heritage and environmental conservation, recreation, leisure, tourism andnavigation.Restrictive Nature of Cultural and Heritage Assets, Crown Land and InfrastructuresDuring the reporting period, Parks Victoria held cultural assets, heritage assets, Crown land andinfrastructures.Such assets are deemed worthy of preservation because of the social rather than financial benefitsthey provide to the community. The nature of these assets means that there are certain limitations andrestrictions imposed on their use and/or disposal.(iv) Intangible assetsIntangible assets are initially recognised at cost. Subsequently, intangible assets with finite useful livesare carried at cost less accumulated amortisation and accumulated impairment losses. Costs incurredsubsequent to initial acquisition are capitalised when it is expected that additional future economicbenefits will flow to Parks Victoria.2.8 Impairment of Non–Financial AssetsAll Non–financial assets are assessed annually for indications of impairment, except for:❚ Inventories (refer note 2.7 (i)).If there is an indication of impairment, the assets concerned are tested as to whether their carrying valueexceeds their recoverable amount. Where an asset’s carrying value exceeds its recoverable amount, thedifference is written off by charge to the Comprehensive Operating Statement except to the extent thatthe write – down can be debited to the physical asset revaluation surplus account.The recoverable amount for most assets is measured at the higher of the present value of future cashflows expected to be obtained from the asset and fair value less costs to sell. It is deemed that, in theevent of the loss of an asset, the future asset will be replaced unless a specific decision to the contrary hasbeen made.2.9 Leased AssetsLeases in which a significant portion of the risks and rewards of ownership are retained by the lesserare classified as operating leases. Operating lease payments are recognised as an expense in theComprehensive Operating Statement on a straight-line basis over the lease term, except where anothersystematic basis is more representative of the time pattern in which economic benefits from the leasedasset are consumed.Parks Victoria - Annual Report 2009-10 65