Parks Victoria - Annual Report 2009-10

NOTES TO THE FINANCIAL STATEMENTSFor The Financial Year Ended 30 June 20102.17 Depreciation and amortisationDepreciation is applied to completed fixed assets including Land Improvements, Buildings andImprovements, Piers, Jetties and River Improvements, Plant, Equipment and Machinery, Motor Vehiclesand Other. Land and Antiques are not depreciated. Works in Progress is valued at cost and depreciationcommences on completion of the works.Depreciation is calculated on a straight-line basis to systematically write off the cost or revalued amountof each non–current asset over its expected useful life to the entity.Depreciation rates are reviewed annually and, if necessary, adjusted to reflect the most recentassessments of the useful lives and residual values of the respective assets.Where assets have separate identifiable components that have distinct useful lives and/or residual valuesa separate depreciation rate is determined for each component.The expected useful life of each asset category is the same as the previous year and is as follows:Asset CategoryExpected Life (Years)Buildings and Building Improvements 10 to 100Piers, Jetties and River Improvements 20 to 100Land Improvements 10 to 50Plant, Equipment, Machinery and Vehicles 3 to 10Amortisation is calculated on a straight–line basis to systematically write off the cost or revalued amountof each intangible asset over its expected useful life to the entity.Amortisation rates are reviewed annually and, if necessary, adjusted to reflect the most recentassessments of the useful lives and residual values of the respective assets.The expected useful life of each Intangible assets category (Computer Software) is 10 years.2.18 Finance costsFinance costs are recognised as expenses in the period in which they are incurred.2.19 CommitmentsCommitments are disclosed at their nominal value and inclusive of the goods and services tax (GST)payable. In addition, where it is considered appropriate and provides additional relevant information tousers, the net present values of significant individual projects are stated.2.20 Contingent assets and contingent liabilitiesContingent assets and contingent liabilities are not recognised in the balance sheet, but are disclosed byway of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities arepresented inclusive of GST receivable or payable respectively.Parks Victoria - Annual Report 2009-10 69