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Property , Plant and Equipment
BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016
Each class of property , plant and equipment is carried at cost or fair value as indicated , less , where applicable , accumulated depreciation and impairment losses .
Property
Freehold land and buildings are shown at their fair value based on periodic , but at least triennial , valuations by external independent valuers , less subsequent depreciation for buildings .
In periods when the freehold land and buildings are not subject to an independent valuation , management has undertaken a valuation review and presented to the Board of Directors to ensure the carrying amount for the land and buildings is not materially different to the fair value .
Increases in the carrying amount arising on revaluation of land and buildings are recognised in other comprehensive income and accumulated in the revaluation surplus in equity . Revaluation decreases that offset previous increases of the same class of assets shall be recognised in other comprehensive income under the heading of revaluation surplus . All other decreases are charged to the profit or loss .
Any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset .
Freehold land and buildings that has been contributed at no cost , or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired .
Plant and Equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses .
Plant and equipment that has been contributed at no cost , or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired .
Depreciation
The depreciable amount of all fixed assets including buildings and capitalised lease assets , but excluding freehold land , is depreciated on a straight line basis over the asset ’ s useful life to the entity commencing from the time the asset is held ready for use . Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements .
The depreciation rates used for each class of depreciable assets are :
Classes of Fixed Assets Buildings 3.3 %
Depreciation Rate
Plant and equipment 15.0 % - 33.3 % Leased plant and equipment 15.0 % - 33.3 %
The assets ’ residual values and useful lives are reviewed , and adjusted if appropriate , at the end of each reporting period .
Asset classes and carrying amount is written down immediately to its recoverable amount if the asset ’ s carrying amount is greater than its estimated recoverable amount .
Gains and losses on disposals are determined by comparing proceeds with the carrying amount . These gains or losses are included in profit or loss . When revalued assets are sold , amounts included in the revaluation surplus relating to that asset are transferred to retained earnings .
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