✨ Financial Statements Notes
THE WAIKATO COMMUNITY TRUST INCORPORATED
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2012
1.6.8 Property, Plant and Equipment
Land is valued at cost. Buildings, office equipment, art and artefacts, and motor vehicles are stated at cost less accumulated depreciation and impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item. In the event that settlement of all or part of the purchase consideration is deferred, cost is determined by discounting the amounts payable in the future to their present value as at the date of acquisition. Art and artefacts are recognised at cost except for donated items acquired at nil or below market value which are recognised at fair value with the corresponding value recognised in the Statement of Comprehensive Income.
Depreciation is provided on property, plant and equipment, art and artefacts, including freehold buildings but excluding land.
Depreciation on buildings, office equipment and motor vehicles is calculated on a diminishing value basis so as to write off the net cost or other revalued amount of each asset over its expected useful life to its estimated residual value. Leasehold improvements are depreciated over the period of the lease or estimated useful life, whichever is the shorter, using the diminishing value method. Art and artefacts are depreciated using the straight line method. The estimated useful lives, residual values and depreciation method are reviewed at the end of each annual reporting period.
Rental property is included in property, plant and equipment in accordance with NZ IFRS as the rental property is held to provide a social service rather than for rental income or capital appreciation or both.
The following estimated useful lives are used in the calculation of depreciation:
| Office Equipment | 3-25 years |
| Motor Vehicles | 7 years |
| Buildings | 5-75 years |
| Art and Artefacts | 100 years |
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Trust and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the Statement of Comprehensive Income during the financial period in which they are incurred.
The asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Refer to note 1.6.10 below for the accounting policy on impairment of tangible assets.
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised within other income or other expenses.
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NZ Gazette 2012, No 97
✨ LLM interpretation of page content
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Notes to Financial Statements for The Waikato Community Trust Incorporated
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💰 Finance & RevenueProperty, Plant and Equipment, Land, Buildings, Office Equipment, Art and Artefacts, Motor Vehicles, Depreciation, Useful Lives, Rental Property, Asset Valuation, Cost, Fair Value, Impairment, Disposal, Accounting Policies