(n) Revaluations of non-current physical assets
Land, buildings, infrastructure and heritage and cultural assets are measured at fair value
in accordance with AASB 1041 - Revaluation of Non-Current Assets
and Queensland Treasury’s
Non-Current Asset Accounting Guidelines for
the Queensland Public Sector
All other non-current assets, principally plant and equipment and intangibles, are measured at cost.
Non-current physical assets measured at fair value are comprehensively revalued at least once every five years with interim valuations, using appropriate indices, being otherwise performed on an annual basis where there has been a material variation in the index.
Separately identified components of assets are measured on the same basis as the assets to which they relate.
A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership, and operating leases under which the lessor retains substantially all risks and benefits.
Where a non-current physical asset is acquired by means of a finance lease, the asset is recognised at an amount equal to the present value of the minimum lease payments. The liability is recognised at the same amount.
Lease payments are allocated between the principal component of the lease liability and the interest expense.
Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred.
Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability.
(p) Other financial assets - investments
Other financial assets are brought to account at the lower of cost and recoverable amount and are disclosed at the fair values indicated in Note 30.
Intangible assets with a cost or other value greater than $50,000 are recognised in the financial statements, items with a lesser value being expensed. Each intangible asset is amortised over its estimated useful life to the agency, less any anticipated residual value.
Internal Use Software
Costs associated with the development of computer software have been capitalised and amortised on a straight-line basis over the period of expected benefit to the Department, namely five to seven years.
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price, gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms.
(s) Interest-bearing liabilities
Loans payable are recognised at the face value of the principal outstanding, interest being expensed or otherwise recognised as it accrues. The fair value of these loans is disclosed in Note 30.