Note 7D: Land and buildings, plant, equipment and infrastructure, heritage and cultural assets and intangibles
Australian Governm ent
Specialist
Other plant,
military equipment and
equipment infrastructure
$m
$m
Heritage
and
cultural Investment
assets
property
$m
$m
Computer
Other
softw are intangibles
$m
$m
Buildings
$m
Gross book value
Accumulated depreciation/amortisation
At Cost
109
109
3,540
(66)
3,474
77,387
(36,144)
41,243
12,091
(1,816)
10,275
5
5
-
10,748
(5,671)
5,077
4,674
(1,215)
3,459
108,554
(44,912)
63,642
Gross book value
Accumulated depreciation/amortisation
At Fair Value
10,287
10,287
26,999
(3,470)
23,529
-
20,051
(3,336)
16,715
10,876
(56)
10,820
375
375
-
-
68,588
(6,862)
61,726
Net book value at 30 June 2014
10,396
27,003
41,243
26,990
10,825
375
5,077
3,459
125,368
Gross book value
Accumulated depreciation/amortisation
At Cost
15
15
3,224
(111)
3,113
81,186
(38,534)
42,652
15,359
(2,031)
13,328
1
1
-
11,081
(6,002)
5,079
4,601
(1,002)
3,599
115,467
(47,680)
67,787
Gross book value
Accumulated depreciation/amortisation
At Fair Value
10,938
10,938
27,833
(3,068)
24,765
-
20,797
(3,610)
17,187
11,445
(114)
11,331
387
387
-
-
71,400
(6,792)
64,608
Net book value at 30 June 2015
10,953
27,878
42,652
30,515
11,332
387
5,079
3,599
132,395
-
-
4,784
59,824
64,608
Item
Total
$m
101
Australian Government assets at fair value — Revaluation period
Assets held at fair value as at 30 June 2015 were based on valuations conducted in the following periods:
2013-14 or earlier
2014-15
Assets at fair value at 30 June 2015
283
10,655
10,938
1,386
23,379
24,765
-
3,114
14,073
17,187
1
11,330
11,331
387
387
Notes to the financial statements
Land
$m
Notes to the financial statements
Australian Government assets at fair value — Valuation details
Details pertaining to valuations can be found in the audited financial statements of
individual Australian Government controlled entities. During 2014-15, material
revaluations occurred within the following Australian Government controlled entities:
• Australian Customs and Border Protection Service;
• Australian Postal Corporation;
• Australian Rail Track Corporation Limited;
• Australian Submarine Corporation Pty Limited;
• Commonwealth Scientific and Industrial Research Organisation;
• Defence Housing Australia;
• Department of Defence;
• Department of Finance;
• Department of Foreign Affairs and Trade;
• Department of Immigration and Border Protection;
• Department of Infrastructure and Regional Development;
• Department of Veteran Affairs;
• Indigenous Land Corporation;
• National Archives of Australia;
• National Gallery of Australia;
• National Library of Australia; and
• Sydney Harbour Federation Trust.
Australian Government leased assets
Australian Government entities lease assets under a number of finance leases. As at
30 June 2015, the carrying value of leased assets included $1,400 million in land and
buildings (2014: $1,499 million) and $252 million in plant and equipment
(2014: $237 million). These entities were within the GGS. Refer Note 8D for accounting
policy disclosure on finance leases.
102
Australian Government
Reconciliation of movement in land and buildings, plant, equipment and infrastructure, heritage and cultural assets and intangibles
Australian Governm ent
Item
Net book value at 1 July 2013
Additions:
Purchases and entity acquisitions
Acquisition by finance lease
Internally developed
103
Revaluations: w rite-ups
Depreciation/amortisation expense
Recoverable amount w rite-dow ns
Reversal of w rite-dow ns
Other movements
Disposals
Revaluations: w rite-ups
Depreciation/amortisation expense
Recoverable amount w rite-dow ns
Reversal of w rite-dow ns
Other movements
Disposals
As at 30 June 2015
Heritage
and
cultural Investment
property
assets
$m
$m
368
10,547
Land
$m
9,440
Buildings
$m
25,742
28
2
-
2,620
513
-
4,309
-
3,656
2,147
-
77
-
2
-
480
(2)
483
229
(1,583)
(123)
(386)
(2,539)
(469)
16
(337)
186
(2,122)
(63)
2
2,169
239
(51)
(6)
21
16
5
Other
Computer
softw are intangibles
$m
$m
3,165
4,657
Total
$m
115,294
708
630
243
1
11,643
2,662
631
(1,087)
(57)
234
(116)
(65)
84
149
1,150
(7,498)
(785)
102
2,338
(35)
(9)
(25)
(72)
(2)
(16)
(8)
(2)
(169)
10,396
27,003
41,243
26,990
10,825
375
5,077
3,459
125,368
21
4
-
2,419
20
-
5,065
-
5,412
457
-
71
-
17
-
671
783
289
-
13,965
481
783
649
(1)
(2)
4
-
324
(1,623)
(83)
8
(134)
(2,872)
(907)
128
62
(2,368)
(152)
3
161
489
(73)
(3)
24
10
1
(1,169)
(150)
5
(121)
(114)
(117)
213
(131)
1,534
(8,220)
(1,414)
233
(72)
(118)
(56)
(5)
(50)
(1)
(16)
(17)
-
(263)
10,953
27,878
42,652
30,515
11,332
387
5,079
3,599
132,395
Notes to the financial statements
As at 30 June 2014
Additions:
Purchases and entity acquisitions
Acquisition by finance lease
Internally developed
Other plant,
Specialist
military equipment and
equipment infrastructure
$m
$m
21,087
40,288
Australian Government assets under construction include $2,885 million (2014: $3,238 million) in buildings, $11,993 million (2014:
$11,904 million) in specialist military equipment and $5,007 million (2014: $3,993 million) in other plant, equipment and infrastructure.
General Government
Reconciliation of movement in land and buildings, plant, equipment and infrastructure, heritage and cultural assets and intangibles
General Governm ent
Specialist
Other plant,
military equipment and
equipment infrastructure
$m
$m
Heritage
and
cultural Investment
assets
property
$m
$m
Computer
Other
softw are intangibles
$m
$m
Land
$m
Buildings
$m
89
89
2,346
2,346
77,387
(36,144)
41,243
1,289
1,289
5
5
-
7,937
(4,218)
3,719
3,340
(876)
2,464
92,393
(41,238)
51,155
Gross book value
Accumulated depreciation/amortisation
At Fair Value:
9,242
9,242
25,629
(3,128)
22,501
-
15,022
(3,214)
11,808
10,876
(56)
10,820
183
183
-
-
60,952
(6,398)
54,554
Net book value at 30 June 2014
9,331
24,847
41,243
13,097
10,825
183
3,719
2,464
105,709
1
1
2,609
2,609
81,186
(38,534)
42,652
1,484
1,484
1
1
-
8,644
(4,955)
3,689
3,533
(678)
2,855
97,458
(44,167)
53,291
Gross book value
Accumulated depreciation/amortisation
At Fair Value:
9,940
9,940
25,755
(2,725)
23,030
-
15,294
(3,154)
12,140
11,445
(114)
11,331
187
187
-
-
62,621
(5,993)
56,628
Net book value at 30 June 2015
9,941
25,639
42,652
13,624
11,332
187
3,689
2,855
109,919
Item
Gross book value
Accumulated depreciation
At Cost:
104
Gross book value
Accumulated depreciation
At Cost:
Total
$m
Notes to the financial statements
Australian Government assets under construction
General Government assets at fair value — Revaluation period
Assets held at fair value as at 30 June 2015 were based on valuations conducted in the following periods:
2013-14 or earlier
2014-15
Assets at fair value at 30 June 2015
283
9,657
9,940
1,386
21,644
23,030
-
2,948
9,192
12,140
1
11,330
11,331
187
187
-
-
-
-
4,618
52,010
56,628
105
Notes to the financial statements
Item
Net book value at 1 July 2013
Additions:
Purchases and entity acquisitions
Acquisition by finance lease
Internally developed
Revaluations: w rite-ups
Depreciation/amortisation expense
Recoverable amount w rite-dow ns
Reversal of w rite-dow ns
Other movements
Disposals
106
As at 30 June 2014
Additions (a):
Purchases and entity acquisitions
Acquisition by finance lease
Internally developed
Revaluations: w rite-ups
Depreciation/amortisation expense
Recoverable amount w rite-dow ns
Reversal of w rite-dow ns
Other movements
Specialist
Other plant,
military equipment and
equipment infrastructure
$m
$m
40,288
12,610
Heritage
and
cultural Investment
assets
property
$m
$m
10,547
195
Computer
Other
softw are intangibles
$m
$m
3,579
2,057
Land
$m
8,917
Buildings
$m
23,500
Total
$m
101,693
21
2
-
2,247
513
-
4,309
-
1,545
71
-
77
-
2
-
260
630
213
1
8,674
586
631
479
(57)
122
(1,474)
(116)
94
(2,540)
(469)
16
(336)
214
(1,433)
(40)
183
239
(51)
(6)
21
2
-
(848)
(56)
159
(56)
(37)
84
204
1,056
(6,402)
(724)
100
268
(31)
(39)
(25)
(53)
(2)
(16)
(5)
(2)
(173)
9,331
24,847
41,243
13,097
10,825
183
3,719
2,464
105,709
18
4
-
2,333
20
-
5,065
-
1,605
49
-
71
-
16
-
292
652
276
-
9,676
73
652
694
(1)
(2)
10
262
(1,509)
(79)
(6)
(187)
(2,872)
(907)
128
123
(1,480)
(89)
(1)
368
490
(73)
(3)
23
2
2
(876)
(68)
5
(19)
(51)
(56)
213
9
1,571
(6,862)
(1,204)
211
334
Disposals
(113)
(42)
(5)
(48)
(1)
(16)
(16)
-
(241)
As at 30 June 2015
9,941
25,639
42,652
13,624
11,332
187
3,689
2,855
109,919
General Government assets under construction
GGS assets under construction include $2,609 million (2014: $2,346 million) in buildings, $11,993 million (2014: $11,904 million) in
specialist military equipment and $1,497 million (2014: $1,289 million) in other plant, equipment and infrastructure.
Notes to the financial statements
General Governm ent
Notes to the financial statements
Land, buildings, plant, equipment and infrastructure
Property, plant and equipment are stated at historical cost or valuation, except as
otherwise indicated. Property, plant and equipment are stated at fair value, except
assets under construction and specialist military equipment (refer Note 1.8), which is
valued at cost. Certain small entities and public corporations may adopt a cost basis in
their own financial statements. Where the difference is material to the CFS, an
adjustment is made on consolidation.
Where available, the fair value of property, plant and equipment is determined by
reference to market-based evidence, for example, the market value of similar
properties. If there is no market-based evidence of fair value because of the specialised
nature of the item of property, plant or equipment and the item is rarely sold, fair
value is estimated using an income (net present value/discounted cash flows) or a
depreciated replacement cost approach. The valuation techniques used for each class
of depreciable assets are disclosed in Note 6.
The cost of restoration or removal is provided for in the measurement of property,
plant and equipment when a legal or constructive obligation exists. These costs include
obligations relating to the dismantling, removal, remediation, restoration and other
expenditure associated with the Australian Government’s fixed assets or site fit-outs.
Restoration provisions are initially recorded when a reliable estimate of the costs to be
incurred can be determined and are discounted to present value. Estimates are based
upon a review of lease contracts, legal requirements, historical information, and
expected future costs. Any changes to these estimates are adjusted on a progressive
basis as required.
Intangibles
The Australian Government’s intangibles comprise internally developed software for
internal use, water entitlements and intangible assets acquired by public corporations
(PNFCs and PFCs). When public corporations acquire investments in controlled,
jointly controlled or associated entities, and pay an amount greater than the fair value
of the net identifiable assets of the entity, this excess is recognised as goodwill.
Intangibles are carried at cost. Water entitlements are classified as indefinite life
intangibles and are therefore subject to annual impairment testing. Goodwill and other
indefinite life intangibles are not amortised but tested for impairment on an
annual basis.
107
Notes to the financial statements
Note 7E: Inventories
General Government
2015
2014
$m
$m
Australian Government
2015
2014
$m
$m
Inventories held for sale
Finished goods(a)
Raw materials and stores
Work in progress
Total inventories held for sale
1,081
57
242
1,380
669
63
535
1,267
1,146
70
247
1,463
734
77
539
1,350
Consumable stores and inventories
held for distribution
7,035
6,986
7,068
7,021
Total inventories
8,415
8,253
8,531
(a) Finished goods include $193 million valued at net realisable value (2014: $231 million).
8,371
Inventories
Inventories held for sale are valued at the lower of cost and net realisable value.
Inventories held for distribution are measured at cost, adjusted for any loss of service
potential. Quantities on hand and items of inventory are periodically evaluated with
excess and obsolete inventory recorded as a reduction to inventory and an expense.
Note 7F: Other non-financial assets
General Government
2015
$m
44
129
4,516
207
4,896
Total biological assets
Total assets held for sale
Prepayments
Other
Total other non-financial assets
2014
$m
36
95
2,985
194
3,310
Australian Government
2015
$m
44
129
4,620
269
5,062
2014
$m
36
143
3,058
286
3,523
Note 7G: Assets by function(a)
General Government
Australian Government
2015
2014 (c)
2015
2014 (c)
$m
$m
$m
$m
General public services
184,383
166,115
184,086
165,773
Defence
79,883
75,996
80,269
76,314
Public order and safety
2,915
2,579
2,944
2,595
Education
33,240
28,872
33,240
28,872
Health
1,261
5,495
1,244
3,596
Social security and w elfare
8,317
7,547
7,979
7,189
Housing and community amenities
8,435
8,153
8,389
8,139
Recreation and culture
12,428
13,416
12,428
13,416
Fuel and energy
1,538
877
1,538
877
Agriculture, forestry and fishing
910
451
908
451
Mining, manufacturing and construction
525
296
2,384
1,856
Transport and communication
15,613
12,601
23,787
19,877
Other economic affairs
31,736
24,576
155,792
140,530
Other purposes(b)
48,067
43,234
17,349
19,545
Total assets
429,251
390,208
532,337
489,030
(a) Refer to Note 4F for a description of each function.
(b) Cash and deposits that are not allocated to other functions are included in the ‘Other purposes’ function.
(c) The 2013-14 comparatives have been updated for consistency with the 2014-15 functional classification.
108
Notes to the financial statements
Note 8: Liabilities
Liabilities are obligations to another entity to provide economic value as a result of
past transactions and activities undertaken by Australian Government entities. They
include interest bearing liabilities, provisions and payables. The total Australian
Government liabilities and relative composition of liabilities are as follows:
Amount
2014-15 Composition
$m
900,000
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
2013-14
2014-15

Deposits held (refer Note 8A) predominantly the liability for cash and deposits
held with the RBA and other PFCs;

Government securities (refer Note 8B) issued by the Australian Government in
the form of Treasury Bonds, Treasury Indexed Bonds and Treasury Notes;

Loans (refer Note 8C) comprising promissory notes issued to the IMF and other
multi-lateral organisations to meet Australia’s international financial obligations,
bonds issued by public corporations, and other loans;

Other borrowings (refer Note 8D) covers obligations under finance lease
arrangements;

Other interest bearing liabilities (refer Note 8E) includes Australia’s liability to
the IMF as denominated in special drawing rights (SDR), repurchase agreements
entered into by the RBA, and other debt not elsewhere classified;

Employee benefits (refer Note 8F) captures amounts owing to current and former
employees, the largest of which is the Australian Government obligation for the
unfunded proportion of the public sector and military superannuation schemes;
and

Other provisions and payables (refer Note 8G) including year-end obligations for
goods and services, current and capital transfers and unearned income. Also
includes a liability for currency notes issued by the RBA.
109