Asset Accounting
Policy Statement
Policy name: Asset Accounting
Policy number: Finance
Key result areas: Finance
Branch: HR and Corporate Services
Responsibility for review: Accountant
Location:
Intranet - Policies, Procedures and Manuals
Amendments:
Cross-references:
Public Finance and Audit Act 1987
Treasurers Instruction 1, Interpretation and
Application
Treasurers Instruction 2, Financial Management
Treasurers Instruction 19, Financial Reporting
Treasurers Instruction 28, Financial Management
Compliance Program;
Department of Treasury and Finance, Financial
Management Toolkit.
Commissioners Standards.
Australian Accounting Standards
Department of Treasury and Finance Accounting
Policy Framework
Review date: December 2012
Approved by:
Chief Executive
Issue date:
Ref: A52916, 11.0
Last Updated: 25/01/2011 3:37 PM
December 2010
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ASSET ACCOUNTING
1. INTRODUCTION
The purpose of this Policy is to address the issue of identification, recognition and measurement
of assets for accounting purposes.
This Accounting Policy Framework mandates that all public authorities measure noncurrent
assets at fair value; obtain the Under Treasurer’s approval prior to measuring noncurrent assets
using discounted cash flows; and expense the value of interest-free loans provided for long
periods.
It extends the ability to account for revaluations on a class basis to for-profit entities and
introduces accounting thresholds for revaluation and recognition of smaller (or component)
assets comprising a larger (or complex) asset.
1.1 AUSTRALIAN ACCOUNTING STANDARDS
The following Australian Accounting Standards have general application in relation to the
accounting for assets.
AASB 116 Property, Plant and Equipment prescribes the accounting treatment and reporting
requirements for non-current assets.
AASB 136 Impairment of Assets prescribes that the carrying amount of non-current assets is
not to exceed their...