Department of Foreign Affairs and Trade
Notes to and Forming Part of the Financial Statements

Note 8: Non-Financial Assets

Note 8A: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment and Intangibles
Reconciliation of the opening and closing balances of property, plant and equipment and intangibles for 2015
Land Buildings & leasehold improvements Total land and buildings Property, plant equipment Computer software internally developed Computer   software purchased Total intangibles Grand total
  $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2014
Gross book value 1,213,361 978,344 2,191,705 277,230 45,183 56,502 101,685 2,570,620
Accumulated depreciation, amortisation and impairment – (95,125) (95,125) (133,659) (35,183) (32,337) (67,520) (296,304)
Work in progress – 124,631 124,631 48,923 18,745 29,647 48,392 221,946
Total as at 1 July 2014 1,213,361 1,007,850 2,221,211 192,494 28,745 53,812 82,557 2,496,262
Additions:    
    By purchase or internally developed – 282,202 282,202 60,621 35,218 814 36,032 378,855
Revaluations and impairments recognised in other comprehensive income 362,799 108,785 471,584 2,125 – – – 473,709
Write-offs and Impairments recognised in net cost of services – (3,014) (3,014) (1,189) (12,170) (1,532) (13,702) (17,905)
Reversal of impairments recognised in net cost of services – – – 27 – – – 27
Assets held for sale (380) (325) (705) – – – – (705)
Depreciation/amortisation expense – (86,863) (86,863) (45,351) (7,115) (8,161) (15,276) (147,490)
Other movements              
    Asset transfers – – – – 4,668 (4,668) – –
Disposals:              
    Other disposals (345) (438) (783) (259) – – – (1,042)
Total as at 30 June 2015 1,575,435 1,308,197 2,883,632 208,468 49,346 40,265 89,611 3,181,711
                 
Net book value as of 30 June 2015 represented by:                
Gross book value 1,575,435 1,128,916 2,704,351 250,167 64,423 56,541 120,964 3,075,482
Accumulated depreciation, amortisation and impairment – (149,282) (149,282) (83,116) (38,714) (39,533) (78,247) (310,645)
Work in progress – 328,563 328,563 41,417 23,637 23,257 46,894 416,874
Total 1,575,435 1,308,197 2,883,632 208,468 49,346 40,265 89,611 3,181,711
Land Buildings & leasehold improvements Total land and buildings Property, plant equipment Computer software internally developed Computer   software purchased Total intangibles Grand total
  $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000
As at 1 July 2013            
Gross book value 1,097,188 964,135 2,061,323 231,766 44,345 40,059 84,404 2,377,493
Accumulated depreciation, amortisation and impairment – (23,004) (23,004) (89,462) (34,452) (24,523) (58,975) (171,441)
Work in progress – 78,853 78,853 32,197 5,140 45,240 50,380 161,430
Net book value 1 July 2013 1,097,188 1,019,984 2,117,172 174,501 15,033 60,776 75,809 2,367,482
Additions:
    By purchase or internally developed – 89,928 89,928 73,984 14,799 4,212 19,011 182,923
Revaluations and impairments recognised in other comprehensive income 116,667 (5,180) 111,487 – – – – 111,487
Write-offs and Impairments recognised in net cost of services – (892) (892) (6,767) (160) (909) (1,069) (8,728)
Reversal of impairments recognised in net cost of services – – – 330 – – – 330
Depreciation/amortisation expense – (95,975) (95,975) (48,980) (927) (10,267) (11,194) (156,149)
Other movements
    Asset transfers – – – – – – – –
    Other disposals (494) (15) (509) (574) – – – (1,083)
Net book value 30 June 2014 1,213,361 1,007,850 2,221,211 192,494 28,745 53,812 82,557 2,496,262
 
Net book value as of 30 June 2014 represented by:
Gross book value 1,213,361 978,344 2,191,705 277,230 45,183 56,502 101,685 2,570,620
Accumulated depreciation, amortisation and impairment – (95,125) (95,125) (133,659) (35,183) (32,337) (67,520) (296,304)
Work in progress – 124,631 124,631 48,923 18,745 29,647 48,392 221,946
Total 1,213,361 1,007,850 2,221,211 192,494 28,745 53,812 82,557 2,496,262
Land and buildings
No isolated indicators of impairment were found for land and buildings in the current financial year (2014: nil).
Besides those disclosed in Note 8C, no other land and building assets are expected to be sold within the next 12 months (2014: nil).
Property, plant and equipment
No plant and equipment was held by the department under finance leases.
No isolated indicators of impairment were found for property, plant and equipment in the current financial year (2014: nil).
No property, plant and equipment assets are expected to be sold within the next 12 months (2014: nil).
Revaluation of non-financial assets
All revaluations are conducted in accordance with the revaluation policy stated at Note 1. Land and buildings have been independently valued by Savills as at 30 June 2015. IT equipment and artwork equipment have been independently valued by Australian Valuation Solutions as at 31 March 2015.
Revaluation increments of $362,799,000 for land (2014: $116,667,000), $108,785,000 for buildings (2014: decrement of $5,181,000), no revaluation increment of leasehold improvements (2014: nil) and $2,125,000 increment for property, plant and equipment (2014: nil) were recorded to the asset revaluation reserve.
Restrictions on title
Due to the diplomatic nature of the overseas property portfolio, some properties have restrictions on title. Restrictions on title vary depending on local government rules and regulations, such as long term title that prohibits the Commonwealth of Australia from profiting from sale of land. Whilst the effect of restrictions on some titles can be quantified there are others than cannot, such as those titles held in limited or unsophisticated markets.
Intangibles
No indicators of impairment were identified for intangible assets (2014: nil).
No intangible assets are expected to be sold within the next 12 months (2014: nil).

 

2015 2014
$’000 $’000
Note 8B: Inventories
Inventories held for sale
    Finished goods 39,372   28,261
Total inventories held for sale 39,372   28,261
Inventories held for distribution 269   65
Total inventories 39,641 28,326
   
   
During 2015, $36,422,659 of inventory held for sale was recognised as an expense (2014: $36,863,034).
During 2015, $915,266 of inventory held for distribution was recognised as an expense (2014: $389,087).
   
No items of inventory were recognised at fair value less cost to sell (2014: nil).
All inventories are expected to be sold or distributed in the next 12 months.

 

Note 8C: Assets held for sale
    Land 362 –
    Buildings 309 –
Total assets held for sale 671 –

 

 

Note 8D: Other Non-Financial Assets
    Property leases 27,651 19,737
    Prepayments 100,559 81,020
Total other non-financial assets 85,210 100,7100
Other non-financial assets expected to be recovered
    No more than 12 months 77,544 96,606
    More than 12 months 7,666 4,151
Total other non-financial assets 85,210 100,7100
No indicators of impairment were identified for other non-financial assets (2014: nil).