Note 16
Non-current assets - Property, plant and equipment (continued)
(a) Leased assets
Plant and equipment includes the following amounts where the Group
is a lessee under a finance lease:
Consolidated
2012
2011
$’000
$’000
Leased equipment
Cost
1,131
1,234
Accumulated depreciation
(103)
(103)
Net book amount
1,028
1,131
(b) Basis of valuation ‑ 30 June 2011
The 2011 revaluation used a discounted cash flow
approach to provide the fair value of all leased
and owned infrastructure assets across the
network. Due to the nature of the business assets,
prices cannot be determined individually as there
is no similar market quoted assets.
The 2011 revaluation resulted in the carrying value
of all leased infrastructure assets in the Hunter
Valley being increased by $216.5m and the carrying
value of all leased and owned infrastructure assets
in the East West increasing by $303.8m.
At 30 June 2012 the Group recognised a reversal
of the 2011 revaluation for infrastructure assets
on the East West corridor for $311.9m. This
adjusts the carrying value of these assets to the
estimated fair value of the infrastructure assets in
the East West corridor.
(c) Impairment of plant and equipment
Prior to the inception of the NSW lease in
September 2004, the Group identified that not
all of the major capital programme to rectify and
upgrade the network would yield a commercial
return, particularly in the short term.
At the end of the June 2012 year, the Group
undertook impairment testing of the Group’s
infrastructure assets in accordance with the
requirements of the accounting standard AASB
136 Impairment of Assets.
At June 2012, the impairment testing resulted
in the recognition of an impairment loss
of $290.2m (2011:$434.2m) against the
North‑South Corridor.
(d) Carrying amounts that would have
been recognised if plant & equipment
and leasehold improvements were
stated at cost
If plant & equipment and leasehold
improvements were stated on the historical cost
basis, the amounts would be as follows:
90
