NOTE 14
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
2013
$’000
2012
$’000
Leasehold equipment
Cost
1,028
1,131
Accumulated depreciation
(103)
(103)
Net book amount
925
1,028
(b) Basis of valuation
At 30 June 2013 the Group undertook a fair value
assessment on an income method approach as
there are no similar market quoted assets. ARTC’s
policy is to revalue on a triennial basis unless in an
intervening year the fair value of the revalued assets
differs materially from its carrying amount. In line with
Property, Plant and Equipment standard reviews are
undertaken annually to ensure significant movements
are identified and accounted for. The net present value
of the cash flows for each CGU is compared with the
current carrying value and any significant variance
is taken to the financial statements. This resulted
in the recognition of a revaluation of $160.8m for
infrastructure assets on the East West Corridor (2012:
decrement $311.9m).
(c) Impairment of plant and
equipment
At June 2013 the fair value calculation resulted in the
recognition of an impairment loss of $482.0m (2012:
$290.2m) for infrastructure assets on the North
South Corridor.
(d) Carrying amounts that would
have been recognised
If plant and equipment and leasehold improvements
were stated on the historical cost basis less
impairment, the amounts would be as follows:
Consolidated
2013
$’000
2012
$’000
Plant & Equipment
Cost
780,561
568,050
Accumulated depreciation
(161,973)
(132,351)
Net book amount
618,588
435,699
Leasehold Improvements
Cost
3,283,020
2,088,862
Accumulated depreciation
(273,670)
(181,385)
Net book amount
3,009,350
1,907,477
80
