NOTE 08
NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)
(i)
Leased assets
Plant and equipment includes the following amounts where the Group is a lessee under a finance lease:
Consolidated
2014
$’000
2013
$’000
Leasehold equipment
Cost-written down value
925
1,028
Accumulated depreciation
(474)
(103)
Written down value of assets sold
(88)
-
Net book amount
363
925
(ii) Basis of valuation
At 30 June 2014 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 or if in an intervening year the fair value of the
revalued asset class 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 rail corridor 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 decrement of $58.5m for
infrastructure assets on the East West rail corridor and $29.4m valuation increment on the Hunter Valley rail corridor
(2013: East West rail corridor revaluation increment $160.8m).
At June 2014 the fair value calculation resulted in the recognition of reversal of a impairment of $2.1m (2013: impairment
loss $482.0m) for infrastructure assets on the North South rail corridor (refer to note 12 (d) for key assumptions).
If plant and equipment and leasehold improvements were stated on the historical cost basis less impairment, the
amounts would be as follows:
Consolidated
2014
$’000
Restated
2013
$’000
Plant & Equipment
Cost
833,988
780,561
Accumulated depreciation
(191,787)
(161,973)
Net book amount
642,201
618,588
Leasehold Improvements
Cost
3,038,642
2,816,421
Accumulated depreciation
(364,994)
(273,670)
Net book amount
2,673,648
2,542,751
The 2013 net book amount, above, has been restated from $3.0m to $2.5m to include the impact of the impairment
loss which had previously been omitted.
This is a disclosure change only and there is no impact to the actual carrying value as reported on the balance sheet.
(c) Property, plant and equipment (continued)
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