(i) Leased assets
Plant and equipment includes the following amounts where the Group is a lessee under a finance lease:
NOTE 06
NON-FINANCIAL ASSETS AND LIABILITIES
(CONTINUED)
Consolidated
2015
$’000
2014
$’000
Leasehold equipment
Cost-written down value
363
925
Accumulated depreciation
(297)
(474)
Written down value of assets sold
(66)
(88)
Net book amount
-
363
(ii) Basis of valuation
At 30 June 2015 the Group undertook a fair value assessment using 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. Property, plant
and equipment reviews are undertaken annually to ensure significant movements are identified and
accounted for. The net present value of the cash flows for each business unit is compared with the
current carrying value and any significant variance is taken to the financial statements.
This resulted in a downward revaluation of the Interstate business units assets. As some assets had
previously been revalued, a decrement of $102.4m (2014: $58.5m) was recognised. On previously
impaired or new assets an impairment expense of $25.5m (2014: $2.1m impairment expense
reversed) has been recognised in the income statement.
The Hunter Valley business unit assets were previously revalued. The result of this year’s assessment is
$40.0m (2014: $29.4m) valuation increment. For further details on the calculation refer to note 10(d).
If infrastructure assets were stated on the historical cost basis less impairment, the amounts would
be as follows:
Consolidated
2015
$’000
2014
$’000
Infrastructure assets
Plant & Equipment
Cost
762,715
754,200
Accumulated depreciation
(164,238)
(162,034)
Net book amount
598,477
592,166
Leasehold Improvements
Cost
3,393,958
3,038,642
Accumulated depreciation
(344,750)
(364,994)
Net book amount
3,049,208
2,673,648
(c) Property, plant and equipment (continued)
74
