Online version of the 2013-14 Department of Health Annual Report

Note 8: Non-Financial Assets

Notes to and Forming Part of the Financial Statements

Page last updated: 17 July 2019

 
2014
$'000
2013
$'000
Note 8A: Land and buildings
Leasehold improvements
Work in progress
687
599
Fair value
67,085
80,760
Accumulated depreciation
(21,347)
(12,765)
Total leasehold improvements
46,425
68,594
Total land and buildings
46,425
68,594
 
Note 8B: Property, plant and equipment
Other property, plant and equipment
Fair value
27,424
23,685
Accumulated depreciation
(12,622)
(6,534)
Total other property, plant and equipment
14,802
17,151
Total property, plant and equipment
14,802
17,151
Revaluations of non-financial assets

In 2011-12, the Department conducted a revaluation of assets in accordance with the Australian Accounting Standard (AASB 116 Property, Plant and Equipment).

In 2013-14, the Department conducted an independent review of Property, plant and equipment in accordance with the Australian Accounting Standard (AASB 13 Fair Value Measurement, AASB 116 Property, Plant and Equipment and AASB 1031 Materiality), to ensure assets are carried at their fair value.

No land and buildings or property, plant and equipment were expected to be sold or disposed of within the next 12 months.

Impairment of Leasehold Improvement

In 2013-14 leasehold fitout was impaired to the value of $2,179,000 as a result of identified surplus leased space and closures in regional offices. Property, plant and equipment of $25,000 is made up of $12,000 which relates to the core Department which is the result of assets impaired through the physical stocktake and $13,000 for the TGA.

No indicators of impairment were found for property, plant and equipment.

Note 8C: Reconciliation of the opening and closing balances of land and buildings and property, plant and equipment
Reconciliation of the opening and closing balances of land and buildings and property, plant and equipment for 2014
 
Land and buildings
$'000
Other property, plant and equipment
$'000
Total
$'000
As at 1 July 2013
Gross book value
81,359
23,685
105,044
Accumulated depreciation/amortisation and impairment
(12,765)
(6,534)
(19,299)
Totals as at 1 July 2013
68,594
17,151
85,745
Additions
Purchase or internally developed
1,231
1,472
2,703
Acquisitions of entities or operations (including restructuring)
1,595
155
1,750
Impairments recognised in net cost of services
(2,179)
(25)
(2,204)
Depreciation
(11,610)
(6,356)
(17,966)
Other Movements
(277)
3,107
2,830
Disposals
From disposal of entities or other operations (including restructuring)
(10,929)
(700)
(11,629)
Other
(2)
(2)
Totals as at 30 June 2014
46,425
14,802
61,227
 
Total as at 30 June 2014 represented by
Gross book value
67,772
27,424
95,196
Accumulated depreciation/amortisation and impairment
(21,347)
(12,622)
(33,969)
Total as at 30 June 2014
46,425
14,802
61,227
Reconciliation of the opening and closing balances of land and buildings and property, plant and equipment for 2013
 
Land and buildings
$'000
Other property, plant and equipment
$'000
Total
$'000
As at 1 July 2012
Gross book value
80,837
21,030
101,867
Accumulated depreciation/amortisation and impairment
(429)
(43)
(472)
Total as at 1 July 2012
80,408
20,987
101,395
Additions
Purchase or internally developed
982
1,133
2,115
Impairments recognised in net cost of services
(292)
(92)
(384)
Depreciation
(12,489)
(6,543)
(19,032)
Reclassification
9
1,666
1,675
Other
(24)
-
(24)
Total as at 30 June 2013
68,594
17,151
85,745
 
Total at 30 June 2013 represented by
Gross book value
81,359
23,685
105,044
Accumulated depreciation/amortisation and impairment
(12,765)
(6,534)
(19,299)
Total as at 30 June 2013
68,594
17,151
85,745
Note 8D: Intangibles
 
2014
$'000
2013
$'000
Computer software
Internally developed - in progress
36,335
48,858
Internally developed - in use
143,737
178,527
Purchased
6,145
5,936
Accumulated amortisation
(87,716)
(96,398)
Total computer software
98,501
136,923
Total intangibles
98,501
136,923

During 2014, $2,116,000 of impairment was identified for intangible assets (2013: $391,000).

No intangibles are expected to be sold or disposed of within the next 12 months.

Note 8E: Reconciliation of the opening and closing balances of intangibles
Reconciliation of the opening and closing balances of intangibles for 2014
 
Computer Software - Internally Developed
$'000
Computer Software - Purchased
$'000
Total
$'000
As at 1 July 2013
Gross book value
227,385
5,936
233,321
Accumulated amortisation and impairment
(91,910)
(4,488)
(96,398)
Total as at 1 July 2013
135,475
1,448
136,923
Additions
Purchase or internally developed
27,765
260
28,025
Impairments recognised in net cost of services
(2,116)
-
(2,116)
Amortisation
(24,558)
(569)
(25,127)
Other movements
(2,832)
-
(2,832)
Disposals
From disposal of entities or operations (including restructuring)
(36,368)
(3)
(36,371)
Other
(1)
-
(1)
Net book value 30 June 2014
97,365
1,136
98,501
 
Total as at 30 June 2014 represented by
Gross book value
180,072
6,145
186,217
Accumulated amortisation and impairment
(82,707)
(5,009)
(87,716)
Total as at 30 June 2014
97,365
1,136
98,501
Reconciliation of the opening and closing balances of intangibles for 2013
 
Computer Software - Internally Developed
$'000
Computer Software - Purchased
$'000
Total
$'000
As at 1 July 2012
Gross book value
184,031
5,078
189,109
Accumulated amortisation and impairment
(63,953)
(3,995)
(67,948)
Total as at 1 July 2012
120,078
1,083
121,161
Additions
Purchase or internally developed
45,550
864
46,414
Impairments recognised in net cost of services
(391)
-
(391)
Reclassifications
(1,675)
-
(1,675)
Amortisation
(28,088)
(500)
(28,588)
Other movements
1
1
2
Total as at 30 June 2013
135,475
1,448
136,923
 
Total as at of 30 June 2013 represented by
Gross book value
227,385
5,936
233,321
Accumulated amortisation and impairment
(91,910)
(4,488)
(96,398)
Total as at 30 June 2013
135,475
1,448
136,923
Note 8F: Inventories Inventories held for sale
 
2014
$'000
2013
$'000
Inventories held for sale
   
Finished goods
-
12
Total inventories held for sale
-
12
Inventories held for distribution
-
174
Total inventories
-
186

During 2014, $12,000 of inventory held for sale was recognised as an expense (2013: $21,789).

During 2014, $174,000 of inventory held for distribution was recognised as an expense (2013: $3,497).

Inventory held for sale is recognised at fair value less cost to sell (2013: $12,200).

All inventories held for sale are expected to be sold or distributed in the next 12 months.

Note 8G: Other non-financial assets
 
2014
$'000
2013
$'000
Prepayments
7,796
6,877
Total other non-financial assets
7,796
6,877
 
Other non-financial assets are expected to be recovered
No more than 12 months
5,089
5,361
More than 12 months
2,707
1,516
Total other non-financial assets
7,796
6,877

No indicators of impairment were found for other non-financial assets.

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