Plant, equipment and motor vehicles (PEMV) comprise the following categories:
- Office Equipment – Account 3102
- Research Equipment – Account 3105
- Teaching Equipment – Account 3109
- Computer Equipment – Account 3111
- Motor Vehicles – Account 3131
- Other Equipment – Account 3145
- Musical Instruments – Account 3146
Plant, equipment and motor vehicles prior to 1 January 2005, were revalued every three years. This is no longer the case, however, all items that had been revalued prior to 1/1/05, have been restated at their Deemed Cost. PEMV items in these categories comprise:
- Office Equip at Deemed Cost – Account 3150
- Research Equip at Deemed Cost – Account 3151
- Teaching Equip at Deemed Cost – Account 3152
- Computer Equip at Deemed Cost – Account 3153
- Motor Vehicles at Deemed Cost– Account 3156
- Other Equip at Deemed Cost – Account 3157
- Musical Instruments at Deemed Cost– Account 3158
- Holdings of plant, equipment and motor vehicles are maintained within subsidiary ledger – ESP Asset Management System (ESP).
- Plant, equipment and motor vehicles are subject to Depreciation in accordance with AASB 116.
- There is a capitalisation threshold >=$10,000. That is, any stand alone item, with a cost >= $10,000 must be capitalised.
- Plant, equipment and motor vehicles are not subject to revaluation.
Assets are held in R & T ledgers. NOT held in S, Q or E funds. Asset purchases are funded through S/Q using the 72xx Transfer (equipment) accounts.
For example: An S Fund project is purchasing an asset, being research equipment, costing $10,000. The AP Voucher funding the purchase of the asset out of the S Fund project, would be coded as follows:
Code Record S2451001 7205 $10,000 Debit R24510 7205 ($10,000) Credit R24510 3105 $10,000 Debit
The fund/department coding for lines b. and c. are determined by the funding source code. The fund will be R or T (normally R) and the department code holding the asset will be the same as the department for the funding source, or the main funding source, where an asset is funded from more than one funding source.
Prior to a change during 2007, S/Q funded assets were held in Department xx991 in most budget units, however it was considered that the new approach allowed for the asset to more easily be identified and tied to the department using the asset. It is important that assets of this nature identify the funding source.
- The asset in then added in ESP - within R24510 - RSRCH. It is recommended that when adding these assets in ESP, the comment panel is completed recording the detail of the asset, beginning with "Funding provided by ___________", so that the asset can be identified as one that is funded through grant or other funds.
What constitutes the COST of an Asset? Per AASB 116, the cost of an item of property, plant and equipment comprises:
- its purchase price, including import duties and non-refundable purchase taxes, after deducting trade discounts and rebates;
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management; and
- the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located, the obligation for which an entity incurs either when the item is acquired or as a consequence of having used the item during a particular period for purposes other than to produce inventories during that period.
When recording assets you should at minimum have:
- Cost (not required for non-capital items)
- Ledger location - (make sure it matches where the payment is!)
- Barcode number (if in use)
- Serial numbers etc
- Links to AP vouchers
- Show fund source if funded through S/Q/E - in comments field
- Physical location - location code PBBB.F.RRR (important for insurance)
- Use comments field to record other significant information off payment documentation.
- Stocktake policy states stocktaking should be carried out every second year. Annual stocktake is recommended as a best practice.
- Asset managers should review accounts 3102 - 3170 before end of each period and ensure any new assets have been added or any miscoded payments are journalized.
- MV registration costs incurred as part of the purchase of a new motor vehicle, must be EXPENSED - Account 5328.
- Repairs & maintenance, replacement parts - even over $10,000 - should be EXPENSED.
Expenditure in improvements of existing assets, regardless of amount, should be recognised as an increase in the value of assets where:
- The expenditure results in an increase in the service capacity or quality of the service provided by the asset; or
- There has been an extension to the asset's useful life as a result of the expenditure.
You should advise F&BS of any donated assets so that they can be brought to book, insured and properly accounted for. Complete the Asset Donation form and return the completed form and supporting documentation to F&BS as instructed on the form.