Property, plant and equipment - revaluation principles

Asset revaluation process

Revaluation means the act of recognising a reassessment of the carrying amount of a non-current asset to its fair value as at a particular date, but excludes recoverable amount write-downs and impairment losses. (AASB116).

ANU revalues the following categories of non-current assets:

  • Land
  • Buildings/dwellings
  • Infrastructure
  • Artworks
  • Rare Library Items

Revaluation of non-current assets occurs in accordance with the Australian Accounting Standard AASB 116 - Property, Plant and Equipment.

Note: Plant, Equipment and Motor Vehicles were also subject to the revaluation process prior to 1 January 2005. With the introduction of International Financial Reporting Standards, and the Australian equivalent AASB116, the University elected to cease revaluation of Plant, Equipment and Motor Vehicles. Accordingly, as at 1/1/2005, the Net Book Value of previously revalued Plant, Equipment and Motor Vehicle items became their DEEMED COST.

Current revaluation status

Land except for holdings in Fiji, has been brought to account. Substantially all of the land in the Australian Capital Territory and the Northern Territory was revalued in 2004. The valuation was completed by independent qualified valuers, AON International Valuation Consultants. The valuation was on the basis of market value for existing use which is consistent with the establishment of the concept of Deprival Value for financial reporting purposes. These sites are provided free of charge by lease in perpetuity and the resultant valuation increment has been credited directly to the asset revaluation reserve. Land acquired subsequent to the valuation is disclosed at cost.

Substantially all of the campus buildings and dwellings were revalued on 1 January 2004. The valuation was completed by independent qualified valuers, AON International Valuation Consultants. The Depreciated Replacement Cost approach was used to establish the Market Value for the Existing Use of the properties. The net revaluation decrement was debited directly to the asset revaluation reserve.  Campus buildings completed subsequent to the valuation are disclosed at cost. These assets are revalued every three years.

Rare library materials were revalued in 2004. The valuation was completed by independent qualified valuers, The Antique Bookshop and Curios.

Works of art were revalued in 2005. The valuation was completed by independent qualified valuers, AON International Valuation Consultants. Works of art purchased subsequent to the valuation are disclosed at cost.

Revaluation of non-current assets is managed by Finance & Business Services. Where necessary F&BS will request information from budget units in respect of the various classes of non-current assets.