(1) The purpose of this Rule is to provide a framework for identifying, valuing, recording, disposing and writing-off non-current physical and intangible (2) This Rule outlines UNE's approach to the financial recognition, measurement and management of: (3) This Rule applies to all (4) All (5) All (6) A business plan, including full costings, is to be prepared and approved prior to the acquisition of (7) Equipment purchases above the recognition threshold and up to $50,000 do not require a business case. However, the purchase must be approved as part of the annual capital budget approved by Council or by the Vice-Chancellor and Chief Executive Officer or the Finance and Infrastructure Committee if outside the budget cycle in accordance with the Schedule of Financial Delegations Rule. (8) All (9) The University will recognise an (10) (11) Any (12) Asset acquisitions below the recognition thresholds are to be expensed through the Statement of Comprehensive Income. (13) Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item and has a materially different useful life will be recognised separately. (14) Like or similar (15) Regular revaluations will be performed for the following (16) The following table details the recognition threshold and measurement method for each class of non-current asset (amounts are GST exclusive): (17) The following asset classes are not recognised due to the inability to measure the value of such assets reliably: (18) A custodian will be assigned to each (19) The existence of all physical assets on the asset register are to be verified by way of physical inspection (stocktake) at least annually and the results of this verification approved by the appropriate Director/Head of School of the custodian department. (20) All (21) An annual review of remaining useful lives is to be undertaken on an annual basis for all (22) Asset classes subject to an independent valuation will be deemed to have been verified, reviewed for impairment and an assessment of useful lives undertaken at the time of the valuation. (23) All (24) The amount to be depreciated or amortised is determined taking into account the cost or revalued amount of the (25) The depreciation and amortisation rates of each class of asset are to be reviewed each year and adjusted if required. (26) (27) All (28) The Vice-Chancellor and Chief Executive Officer, pursuant to Section 29 of the University of New England Act, makes this University Rule. (29) (30) The Deputy Chief Financial Officer is the Rule Administrator and is authorised to make procedures and guidelines for the operation of this University Rule. The procedures and guidelines must be compatible with the provisions of this Rule. (31) This Rule operates as and from the (32) Notwithstanding the other provisions of this University Rule, the Vice-Chancellor and Chief Executive Officer may approve an exception to this Rule where the Vice-Chancellor and Chief Executive Officer determines the application of the Rule would otherwise lead to an unfair, unreasonable or absurd outcome. Approvals by the Vice-Chancellor and Chief Executive Officer under this clause must be documented in writing and must state the reason for the exception. (33) Amortisation — the systematic allocation of the depreciable amount of an intangible asset over its useful life. (34) Asset - a resource controlled by the University as a result of past events and from which future economic benefits are expected to flow to the University. (35) Depreciation — the systematic allocation of the depreciable amount of a tangible asset over its useful life. (36) Fair value — the price that would be received to sell an asset in an orderly transaction between market participants at measurement date. (37) Impairment loss — the amount by which the carrying amount of an asset exceeds its recoverable amount. (38) Non-current asset — an asset with a life of one year or greater. (39) Portable and attractive — non-consumable items which are susceptible to loss or theft due to their nature and attractiveness for personal use or resale. (40) Recoverable amount — the higher of an asset's fair value less costs to sell, and its value in use. (41) Residual value — the estimated amount that would be obtained from the disposal of the asset after deducting any estimated costs of disposal. (42) Useful life — the period over which the asset is expected to be available for use.Asset Management Financial Rule
Section 1 - Overview
Top of PageSection 2 - Scope
Section 3 - Rule
Asset Category
Asset Class
Recognition threshold
Measurement method
Property, Plant and equipment
Land
All
Revaluation
Buildings
$5,000
Revaluation
Infrastructure
$5,000
Revaluation
Plant and equipment
$5,000
Cost
Computer Equipment
$5,000
Cost
Motor Vehicles
$5,000
Cost
Furniture and Fittings
$5,000
Cost
Heritage and cultural assets
$5,000
Cost
Work in progress
All
Cost
Intangibles
Software purchased
$20,000
No Active market - costs Active Market - revaluation
Internally developed software
$20,000
No Active market - costs Active Market - revaluation
Work in progress
All
Cost
Other intangibles
$5,000
No active market - cost Active market - revaluation
Authority and Compliance
Section 4 - Definitions
View Current
This is not a current document. To view the current version, click the link in the document's navigation bar.
For the purposes of this Rule the following definitions apply.