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Notes to the Financial Statements (continued)

Note 20: Property, Plant and Equipment
Forecast   Actual
Original
Budget
$m 		Estimated
Actuals
$m 		  30 June
2008
$m		 30 June
2007
$m
By Class of asset  
Net Carrying Value  
15,004 16,750 Land (valuation) 17,609 16,473
21,349 21,368 Buildings (valuation) 22,257 20,777
2,219 2,060 Electricity distribution network (cost) 1,887 1,972
10,057 11,059 Electricity generation assets (valuation) 11,202 10,402
2,064 1,955 Aircraft (excluding military) (valuation) 2,071 2,104
19,415 20,220 State highways (valuation) 20,947 19,400
10,804 10,581 Rail network (valuation) 11,621 10,568
3,628 3,157 Specialist military equipment (valuation) 3,345 3,079
5,882 4,146 Other plant and equipment (cost) 4,412 3,805
5,528 7,059 Specified cultural and heritage assets (valuation) 7,978 7,018
95,950 98,355 Total property, plant and equipment 103,329 95,598
By source  
26,492 26,458 Core Crown 28,637 26,215
40,327 42,683 Crown entities 43,659 41,296
29,131 29,214 State-owned Enterprises 31,033 28,087
-  -  Inter-segment eliminations -  - 
95,950 98,355 Total property, plant and equipment 103,329 95,598
By holding  
1,141 1,019 Leasehold 1,235 1,146
94,809 97,336 Freehold 102,094 94,452
95,950 98,355 Total property, plant and equipment 103,329 95,598
Property, plant and equipment pledged to secure borrowing 1,593 1,384

Borrowing by the Crown is, under Section 55 of the Public Finance Act 1989, a charge on the revenue of the Crown equally and rateably. Therefore no property, plant and equipment owned by the Core Crown has been pledged as security for liabilities. Government-owned property plant and equipment is however subject to a significant number of legislative and policy restrictions with respect to its use and disposal.

These carrying values critically depend on judgments of useful lives to determine depreciation and the assumptions used in revaluations. Depreciation rates are affirmed to be appropriate each year by those responsible for managing the assets, whereas assurance on the assumptions used in valuations is provided by the use of independent valuers as noted below.

Note 20: Property, Plant and Equipment (continued)
Actual
30 June 2008
$m 		30 June 2007
$m
Cost or Valuation  
Opening balance 103,787 96,122
Additions 5,226 5,215
Disposals (677) (721)
Acquisitions through business combinations 58 51
Net revaluations 4,120 3,323
Net foreign currency exchange differences 7 (20)
Other (93) (183)
Total cost or valuation 112,428 103,787
Accumulated Depreciation  
Opening balance 8,189 6,999
Eliminated on disposal (373) (387)
Eliminated on revaluation (1,680) (1,041)
Impairment losses charged to operating balance 5    - 
Reversals of impairment losses charged to operating balance (13) (5)
Depreciation expense 3,074 2,911
Net foreign currency exchange differences 13 (213)
Other (116) (75)
Total accumulated depreciation 9,099 8,189
Total property, plant and equipment 103,329 95,598
Land (valuation)  
Opening balance 16,473 14,579
Additions 250 309
Disposals (66) (69)
Net revaluations 1,036 1,635
Net foreign currency exchange differences 1 - 
Other (85) 19
Carrying value of land 17,609 16,473
By holding  
Leasehold -  2
Freehold 17,609 16,471
Carrying value of land 17,609 16,473

The value of the land underneath state highways and the rail network, as well as land set aside for cultural and heritage purposes (i.e. national parks, forest parks, conservation areas and recreational facilities) is included as a component of the value of those separate classes of assets.

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