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Note 20:  Property, Plant and Equipment

Note 20:  Property, Plant and Equipment
Forecast Actual
Original
Budget
$m 		Estimated
Actuals
$m 		30 June 2009
$m 		30 June 2008
$m

By class of asset

 

Net Carrying Value

 
16,918 17,394 Land (valuation) 16,289 17,609
21,715 22,246 Buildings (valuation) 23,719 22,128
2,343 2,255 Electricity distribution network (cost) 2,046 1,887
11,882 11,800 Electricity generation assets (valuation) 11,664 11,202
1,756 2,133 Aircraft (excluding military) (valuation) 1,952 2,071
20,937 21,787 State highways (valuation) 24,067 20,947
10,977 12,176 Rail network (valuation) 12,506 11,750
3,160 3,340 Specialist military equipment (valuation) 3,927 3,345
7,075 7,970 Specified cultural and heritage assets (valuation) 8,582 7,978
4,513 5,397 Other plant and equipment (cost) 5,383 4,412
101,276 106,498 Total property, plant and equipment 110,135 103,329

By source

 
26,827 29,094 Core Crown 30,487 28,637
43,868 44,157 Crown entities 46,553 43,659
30,580 33,246 State-owned enterprises 33,095 31,033
1 1 Inter-segment eliminations -  - 
101,276 106,498 Total property, plant and equipment 110,135 103,329

By holding

 
1,222 1,271 Leasehold 1,304 1,235
100,054 105,227 Freehold 108,831 102,094
101,276 106,498 Total property, plant and equipment 110,135 103,329
Property, plant and equipment pledged to secure borrowing 1,564 1,593

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 2009
$m 		30 June 2008
$m

Total Property, Plant and Equipment

 

Cost or Valuation

 
Opening balance 112,428 103,787
Additions 6,504 5,231
Disposals (1,468) (682)
Acquisitions through business combinations 754 58
Net revaluations 1,704 4,120
Net foreign currency exchange differences 7 7
Other (382) (93)
Total cost or valuation 119,547 112,428

Accumulated Depreciation and Impairment

 
Opening balance 9,099 8,189
Eliminated on disposal (676) (373)
Eliminated on revaluation (2,333) (1,695)
Impairment losses charged to operating balance 93 5
Reversals of impairment losses charged to operating balance (51) (13)
Depreciation expense 3,440 3,074
Net foreign currency exchange differences (39) 27
Other (121) (115)
Total accumulated depreciation and impairment 9,412 9,099
Total property, plant and equipment 110,135 103,329
Note 20:  Property, Plant and Equipment (continued)
Actual
30 June 2009
$m 		30 June 2008
$m

Land (valuation)

 
Opening balance 17,609 16,473
Additions 188 250
Disposals (424) (66)
Acquisitions through business combinations 1 - 
Net revaluations (972) 1,036
Net foreign currency exchange differences 11 1
Other (124) (85)
Carrying value of land 16,289 17,609

By holding

 
Leasehold -  - 
Freehold 16,289 17,609
Carrying value of land 16,289 17,609

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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