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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 2010
$m 		30 June 2009
$m

Net Carrying Value

 

By class of asset

 
17,348 16,434 Land (valuation) 16,688 16,289
23,179 24,832 Buildings (valuation) 24,019 23,719
2,572 2,288 Electricity distribution network (cost) 2,251 2,046
12,221 11,953 Electricity generation assets (valuation) 13,642 11,664
2,344 2,173 Aircraft (excluding military) (valuation) 1,731 1,952
22,628 24,925 State highways (valuation) 24,838 24,067
12,720 12,776 Rail network (valuation) 12,437 12,506
3,464 3,841 Specialist military equipment (valuation) 3,413 3,927
7,990 8,624 Specified cultural and heritage assets (valuation) 8,505 8,582
5,785 5,788 Other plant and equipment (cost) 5,806 5,383
110,251 113,634 Total property, plant and equipment 113,330 110,135

By source

 
29,740 31,206 Core Crown 29,986 30,487
45,757 48,085 Crown entities 48,109 46,553
34,754 34,343 State-owned enterprises 35,235 33,095
-  -  Inter-segment eliminations -  - 
110,251 113,634 Total property, plant and equipment 113,330 110,135

By holding

 
1,000 1,382 Leasehold 1,166 1,304
109,251 112,252 Freehold 112,164 108,831
110,251 113,634 Total property, plant and equipment 113,330 110,135
Property, plant and equipment pledged to secure borrowing 1,156 1,564

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 judgements 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 2010
$m 		30 June 2009
$m

Total Property, Plant and Equipment

 

Cost or Valuation

 
Opening balance 119,547 112,428
Additions 6,274 6,504
Acquisitions through business combinations 281 754
Disposals (977) (1,468)
Net revaluations (1,143) 1,704
Net foreign currency exchange differences (19) 7
Other (22) (382)
Total cost or valuation 123,941 119,547

Accumulated Depreciation and Impairment

 
Opening balance 9,412 9,099
Eliminated on disposal (587) (676)
Eliminated on revaluation (1,349) (2,333)
Impairment losses charged to operating balance 4 93
Reversals of impairment losses charged to operating balance (465) (51)
Depreciation expense 3,582 3,440
Net foreign currency exchange differences (12) (39)
Other 26 (121)
Total accumulated depreciation and impairment 10,611 9,412
Total property, plant and equipment 113,330 110,135
Note 20: Property, Plant and Equipment (continued)

Actual
30 June 2010
$m 		30 June 2009
$m

Land (valuation)

 
Opening balance 16,289 17,609
Additions 224 188
Acquisitions through business combinations 4 1
Disposals (135) (424)
Net revaluations 302 (972)
Net foreign currency exchange differences -  11
Other 4 (124)
Carrying value of land 16,688 16,289

By holding

 
Leasehold -  - 
Freehold 16,688 16,289
Carrying value of land 16,688 16,289

The value of the land underneath state highways and the rail network, as well as land set aside for cultural and heritage purposes (ie, 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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