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Guidelines on Accounting Policy for Valuation of Assets of Government Trading Enterprises: Using Current Valuation Methods

Performance monitoring report

This report was released in October 1994.

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CONTENTS

Preliminaries
Cover, Copyright, Preface, Contents

Executive Summary
Purpose of the Guidelines
Application of the Guidelines and Accounting Standards and Statements of Accounting Concepts
Asset Recognition and Valuation Guidelines

EXPLANATORY PAPER

Introductory Summary

Purpose of the Explanatory Paper
Structure of the Explanatory Paper
The Valuation Guidelines

Background

Valuation Of Government Trading Enterprise Assets
Objectives of the Task
Scope of Asset Types
Valuation of Current Assets and Non-Physical Assets
Performance Indicators

Compliance with the Guidelines
Guidelines

Objectives of Financial Reporting
Types of Financial Reports
General Purpose Financial Reports
Special Purpose Financial Reports
Financial Reporting for Performance Monitoring
Guideline

Characteristics of Useful Financial Information

Definition and Recognition of Assets
Definition of Assets
Service Potential or Future Economic Benefits
Control by a Particular Entity
Occurrence of Past Transaction or Other Past Event
Other Characteristics of Assets
Recognition of Assets
Probable Service Potential or Future Economic Benefits
Reliable Measurement
Guideline
Disclosure Where the Recognition Criteria are Not Met
Guideline

Asset Valuation Methodology
Criteria for Performance Assessment
Historic Cost Information
Evaluation of Historic Cost Basis
Current Value Information
Unique Public Sector Issues
Pricing Decisions Under Monopoly Conditions
Surplus/Under Utilised Assets
Measuring Performance/Target Setting
Information for Taxation Purposes
Measurement/Comparability with the Private Sector
Adoption of Current Value Information
Guideline

Reliability and Audit
Guideline

Current Government Guidelines/Policy on Asset Valuation
Autonomy of GTEs

Current Practices and Plans of Gtes in Relation to Accounting and Reporting of Assets

Compliance with Statements of Accounting Concepts and Australian Accounting Standards
Guideline

Layers of Reporting
Layers Formed by Different Levels of Aggregation
Consolidated Financial Reporting
Guideline
Segment Reporting
Guideline

Measurement of Asset Values
Valuation of Assets, Not the Business
Going Concern Basis
Economic Value of Assets
Measurement Basis Adopted - Current Value to the Entity
Measurement Methodology
Guidelines
Guidance in Statement of Accounting Practice SAP1
Land
Guidelines
Land Under Infrastructure Assets Held for Continued Use
Guideline
Heritage Assets
Guidelines
General Assets
Specialised General Assets
Non-specialised General Assets
Guidelines
Measurement Methodology Summary
Depreciation
Useful Life
Guidelines
Depreciation Method
Guideline
Revaluation of Assets
Full Revaluations
Interim Revaluations
Guideline
Asset Capitalisation and Revaluation Thresholds
Guidelines
Grouping of Similar Assets
Guideline

Recording and Reporting of Asset Values
Recording of Asset Values
Guideline
The Recoverable Amount Test
Applicability of the Recoverable Amount Test
Guideline
Disclosure of the Initial Application of the Recoverable Amount Test
Guideline
Reporting of Asset Values
Guidelines

Engagement of Valuers
Guideline

Valuation Issues
Identification of Relevant Costs on Acquisition of Assets
Guideline
Contributions by External Parties
Guidelines
Finance Costs
Guideline
Assets Constructed by the GTE for Use in its Operations
Guideline
Restricted Assets
Guideline
Controlled Items
Guideline
Renewals Accounting
Guideline
Capital and Maintenance Expenditure
Capitalisation Criteria
Guideline
Future and Deferred Maintenance
Guideline
Disclosure of Deferred Maintenance
Guideline
Classification of Assets
Guideline
Accounting for Shared Assets
Guideline

Disclosure Requirements
Guideline

Implementation Issues
Guideline

Appendix A   Definitions

Appendix B   Model Letter of Instruction to Valuers Engaged for the Purposes of Valuing the Physical Assets of Government Trading Enterprises

Appendix C   List of Participating Government Trading Enterprises by Jurisdiction

Appendix D   Summary of Use of Performance Indicators and their Relationship with Asset Values

Appendix E   Guidance for the Valuation of Other Assets

Appendix F   Bibliography

Appendix G   Members of the Asset Valuation Sub-committee for the National Performance Monitoring of GTES

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