BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014
NOTE 8 : PROPERTY , PLANT AND EQUIPMENT ( Continued )
Independent valuations of all properties ( except for the property that was donated to the Association in June 2011 ) were performed by the following valuers , Goulburn Valley Property Services , Burnham Corporation and CJA Lee & Associates during the months of November 2011 – June 2012 with the total valuation increment being $ 197,012 . The total value of land and buildings as at 30 June 2012 was $ 8,691,095 . The effect of the valuations were to restate the value of land and buildings from which the association has a right to the economic benefit from the asset , to fair value as at 30 June 2012 .
It is the policy of the Association to revalue land and buildings every three years and this will next occur during the 2014-2015 financial year . Valuers were instructed to determine fair market values for the properties and these were based on the direct comparison approach , using recent sales of properties in the neighbourhood , making adjustments for quality and condition of improvements , aspects of the land as well as redevelopment potential .
2014 |
2013 |
$ |
$ |
NOTE 9 : INTANGIBLE ASSETS Right to use property Cost |
2,176,235 |
2,176,235 |
Accumulated amortisation |
( 988,782 ) |
( 786,468 ) |
Net carrying value 1,187,453 1,389,767
Intranet software was purchased in 2012 and is a finite life intangible asset carried at cost less any accumulated amortisation . It has an estimated useful life of three years . It will be assessed annually for impairment .
Balance at the beginning of the year |
71,425 |
108,664 |
Additions |
- |
238,645 |
Amortisation charge |
( 37,238 ) |
( 275,884 ) |
34,187 71,425
A property was donated to the Association in June 2011 . The property was donated subject to various conditions of use in relation to the running of a specific project , including restrictions on the period of use . Accordingly , the property was classified as an intangible asset (‘ right-to-use ’) rather than a tangible asset with a finite life in accordance with AASB138 Intangible Assets . The right to use the property was recognised at cost , which is deemed to be the fair value of the property at the time it was donated , and is amortised over the period of the specific project deemed to be ten years .
Balance at the beginning of the year |
1,318,342 |
1,483,418 |
Amortisation Charge |
( 165,076 ) |
( 165,076 ) |
1,153,266 1,318,342
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