Berry Street Web Docs Financial Report 2016 | Page 21

BERRY STREET VICTORIA INC.
ABN 24 719 196 762

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
NOTE 10: 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,
Leader Property Practice and CJA Lee & Associates during the months of September 2014 – December 2014
with the total valuation increment being $325,731. The total value of land and buildings as at 30 June 2016
was $8,022,445. 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 in the month of the valuation report.
It is the policy of the Association to revalue land and buildings every three years and this will next occur during
the 2017-2018 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.
2016
$

2015
$

NOTE 11: INTANGIBLE ASSETS
2,160,827
(1,338,163)
822,664

Cost
Accumulated amortisation
Net carrying value

2,160,827
(1,172,636)
988,191

Intangible assets comprise:
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
Amortisation charge

-

34,187
(34,187)
-

Right to use property
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
Amortisation Charge

988,191
(165,527)
822,664

21

1,153,266
(165,075)
988,191