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  1. About the report
  2. About AMSA
  3. Plan on a Page
  4. Transmittal letter
  5. Reporting requirements and responsible minister
  6. Annual performance statements
  7. Chairman's review
  8. Organisational profile
  9. Financial summary
  10. Our governance
    1. Planning
    2. Risk management
    3. Performance reporting
    4. Related entity transactions
    5. Public interest disclosure
    6. Disability report
    7. Statement of significant non-compliance issues
    8. Advertising and market research
    9. Judicial decisions and reviews by outside bodies
    10. Workers' compensation premium
  11. Vessel and seafarer safety
    1. Seafarer certification
    2. Compliance and enforcement
    3. International shipping
    4. Domestic commercial vessels
  12. Search and rescue
    1. Search and rescue aircraft replacement
    2. National Search and Rescue Council
    3. Medium-altitude Earth Orbit Search and Rescue system
    4. Beacon registration system upgrade
    5. Torres Strait Marine Safety Program
  13. Marine environment
    1. The National Plan for Maritime Environmental Emergencies
    2. Cape Upstart marine pollution incident
    3. Working with other regulators
  14. Navigation safety
    1. Shipping management
    2. Aids to navigation management
  15. Working with our community
    1. Domestic engagement
    2. International engagement
    3. Regional engagement
  16. Appendix 1: Financial statements
    1. Statement of comprehensive income
    2. Statement of financial position
    3. Statement of changes in equity
    4. Cash flow statement
    5. Overview
    6. Note 1: Expenses
    7. Note 2: Own-source income
    8. Note 3: Fair value measurement
    9. Note 4: Financial assets
    10. Note 5: Non-financial assets
    11. Note 6: Payables
    12. Note 7: Interest bearing liabilities
    13. Note 8: Provisions
    14. Note 9: Cash flow reconciliation
    15. Note 10: Contingent liabilities and assets
    16. Note 11: Senior management personnel remuneration
    17. Note 12: Related party disclosures
    18. Note 13: Remuneration of auditors
    19. Note 14: Financial instruments
    20. Note 15: Financial assets reconciliation
    21. Note 16: Reporting of outcomes
    22. Note 17: Regulatory charging summary
    23. Note 18: Budgetary reports and explanations of major variances
  17. Appendix 2: Non-financial performance
    1. SC1: Ship and vessel safety
    2. SC1: Environment protection
    3. SC1: Regulatory
    4. SC1: Search and rescue
    5. SC1: Projects
    6. SC2: Preparing for the future
    7. SC3: Ensuring a competent and fairly treated maritime workforce
    8. SC4: Influencing international arrangements
    9. SC5: Engaging with the community
    10. SC6: Ensuring a progressive and vibrant organisation
  18. Appendix 3: AMSA Board members
  19. References
  20. Compliance Index
  1. About the report
  2. About AMSA
  3. Plan on a Page
  4. Transmittal letter
  5. Reporting requirements and responsible minister
  6. Annual performance statements
  7. Chairman's review
  8. Organisational profile
  9. Financial summary
  10. Our governance
    1. Planning
    2. Risk management
    3. Performance reporting
    4. Related entity transactions
    5. Public interest disclosure
    6. Disability report
    7. Statement of significant non-compliance issues
    8. Advertising and market research
    9. Judicial decisions and reviews by outside bodies
    10. Workers' compensation premium
  11. Vessel and seafarer safety
    1. Seafarer certification
    2. Compliance and enforcement
    3. International shipping
    4. Domestic commercial vessels
  12. Search and rescue
    1. Search and rescue aircraft replacement
    2. National Search and Rescue Council
    3. Medium-altitude Earth Orbit Search and Rescue system
    4. Beacon registration system upgrade
    5. Torres Strait Marine Safety Program
  13. Marine environment
    1. The National Plan for Maritime Environmental Emergencies
    2. Cape Upstart marine pollution incident
    3. Working with other regulators
  14. Navigation safety
    1. Shipping management
    2. Aids to navigation management
  15. Working with our community
    1. Domestic engagement
    2. International engagement
    3. Regional engagement
  16. Appendix 1: Financial statements
    1. Statement of comprehensive income
    2. Statement of financial position
    3. Statement of changes in equity
    4. Cash flow statement
    5. Overview
    6. Note 1: Expenses
    7. Note 2: Own-source income
    8. Note 3: Fair value measurement
    9. Note 4: Financial assets
    10. Note 5: Non-financial assets
    11. Note 6: Payables
    12. Note 7: Interest bearing liabilities
    13. Note 8: Provisions
    14. Note 9: Cash flow reconciliation
    15. Note 10: Contingent liabilities and assets
    16. Note 11: Senior management personnel remuneration
    17. Note 12: Related party disclosures
    18. Note 13: Remuneration of auditors
    19. Note 14: Financial instruments
    20. Note 15: Financial assets reconciliation
    21. Note 16: Reporting of outcomes
    22. Note 17: Regulatory charging summary
    23. Note 18: Budgetary reports and explanations of major variances
  17. Appendix 2: Non-financial performance
    1. SC1: Ship and vessel safety
    2. SC1: Environment protection
    3. SC1: Regulatory
    4. SC1: Search and rescue
    5. SC1: Projects
    6. SC2: Preparing for the future
    7. SC3: Ensuring a competent and fairly treated maritime workforce
    8. SC4: Influencing international arrangements
    9. SC5: Engaging with the community
    10. SC6: Ensuring a progressive and vibrant organisation
  18. Appendix 3: AMSA Board members
  19. References
  20. Compliance Index

Note 5: Non-financial assets

 

2016

2015

 

$’000

$’000

Note 5A: Land and Buildings

Land

Fair value

3,350

3,770

Total land

3,350

3,770

Buildings on freehold land

Work in progress

-

4,147

Valuation

13,485

14,023

Total buildings on freehold land

13,485

18,170

Total land and buildings

16,835

21,940

No indicators of impairment were found for land and buildings.
No land or buildings are expected to be sold or disposed of within the next 12 months.

 

 

2016

2015

 

$’000

$’000

Note 5B: Property, Plant and Equipment

Leasehold improvements

Work in progress

276

-

Valuation

             6,862

8,226

Total leasehold improvements

7,138

8,226

Other property, plant and equipment

Work in progress

4,980

7,066

Valuation

112,554

111,065

Total other property, plant and equipment

117,534

118,131

Total property, plant and equipment

124,672

126,357

There was nil reversal of impairment losses to property, plant and equipment this year (2015: $0).
No property, plant and equipment are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets
An independent valuer (Australian Valuation Solutions) has revalued the net book values of the asset classes owned by AMSA as at 30 June 2016 for financial reporting purposes.

Revaluation decrement of $420,001 for land (2015: decrement of $395,522), decrement of $998,693 for buildings on freehold land (2015: increment of $2,435,545) and an increment of $245,766 for property, plant and equipment (2015: increment of $9,330,890) were booked to the asset revaluation reserve by asset class and included in the equity section of the Statement of Financial Position.

Contractual commitments for the acquisition of property, plant and equipment
AMSA's capital commitments for land and buildings, property, plant and equipment are predominantly for the purchase of aids to navigation and infrastructure needs.

 

2016

2015

 

$’000

$’000

Land and buildings

1,619

592

Property, plant and equipments

1,664

2,085

Total contractural commitments for the acquisition of property, plant and equipment

3,283

2,677

Commitments are GST inclusive where relevant.

 

Note 5C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment 2016

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Note 5C: Reconciliation of the Opening and Closing Balances of Property, Plant and Equipment 2015

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Accounting Policy

Acquisition of Assets
Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor's accounts immediately prior to the restructuring.

Property, Plant and Equipment

Asset Recognition Threshold
Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $3,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions in land, buildings, furniture and fittings and aids to navigation taken up by AMSA where there exists an obligation to make good at the end of any lease term. These costs are included in the value of AMSA's assets with a corresponding provision for the 'make good' recognised.

Revaluations
Fair values for each class of asset are determined as shown below:

Following initial recognition at cost, property plant and equipment are carried at latest valuation less subsequent depreciation and impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets' fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reserves a previous revaluation decrement of the same asset class that was previously recognised in the operating result. Revaluation decrements for a class of assets are recognised directly in the operating result except to the extent that they reversed a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Australian Valuation Solutions (AVS) has provided a comprehensive review and valuation of all stated assets with representative sample inspections undertaken for each asset class as at 30 June 2016 for financial reporting purposes. This valuation was performed in accordance with all aspects of the relevant accounting, insurance and valuation framework, which includes (but is not limited to) the FRR (Part 3, Section 17), AASB 13 Fair Value Measurement and AASB 116 Property, Plant and Equipment. The fair value of assets was measured by the three approaches recognised by AASB 13 including the market comparision approach, the cost approach and the income capitalisation approach. These approaches are consistent with generally accepted valuation methodologies utilised by the valuation profession.

Depreciation
Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful lives using, in all cases, the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each type of depreciable asset are based on the following useful lives:

Reportable Asset Types

2016

2015

Buildings on freehold land

20 to 40 years

20 to 40 years

Property, Plant and Equipment is made up of the following:

 

 

Furniture and Fittings (includes leasehold improvements)*

2 to 10 years

2 to 10 years

Office and Computer Equipment

3 to 16 years

3 to 16 years

Plant and Equipment

3 to 30 years

3 to 30 years

Aids to Navigation

3 to 40 years

3 to 40 years

Vessels and Amphibians

10 to 20 years

10 to 20 years

Vehicles

5 to 8 years

5 to 8 years

* Leasehold improvements are depreciated over the life of the lease.

Impairment
All assets were assessed for impairment at 30 June 2016. Where indications of impairment exist, the asset's recoverable amount is estimated and an impairment adjustment made if the asset's recoverable amount is less than its carrying amount.

Derecognition
An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Heritage assets
Heritage assets held by AMSA are not brought to account. While a small number of these items are on display in AMSA's offices they are not considered to be held for public exhibition, education or research, nor are they used in the operational activities of AMSA. The economic benefit from the use of the items that would result if AMSA were deprived of these items is not material.

Certain aids to navigation assets (such as heritage lighthouses) are primarily held as operational assets rather than being held for cultural, environmental or historical significance value and are therefore accounted for in accordance with AASB 116 Property, Plant and Equipment. Other aids to navigation assets under finance leases are accounted for under AASB 17 Leases.

Capital Works Under Construction
Capital works under construction are recognised at fair value and disclosed as 'Work In Progress' and capitalised when completed and ready for use.

 

2016

2015

 

$’000

$’000

Note 5D: Intangibles

Computer software

Internally developed – in progress

5,783

3,883

Internally developed – in use

10,135

8,537

Purchased - in progress

93

-

Purchased - in use

3,450

3,116

Total computer software (gross)

19,461

15,536

Accumulated amortisation

(7,168)

(5,127)

Total intangibles

12,293

10,409

No indicators of impairment were found for intangible assets.

No intangibles are expected to be disposed of in the next 12 months.

Contractual commitments for the acquisition of intangible assets

 

 

AMSA's capital commitment for intangibles is for software systems redevelopment.

 

 

Significant contractural commitments

193

759

Total contractual commitments for the acquisition of intangible assets

193

759

Commitments are GST inclusive where relevant.

 

 

 

 

Computer software

 

2016

2015

 

$’000

$’000

Note 5E: Reconciliation of the Opening and Closing Balances of Intangibles

As at 1 July

Gross book value

15,536

11,180

Accumulated depreciation / amortisation and impairment

(5,127)

(3,742)

Net book value 1 July

10,409

7,438

Additions

By purchase or internally developed

2,716

4,348

Amortisation

(2,588)

(1,377)

Disposals

 

 

Other

(5)

-

Net book value 30 June

12,293

10,409

Net book value as of 30 June represented by:

Gross book value

19,461

15,536

Accumulated depreciation / amortisation and impairment

(7,168)

(5,127)

Net book value 30 June

12,293

10,409

Accounting Policy
AMSA's intangibles comprise purchased or intentionally developed software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of AMSA's software is 5 to 15 years (2014-15: 5 to 15 years).

All software assets were assessed for indications of impairment as at 30 June 2016.

 

2016

2015

 

$’000

$’000

Note 5F: Inventories

Inventories held for distribution

4,417

5,169

Total inventories

4,417

5,169

$504,612 of inventory held for distribution was recognised as an expense in 2016 (2015: $594,881).

No items of inventory were recognised at fair value less cost to sell.

Accounting Policy
AMSA's inventory is largely for its own consumption or distribution at nil cost. While AMSA does not ordinarly hold inventory for sale, if sales are made they represent the distribution of inventory at a nominal value.

Inventory is valued at cost, adjusted for any loss of service potential. Inventory acquired at no cost or at nominal consideration are initially measured at current replacement cost at the date of acquisition.

 

2016

2015

 

$’000

$’000

Note 5G: Other Non-Financial Assets

Prepayments

6,314

6,668

Total other non-financial assets

6,314

6,668

Total other non-financial assets - are expected to be recovered in:

No more than 12 months

2,800

2,266

More than 12 months

3,514

4,402

Total other non-financial assets

6,314

6,668