Subsequent to initial recognition, property, plant and equipment are measured at cost less accumulated depreciation and impairment except for land and investment property which are not depreciated. An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits or service potential are expected from its use or disposal. Gains or losses on disposal are determined by comparing proceeds with the carrying amount of the asset and are recognised in surplus or deficit. Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the College. Ongoing repairs and maintenance are expensed as incurred. • Reclassification to investment property When the use of a property changes from operational use to investment property, the property is re-measured to fair value and reclassified as investment property. • Depreciation Depreciation is recognised in surplus or deficit on a straight-line or a diminishing value basis over the estimated useful lives of each component of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives/diminishing value depreciation rates are: School Buildings & Infrastructure 1.5% - 2% straight line Office and ICT Equipment 2-20 years straight line Motor Vehicles 20% diminishing value Boats 5-10 years straight line Other Plant and Equipment 10-33% diminishing value Depreciation methods, useful lives, and residual values are reviewed at reporting date and adjusted if there is a change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset. Useful lives and residual values The useful lives and residual values of assets are assessed using the following indicators to determine potential future use and value from disposal: • The condition of the asset • The nature of the asset, its susceptibility and adaptability to changes in technology and processes • The nature of the processes in which the asset is deployed • The availability of funding to replace the asset changes in the market in relation to the asset
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