FMPM 320 Plant and Equipment

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Intent

This policy sets out the requirements relating to the acquisition, management, recording and disposal of plant and equipment.

Scope

Function

Responsibility of

Cost Determination Threshold

Finance Committee

Revaluation Threshold

Finance Committee

Acquisition of a capital asset

Financial Delegate

Management of a capital asset

Head of Organisational Unit

Identification of a capital asset excess to the Organisational Unit's requirements

Head of Organisational Unit

Disposal or write off of a capital asset

Financial Delegate

Asset Impairment

Head of Organisational Unit

Maintenance of a capital asset register

Director, Financial and Business Services

Definitions

Asset Revaluation Reserve

Capital Asset

Fixed Asset

Heritage Asset

Impairment

Infrastructure

Leasehold Improvement

Non-Capital Asset

One Up Authorisation

Property, Plant and Equipment

  • general

  • cost determination

  • categorization

  • depreciation

  • accumulated depreciation

  • written down value

  • gain or loss on disposal

Portable and Attractive Item

Policy

Requirements

  • It is the responsibility of Finance Committee to approve the cost determination threshold for accounting for assets as Plant and Equipment (refer FMPM 321: Authorised Limits - Plant and Equipment).

  • It is the responsibility of Finance Committee to approve the Revaluation threshold (refer FMPM 321: Authorised Limits - Plant and Equipment).

  • The acquisition of a capital asset must be in accordance with the FMPM 710: Policy - Purchasing and FMPM 322: Procedures - Acquisitions of Plant and Equipment.

  • The Organisational Unit controlling the capital asset must ensure that the asset is:

    • properly maintained in order to maximise the period of effective use;

    • protected from loss; and

    • deployed in an effective and efficient manner.

  • A capital asset must not be used for private purposes by an employee unless approved by the Head of the Organisational Unit responsible for the asset subject to One-up Authorisation (Also refer JCU Code of Conduct).

  • The Head of the Organisational Unit must identify all capital assets excess to the Organisational Unit's operating requirements at least annually and dispose of them in accordance with FMPM 323: Procedure - Disposal of Plant and Equipment).

  • The disposal of a capital asset to any employee or associate of the University must not disadvantage the University.

  • It is the responsibility of the Head of the Organisational Unit to determine, on an annual basis, if any of the University’s assets under their control are impaired, and to subsequently notify the Director, Financial and Business Services.

  • A register of all capital assets with a value in excess of the cost determination threshold as stated in FMPM 321: Authorised Limits - Plant and Equipment, must be maintained and must contain sufficient information to:

    • identify and locate each asset;

    • identify the components of each asset;

    • calculate depreciation in accordance with the approved accounting policy;

    • calculate revaluation amounts in accordance with the approved accounting policy;

    • record impairment; and

    • calculate the gain or loss for each asset disposal.

Related documents, legislation or JCU Statutes

Financial and Performance Management Standard 2009 (s.23)

Australian Accounting Standard AASB 116 – Property Plant & Equipment

Australian Accounting Standard AASB 136 – Impairment of Assets

Non-Current Asset Policies for the Queensland Public Sector

For enquiries in relation to this FMPM Policy please contact CapitalandInfra@jcu.edu.au.

Administration

Approval Details

Policy Sponsor

Deputy Vice Chancellor, Services and Resources

Approval Authority

Finance Committee

Date for next review

08/2016

Revision History

Version

Approval date

Implementation date

Details

Author

15-01

09/09/2015

10/09/2015

Policy Sponsor and Approval Authority updated to reflect the approved Policy and Delegations Framework

Quality Standards and Policy Unit

11-01

18/08/2011

18/08/2011

Finance Committee (06/11)


08-01

08/2002

08/2002



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