FMPM 320 Plant and Equipment

Intent

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

Scope

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 Chief Financial Officer.

• 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 corporatefinance@jcu.edu.au.

Administration

Approval Details

Revision History