Hi David,
On the workshop held in Sydney on 20 Feb you mentioned that, in Queensland, revaluation is done by external valuers somewhere in April. Then the natural disasters happen (thunderstorms, flooding, etc), effectively imparing the assets as at 30 June (YE) which have already been valued. What is the normal practice by Qld councils after that: perform spot impairment of assets, or valuers then come again and perform reassessment of condition?
Thanks,
Igor.
In past years the Qld Audit Office would have required the councils to process an impairment adjustment to reflect the reduction in value. However now that AASB136 no longer applies to specialised public sector assets that are not cash generating (as from periods beginning 1 Jan 2017) this option is no longer available. Under AASB116 the carrying amount would now be significantly different than the Fair Value and therefore triggering the need for a revaluation of the entire class of asset. This is one of the many reasons why entities should revalue as at the end of the financial year each year.