Measurement and recognition of property, plant and equipment Initial recognition and measurement All items of property, plant and equipment are initially recognised at cost. For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is the fair value at the date of acquisition. Subsequent measurement Subsequent to initial recognition as an asset, items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. De-recognition Upon disposal or de-recognition of an item of property, plant and equipment, any gain or loss is recognised in the consolidated statement of profit or loss. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. Depreciation is calculated using the straight-line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable assets are: Plant and equipment Office equipment 3 to 20 years 5 to 10 years Construction in progress Property under construction held for future use as investment property is also carried at fair value unless fair value cannot yet be reliably determined. If fair value cannot yet be reliably determined, the property will be accounted for at cost until either the fair value can be reliably determined or when construction is complete. 11. Investment Properties Investment Property Undeveloped Land Total $’000 $’000 $’000 Balance at 30 Jun 2021 173,000 16,000 189,000 Revaluation 56,214 2,000 58,214 Additions/Land development 2,786 - 2,786 Balance at 30 Jun 2021 232,000 18,000 250,000 Investment properties are properties held either to earn rental income, for capital appreciation or for both that are not occupied by the consolidated entity. Initially, investment properties are measured at cost including transaction costs. Investment properties are subsequently remeasured annually at fair value. Movements in the fair value of investment properties are recognised directly to profit or loss. As part of the process of determining the fair value of all property, an external independent valuer, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued, will value the Group’s property annually. An independent valuation of the investment properties was completed by CBRE Valuations Pty Limited (CBRE) as at 30 June 2022 (and as at 30 June 2021). 34
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