Asset Capitalisation and Depreciation Policy


This policy is approved for use by the Management Committee. Any questions or concerns with the policy should be addressed to the General Secretary via


An asset is defined as a resource:

(a) controlled by an entity as a result of past events; and
(b) from which future economic benefits are expected to flow to the entity

Property, plant and equipment are tangible items that:

(a) Are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and
(b) Are expected to be used during more than one reporting period.

Class of property, plant and equipment means a grouping of assets of a similar nature or function in an entity’s operations that is shown as a single item for the purpose of disclosure in the financial statements.  ATCANZ classes will consist of:

- Buildings
- Land
- Office Equipment
- Plant & Equipment
- Vehicles

Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Capitalisation Policy

Any assets purchased by the organisation will only be capitalised where they exceed $1,000 to the organisation.  All other purchases below this value will be expensed as Equipment Expenses.

Depreciation Policies

Depreciation method utilised shall be straight line basis.

Depreciation shall be applied to asset classes as follows:

- Buildings                                                                                       2%
- Computer Equipment                                                                 25%
- Land                                                                                               nil
- Office Equipment                                                                        10%
- Plant & Equipment (other than computer equipment)        20%
- Vehicles                                                                                         20%


The Association Asset Capitalisation and Depreciation Policy can be downloaded from here.