This policy is approved for use by the Management Committee of the Air Training Corps Association of New Zealand (“ATCANZ”).
Any questions or concerns with the policy should be addressed to the General Secretary via atcanzgensec@gmail.com
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.
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 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.