Fixed Asset

Handbook

Date of Approval: November 2021

Version: 1.5
Reference Authority: Chief Financial Officer
 Fixed Asset Handbook

DOCUMENT CONTROL SHEET

Contact for Enquiries and Proposed Changes

If you have any questions regarding this document contact:

Name: Philippa Pedlar

Title: Management Accountant
Phone: (08) 8302 1275
Email: philippa.pedlar@unisa.edu.au

Fixed Asset Handbook located at: \\unifs.unisa.edu.au\FIN\ADMINISTRATION\Policies and

Handbooks\Fixed Assets

Updated by: Philippa Pedlar

Web address of document: https://i.unisa.edu.au/staff/finance/policies-guidelines-and-resources/

Revision History

Revision Description of Revisions Date Who

1.1 • Update Authorisation for Disposal 12/2015 Philippa Pedlar
1.2 • Incorporated New Fixed Asset forms 09/2018 Philippa Pedlar
throughout Handbook
• Update Asset Classes
• Update Elements of Cost
• Update Expenditure Item Codes
• Added Capitalisation from Construction on
Progress into Capitalisation Process
• Update Authorisation for Disposal
• Update Depreciation Rates and Useful Lives
• Inclusion of Outstanding Fixed Asset
Purchases
1.3 • Changes due to the implementation of 04/2020 Philippa Pedlar
Academic Organisational Transformation
o References of Divisions updated to
Academic Units
o References of Units updated to Central
Units
• Update DEFINITIONS
• Change to the approval of Asset Addition
form in Responsibilities – Additions
• Inclusion of Right-of-use assets
• Inclusion of Intangibles
• Removal of references to the Accounting
Policy Framework (SA State Government
Requirement)

FIXED ASSET HANDBOOK VERSION 1.5 Page 2 of 31

 Fixed Asset Handbook

Revision Description of Revisions Date Who

1.4 • Change in accounting policy for the Library 04/2021 Philippa Pedlar
Collection
• Inclusion of FIXED ASSET FORMS
• References of Central Units updated to
Professional Units
1.5 • Change in accounting policy for Student 11/2021 Philippa Pedlar
Computer Pools and Smart Classes

REFERENCE AUTHORITY Finance Unit

CROSS REFERENCES IT Purchasing, Maintenance & Disposal Policy

Procurement Handbook
Professional Development Fund Guidelines
Vice Chancellors Authorisation Framework

FIXED ASSET HANDBOOK VERSION 1.5 Page 3 of 31

 Fixed Asset Handbook

TABLE OF CONTENTS
1. OVERVIEW ............................................................................................................................................ 6
2. DEFINITIONS ......................................................................................................................................... 6
2.1. Acquisition ......................................................................................................................................... 6
2.2. Acquisition date ................................................................................................................................. 6
2.3. Capitalisation ..................................................................................................................................... 6
2.4. Carrying amount ................................................................................................................................ 6
2.5. Cloud computing ............................................................................................................................... 6
2.6. Cost .................................................................................................................................................... 6
2.7. Current Replacement Cost ................................................................................................................ 6
2.8. Depreciable amount .......................................................................................................................... 6
2.9. Depreciation ...................................................................................................................................... 6
2.10. Depreciated Assets ........................................................................................................................ 6
2.11. Depreciated replacement cost ...................................................................................................... 7
2.12. Fair value ....................................................................................................................................... 7
2.13. Impairment loss ............................................................................................................................. 7
2.14. Infrastructure as a Service (IaaS) ................................................................................................... 7
2.15. Intangible asset.............................................................................................................................. 7
2.16. Lease .............................................................................................................................................. 7
2.17. Lessee ............................................................................................................................................ 7
2.18. Lessor ............................................................................................................................................. 7
2.19. Non-Depreciable Asset .................................................................................................................. 7
2.20. Platform as a Service (PaaS) .......................................................................................................... 7
2.21. Property, plant and equipment ..................................................................................................... 7
2.22. Recoverable amount ..................................................................................................................... 7
2.23. Resale value ................................................................................................................................... 7
2.24. Residual value ................................................................................................................................ 8
2.25. Right-of-use asset .......................................................................................................................... 8
2.26. Short-term lease ............................................................................................................................ 8
2.27. Software as a Service (SaaS) .......................................................................................................... 8
2.28. Stocktake ....................................................................................................................................... 8
2.29. Underlying asset ............................................................................................................................ 8
2.30. Useful life ....................................................................................................................................... 8
2.31. Value in use ................................................................................................................................... 8
2.32. Written down value ....................................................................................................................... 8
3. FIXED ASSET FORMS ............................................................................................................................. 9
4. FIXED ASSET ADDITIONS ..................................................................................................................... 10
4.1. What is an Asset? ............................................................................................................................ 10
4.2. Asset Classes .................................................................................................................................... 10
4.3. Custody and Control ........................................................................................................................ 10
4.4. Recognition Criteria ......................................................................................................................... 10
4.5. Elements of Cost .............................................................................................................................. 11
4.6. Capitalisation Thresholds ................................................................................................................ 11
4.7. Expenditure Item Codes .................................................................................................................. 13
4.8. Purchase of IT equipment................................................................................................................ 15
4.9. Capitalisation Process ...................................................................................................................... 15
4.10. Responsibilities – Additions ......................................................................................................... 16
5. FIXED ASSET DISPOSALS ..................................................................................................................... 18
5.1. Disposal............................................................................................................................................ 18
5.2. Authorisation for Disposal ............................................................................................................... 18
5.3. Disposal of IT Equipment ................................................................................................................. 19
5.4. Disposal of Registered Vehicles ....................................................................................................... 19
5.5. Revenue Item Codes for Proceeds from Disposal ........................................................................... 19
FIXED ASSET HANDBOOK VERSION 1.5 Page 4 of 31
 Fixed Asset Handbook

5.6. Reporting of Disposals of Assets ..................................................................................................... 19

5.7. GST Implications .............................................................................................................................. 20
5.8. Transferring Assets within the University ....................................................................................... 20
5.9. Responsibilities – Disposals ............................................................................................................. 20
6. DEPRECIATION .................................................................................................................................... 22
6.1. When to commence Depreciation .................................................................................................. 22
6.2. Depreciation Method ...................................................................................................................... 22
6.3. Depreciation Rates and Useful Lives ............................................................................................... 23
6.4. Review of Depreciation Method, Residual Value and Useful life .................................................... 23
6.5. Depreciation Item Codes ................................................................................................................. 24
6.6. Responsibilities - Depreciation ........................................................................................................ 24
7. FIXED ASSET STOCKTAKE .................................................................................................................... 25
7.1. Why undertake a Stocktake?........................................................................................................... 25
7.2. Scope of Stocktake .......................................................................................................................... 25
7.3. Impairment ...................................................................................................................................... 25
7.4. Stocktake Process ............................................................................................................................ 26
7.5. Responsibilities - Stocktake ............................................................................................................. 27
8. ASSET REGISTER RECONCILIATION ..................................................................................................... 28
8.1. Asset Register .................................................................................................................................. 28
8.2. Reconciliations................................................................................................................................. 28
8.3. Outstanding Fixed Asset Purchases ................................................................................................. 28
8.4. Other item code reviews ................................................................................................................. 29
8.5. Responsibilities - Reconciliations..................................................................................................... 30
9. RELATED INFORMATION..................................................................................................................... 31

FIXED ASSET HANDBOOK VERSION 1.5 Page 5 of 31

 Fixed Asset Handbook

1. OVERVIEW

The purpose of this Handbook is to ensure that Fixed Assets owned by the University are
appropriately measured, recorded and reported accurately in financial systems, Annual Financial
Statements and management reports.

The Handbook details information regarding Fixed Asset:

• Additions
• Disposals
• Depreciation
• Stocktake
• Register Reconciliation

2. DEFINITIONS

2.1. Acquisition
Obtaining control of an asset by purchase, construction or donation.

2.2. Acquisition date

The date that the asset is received/installed and available for use, not the invoice date.

2.3. Capitalisation
Recognition of expenditure as a fixed asset (i.e. capital expenditure).

2.4. Carrying amount

The amount at which an asset is recognised after deducting any accumulated depreciation
(amortisation) and accumulated impairment losses thereon. Also referred to as book value or
depreciated value.

2.5. Cloud computing

Cloud computing provides a way to access servers, storage, databases and a broad set of
application services over the internet provided and maintained by a third party.

2.6. Cost
The amount of cash or cash equivalents paid or the fair value of other consideration given to
acquire an asset at the time of its acquisition or construction.

2.7. Current Replacement Cost

The lowest cost at which the gross future economic benefits of that asset could currently be
obtained in the normal course of business.

2.8. Depreciable amount

Cost of an asset, or other amount substituted for cost, less its residual value.

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

2.10. Depreciated Assets

Assets recognised in the fixed asset register.

FIXED ASSET HANDBOOK VERSION 1.5 Page 6 of 31

 Fixed Asset Handbook

2.11. Depreciated replacement cost

Current replacement cost of an asset less, where applicable, accumulated depreciation calculated
on the basis of such cost to reflect the already consumed or expired future economic benefits of
the asset.

2.12. Fair value

The price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.

2.13. Impairment loss

Amount by which the carrying amount of an asset exceeds its recoverable amount.

2.14. Infrastructure as a Service (IaaS)

Scalable IT infrastructure from a cloud provider on a pay-as-you-go basis. This includes servers,
storage, networks and operating systems.

2.15. Intangible asset

An identifiable non-monetary asset without physical substance.

2.16. Lease
A contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a
period of time in exchange for consideration.

2.17. Lessee
An entity that obtains the right to use an underlying asset for a period of time in exchange for
consideration.

2.18. Lessor
An entity that provides the right to use an underlying asset for a period of time in exchange for
consideration.

2.19. Non-Depreciable Asset

Assets which are not recognised in the fixed asset register.

2.20. Platform as a Service (PaaS)

Cloud computing services provided by a third party that supply an on-demand environment that
developers can use to develop, test, deliver and manage software applications.

2.21. Property, plant and equipment

Tangible items that: are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes; and are expected to be used during more than one period.

2.22. Recoverable amount

The higher of an asset’s fair value less costs of disposal and its value in use.

2.23. Resale value

The value of an item in the marketplace and is regardless of its initial purchase price or residual
value.

FIXED ASSET HANDBOOK VERSION 1.5 Page 7 of 31

 Fixed Asset Handbook

2.24. Residual value

The estimated amount that an entity would currently obtain from disposal of the asset, after
deducting the estimated costs of disposal, if the asset were already of the age and in the condition
expected at the end of its useful life.

2.25. Right-of-use asset

An asset that represents a lessee’s right to use an underlying asset for the lease term.

2.26. Short-term lease

A lease that, at the commencement date, has a lease term of 12 months or less. A lease that
contains a purchase option is not a short-term lease.

2.27. Software as a Service (SaaS)

Software applications that are delivered over the internet, on demand and usually via subscription
with a third party provider.

2.28. Stocktake
A stocktake is a verification of the quantities and condition of assets held by the University.

2.29. Underlying asset

An asset that is the subject of a lease, for which the right to use that asset has been provided by a
lessor to a lessee.

2.30. Useful life

The period over which an asset is expected to be available for use by an entity; or the number of
production or similar units expected to be obtained from the asset by an entity.

2.31. Value in use

In respect of not-for-profit entities, value in use shall be determined as the depreciated
replacement cost of the asset.

2.32. Written down value

The amount at which an asset is recognised after deducting any accumulated depreciation and
accumulated impairment losses from its cost.

FIXED ASSET HANDBOOK VERSION 1.5 Page 8 of 31

 Fixed Asset Handbook

3. FIXED ASSET FORMS

The following forms are utilised for record keeping

Ref Title Purpose Format

FS61 Intangible Asset Determination of whether software purchase, Word
Assessment customisation and implementation projects meet the
capitalisation requirements as an intangible asset,
including cloud-based services
FS64 Asset Disposal Record the disposal of an items held on the Fixed Asset Appian
Register
FS65 Asset Addition Record new items to be added to the Fixed Asset Register Appian
FS66 Asset Relocation Update the location details of an item held on the Fixed Appian
Asset Register
FS68 Multi Asset Record the disposal of multiple items held on the Fixed Excel
Disposal Asset Register
FS69 Asset Loan Record the loaning of assets to staff members or other Word
Agreement & FBT areas
Declaration

Appian is the University's chosen software for online administration tasks and actions and can be
accessed via https://bpi.unisa.edu.au/.

To process an Appian form, select Asset Management under the Actions tab.

Select the task required

Alternatively, all Fixed Asset forms can be accessed at https://i.unisa.edu.au/staff/finance/forms/

Word and excel formatted forms should be sent to Assistant Accountant – Assets (Internal Post
code 101-06) or emailed to FinancialReporting@unisa.edu.au.

FIXED ASSET HANDBOOK VERSION 1.5 Page 9 of 31

 Fixed Asset Handbook

4. FIXED ASSET ADDITIONS

4.1. What is an Asset?
Any item owned or controlled by the University, and of economic value, with an expected useful
life of 12 months or more.

An asset can be physical or tangible (e.g. land, buildings, plant, equipment, motor vehicles,
Artworks) or intangible (e.g. computer software, cloud services).

An asset may be acquired directly by purchase, bequest or donation, or result from construction
(e.g. a new building or a renovated facility, development (e.g. software on server or cloud)). During
the construction phase, the asset is known as a construction-in-progress asset.

Improvements to leasehold property are University assets.

4.2. Asset Classes
Fixed Assets, which meet the appropriate recognition and useful life are group in the following
categories:
• Construction in progress
• Land
• Buildings
• Infrastructure
• Plant and equipment (including but not limited to IT Equipment, Motor Vehicles and Aircraft,
Drones, General and Other Equipment, Fixed Furniture and Fittings)
• Right-of-use assets
o Motor Vehicles
o Properties
o Other
• Plant and equipment in progress
• Leasehold improvements
• Art collection
• Intangibles
• Intangibles in progress

4.3. Custody and Control

All assets purchased using University funds/money (including professional development funds) are
owned by the University until they are disposed of. University assets must be acquired, recorded,
safeguarded, transferred and disposed of in a responsible and accountable manner, and are to be
controlled and safeguarded against misuse, loss, theft or damage.

4.4. Recognition Criteria

In accordance with AASB 116 Property, Plant & Equipment paragraph 7 the cost of an item of
property, plant and equipment shall be recognised as an asset if, and only if:
(a) it is probable that future economic benefits associated with the item will flow to the entity and
(b) the cost of the item can be measured reliably.

In accordance with AASB 138 Intangibles paragraph 21 an intangible asset shall be recognised if,
and only if:
(a) it is probable that the expected future economic benefits that are attributable to the asset will
flow to the entity and
(b) the cost of the asset can be measured reliably.

FIXED ASSET HANDBOOK VERSION 1.5 Page 10 of 31

 Fixed Asset Handbook

An asset is to be recognised in the University’s books when:

• The risks and rewards of ownership of the asset have passed from the supplier to the
University
• The cost (or fair value in the case of donated assets) can be measured reliably
• The asset complies with the University’s capitalisation thresholds

Intangibles
To assist with the complexities of recognising intangible assets since the introduction of Cloud
Services, the FS61 Intangible Asset Assessment Form has been developed to provide guidance on
whether the purchase or development and implementation of an intangible asset meets the
capitalisation criteria.

Right-of-use Assets
In accordance with AASB16 Leases paragraph 9 an entity shall assess whether a contract is, or
contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for consideration.
The existence of a lease will most likely result in the recognition of a right-of-use asset.

4.5. Elements of Cost

In accordance with AASB 116 Property, Plant & Equipment paragraph 16 the cost of an item of
property, plant and equipment comprises:
(a) its purchase price, including import duties and non-refundable purchase taxes, after deducting
trade discounts and rebates
(b) any costs directly attributable to bringing the asset to the location and condition necessary for
it to be capable of operating in the manner intended by management
(c) the initial estimate of the costs of dismantling and removing the item and restoring the site on
which it is located, the obligation for which an entity incurs either when the item is acquired or
as a consequence of having used the item during a particular period for purposes other than to
produce inventories during that period

Examples of directly attributable costs are:

(a) costs of employee benefits (as defined in AASB 119 Employee Benefits) arising directly from
the construction or acquisition of the item of property, plant and equipment
(b) costs of site preparation
(c) initial delivery and handling costs
(d) installation and assembly costs
(e) costs of testing whether the asset is functioning properly, after deducting the net proceeds
from selling any items produced while bringing the asset to that location and condition (such
as samples produced when testing equipment)
(f) professional fees

4.6. Capitalisation Thresholds

The University follows the same procurement policies and procedures for the purchase of fixed
assets as it does for the purchase of any other goods and services.

To minimise costs, property, plant and equipment items with a fair value or original cost at the time
of acquisition of less than $10 000 need not be recognised (capitalised) as an asset. That is, it is
expensed in the period in which it is acquired.

Property, plant and equipment items are recognised and recorded as a fixed asset when the:
• Original cost or fair value is greater or equal to $10,000; and
• Expected useful life of 12 months or more.

FIXED ASSET HANDBOOK VERSION 1.5 Page 11 of 31

 Fixed Asset Handbook

Academic and Professional Units incur the purchase transaction (which is expensed immediately by
the Unit), with the capitalised asset recognised at the University level by Corporate Finance
(Finance Unit). Capitalised assets are included in the University's balance sheet and depreciation on
capitalised assets is recorded at the University level (Corporate).

The University may from time to time purchase additional components that will form part of an
existing asset. In this situation, the cost of the components would be added to the cost of the
existing asset, regardless of the components cost.

The University may also control dissimilar property, plant and equipment items with individual
values below the capitalisation threshold, but which work together in the form of a group or
network asset whose total value exceeds the capitalisation threshold. In these circumstances the
group or network would comprise the primary asset that should be capitalised. Examples of this are
a computer network, AV equipment and PABX system.

Part Payment for Assets

Assets for which deposits have been paid are recognised as Plant and equipment in progress until
full payment has been made and the asset installed and ready for use.

Student Computer Pools and Smart Classes`

The University
• Provides computers for access by all students in the form of General Purpose Computing
Pools and Computer Barns. These facilities are located at each campus with the objective of
supporting student learning.
• Has established classes (e.g. Samsung SMART School) that facilitate student learning
through laptops, tablets, LED screens and other IT equipment.

Until 31 December 2020, the University grouped these assets for the purpose of capitalisation, with
acquisitions totalling $10,000 or more added to the Fixed Asset Register.

From 1 January 2021, acquisitions of Student Computer Pools and Smart Classes are expensed
where the per unit acquisition price is less than $10,000.

Student PCs and other computer assets already capitalised at 1 January 2021 will continue to be
• Depreciated until the Useful life of the asset expires
• Included in the Asset Register until disposed or impaired

Donated Assets
Where an asset is gifted to the University at no cost, or for a nominal consideration, the cost of the
asset for accounting purposes is the fair value of the item at the date it was acquired, plus all
expenditures directly attributable to bring the asset to the location and condition necessary for its
intended use or sale.

FIXED ASSET HANDBOOK VERSION 1.5 Page 12 of 31

 Fixed Asset Handbook

4.7. Expenditure Item Codes

The appropriate item code from the following list is used when purchasing an item of property,
plant and equipment purchase.
Item Description Definition Capitalised
Code Y/N
M41490 IT H’ware & S’ware Mtce & Repairs
1231 Computer Software and IT expenditure incurred in relation to N
Licences the purchase of software and annual
licence fees for software.
M41720 Capital Purchases – Plant & Equipment
1232 Asset Purchase - IT expenditure incurred in relation to Y
Computer Software the purchase of software with an
(>$10k) acquisition price greater than $10,000
that will be capitalised as an asset.
1509 AV Equipment - <$10K Expenditure incurred in relation to the N
purchase of AV equipment with an
acquisition cost less than $10,000.
1510 IT Equip - IT expenditure incurred in relation to N
Infrastructure<$10K the purchase of IT infrastructure with
an acquisition cost less than $10,000.
IT infrastructure includes optic fibre
cables, twisted wiring, and
microwaves. Individual purchases
each <$10,000 may be 'bundled'
where they form part of a complete
installation that has a total cost
>$10,000 and should be coded to
1512.
1511 IT Equip - IT expenditure incurred in relation to N
Desktop/Laptop<$10K the purchase of IT Desktop and Laptop
equipment with an individual
acquisition price less than $10,000.
Purchases for student computer pools
and barns where the price per unit is
<$10,000 but the total expense is
>$10,000 will be capitalised by
including in the fixed Asset Register
with a useful life of 3 years and should
be coded to 1514.
1512 Asset Purchase - IT IT expenditure incurred in relation to Y
Equip - Infra >$10K the purchase of IT infrastructure with
an acquisition cost greater than
$10,000. IT infrastructure includes
optic fibre cables, twisted wiring, and
microwaves. Individual purchases
each <$10,000 may be 'bundled'
where they form part of a complete
installation that has a total cost
>$10,000.

FIXED ASSET HANDBOOK VERSION 1.5 Page 13 of 31

 Fixed Asset Handbook

Item Description Definition Capitalised

Code Y/N
1513 Asset Purchase - Purchases of motor vehicles with an Y
Vehicles > $10K acquisition price greater than
$10,000.

1514 Asset Purchase-IT IT expenditure incurred in relation to Y

Equip-Student the purchase of IT Desktop and laptop
Pools/Barns >$10K equipment for Student Pools/barns
with a per unit acquisition price
greater than $10,000.
Where the price per unit is less than
$10,000, the expense be coded to
1516.

1515 Asset Purchase – AV Expenditure incurred in relation to the Y

Equipment > $10K purchase of AV Equipment with an
acquisition price greater than
$10,000.
1516 IT Equip - Student IT expenditure incurred in relation to N
Pools/Barns <$10k the purchase of IT Desktop and laptop
equipment for Student Pools/Barns
with a per unit acquisition price less
than $10,000.
Where the price per unit is greater
than $10,000, it should be coded to
1514.

1529 Asset Purchase - Equip Expenditure incurred in relation to the Y

(Non IT) > $10K purchase of non-IT Equipment with an
acquisition price greater than
$10,000.
1530 Equipment Pch (Non IT) Expenditure incurred in relation to the N
<$10k purchase of equipment (non-IT) with
an acquisition price less than $10,000.
1531 Drones < $10K Expenditure incurred in relation to the N
purchase of Drones, Unmanned Aerial
Vehicles (UAVs), Remotely Piloted
Aircraft (RPAs) with an acquisition
price less than $10,000.
1532 Asset Purchase – Expenditure incurred in relation to the Y
Drones > $10K purchase of Drones, Unmanned Aerial
Vehicles (UMVs), Remotely Piloted
Aircraft (RPAs) with an acquisition
price greater than $10,000.
2026 Asset Purchase - Furn & Expenditure in excess of $10,000 Y
Fit > $10K incurred in relation to the purchase of
furniture and fittings.

FIXED ASSET HANDBOOK VERSION 1.5 Page 14 of 31

 Fixed Asset Handbook

Item Description Definition Capitalised

Code Y/N
2027 Furn & Fit <$10K Expenditure incurred in relation to the N
purchase of furniture and fittings with
an acquisition cost of less than
$10,000 and repairs and maintenance
of furniture and fittings. For example
office chairs, desks and curtains.

M41800 Capital Purchases – Art

1520 Art Purchases < $10K Expenditure incurred in relation to the N
purchase of Art with an acquisition
price less than $10,000.

1521 Art Purchases > $10K Expenditure incurred in relation to the Y

purchase of Art with an acquisition
price greater than $10,000

4.8. Purchase of IT equipment

Purchase of IT equipment must be in accordance with the IT Purchasing, Maintenance & Disposal
Policy issued by Information Strategy and Technology Services (ISTS) as well as the Fixed Asset
Handbook.

See IT Purchasing, Maintenance & Disposal Policy.

4.9. Capitalisation Process

All items of property, plant and equipment meeting the recognition criteria and capitalization
thresholds must be entered into the fixed asset register.

The University’s fixed asset register is maintained by Corporate Finance (Finance Unit) and records
details such as description of the asset, its location, its cost, current depreciated amount,
depreciation written off to date, its estimated useful life and residual value.

In order for the asset to be capitalized in the University’s fixed asset register, purchase orders
and/or invoices relating to the purchase of capitalised assets must be coded to the relevant capital
purchase item code (listed above). Transactions coded to these item codes are reviewed monthly
by Corporate Finance (Finance Unit), any mis-coded transactions will be transferred to the
appropriate item code.

To enable the creation of an asset on the fixed asset register, an Academic or Professional Unit is to
complete an FS65 Asset Addition form when an asset purchase/donation takes place.

The following essential information must be provided:

• Asset description
• Account code including Sub ledger, cost centre and item code
• Acquisition method
• Purchase order number
• Cost (GST Exclusive amount)
• Date of Acquisition (the date that the asset is received/installed and available for use, not the
invoice date)
• Make and Model
• Serial Number
FIXED ASSET HANDBOOK VERSION 1.5 Page 15 of 31
 Fixed Asset Handbook

• Registration Number (motor vehicles)

• Asset location details including
o Campus
o Building
o Room Number
o Custodian
• Copies of
o Invoice
o Purchase Order
o Finance One transaction report showing all purchase transactions. These transactions
should match the acquisition amount above.

The FS65 Asset Addition form needs to be completed and approved by different staff members.

Additions to existing assets

Upgrades or additions to existing assets must also be added to the fixed asset register and will be
recognised as a new asset rather than amending the existing asset details. Advice by way of a
completed FS65 Asset Addition form must be provided to Corporate Finance (Finance Unit). In
addition to the information requested above, the existing asset number must be provided.

Capitalisation from Construction on Progress

Assets in these item codes will be added to the fixed asset register after practical completion.
Reviews of transactions will be undertaken by Project Cost Accountant and Management
Accountant (Capital). Notification of the reclassification of these costs does not have to be
submitted on an FS65 Asset Addition form.

Capitalisation from Intangibles in Progress

Assets in these item codes will be added to the fixed asset register after practical completion.
Reviews of transactions will be undertaken by Unit Accountant (ITU) and/or Academic Unit Finance
Managers and Management Accountant (Capital). Notification of the reclassification of these costs
does not have to be submitted on an FS65 Asset Addition form.

Capitalisation of Right-of-use assets

Leases identified will be added to the fixed asset register. Corporate Finance will undertake a
review of lease transactions to identify lease contracts. In addition, regularly emails will be sent to
Academic and Professional Units requesting they review the leases in their areas and advise
Corporate Finance of any that exist. These assets do not need to be submitted via an FS65 Asset
Addition form.

4.10. Responsibilities – Additions

Corporate Finance (Finance Unit) is responsible for:
• Maintaining the fixed assets register
• Ensuring that assets are capitalised in accordance with Australian Accounting
Standards
• Review of property, plant and equipment purchase item codes for the identification of assets
• Maintenance of the outstanding Fixed Asset Purchases summary for monthly distribution
• Reconciliation of Plant and Equipment in progress item code
• Ensuring assets are identified and recorded according to University policy
• Reconciling the fixed assets register with the general ledger at the end of each month
• Intangibles
o Making a final assessment on whether purchase or development and implementation
of software on the server or cloud meets the capitalisation criteria

FIXED ASSET HANDBOOK VERSION 1.5 Page 16 of 31

 Fixed Asset Handbook

Academic and Professional Units within the University are responsible for:
• Local security of assets
• Review of property, plant and equipment purchase item codes for the identification of assets
and subsequent advice to Corporate Finance (Finance Unit) on a timely basis
• Review of the outstanding Fixed Asset Purchases summary and subsequent advice to
Corporate Finance (Finance Unit) on a timely basis
• Source documentation relating to acquisition (completion of FS65 Asset Addition form and
provision of supporting documents)
• Intangibles
o Review of purchase or development and implementation of software on the server or
cloud and subsequent advice to Corporate Finance (Finance Unit) by completing an
FS61 Intangible Asset Assessment form and provision of supporting documents

FIXED ASSET HANDBOOK VERSION 1.5 Page 17 of 31

 Fixed Asset Handbook

5. FIXED ASSET DISPOSALS

5.1. Disposal
Assets can be available for disposal because they are:
• No longer required due to changed procedures, functions or usage patterns
• Occupying storage space and not being needed in the foreseeable future
• Reaching their optimum selling time to maximise returns
• Part of an asset replacement program
• Required to be disposed of under a particular policy
• Technologically obsolete and operationally inefficient
• No longer complying with workplace health and safety standards
• Beyond repair but able to be sold for scrap

Cost centres are encouraged to dispose of assets where the cost of holding the asset exceeds its
benefits.

Assets may be disposed of by:

• Direct sale by the Academic or Professional Unit either internally or externally
• Sale by auction
• Disposal by scrapping or dumping where the asset has little or no resale value
• Trade-in
• Transfer to another external organisation

In offering goods for sale, the University must be careful to not misrepresent the goods, offer
defective goods or offer any kind of warranty.

Choice of the most appropriate disposal option will normally be influenced by the nature of the
goods for disposal and by their location and market value.

The carrying amount of an item of property, plant and equipment or an intangible asset shall be
derecognised:
(a) on disposal; or
(b) when no future economic benefits are expected from its use or disposal.

5.2. Authorisation for Disposal

Only staff who hold the appropriate delegation under the Vice Chancellor’s Authorisations (VCAs)
may approve the disposal of plant and equipment. VCAs are an approved framework of
documented authorisations to facilitate the management and administration of the University.

VCA approval is required even when the written down value has reached zero in the fixed asset
register.

Where an item of plant or equipment has been sold to an employee of the University, the
employee purchasing the asset cannot authorise the FS64 Asset Disposal form even though they
may have appropriate delegation under the VCAs.

Please refer to the VCA Framework to review the disposal delegations.

FIXED ASSET HANDBOOK VERSION 1.5 Page 18 of 31

 Fixed Asset Handbook

5.3. Disposal of IT Equipment

Disposal of IT equipment must be in accordance with the IT Purchasing, Maintenance & Disposal
Policy issued by Information Strategy and Technology Services (ISTS) as well as these fixed asset
policies.

5.4. Disposal of Registered Vehicles

Where a vehicle has been registered (either currently or previously) with the relevant SA
Government authority a letter must be sent by the disposing cost centre to the Department of
Transport, Energy and Infrastructure asking for the Registration Number to be deactivated.

5.5. Revenue Item Codes for Proceeds from Disposal

Proceeds from the disposal of property, plant and equipment should be coded to the following
item codes depending if the item is currently held on the fixed asset register.

Item Description Definition

Code
Gross cash proceeds or trade-in value from the disposal
Sale of Depreciated
6700 of property, plant and equipment assets recognised in
Assets
the fixed asset register.
Gross cash proceeds or trade-in value from the disposal
Sale of Non-
6703 of property, plant and equipment assets which are not
Depreciable Assets
recognised in the fixed asset register.

For assistance to identify whether the item to be disposed is on the fixed asset register please
contact Assistant Accountant – Assets ext: 21983 or email FinancialReporting@unisa.edu.au.

5.6. Reporting of Disposals of Assets

Adequate documentation about the disposal must be completed and retained by the Cost Centre
Manager.

The disposal of assets held on the fixed asset register must be advised to Corporate Finance
(Finance Unit) by way of the submission of a completed FS64 Asset Disposal form within 2 weeks of
the disposal.

The following essential information must be provided:

• Asset description
• Asset number
• Disposal date
• Sale price (together with copies of invoices and Finance One transaction reports to show the
proceeds have been recognised in Finance One)
• Account Number (where sale proceeds are coded)
• Disposal method
• Sold to

The FS64 Asset Disposal form must be authorised in accordance with VCAs.

FIXED ASSET HANDBOOK VERSION 1.5 Page 19 of 31

 Fixed Asset Handbook

Disposal via annual stocktake

Assets identified as disposed during the annual stocktake process can be advised to Corporate
Finance (Finance Unit) using Fixed Assets Annual Stocktake Disposal Form (FS68) which needs to be
approved in accordance with VCAs. The receipt of an appropriately approved asset stocktake report
and Fixed Assets Annual Stocktake Disposal Form will allow Corporate Finance (Finance Unit) to
process the disposal in the fixed asset register.

5.7. GST Implications

Generally, as the University is registered for GST, the disposal of a capital asset in Australia is a
taxable sale and UniSA is required to account for GST on that sale. However, as UniSA is a Gift
Deductible Entity, the disposal of a capital asset will be GST-Free if the sale price is less than 75% of
the original purchase price.

Accordingly:

• If the sale price is less than 75% of the original purchase price, the sale will be GST-free (tax
code F) under section 38-250 of the GST Act (the non-commercial rules)
• However, if the sale price is equal to or more than 75% of the original purchase price, then no
special rules will apply and the sale will be subject to GST (tax code T)

The ‘non-commercial rule’ needs to be carefully considered when we make sales through Auction
Agencies. If the University does not inform an Auction Agency that these sales of assets will/may be
GST-free the Agency will consider them taxable by default. Where the assets have been sold as
taxable supplies, the University should then account for GST on the sale.

For further information regarding GST implications please contact the University Taxation Manager
ext. 21922.

5.8. Transferring Assets within the University

Transferring assets within the University may be as a result of:
• transfer of ownership from one Academic or Professional Unit to another
• change of the physical location of the asset
• loan to staff

Notification of transfers must be advised to Corporate Finance (Finance Unit) by way of the
submission of a completed FS66 Asset Relocation form approved by the Cost Centre Manager
advising asset relocation and asset location details.

Loans to staff of assets must also be made in accordance with FS69 Asset Loan Agreement & FBT
Declaration.

5.9. Responsibilities – Disposals

Corporate Finance (Finance Unit) is responsible for:
• Processing of all transfers and disposals advised on FS64 Asset Disposal form in the fixed asset
register
• Review of VCA approval of signed form
• Reconciliation of Net Gain/(Loss) on disposal of assets
• Review and reconciliation of item codes 6703 Sale of Non-Depreciable Assets and 6700 Sale of
Depreciated Assets

FIXED ASSET HANDBOOK VERSION 1.5 Page 20 of 31

 Fixed Asset Handbook

Academic and Professional Units within the University are responsible for:
• Ensuring that surplus or obsolete assets are identified and disposed of promptly
• Ensuring the correct item codes are used for receipting of proceeds on disposal of assets
• Within 2 weeks of disposal, completion of FS64 Asset Disposal form and subsequent advice to
Corporate Finance (Finance Unit) approved with appropriate VCA

FIXED ASSET HANDBOOK VERSION 1.5 Page 21 of 31

 Fixed Asset Handbook

6. DEPRECIATION

6.1. When to commence Depreciation

In accordance with AASB 116 Property, Plant & Equipment paragraph 50 the depreciable amount of
an asset shall be allocated on a systematic basis over its useful life.

Depreciation of an asset begins when it is available for use, that is, when it is in the location and
condition necessary for it to be capable of operating in the manner intended by management.
Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale
(or included in a disposal group that is classified as held for sale) in accordance with AASB 5 Non-
current Assets Held for Sale and Discontinued Operations and the date that the asset is
derecognised. Therefore, depreciation does not cease when the asset becomes idle or is retired
from active use unless the asset is fully depreciated.

Where an asset is subject to partial or progress payments depreciation will not commence until the
payment cycle is complete and the asset is available for use.

6.2. Depreciation Method

The depreciation method used shall reflect the pattern in which the asset’s future economic
benefits are expected to be consumed by the entity.

The three most common methods used for calculating depreciation expense are:
• Straight-Line Method - constant charge over the useful life if the asset’s residual value does
not change
• Diminishing Balance Method - decreasing charge over the useful life. The earlier periods bear a
greater portion of the cost of consumption than later periods
• Units of Production Method - charge based on the expected use or output. Examples of output
or service include production units, operating hours, and distance travelled

The University utilises the Straight-Line Method of depreciation.

Depreciation is provided for all University property, plant and equipment other than land, art
collection, buildings under construction and plant and equipment in progress.

Depreciation is calculated monthly and is recorded at the University level (Corporate).

FIXED ASSET HANDBOOK VERSION 1.5 Page 22 of 31

 Fixed Asset Handbook

6.3. Depreciation Rates and Useful Lives

The current useful lives for University assets are as follows:

Assets Class Useful Life

Property:
Buildings & Infrastructure 30 - 160 years
Infrastructure 25 – 50 years
Leasehold improvements Lease term
Land (Leased) 99 years
Plant and equipment:
IT infrastructure 5 years
IT other 3 years
Motor vehicles 5 years
Other 10 years
Right of use assets:
Buildings 1 – 9 years
Plant and Equipment 1 – 5 years
Intangible assets 4 – 7 years

6.4. Review of Depreciation Method, Residual Value and Useful life

In accordance with AASB 116 Property, Plant & Equipment paragraph 61 the depreciation method
applied to an asset shall be reviewed at least at the end of each annual reporting period and, if
there has been a significant change in the expected pattern of consumption of the future economic
benefits embodied in the asset, the method shall be changed to reflect the changed pattern. Such a
change shall be accounted for as a change in an accounting estimate in accordance with AASB 108
Accounting Policies, Changes in Accounting Estimates and Errors.

In accordance with AASB 116 Property, Plant & Equipment paragraph 51 the residual value and the
useful life of an asset shall be reviewed at least at the end of each annual reporting period and, if
expectations differ from previous estimates, the change(s) shall be accounted for as a change in an
accounting estimate in accordance with AASB 108 Accounting Policies, Changes in Accounting
Estimates and Errors.

FIXED ASSET HANDBOOK VERSION 1.5 Page 23 of 31

 Fixed Asset Handbook

6.5. Depreciation Item Codes

The following item codes are used to recognise depreciation expense.

Asset Class Item Code Item Code Name
Property:
Buildings (at cost) 4122 Depn Bldg @ Cost
Buildings (at valuation) 4121 Depn Bldg @ Valn
Infrastructure (at cost) 4125 Depn Inf @ Cost
Infrastructure (at valuation) 4126 Depn Inf @ Valn
Leasehold improvements 4124 Depn Leasehold Improvements @ Cost
Plant and equipment:
IT infrastructure 4135 Depn IT Infrastructure @ Cost
IT systems 4133 Amortisation Major Intangibles @ Valn
Motor vehicles 4138 Depn Motor Vehicles
Other 4136 Depn Equipment (Non IT) @ Cost
Leased Property & plant and
equipment:
Land 4146 Amortisation Land (Leased) @ Valn
Right-of-use Asset:
Buildings 4178 Depn ROU Properties
Plant and equipment 4177 Depn ROU Motor Vehicles
Other 4179 Depn ROU Other
Intangible assets 4133 Amortisation Major Intangibles @ Valn

6.6. Responsibilities - Depreciation

Corporate Finance (Finance Unit) is responsible for:
• Processing and posting of monthly depreciation expense in fixed asset register and general
ledger
• Assess each new asset addition as to whether the benchmark useful life is suitable based on
the expected use of the asset
• Review of residual value and the useful life of an asset at least at the end of each annual
reporting period
• Review of depreciation rates so that they reflect the most recent assessment of the useful life
and residual value of the asset at least at the end of each annual reporting period
• Reconciling the fixed assets register with the general ledger after the processing of
depreciation at the end of each month

Academic and Professional Units within the University are responsible for:
• Annual assessment of remaining useful life of asset to be undertaken whilst conducting the
stocktake process

FIXED ASSET HANDBOOK VERSION 1.5 Page 24 of 31

 Fixed Asset Handbook

7. FIXED ASSET STOCKTAKE

7.1. Why undertake a Stocktake?
Under Australian Accounting Standards, the University has a statutory requirement to maintain an
accurate and updated fixed asset register. In accordance with this requirement, the University has
adopted an annual stocktake process.

Stocktakes are undertaken to:

• Verify the existence of assets recorded in the fixed asset register
• Assess the serviceability of assets
• Identify any loss or theft of assets

During this process Cost Centre Managers are responsible for providing a certificate for assets
under their control to provide confirmation of the existence and condition of the University’s
physical assets.

The University has adopted a $10,000 threshold value for recognising an asset for financial
reporting purposes and therefore not all assets owned by the University are recorded on the fixed
asset register.

7.2. Scope of Stocktake

The following classes of fixed assets are covered by annual stocktake process:
• Plant and equipment (including but not limited to IT Equipment, Motor Vehicles and Aircraft,
General and Other Equipment, Fixed Furniture and Fittings)
• Leasehold improvements
• Intangibles

All Assets listed in the classes above are required to be verified and reviewed for any required
impairment testing in the annual stocktake process. All assets are to be physically sighted where
practical, and verified via other means where not practical. In the case of intangibles, if the
software is still be utilized, it can be considered verified for stocktake purposes.

Fixed assets excluded from the stocktake process are:

• Construction in progress
• Land
• Buildings
• Plant and equipment in progress
• Art collection

7.3. Impairment
In accordance with AASB 136 Impairment of Assets the University shall assess at the end of each
reporting period whether there is any indication that an asset may be impaired. The University
completes this impairment testing as part of the stocktake process, if indicators of impairment are
present.

Impairment testing involves testing any assets where there are indications that the value of the
specific asset is worth less than the value it’s carried at on the fixed asset register (referred to as its
carrying amount/book value/depreciated value). An asset is impaired when its carrying amount is
significantly greater than its recoverable amount i.e. the amount it could be sold for.

Testing will only occur if there are indications of impairment. In assessing whether there is any
indication that an asset may be impaired, the University shall consider, as a minimum, the following
indicators:
FIXED ASSET HANDBOOK VERSION 1.5 Page 25 of 31
 Fixed Asset Handbook

External sources of information

• a significant decline in an asset’s market value as a result of time or usage
• significant changes which will have an adverse effect on the University, have taken place or are
expected to take place in the near future, in the technological, market, economic or legal
environment
Internal sources of information
• evidence of obsolescence or physical damage to an asset
• significant changes which will have an adverse effect on the University, have taken place or are
expected to take place in the near future, regarding the way an asset is used or expected to be
used
• evidence from internal reporting that indicates that the economic performance of an asset is
or will be worse than expected

An indicator is only relevant if the recoverable amount of the asset or group of assets is sensitive to
the indicator. If there is no evidence of impairment the University does not have to make a formal
estimate of recoverable amount. Where there is an indication of impairment, the University will
need to determine the recoverable amount.

During the stocktake, where impairment of an asset is identified this must be indicated on the
Asset Stocktake Reports. Those considered material will be recommended for approval by Finance
Unit (Corporate Finance) to the Chief Financial Officer and if approved, processed in the fixed
assets register.

7.4. Stocktake Process

At the commencement of the annual stocktake process Corporate Finance (Finance Unit)
distributes the Asset Stocktake Reports to the relevant cost centre managers and other relevant
staff.

Asset Stocktake Reports are prepared at an Org2 level as this is the lowest reporting entity level
attached to assets, and as a result the report may contain more than one cost centre manager.

The Asset Stocktake Report details:

• Org2
• Asset number
• Asset description
• Cost centre manager
• Location
• Serial number (if provided)
• Model number (if provided)
• Acquisition date
• Original cost
• Written down value
• Remaining useful life
• Replacement value per last year

FIXED ASSET HANDBOOK VERSION 1.5 Page 26 of 31

 Fixed Asset Handbook

The cost centre manager is responsible for the following actions in the stocktake process

1. Sight all assets listed on the reports and confirm that each asset is
• On hand and in use, or
• On hand and not in use, or
• Disposed of or written-off

Where an asset has been moved or relocated, provide the new location details on the asset
stocktake report.

Where an asset has been disposed or written-off, complete a FS68 Fixed Assets Annual Stocktake
Disposal Form which needs to be approved in accordance with section 4.2 Authorisation for
Disposal

2. Rank the condition of each asset as Good, Average or Bad

3. Assess the asset for impairment

4. Provide estimates of
• remaining useful life
• current replacement cost

5. Completion of FS65 Asset Addition form for any new assets identified.

6. Provide any identifying numbers, e.g. serial numbers or registration numbers that are not
currently recorded as part of the asset details.

7. Certify that a full stocktake of assets has been performed in accordance with this policy having
the completed asset stocktake report signed by any of the following:
• CAO – Chief Academic Officer
• CASO – Chief Academic Services Officer
• COO – Chief Operating Officer
• DVC: RE – Deputy Vice Chancellor: Research and Enterprise
• ED: PTC – Executive Director: People, Talent and Culture
• Executive Dean
• GMAU General Managers of Academic Units
• Professional Unit Director
• CFO – Chief Financial Officer

7.5. Responsibilities - Stocktake

At Corporate Finance (Finance Unit) is responsible for:

• Distribution of Asset Stocktake Reports
• Update the fixed assets register resulting from changes identified in the stocktake process

Academic and Professional Units within the University are responsible for:
• Completion of asset stocktake reports in accordance with the stocktake policy and the time
frames provided
• Ensure any missing assets are noted and the action taken to locate them
• Advise asset additions/disposals using the appropriate asset forms

FIXED ASSET HANDBOOK VERSION 1.5 Page 27 of 31

 Fixed Asset Handbook

8. ASSET REGISTER RECONCILIATION

8.1. Asset Register

The fixed asset register is maintained in Finance One (Uni Asset – Financial Workplace) and an Excel
register.

The fixed asset register details:

• Asset number
• Asset description
• Asset class
• Cost centre manager
• Org2
• Location
• Serial number (if provided)
• Model number (if provided)
• Acquisition date
• Original cost
• Accumulated Depreciation/Amortisation
• Written down value
• Useful life
• Current year additions, disposals, depreciation/amortisation expense, reclassifications and
revaluations

8.2. Reconciliations
At the end of each monthly accounting period the Finance One fixed asset register will be
reconciled to the:
• Excel register
• General ledger

These reconciliations will normally be completed within 5 working days of the relevant accounting
period end date. The reconciliations will be independently reviewed, with the review normally
being completed within 10 working days from the relevant accounting period end date.

Corporate Finance (Finance Unit) will investigate any discrepancies and take corrective action.

8.3. Outstanding Fixed Asset Purchases

Corporate Finance (Finance Unit) will maintain Capital Purchases Review spreadsheet on a monthly
basis to identify transactions which are not capitalised and contribute to the Plant and Equipment
in progress balance.

This reconciliation will normally be completed within 7 working days of the relevant accounting
period end date and distributed to Academic and Professional Units accountants.

FIXED ASSET HANDBOOK VERSION 1.5 Page 28 of 31

 Fixed Asset Handbook

This will contain outstanding asset purchases in the following item codes

Item Description
Code
1232 Asset Purchase - Computer Software (>$10k)

1512 Asset Purchase - IT Equip - Infra >$10K

1513 Asset Purchase - Vehicles > $10K

Asset Purchase - IT Equip - Student Pools/Barns

1514
> $10K

1515 Asset Purchase - AV Equipment > $10K

1521 Art Purchases > $10K

1529 Asset Purchase - Equip (Non IT) > $10K

1532 Asset Purchase - Drones > $10K

2026 Asset Purchase - Furn & Fit > $10K

8.4. Other item code reviews

During monthly accounting periods Corporate Finance (Finance Unit) will review transactions
processed in less than $10,000 item codes to identify possible asset purchases.

At a minimum the following item codes will be reviewed.

Item Description
Code
1231 Computer Software and Licences

1509 AV Equipment < $10K

1510 IT Equip - Infrastructure < $10k

1511 IT Equip - Desktop/Laptop<$10K

1516 IT Equip - Student Pools/Barns <$10k

1520 Art Purchases < $10K

1530 Equipment Pch (Non IT) <$10K

1531 Drones < $10K

2027 Furn & Fit <$10K

FIXED ASSET HANDBOOK VERSION 1.5 Page 29 of 31

 Fixed Asset Handbook

When a possible asset purchase is identified, details of the transaction will be forwarded to the
relevant Academic or Professional Unit Accountant and any other relevant staff for follow up.

Academic and Professional Unit Accountants should also consider transactions in these item codes
the identification of assets.

8.5. Responsibilities - Reconciliations

Corporate Finance (Finance Unit) is responsible for:
• Monthly reconciliation of the fixed asset register and subsequent review
• Review of property, plant and equipment purchase item codes for the identification of assets
• Maintenance of the outstanding Fixed Asset Purchases summary for monthly distribution

Academic and Professional Units within the University are responsible for:
• Review of property, plant and equipment purchase item codes for the identification of assets
and subsequent advice to Corporate Finance (Finance Unit) on a timely basis
• Review of the outstanding Fixed Asset Purchases summary and subsequent advice to
Corporate Finance (Finance Unit) on a timely basis
• Source documentation relating to acquisition (completion of FS65 Asset Addition form and
provision of supporting documents)

FIXED ASSET HANDBOOK VERSION 1.5 Page 30 of 31

 Fixed Asset Handbook

9. RELATED INFORMATION

Accounting Standards

AASB 16 Leases

AASB 116 Property, Plant and Equipment

AASB 136 Impairment of Assets

AASB 138 Intangibles

University References

IT Purchasing, Maintenance & Disposal Policy

Procurement Handbook

Professional Development Fund Guidelines

Vice Chancellors Authorisation Framework

FIXED ASSET HANDBOOK VERSION 1.5 Page 31 of 31