Page 56 - RCPA Annual Report 2016-17

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Notes to the Financial Statements
THE ROYAL COLLEGE OF PATHOLOGISTS OF AUSTRALASIA
ABN 52 000 173 231
NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 JUNE 2017
11. Property, Plant and Equipment (continued) (a) Movement in carrying amounts
Movement in the carrying amounts for each class of property, plant and equipment between the beginning and end of the current year are as follows:
Land and Computer Buildings Equipment &
Software $$$$$$
Balance at beginning of year
Additions
Disposals ------
Depreciation expense
Carrying amount at the end of year
(17,876)
4,207,263
(114,008) (48,879)
142,211 430,500
- (18,691) (199,454)
Plant, Equipment & Furniture
Work in Leased Total progress - Assets
3,799,547 202,024 137,665 - 79,527 4,218,763 425,592 54,195 341,714 50,742 - 872,243
Building
50,742
60,836 4,891,552
(b) Fair value of land and buildings
The Directors obtained professional advice from an insurance valuer to ascertain the insurance replacement value of the freehold property owned by the College at 203-205 Albion Street, Surry Hills. The advice received was dated May 2016. Based on the valuation provided, the property has a current replacement value of $3.136 million. This valuation takes into account the age and condition of the property, recent comparable sales and the fact that the property is heritage listed. In addition, the Directors obtained a market valuation for the property from a licensed independent valuer. Their report is dated 20 April 2015 and the market value of the property was found to be $2.8 million. In the Directors opinion, the independent valuation best reflects current market conditions and the recoverable amount of the property. An impairment charge of $148,185 was recorded in 2016. The carrying value of the property remains at $2.8 million as at 30 June 2017.
The Directors considered the valuation of the property owned by the College at 207 Albion Street, Surry Hills and obtained professional advice from an insurance valuer to ascertain the insurance replacement value. The advice received was a formal valuation and was dated May 2013. Based on the valuation provided, the property has a current replacement value of $2.78 million. This valuation takes into account the age and condition of the property, recent comparable sales and the fact that it is heritage listed. The above value does not include costs of realisation, estimated to be in the range of 3% to 4%. In the Directors opinion, this valuation and current market conditions continue to support that the carrying value of the property of $1.29 million, is not in excess of it’s recoverable amount.
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ANNUAL REPORT • 2016 - 2017