OMBUD COUNCIL ANNUAL REPORT 2024/25

PART F: FINANCIAL INFORMATION

DEPRECIATION AND AMORTISATION During each financial year, management reviews property, plant and equipment to assess whether the useful lives and residual values applicable to each asset are appropriate. At the end of each financial year management assesses whether there is any indication that the Ombud Council’s expectations about the useful life of assets included in property, plant and equipment have changed since the preceding reporting date. 1.3 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment comprise computer equipment. The cost of an item of property, plant and equipment is recognised as an asset when: ● it is probable that future economic benefits or service potential associated with the item will flow to the entity; and ● the cost of the item can be measured reliably. Property, plant and equipment is initially measured at cost. Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition. Subsequently all items of property, plant and equipment are measured at cost less accumulated depreciation and any impairment losses. Depreciation commences when the item of property, plant and equipment is available for use. Property, plant and equipment items are tested for impairment when there is an indicator that the asset or assets should be impaired. Property, plant and equipment are depreciated on a straightline basis at rates that will reduce their carrying value to

estimated residual value over their estimated useful lives, refer to note 6. The annual depreciation rates are based on the following average useful lives:

ITEM

DEPRECIATION METHOD

AVERAGE USEFUL LIFE

Computer equipment

Straight-line

3 – 5 years

Office equipment

Straight-line

5 – 15 years

The useful life and depreciation method of each asset are reviewed at the end of each reporting date when there’s an indicator. If the expectations differ from previous estimate, the change is accounted for as a change in accounting estimate. Items of property, plant and equipment are also tested for impairment annually when there’s an indicator that the asset or assets should be impaired. The depreciation charge for each period is recognised in the statement of financial performance. Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset. The gains or losses arising from the derecognition of an item of property, plant and equipment are included in surplus or deficit when the item is derecognised. Gains or losses arising from the derecognition of an item of property, plant and equipment are determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item. Maintenance and repairs, which neither materially add to the value of assets nor prolong their useful lives, are charged against the statement of financial performance. The entity separately discloses expenditure to repair and maintain property, plant and equipment in the notes to the financial statements (see note 6).

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OMBUD COUNCIL ANNUAL REPORT 2024/25