Investor Presentaiton
Department of Health
Notes to the financial statements
For the year ended on 30 June 2023
5.1.1
Depreciation and impairment charge for the period (continued)
Impairment
Non-financial assets, including items of plant and equipment, are tested for impairment whenever there is an indication that the asset may be impaired. Where there is an
indication of impairment, the recoverable amount is estimated. Where the recoverable amount is less than the carrying amount, the asset is considered impaired and is
written down to the recoverable amount and an impairment loss is recognised.
Where an asset measured at cost is written down to its recoverable amount, an impairment loss is recognised through profit or loss.
Where a previously revalued asset is written down to its recoverable amount, the loss is recognised as a revaluation decrement through other comprehensive income.
As the department is a not-for-profit agency, the recoverable amount of regularly revalued specialised assets is anticipated to be materially the same as fair value.
If there is an indication that there has been a reversal in impairment, the carrying amount shall be increased to its recoverable amount. However, this reversal should not
increase the asset's carrying amount above what would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised in prior years.
The risk of impairment is generally limited to circumstances where an asset's depreciation is materially understated, where the replacement cost is falling or where there is a
significant change in useful life. Each relevant class of assets is reviewed annually to verify that the accumulated depreciation/amortisation reflects the level of consumption
or expiration of the asset's future economic benefits and to evaluate any impairment risk from declining replacement costs.
Intangible assets
5.2
Year ended 30 June 2023
1 July 2022
Gross carrying amount
Accumulated amortisation
Carrying amount at start of period
Additions
Capitalised
Disposals
Expensed
Amortisation expense
Carrying amount at 30 June 2023
Gross carrying amount
Accumulated amortisation
< 163
Computer software
Works in progress
Total
$'000
$'000
$'000
1,454
34
1,488
(388)
(388)
1,066
34
1,100
1
1,539
1,540
(24)
(24)
(291)
(291)
776
1,549
2,325
1,455
1,549
3,004
(679)
(679)
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