116 116 AUSTRALIAN SPORTS COMMISSION ANNUAL REPORT 2016–17 FINANCIAL PERFORMANCE AUSTRALIAN SPORTS COMMISSION NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS For the year ended 30 June 2017 basis. Financial liabilities are recognised and derecognised upon trade date. Supplier and other payables are settled within 30 days. Liabilities are recognised to the extent that the goods or services have been received (irrespective of having been invoiced). 1.12 Contingent liabilities and contingent assets The Commission has no quantifiable or unquantifiable contingent assets or liabilities as at 30 June 2017 (2016: nil). 1.13 Acquisition of assets Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate. Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition. 1.14 Property, plant and equipment Asset recognition threshold Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than the threshold for the asset’s sub-class, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total or are purchases of computer equipment). The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to ‘make-good’ provisions in property leases taken up by the Commission where there exists an obligation to restore the property to its original condition. These costs are included in the value of the Commission’s leasehold improvements with a corresponding provision for the make-good recognised. Revaluations Fair values for each class of asset are determined as shown below: Asset Class Sub-class Land Market selling price Land improvements Depreciated replacement cost Buildings (excluding leasehold improvements) Depreciated replacement cost Leasehold improvements Depreciated replacement cost Property, plant and equipment Market selling price and depreciated replacement cost