Noosa Council Annual Report 24/25

Noosa Council                                                                                                                           Noosa Council
Notes to the Financial Statements                                                                                                       Notes to the Financial Statements
for the year ended 30 June 2025                                                                                                         for the year ended 30 June 2025

Note 15. Property, Plant and Equipment (continued)                                                                                      Note 15. Property, Plant and Equipment (continued)
§Note/Subtotal§




(a) Recognition and Measurement                                                                                                         Council uses internal and external engineers to assess the condition and cost assumptions associated with all infrastructure
                                                                                                                                        assets, the results of which are considered in combination with the relevant cost index for region. Together these are used to
Recognition                                                                                                                             form the basis of a management valuation for infrastructure asset classes in each of the intervening years.

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation       With respect to the valuation of land and improvements, and buildings classes in the intervening years, management performs
and accumulated impairment losses. Items of property, plant and equipment with a total value of less than $5,000, $1,000 for            a desktop valuation. A desktop valuation involves management assessing the condition and cost assumptions associated with
computer equipment and $15,000 for buildings, except for land and network assets (which have a recognition threshold of $1)             each asset class in conjunction with the movements in the relevant indices as outlined in the valuation techniques table in
are treated as an expense in the year of acquisition. All other items of property, plant and equipment are capitalised.                 Note 15(3). In some instances, Council will obtain industry indices from appropriately qualified valuers to make an assessment
                                                                                                                                        of fair value movements together these are used to form the basis of the desktop valuation. Indexation is only applied where
The classes of property, plant and equipment recognised by Council are set out in the table contained in this note.                     the cumulative change in the index from the most recent comprehensive valuation is more than 5%, this avoids volatility in
                                                                                                                                        fair values in the interceding years.
Acquisition of Assets
                                                                                                                                        Recognised Fair Value Measurement
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as consideration
plus costs incidental to the acquisition, including freight in, architect's fees, engineering design fees and all other establishment   Council measures and recognises the following assets at fair value on a recurring basis:
costs.                                                                                                                                    • Investment property
                                                                                                                                          • Land
Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair value by               • Buildings
Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair value is the price             • Road and bridge network
that would be received to sell the asset in an orderly transaction between market participants at the measurement date.                   • Storm water
                                                                                                                                          • Other infrastructure assets




                                                                                                                                                                                                                                                                                  Noosa Council Annual Report 24/25
Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life of the
non-current asset is expensed as incurred, while expenditure that relates to replacement of a major component of an asset               Council does not measure any liabilities at fair value on a recurring basis.
to maintain its service potential is capitalised.
                                                                                                                                        In accordance with AASB 13 fair value measurements are categorised on the following basis:
Capital Work in Progress
                                                                                                                                        Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities,
The cost of property, plant and equipment being constructed by Council includes the cost of purchased services, materials,
direct labour and an appropriate proportion of labour overheads.                                                                        Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly
                                                                                                                                                 or indirectly,

(b) Depreciation
§Subnote§




                                                                                                                                        Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

Land, work in progress, certain cultural and heritage assets with heritage listing, road formations and formation work associated       The fair values of the assets are determined using valuation techniques which maximise the use of observable data, where it is
with the construction of dams, levee banks and reservoirs are not depreciated.                                                          available, and minimise the use of entity specific estimates. If all significant inputs required to fair value an asset are observable,
                                                                                                                                        the asset is included in Level 2. If one or more of the significant inputs is not based on observable market data, the asset is
Depreciation, where applicable, is calculated on a straight-line basis. Management believe that the straight-line basis                 included in Level 3. This is the case for Council infrastructure assets, which are of a specialist nature for which there is no active
appropriately reflects the pattern of consumption of all Council assets                                                                 market for similar or identical assets. These assets are valued using a combination of observable and unobservable inputs.

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected                 The table below presents all items that are measured and recognised within the Statement of Financial Position at fair value.
utility of the assets. Uncertainties in these estimates relate to technical or physical obsolescence that may change the utility        In accordance with AASB 13, all fair value measurements are on a recurring basis and categorised as either Level 2 or Level
of infrastructure assets.                                                                                                               3 fair value measurements. Council does not have any assets or liabilities measured at fair value which meet the criteria for
                                                                                                                                        categorisation as Level 1.
(c) Impairment
§Subnote§




Property, plant and equipment held at cost is assessed for indicators of impairment annually. If an indicator of possible
impairment exists, the Council determines the asset's recoverable amount. Any amount by which the asset's carrying
amount exceeds the recoverable amount is recorded as an impairment loss.


(d) Valuation
§Subnote§




Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation basis, at fair
value, in accordance with AASB 116 Property, Plant and Equipment and AASB 13 Fair Value Measurement requirements.
Other plant and equipment and work in progress are measured at cost.

Non-current physical assets measured at fair value are revalued, where required, so that the carrying amount of each class of
asset does not materially differ from its fair value at the reporting date. This is achieved by engaging independent, professionally
qualified valuers to determine the fair value for each class of property, plant and equipment assets every three to five years.
This process involves the valuer physically sighting a representative sample of Council assets across all asset classes and
making their own assessments of the condition of the assets at the date of inspection.


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