Annual Report 2020-21

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2021

Note 14. Property, Plant and Equipment (continued)

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.

Council uses internal engineers to assess the condition and cost assumptions associated with all infrastructure assets, the
results of which are considered in combination with the relevant indices independently published for the Sunshine Coast
region. Together these are used to form the basis of a management valuation for infrastructure asset classes in each of the
intervening years.

With respect to the valuation of land, improvements, and buildings classes in the intervening years, management
performs a desktop valuation on each asset class.          A desktop valuation involves management assessing the
condition and cost assumptions associated with each asset class in conjunction with the movements in the relevant
indices as outlined in the valuation techniques table in Note 14(3). Together these are used to form the basis of the
desktop valuation.

Recognised fair value measurement

Council measures and recognises the following assets at fair value on a recurring basis:
  • Investment property
  • Land
  • Buildings
  • Road and bridge network
  • Storm water
  • Other infrastructure assets

Council does not measure any liabilities at fair value on a recurring basis.

Council has assets and liabilities which are not measured at fair value, but for which fair values are disclosed in the other notes.

Council borrowings are measured at amortised cost with interest recognised in profit or loss when incurred.

The fair value of borrowings disclosed in Note 19 is provided by the Queensland Treasury Corporation (QTC) and represents
the market value to extinguish the debt at balance date. This information was provided by QTC and represents the contractual
undiscounted cash flows at balance date. Liquidity risk information on Council's borrowings is also disclosed in Note 28.

In accordance with AASB 13 fair value measurements are categorised on the following basis:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities,

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly
         or indirectly,

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

The fair values of the assets are determined using valuation techniques which maximise the use of observable data, where it is
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
included in Level 3. This is the case for Council infrastructure assets, which are of a specialist nature for which there is no active
market for similar or identical assets. These assets are valued using a combination of observable and unobservable inputs.




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