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)
                                                                                                                                             Index applied
                                                          Last                                                                               (change in index       Other interim
                                      Valuation           comprehensive                       Key assumptions and estimates                  recognised this        revaluation
Asset Class and Fair Value Hiearchy   approach            valuation date   Valuer engaged     (related data sources)                         year)                  adjustment

Roads (Level 3)                       Current            31/03/2018        AssetVal Pty Ltd   Unit rates are developed using actual          ABS Producer Price     Nil
                                      replacement cost                                        contract prices for recently completed         Index: 3101 Road
                                                                                              projects or supply quotes for similar          and bridge
                                                                                              assets based on age, size, location and        construction,
                                                                                              condition.                                     Queensland
                                                                                              A first principles approach has been           Most Recent Index
                                                                                              applied to developing unit rates by            Applied: 3.8% (2020)
                                                                                              estimating plant, material and labour
                                                                                              inputs required for design and
                                                                                              construction.
                                                                                              Where costs are not available rates were
                                                                                              obtained from the valuer's database or
                                                                                              the Rawlinson's Australian Construction
                                                                                              Handbook, 2017 Edition.
                                                                                              Roads are categorised as sealed or
                                                                                              unsealed and separated into segments
                                                                                              with three location factors for urban, rural
                                                                                              and commercial/industrial. All segments
                                                                                              are then componentised into sub-classes
                                                                                              that make up each segment. i.e. road
                                                                                              surface, road pavement base, road
                                                                                              pavement sub-base, road shoulder,
                                                                                              formation, kerb, footpath, signage, etc.

Bridges (Level 3)                     Current            31/03/2018        AssetVal Pty Ltd   Unit rates are developed according to          ABS Producer Price     Nil
                                      replacement cost                                        varying material types used for                Index: 3101 Road
                                                                                              construction, as well as deck area, size       and bridge
                                                                                              and length.                                    construction,
                                                                                              Construction estimates were based on           Queensland
                                                                                              actual contract prices for recently            Most Recent Index
                                                                                              completed projects or supply quotes for        Applied: 3.8% (2020)
                                                                                              similar assets.
                                                                                              Significant bridges were separately
                                                                                              assessed by the valuer.




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