Annual Report 2014

NOOSA SHIRE COUNCIL

Notes to the financial statements
For the six months ending 30 June 2014

        (ii) Valuation techniques used to derive fair values for Jevel 2 and level 3 valuations
                   Council adopted 44SB/3 Fair Value Measurement this financial year and has reviewed each valuation to ensure compliance with the requirements of
                   the new standard. There have been no changes in valuation techniques as a result of this review.

        Specific valuation techniques used to value Council assets comprise:
        Property, plant and equipment
              Land (level 2)
                   Land fair values were detennined by an independent valuer, AssetVal Pty Ltd effective 1 January 2014. Level 2 valuation inputs were used to value land
                   in freehold title as well as land used for special purposes, which is restricted in use under current zoning rules. Sales prices of comparable land sites in
                   close proximity are adjusted for differences in key attributes such as property size, The most significant inputs into this valuation approach are price per
                   square metre.

              Buildings (ievel 3}
                   A review of the fair valuc of buildings was undertaken effective 1 January 2014 using the non residential cost of construction index rates. The index
                   showed an decrease of -0.697% since 30 June 2013. This index was used to detennine the fair-value of ihe buildings as at | January 2014

                    In determining the level of accumulated depreciation the asset has been disagercgated into significant components which exhibit useful lives,
                   Allowanee has been made for the typical asset life cycle and renewal treatments of each component, the residual value at the time the assct is
                   considered to be no longer available for use and the condition of the asset. Condition was assessed taking into account both physical characteristics as
                   well as holistic factors such as functionality, capability, utilisation and obsolescence.

                   The last comprehensive revaluation of Buildings was completed by Australian Pacific Valuers under the auspices of Sunshine Coast Regional Council
                    as at 30 June 2012.

                    A review of market data obtained from the Australian Burcau of Statistics, Non residential cost of Construction Queensiand Index rates for the period |
                    January 2014 to 30 June 2034 shows no significant material changes and therefore the values are considered still at fair value.
              Infrastructure assets (level 3)
                    All Councit infrastructure assets were fair valued using written down current replacement cost (CRC). This valuation comprises the asset's current
                    replacement cost (CRC) Jess accumulated depreciation calculated on the basis of such cost to reflect the already consumed or expired future economic
                    benefits of the asset. Council first detennined the gross cost of replacing the full service potential of the asset and then adjusted this amount to take
                    account of the expired service potential of the asset.
                    CRC was measured by reference to the lowest cost at which the gross future economic benefils of the assct could currently be oblained iu the nonmal
                    course of business. Where existing assets were over designed, had excess capacity, or were redundant an adjustment was madc so that the resulting
                    valuation reflected the cost of replacing the existing economic benefits based on an cfficicnt sct of tnodern equivalent assels to achieve the required
                    level of service output within the council's planning honzon.
              Specific valuation techniques used to value Council infrastructure assets comprise:
                i(a} Road and Bridge Network - calculation of current replacement cost
                    Roads
                    Current replacement cost:
                    Roads Infrastructure fair vahtes were determined by an independent valuer, Aurecon Australia Pty Lid effective 1 January 2014. The valuation
                    technique used to determine fair value is essentially bascd on price modelling of the fair value through ‘Levet 3' unobservable inputs.
                    Assets have been vaiued on the basis of fair value in accordance with the requireinents of applicable Australian Accounting Standards, in particular
                    AASB 116 Property,
5	1	1	1	41	4	661	2328	62	22	92	Plaut
5	1	1	1	41	5	733	2330	20	20	92	&
5	1	1	1	41	6	760	2330	127	26	95	Equipment
5	1	1	1	41	7	894	2328	45	22	95	and
5	1	1	1	41	8	944	2328	69	22	95	AASB
5	1	1	1	41	9	1023	2328	26	22	96	13
5	1	1	1	41	10	1059	2328	57	22	18	‘Fair
5	1	1	1	41	11	1127	2327	64	23	62	Value
5	1	1	1	41	12	1199	2328	162	22	96	Measurement.
5	1	1	1	41	13	1839	2328	7	8	42	,
4	1	1	1	42	0	406	2384	1723	30	-1	
5	1	1	1	42	1	406	2390	44	21	93	The
5	1	1	1	42	2	460	2388	109	23	92	fair-value
5	1	1	1	42	3	577	2388	44	23	96	unit
5	1	1	1	42	4	630	2391	42	19	96	rate
5	1	1	1	42	5	679	2394	46	16	96	was
5	1	1	1	42	6	733	2387	130	23	95	determined
5	1	1	1	42	7	871	2387	62	27	96	using
5	1	1	1	42	8	942	2388	33	20	96	the
5	1	1	1	42	9	984	2387	117	27	96	prevailing
5	1	1	1	42	10	1110	2387	80	21	96	market
5	1	1	1	42	11	1199	2390	45	18	96	cost
5	1	1	1	42	12	1254	2387	32	21	96	for
5	1	1	1	42	13	1293	2387	77	27	92	supply
5	1	1	1	42	14	1377	2387	39	21	96	and
5	1	1	1	42	15	1427	2385	126	23	96	installation
5	1	1	1	42	16	1560	2385	28	22	97	of
5	1	1	1	42	17	1592	2385	81	22	96	similar
5	1	1	1	42	18	1680	2388	67	19	96	assets
5	1	1	1	42	19	1755	2391	25	16	96	or
5	1	1	1	42	20	1787	2384	54	23	95	their
5	1	1	1	42	21	1847	2385	89	22	45	modem
5	1	1	1	42	22	1944	2384	125	28	96	equivalent.
5	1	1	1	42	23	2084	2384	45	21	96	The
4	1	1	1	43	0	406	2421	1708	32	-1	
5	1	1	1	43	1	406	2424	44	23	96	unit
5	1	1	1	43	2	459	2429	54	18	96	rates
5	1	1	1	43	3	519	2432	56	15	96	were
5	1	1	1	43	4	583	2424	170	29	86	predominantly
5	1	1	1	43	5	759	2424	117	28	96	developed
5	1	1	1	43	6	887	2424	52	22	93	from
5	1	1	1	43	7	951	2424	45	22	95	first
5	1	1	1	43	8	1004	2423	115	29	96	principles
5	1	1	1	43	9	1127	2424	28	26	97	by
5	1	1	1	43	10	1163	2423	120	27	93	estimating
5	1	1	1	43	11	1290	2423	35	21	84	the
5	1	1	1	43	12	1334	2423	63	27	96	plant,
5	1	1	1	43	13	1406	2421	93	23	95	material
5	1	1	1	43	14	1508	2423	40	21	96	and
5	1	1	1	43	15	1557	2423	74	21	96	labour
5	1	1	1	43	16	1638	2421	97	28	96	required
5	1	1	1	43	17	1743	2421	34	22	96	for
5	1	1	1	43	18	1784	2424	56	20	95	asset
5	1	1	1	43	19	1847	2421	147	28	25	replacement.
5	1	1	1	43	20	2010	2421	46	22	96	The
5	1	1	1	43	21	2063	2421	51	22	96	base
4	1	1	1	44	0	408	2457	1724	31	-1	
5	1	1	1	44	1	408	2466	53	17	96	rates
5	1	1	1	44	2	469	2468	53	15	96	were
5	1	1	1	44	3	531	2462	89	21	95	sourced
5	1	1	1	44	4	628	2462	55	21	96	from
5	1	1	1	44	5	693	2462	54	21	94	focal
5	1	1	1	44	6	756	2460	104	28	96	suppliers
5	1	1	1	44	7	868	2460	109	23	96	estimates
5	1	1	1	44	8	984	2460	41	22	96	and
5	1	1	1	44	9	1034	2464	82	24	89	quotes,
5	1	1	1	44	10	1125	2464	93	18	96	contract
5	1	1	1	44	11	1227	2459	111	23	96	schedules
5	1	1	1	44	12	1347	2459	33	21	96	for
5	1	1	1	44	13	1386	2459	59	21	96	work
5	1	1	1	44	14	1452	2459	92	27	96	recently
5	1	1	1	44	15	1553	2459	119	27	96	completed
5	1	1	1	44	16	1682	2459	39	21	96	and
5	1	1	1	44	17	1730	2457	84	23	96	council
5	1	1	1	44	18	1824	2459	91	21	94	records,
5	1	1	1	44	19	1931	2459	75	20	96	Where
5	1	1	1	44	20	2015	2460	57	19	84	costs
5	1	1	1	44	21	2079	2457	53	22	96	have
4	1	1	1	45	0	408	2493	1651	32	-1	
5	1	1	1	45	1	408	2502	35	19	96	not
5	1	1	1	45	2	450	2499	55	22	96	been
5	1	1	1	45	3	513	2498	79	27	96	readily
5	1	1	1	45	4	600	2498	102	21	36	available
5	1	1	1	45	5	711	2498	48	21	96	then
5	1	1	1	45	6	768	2501	54	18	96	rates
5	1	1	1	45	7	831	2504	56	15	96	were
5	1	1	1	45	8	895	2496	100	23	93	obtained
5	1	1	1	45	9	1004	2496	54	22	93	from
5	1	1	1	45	10	1067	2496	115	22	36	Aurecon's
5	1	1	1	45	11	1190	2499	46	19	93	cost
5	1	1	1	45	12	1244	2496	99	22	96	database
5	1	1	1	45	13	1352	2502	22	16	96	or
5	1	1	1	45	14	1382	2496	34	22	96	the
5	1	1	1	45	15	1425	2495	122	23	96	Rawlinson
5	1	1	1	45	16	1554	2495	59	23	96	2014
5	1	1	1	45	17	1620	2495	80	21	96	edition
5	1	1	1	45	18	1707	2495	29	21	96	of
5	1	1	1	45	19	1740	2495	34	21	96	the
5	1	1	1	45	20	1782	2493	119	23	96	Australian
5	1	1	1	45	21	1911	2493	148	23	87	Construction
4	1	1	1	46	0	408	2535	123	22	-1	
5	1	1	1	46	1	408	2535	123	22	96	Handbook.
4	1	1	1	47	0	408	2571	1736	32	-1	
5	1	1	1	47	1	408	2576	90	23	96	Council
5	1	1	1	47	2	507	2583	48	16	94	uses
5	1	1	1	47	3	562	2577	13	22	94	3
5	1	1	1	47	4	585	2576	84	23	96	distinct
5	1	1	1	47	5	677	2576	93	21	96	location
5	1	1	1	47	6	779	2576	76	21	96	factors
5	1	1	1	47	7	864	2574	141	29	96	categorising
5	1	1	1	47	8	1014	2574	26	23	95	its
5	1	1	1	47	9	1047	2576	51	21	95	road
5	1	1	1	47	10	1109	2574	154	22	49	infrastructure
5	1	1	1	47	11	1272	2574	44	22	96	into
5	1	1	1	47	12	1325	2574	70	23	88	urban,
5	1	1	1	47	13	1406	2573	51	23	95	rural
5	1	1	1	47	14	1466	2574	39	22	96	and
5	1	1	1	47	15	1515	2573	136	22	93	commercial
5	1	1	1	47	16	1659	2575	8	18	92	/
5	1	1	1	47	17	1674	2573	116	21	94	industrial.
5	1	1	1	47	18	1808	2573	71	21	96	Roads
5	1	1	1	47	19	1886	2579	35	15	94	are
5	1	1	1	47	20	1931	2573	77	21	93	further
5	1	1	1	47	21	2015	2571	129	28	91	categoriscd
4	1	1	1	48	0	408	2609	1696	30	-1	
5	1	1	1	48	1	408	2619	23	16	96	as
5	1	1	1	48	2	438	2613	71	22	96	sealed
5	1	1	1	48	3	517	2619	25	16	96	or
5	1	1	1	48	4	549	2613	99	22	95	unseated
5	1	1	1	48	5	658	2612	40	23	93	and
5	1	1	1	48	6	706	2612	103	27	88	inanaged
5	1	1	1	48	7	819	2612	21	21	96	in
5	1	1	1	48	8	849	2615	113	24	96	segments.
5	1	1	1	48	9	971	2612	34	21	83	Al]
5	1	1	1	48	10	1016	2612	48	21	96	road
5	1	1	1	48	11	1074	2615	108	23	96	segments
5	1	1	1	48	12	1191	2618	33	14	96	are
5	1	1	1	48	13	1233	2610	50	22	96	then
5	1	1	1	48	14	1290	2610	80	22	93	further
5	1	1	1	48	15	1376	2609	173	29	60	componentiscd
5	1	1	1	48	16	1559	2609	42	23	95	into
5	1	1	1	48	17	1611	2610	34	22	97	the
5	1	1	1	48	18	1653	2610	40	22	96	sub
5	1	1	1	48	19	1700	2609	80	23	96	classes
5	1	1	1	48	20	1788	2609	26	21	95	of
5	1	1	1	48	21	1818	2605	68	38	95	assets
5	1	1	1	48	22	1895	2609	44	21	96	that
5	1	1	1	48	23	1946	2609	62	21	96	make
5	1	1	1	48	24	2015	2615	27	21	96	up
5	1	1	1	48	25	2052	2609	52	21	67	each
4	1	1	1	49	0	408	2644	1744	33	-1	
5	1	1	1	49	1	408	2653	101	24	90	segment,
5	1	1	1	49	2	519	2649	32	22	76	i.e.
5	1	1	1	49	3	568	2649	59	22	96	Road
5	1	1	1	49	4	636	2649	95	23	76	Surface,
5	1	1	1	49	5	739	2649	59	22	95	Road
5	1	1	1	49	6	807	2653	113	24	91	pavement
5	1	1	1	49	7	927	2660	9	5	79	-
5	1	1	1	49	8	945	2648	57	24	96	base,
5	1	1	1	49	9	1011	2648	59	21	96	Road
5	1	1	1	49	10	1079	2651	114	24	93	pavement
5	1	1	1	49	11	1200	2660	9	3	92	-
5	1	1	1	49	12	1217	2648	106	21	52	sub-base.
5	1	1	1	49	13	1332	2648	60	21	96	Road
5	1	1	1	49	14	1400	2647	103	24	96	shoulder,
5	1	1	1	49	15	1512	2646	126	25	96	Formation,
5	1	1	1	49	16	1649	2646	72	25	96	Kerbs,
5	1	1	1	49	17	1731	2646	107	28	91	footpaths
5	1	1	1	49	18	1845	2649	40	19	89	etc,
5	1	1	1	49	19	1896	2646	56	22	93	Each
5	1	1	1	49	20	1959	2648	56	19	83	asset
5	1	1	1	49	21	2030	2645	44	21	83	unit
5	1	1	1	49	22	2083	2648	42	18	96	rate
5	1	1	1	49	23	2134	2644	18	22	96	is
4	1	1	1	50	0	408	2682	1157	31	-1	
5	1	1	1	50	1	408	2685	128	23	96	determined
5	1	1	1	50	2	546	2693	27	14	96	on
5	1	1	1	50	3	580	2688	47	20	96	cost
5	1	1	1	50	4	634	2688	22	19	96	to
5	1	1	1	50	5	664	2689	112	21	91	construct,
5	1	1	1	50	6	786	2684	93	23	86	materia}
5	1	1	1	50	7	889	2690	47	23	96	type
5	1	1	1	50	8	945	2685	41	22	95	and
5	1	1	1	50	9	995	2685	69	22	95	useful
5	1	1	1	50	10	1073	2684	37	21	96	life
5	1	1	1	50	11	1119	2688	23	17	96	to
5	1	1	1	50	12	1151	2684	100	23	95	facilitate
5	1	1	1	50	13	1260	2682	107	23	91	valuation
5	1	1	1	50	14	1376	2684	39	21	96	and
5	1	1	1	50	15	1424	2682	141	28	96	depreciation
4	1	1	1	51	0	160	3355	2149	42	-1	
5	1	1	1	51	1	214	3385	127	12	15	ee
5	1	1	1	51	2	470	3374	47	18	28	Ee
5	1	1	1	51	3	1986	3362	128	32	0	certified
5	1	1	1	51	4	2129	3355	180	34	96	statements
4	1	1	1	52	0	1209	3430	89	25	-1	
5	1	1	1	52	1	1209	3431	53	24	96	Page
5	1	1	1	52	2	1271	3430	27	19	96	27