Annual Report 2014-15

NOOSA SHIRE COUNCIL

Notes to the financial statements
For the year ended 30 June 2015
  14  Fair value measurements continued

                        .               noe     ar      {significant     (significant   |},  4    ey
       a              :             ;     see     ee       other        unobservable |, °    Total    :
             Doe      i    ;            Se              Observable         inputs)      Pe agen    Ag tt
      As at 30 June.2014                      dey         inputs)                           eee
      Property, plant and equipment
          - Land                                           65,314,000      55,631,066      120,945,066
          - Buildings                                                      59,359,897       59,359,897
          - Road and Bridge Network                                       525,690,984      525,690,984                            .
          - Storm Water                                                   104,337,298      104,337,298
          - Other Infrastructure Assets                                    54,356,557       54,356,557
                                                           65,314,000 |   799,375,802

      There were no transfers between level 2 and 3 during the financial year.
      Council's policy is to recognise transfers in and out of the fair value hierarchy levels as at the end of the
      reporting period.
      {ii) Valuation techniques used to value Council assets comprise:                                 ~
      Land (level 2 and 3)
      Land fair values were determined by independent valuer, AssetVal Pty Ltd effective 1 January 2014.
      Fair values have been derived based on a combination of market approach and direct comparison
      by analysing land sales occurring over the past year within the Noosa Shire Council area.
      Where there was an active and liquid market as evidenced by sales transactions of similar property types,
      a market approach by way of direct comparison or income methods can be utilised, and are accepted
      valuation methodologies under AASB 13. If a market approach is adopted, the valuation is deemed to be
      a Level 2 input.
      The direct comparison method which is considered a Level 2 input on the fair value hierarchy, involves the
      analysis of sales evidence and comparisons with the subject land taking into account matters such as
      area, location and other general site characteristics. Direct Comparison approach was utilised in the
      assessment for all Council land assets, however, the fair value measurement has been either a Level 2               ;
      or 3, depending on the assumptions as to:
      -  Whether the land is subject to restrictions as to use and/or sale;
      -  Whether there is no active market.

      lf the above assumptions applied to the land as per Queensland Treasury NCAP 3, fair value has been
      assessed as a Level 3. However if an active market was established and there are no unreasonable
      restrictions as to use and/or sale, measurement was deemed to be a Level 2.
      Land that is utilised for footpath or access restriction purposes, land that is a volumetric title, or due to
      its general characteristics land that has no observable active market have been assessed as a Level 3.
      Buildings (level 3)
      For the majority of Council's buildings, there is no active market due to the specialised nature of the assets
      and the services they provide. The fair value of buildings were independently valued by registered valuers
      Ausiralia Pacific Valuers, effective 30 June 2015.

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