Annual Report 2019-20

Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2020

Note 15. Fair Value Measurement                         (continued)


Council applied an index rate of 3.8% to the value of roads assets for the period from 1 April 2018 to 30
June 2020. This resulted in an increase to the value of roads assets of $17.2 million.

Accumulated Depreciation
In determining the level of accumulated depreciation, roads are disaggregated into significant components which
exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.

Bridges (Level 3)
The fair value of Roads and Bidges was last comprehensively valued at 31 March 2018 by independent valuers
AssetVal Pty Ltd.

All bridges, with exception to 3 major bridges, were valued based on unit rates developed according to varying
material types used for construction, as well as the deck area, size and length of construction. Construction
estimates were determined on a similar basis to roads. Significant bridge structures were individually assessed by
AssetVal Ply Ltd.

Council applied an index rate of 3.8% to the value of bridge assets for the period from 1 April 2018 to 30
June 2020. This resulted in an increase to the value of roads assets of $4.52 million.

Accumulated Depreciation
In determining the level of accumulated depreciation, bridges are disaggregated into significant components which
exhibit different useful lives. Useful lives are an estimate of the total service capacity in years for that type of asset.

Stormwater (Level 3)
A comprehensive valuation of stormwater infrastructure was undertaken by independent valuers Jones Lang LaSalle
effective 30 June 2020. As there is a significant level of professional judgement used in determining the valuation
due to the level of unobservable data, the valuation of drainage assets has been determined as Level 3.

The fair value unit rates were determined using the prevailing market costs for supply and installation of similar assets
or their modern equivalent. The methodology for calculation of unit rates from first principles consists of breaking down
each asset into its cost components such as demolition, reinstatement, excavation, construction, delivery and
installation. The models used to determine the unit rates included internal selection of variables for asset size, depth,
location and soil type.

Accumulated Depreciation
In determining the level of accumulated depreciation. stormwater assets are disaggregated into significant
components which exhibit different useful lives. Useful lives are an estimate of the total service capacity in years
for that type of asset.

Investment Property
Investment Property was valued at fair value by AEC Group Limited, an independent professionally qualified valuation
firm, as at 30 June 2020.

A market-based approach was applied to determine the fair value of investment property. The two calculation
methodologies underpinning this approach by the valuation firm are the capitalisation rate valuation approach and the
discounted cashflow valuation approach.




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