2015-10-14 Audit & Risk Committee Meeting - Draft Annual Financial Statements

NOOSA SHIRE COUNCIL

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

      (i) Recognised fair value measurements

      Council measures and recognises the following assets at fair value on a recurring basis:

          Property, plant and equipment
            - 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 18 is provided by the Queensland Treasury Corporation (QTC)
      and represents the market value to extinguish the debt at balance date. Liquidity risk information on Council's
      borrowings is also disclosed in note 28. This information was provided by QTC and represents the contractual
      undiscounted cash flows at balance date.

      The carrying amounts of trade receivables and trade payables are assumed to approximate their fair values
      due to their short-term nature (Level 2).

      In accordance with AASB 13 Fair Value Measurements are categorised on the following basis:
          - Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
          - Fair value based on inputs that are directly or indirectly observable for the asset or liability (Level 2)
          - Fair value based on unobservable inputs for the asset and liability (Level 3)

      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.

      The table below presents all items that are measured and recognised within the Statement of Financial Position
      at fair value. In accordance with AASB 13, all fair value measurements are recurrent and categorised as either
      Level 2 or Level 3 fair value measurements. Council does not have any assets or liabilities measured at fair
      value which meet the criteria for categorisation as Level 1.



                                                                Level 2             Level 3
                                                              (significant        (significant
                                                                 other           unobservable
                                                                                                        Total
                                                              observable            inputs)
      As at 30 June 2015                                        inputs)

      Property, plant and equipment
         - Land                                                  63,883,083        55,631,066        119,514,149
         - Buildings                                                               60,382,965         60,382,965
         - Road and Bridge Network                                                522,600,392        522,600,392
         - Storm Water                                                            112,374,058        112,374,058
         - Other Infrastructure Assets                                             57,292,496         57,292,496
                                                                 63,883,083       808,280,977




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