2022-11-14 GC Agenda - Item 5 - Attachment 1 - Annual Report 2021-22

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2022

Note 15. 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 Hierarchy   approach           valuation date   Valuer engaged       (related data sources)                       year)               adjustment

Bridges (Level 3)                      Current            31/03/2018       AssetVal Pty Ltd     Unit rates are developed according to        ABS Producer        Nil
2022: $80.2m                           replacement cost                                         varying material types used for              Price Index: 3101
2021: $72.0m                                                                                    construction, as well as deck area, size     Road and bridge
                                                                                                and length.                                  construction,
                                                                                                Construction estimates were based on         Queensland
                                                                                                actual contract prices for recently          Most Recent
                                                                                                completed projects or supply quotes for      Index Applied:
                                                                                                similar assets.                              10.1% equivalent
                                                                                                Significant bridges were separately          to 2 years (2022)
                                                                                                assessed by the valuer.
Storm water (Level 3)                  Current            30/06/2020       Jones Lang LaSalle   Unit rates determined using market costs     ABS Producer        Nil
2022: $158.3m                          replacement cost                                         for supply and installation of similar       Price Index: 3101
2021: $143.7m                                                                                   assets or their modern equivalent taking     Road and bridge
                                                                                                into consideration variables such as         construction,
                                                                                                asset size, depth, location and soil type.   Queensland
                                                                                                The first principles approach to deriving    Most Recent
                                                                                                unit rates also consists of breaking down    Index Applied:
                                                                                                each asset into its construction elements    10.1% equivalent
                                                                                                including demolition, reinstatement,         to 2 years (2022)
                                                                                                excavation, construction, delivery and
                                                                                                installation. Stormwater assets are
                                                                                                componentised into the significant
                                                                                                components which may provide different
                                                                                                function, economic benefit life. i.e.
                                                                                                pipework, valves, culverts, manholes,
                                                                                                headwalls, bio-retention basins.
Investment Property (Level 2)          Market value       30/06/2022       AEC Group            Two calculation methodologies underpin       Not Applicable      Nil
2022: $3.3 million                                                                              the market based valuation approach:         Valuations
2021: $2.9 million                                                                              - Capitalisation rate valuation approach     completed
                                                                                                - Discounted cashflow valuation              annually
                                                                                                approach




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