Annual Report 2016-17

                                                                                                    Financial Statements 2017



Noosa Shire Council

Notes to the Financial Statements
 for the year ended 30 June 2017

Note 12. Fair Value Measurements (continued)



(3) Valuation techniques used to derive Level2 and Level 3 Fair Values

Where Council is unable to derive Fair Valuations using quoted market prices of identical assets
(ie. Level1 inputs) Council instead utilises a spread of both observable inputs (Level 2 inputs) and
unobservable inputs (Level 3 inputs).

The Fair Valuation techniques Council has employed while utilising Level 2 and Level 3 inputs are as follows:

Infrastructure, Property, Plant arid Equipment

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. A full comprehensive valuation is scheduled for the 2017-2018
financial year.

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.

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.

There was no material movement in the fair value of land assets and subsequently no indexation was undertaken for land
for the period 1 July 2016 to 30 June 2017




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