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)



Bridges (Level 3)

A full valuation of bridges assets was undertaken by independent valuers, Aurecon Australia Pty Ltd effective 1 January
2014. All bridges, with exception to 3 major bridges, were valued based on unit rates developed according to varying
material types used for construction, the deck area, size and length. Construction estimates were determined on a similar
basis to roads. Significant bridge structures were individually assessed by Aurecon Australia Ply Ltd.

Roads and Bridges index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and
therefore the values are considered still at fair value. As a result of this, no indexation has been applied to this class.

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 Aurecon Australia Pty
Ltd effective 30 June 2015. 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.

Stormwater index rates for the period 1 July 2016 to 30 June 2017 shows no significant material changes and therefore
the values are considered still at fair value. As a result of this, no indexation has been applied to this class.

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 vauation
firm, as at 30 June 2017.

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




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