Annual Report 2018-19

                                                                                                   Financial Statements 2019



Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2019

Note 13. Fair Value Measurements (continued)


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.
Bridge construction index rates for the period since last valuation to 30 June 2019 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
for 2018/19.


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.
Council applied an index rate to the value of Stormwater for the period to 31 March 2018. Index rates for the period from
1 April 2018 to 30 June 2019 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 for 2018/19.

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 2019.

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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