​​​​​​​
You are here: Skip breadcrumbAttorney-General's Department >> Publications >> Annual reports >> Annual Report 2015-16 >> Note 7.5: Administered – fair value measurement

Note 7.5: Administered – fair value measurement

Previous page Next page

The following tables provide an analysis of assets and liabilities that are measured at fair value.

The different levels of the fair value hierarchy are defined as follows:

  • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Department can access at measurement date.
  • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
  • Level 3 – Unobservable inputs for the asset or liability.

7.5A: Administered – Fair value measurement

  Fair value measurements at the end of the reporting period using      
  2016
$'000
2015
$'000
Category
(Level 1,2 or 3)
Valuation technique Inputs used Range
(weighted average)
Non-financial assets            
Buildings on freehold land - 50,621 Level 3 Depreciated replacement cost Replacement cost new (price per square metre)  
          Consumed economic benefit/obsolescence of asset  
Leasehold improvements 1,977 14,239 Level 3 Depreciated replacement cost Replacement cost new (price per square metre)  
          Consumed economic benefit/obsolescence of asset  
Property, plant and equipment 2,400 882 Level 2 Market approach Adjusted market transactions  
  3,256 7,304 Level 3 Depreciated replacement cost Replacement cost new  
          Consumed economic benefit/obsolescence of asset  
Investments in associates 218,715 9,020,667 Level 2 Market approach Net assets of entities  
Investments in jointly controlled entities 130,211 119,599 Level 2 Market approach Net assets of entities  
Total non-financial assets 356,559 9,213,312        
Total fair value measurements of assets in the administered schedule of assets and liabilities 356,559 9,213,312        

The Department did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2016 (2015: nil).

There have been no changes to valuation techniques from the previous reporting period.

The Department’s assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.

The future economic benefits of the Department’s non-financial assets are not primarily dependent on their ability to generate cash flows. The department has not disclosed quantitative information about the significant unobservable inputs for the Level 3 measurements in these classes.

Significant Level 3 inputs utilised by the Department are derived and evaluated as follows:

Leasehold improvements, property, plant and equipment – consumed economic benefit/obsolescence of asset

Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the cost (depreciated replacement cost) approach. Under this approach, the estimated cost to replace the asset is calculated and then adjusted to take into account its consumed economic benefit/asset obsolescence (accumulated depreciation). Consumed economic benefit/asset obsolescence has been determined based on professional judgment regarding physical, economic and external obsolescence factors relevant to the asset under consideration.

7.5B: Reconciliation for recurring Level 3 fair value measurements

Recurring Level 3 fair value measurements – reconciliation for assets

  Non-financial assets
 

Buildings

Leasehold improvements Property, plant and equipment Total
  2016 2016 2016 2016
  $'000 $'000 $'000 $'000
As at 1 July 50,621 14,239 7,304 72,164
Total gains/(losses) recognised in other comprehensive income1 - - - -
Purchases - 1,800 141 1,941
Depreciation (496) (4,843) (2,952) (8,291)
Other movements (50,125) (9,219) - (59,344)
Disposals - - (7) (7)
Transfers out of Level 33 - - (1,230) (1,230)
Total as at 30 June - 1,977 3,256 5,233
Changes in unrealised gains/(losses) recognised in net cost of services2 - - - -

Recurring Level 3 fair value measurements – reconciliation for assets

  Non-financial assets
 

Buildings

Leasehold improvements Property, plant and equipment Total
  2015 2015 2015 2015
  $'000 $'000 $'000 $'000
As at 1 July 52,110 14,753 8,112 74,975
Total gains/(losses) recognised in other comprehensive income1 - - 303 303
Purchases - 4,113 1,942 6,055
Depreciation (1,489) (4,627) (3,053) (9,169)
Other movements - - - -
Total as at 30 June 50,621 14,239 7,304 72,164
Changes in unrealised gains/(losses) recognised in net cost of services2 - - 303 303

Notes

1 These gain/(losses) are presented in the statement of comprehensive income under ‘other comprehensive income’.

2 These unrealised gains/(losses) are presented in the statement of comprehensive income under ‘other comprehensive income’.

3 There have been transfers of assets under construction out of Level 3 during the year.

Previous page Next page