The company’s property, plant and equipment measured at fair value at 30 June 2020 and 30 June 2019.

Non-financial assets fair value measurements – valuation processes

The company procured the service of the Jones Lang LaSalle (JLL) to undertake a comprehensive valuation of all non-financial assets at 30 June 2018. The company periodically tests the procedures of the valuation model as an internal management review (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. The company has engaged JLL to provide written assurance that the models developed comply with AASB 13.

Significant inputs utilised by the company are derived and evaluated as follows:

Leasehold Improvements – Physical Depreciation and Obsolescence

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 Depreciated Replacement Cost approach.

Sensitivity of inputs:

Leasehold Improvements & Property, Plant and Equipment – Consumed economic benefit/Obsolescence of asset

The significant unobservable inputs used in the fair value measurement of the company’s leasehold improvements asset classes relate to the physical depreciation and obsolescence deduction. A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.

Note 10B: Movement in Carrying Amounts

Movement in the carrying amounts for each class of property, plant & equipment between the beginning and the end of the financial year.

Asset Revaluation

The company’s tangible non-financial assets were independently valued in June 2018 by the JLL. The valuation was based on fair value. Through this review process, a revaluation gain of $1,041 related to the leasehold improvement being recognised in the assets revaluation reserve, a revaluation loss of $1,548 related to the plant and equipment was recognised in the comprehensive income.

The additions to Plant and Equipment occurred in March 2020 and were due to an upgrade in ICT harware. There will be a valuation carried out in FY 20-21 to determine revalued assets.