Notes to the financial statements - 6.3 Fair Value Measurement
6.3 Fair Value Measurement |
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Accounting Policy An annual assessment is undertaken to determine whether the carrying amount of the assets is materially different from the fair value; comprehensive valuations are carried out at least once every three years. The valuation models developed by the valuer are in compliance with AASB 13. The methods utilised to determine and substantiate the unobservable inputs are derived and evaluated as follows: 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. Under this approach the estimated cost to replace the asset is calculated and then adjusted to take into account physical depreciation and obsolescence. Physical depreciation and obsolescence has been determined based on professional judgement regarding physical, economic and external obsolescence factors relevant to the asset under consideration. For all leasehold improvement assets, the consumed economic benefit / asset obsolescence deduction is determined based on the term of the associated lease. GA's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period. |
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6.3A: Fair value measurement |
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Fair value measurements |
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2019 |
2018 |
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$'000 |
$'000 |
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Non-financial assets 1 |
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Land 4 |
1,255 |
1,255 |
Building 5 |
325 |
345 |
Leasehold Improvements 5 |
21,383 |
15,553 |
Infrastructure, Plant and Equipment 2 |
3,677 |
3,096 |
Infrastructure, Plant and Equipment 5 |
23,018 |
24,698 |
Heritage and Cultural Collection 2 |
2,769 |
2,054 |
Heritage and Cultural Collection (CPC Collection) 2 |
200 |
200 |
Work in Progress - Building 5 |
34 |
0 |
Work in Progress - Leasehold Improvements 3 |
513 |
878 |
Work in Progress - Infrastructure, Plant & Equipment 3 |
3,990 |
3,031 |
Total fair value measurements of assets in the Statement of Financial Position |
57,164 |
51,110 |
1. JLL Public Sector Valuations Pty Ltd undertook a comprehensive revaluation of GA's Heritage and Cultural Collection; other asset classes undertook an annual assessment. It was determined that the carrying amount of all non-financial assets at 30 June 2019 is not materially different from their fair value (2018: non-financial assets undertook an annual assessment). GA has relied upon those outcomes to establish carrying amounts. |
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2. Valuation technique used: Level 2 - Market Approach |
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3. Valuation technique used: Level 2 - Replacement Cost |
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4. Valuation technique used: Level 3 - Market Approach |
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5. Valuation technique used: Level 3 - Depreciated Replacement Cost |
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https://www.transparency.gov.au/annual-reports/geoscience-australia/reporting-year/2018-2019-61