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Managing Uncertainties (cont.)

Notes to and forming part of the Financial Statements

7.4 Fair Value Measurement

Accounting Policy

Valuation of land, building and heritage and cultural assets

Independent valuations are obtained annually as at 30 June 2019 for land, buildings and heritage and cultural assets. These valuations include calculations of estimated market cash flows which are adjusted to take into account physical, economic and external factors relevant to the asset under consideration.

Valuation of infrastructure, plant and equipment

The estimated cost to replace the asset has been calculated and then adjusted to take into account obsolescence and physical deterioration (accumulated depreciation). The obsolescence has been determined based on professional judgement regarding physical, economic and external factors relevant to the asset under consideration.

An independent valuation was undertaken for all assets except intangible assets as at 30 June 2019.

7.4A: Fair Value Measurement

Fair value measurements at the end of the reporting period

2019

$'000

2018

$'000

Non-financial assets

Buildings

10,223

9,322

Plant and equipment

2,023

3,477

Heritage and cultural assets

235

234

A reconciliation of movements of assets measured at fair value is included in Note 3.2A.

7.5 Administered - Fair Value Measurement

Accounting Policy

The accounting policy for fair value disclosed at Note 7.4 applies equally to administered fair value.

7.5A: Administered - Fair Value Measurement

Fair value measurements at the end of the reporting period

2019

$'000

2018

$'000

Non-financial assets

Land

429,392

440,538

Buildings

16,278

16,686

Property, plant and equipment

347,562

358,768

Heritage assets

47,945

48,538