Note 5.3A - Fair value measurement
Heritage and cultural
Plant and equipment
Total non-financial assets (recurring fair value measurement)
As a consequence of the COVID-19 pandemic and associated restrictions, the valuers were not able to physically visit the Library's collections as was the case in previous full valuations. Given these restrictions, a modified desktop valuation approach was developed to conduct the valuation of the Heritage and Cultural Collection assets. The results indicated a valuation range or 95% confidence interval of $999.607m to $1,290.756m with a relative standard error (RSE) of 6.49%. The fair value adopted of the Collection as a whole reflects the specialised knowledge of the Collection and current market conditions.
The valuation results for the Heritage and Cultural Collection is current as at 30 June 2020. Market conditions are changing from the impact of the COVID-19 pandemic and future valuation results may change due to current significant market uncertainty. Further work will be carried out in 2020-21 to better understand these implications and the impact of any on-going uncertainties.
The NLA did not measure any non-financial assets at fair value on non-recurring basis at 30 June 2020.
Recurring Level 3 fair value measurements – valuation processes
On an annual basis the NLA engages professional independent valuers with appropriate skills and experience to ensure that assets held at fair value are held at current fair value. For the 30 June 2020 valuation the NLA engaged the following valuers:
Land, building and leasehold improvements: Herron Todd White (Canberra) Pty Ltd.
Tangible heritage and cultural assets (i.e. National Collection): Jones Lang Lasalle Advisory Pty Ltd.
Other property, plant and equipment: Pickles Valuation Services were engaged to confirm that current values did not materially differ to fair value.
The NLA relies on the valuation models provided by the valuers and it is the NLA’s policy to seek valuation advice annually to confirm that all valuations remain current. All contracted valuers are required to provide written assurance that the valuation models used are in compliance with AASB 13 Fair Value Measurement.
Transfers between fair value hierarchy levels
It is the NLA’s policy to recognise transfers into and out of the fair value hierarchy levels as at the end of the reporting period.