Annual Report 2014-15

Financial Statements 2015
City of Wanneroo
Notes to the Financial Statements
for the year ended 30 June 2015
Note 34. Fair Value Measurements (continued)
$
(3) Valuation techniques used to derive Level 2 and Level 3 Fair Values (continued)
Plant and Equipment
The City's plant and equipment was valued by Management as at 30 June 2013. Subsequent to the 2013
revaluation the assets are reviewed to ensure that the carry amount does not vary significantly from that
determination using fair value at the reporting date.
Valuations were undertaken utilising in-house professional staff referencing market conditions and the availability of
sales evidence.
Level 2 valuation inputs have been applied having regard to the condition and the useful life of the asset class.
Furniture and Equipment
It was deemed by Management that no material variance exists between the fair value of Furniture and Equipment
using level 3 inputs and the carrying cost of this class. It is considered that the value disclosed is fairly stated.
Infrastructure
All the City's infrastructure has been valued at fair value utilising in-house professional Asset Management staff.
All of the City's infrastructure assets were valued using a depreciated cost valuation technique. This method
used assets current replacement cost less accumulated depreciation calculated on the basis of such cost to
reflect potential of the asset was established then adjusted to take into account the expired service potential of
the asset.
The current replacement cost was measured by referencing the lowest cost at which the asset could be obtained
in the normal course of business.
The total cost values have been calculated using unit cost rate based on current tender and general market rates.
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construction cost and current condition and level 3 inputs being residual values and remaining useful life
assessments.
The above techniques and inputs were utilised for all of the following classes:
- Roads
- Drainage
- Pathways
- Car Parks
- Reserves
- Other Infrastructure
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| ANNUAL REPORT 2014/2015 | CITY OF WANNEROO | FINANCIAL REPORT
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