Royal Botanic Gardens Victoria Annual Report 2018-19

7. RISKS, CONTINGENCIES AND VALUATION JUDGEMENTS
Financial liabilities
Carrying
amount
Fair value
Carrying
amount
2019 2019 2018
$ $ $
Finance lease liabilities 496,179 496,179 449,163
Loan from TCV - - 145,223
496,179 496,179 594,386
Fair value
2018
$
449,163
145,223
594,386
7.2.2
h
h
h
Fair value determination of non-financial physical assets
The fair values of non-financial physical assets are determined according to the following fair value hierarchy:
Level 1 – quoted (unadjusted) market prices in active markets for identical assets or liabilities;
Level 2 – valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or
indirectly observable; and
Level 3 – valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
The Board determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the
lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.
The Valuer-General Victoria is the Board’s independent valuation agency and monitors changes in the fair value of each asset and liability
through relevant data sources to determine whether revaluation is required.
The fair value measurement hierarchy for assets at the end of the reporting period is as follows:
Carrying amount
Fair value measurement using: (a)
Level 2 Level 3
2019 2018 2019 2018 2019
$ $ $ $
Land
Specialised land 310,676,607 310,676,607 - - 310,676,607
310,676,607 310,676,607 - - 310,676,607
Buildings
Specialised buildings 17,128,625 16,774,797 - 17,128,625
Heritage assets 15,220,896 15,521,229 - 15,220,896
32,349,521 32,296,026 - - 32,349,521
Infrastructure
Specialised infrastructure 60,429,253 61,361,237 - 60,429,253
Heritage assets 904,129 942,602 - 904,129
61,333,382 62,303,839 - - 61,333,382
Plant, equipment and vehicles
Plant and equipment 2,585,952 2,249,490 - 2,585,952
Vehicles (b) 876,468 752,515 - 876,468
3,462,420 3,002,005 - - 3,462,420
Cultural assets
Antiques and artwork 9,461,339 9,377,948 9,461,339 9,377,948 - -
Specialised cultural assets 242,062,900 242,062,900 - - 242,062,900
251,524,239 251,440,848 9,461,339 9,377,948 242,062,900
Notes:
(a)
2018
$
310,676,607
310,676,607
16,774,797
15,521,229
32,296,026
61,361,237
942,602
62,303,839
2,249,490
752,515
3,002,005
242,062,900
242,062,900
Classified in accordance with the fair value hierarchy. The Board does not hold any assets classified as Level 1 assets for the reporting periods ended 30
June 2019 and 30 June 2018.
(b)
Vehicles are categorised as Level 3 assets as fair value of the vehicles is estimated based on the current replacement cost.
There have been no transfers between levels during the period.
Non-specialised antiques and artworks
Non-specialised antiques and artworks are valued using the market approach. Under this valuation method, valuation of the assets is
determined by a comparison to similar examples of the artists' work in existence throughout Australia and research on prices paid for
similar examples offered at auction or through art galleries in recent years. An independent valuation of antiques and artwork was
undertaken by the Valuer-General Victoria to determine their fair value at 30 June 2016.
ROYAL BOTANIC GARDENS BOARD VICTORIA — ANNUAL REPORT 2018–19 105
Royal Botanic Gardens Board Victoria 2018-19 Financial Report Page 28