Royal Botanic Gardens Victoria Annual Report 2018-19

7. RISKS, CONTINGENCIES AND VALUATION JUDGEMENTS
Specialised Buildings Vehicles Plant and Infrastructure
2018 land equipment
$ $ $ $ $
Opening balance 254,400,000 32,742,517 417,341 2,186,212 62,908,162
Purchases/(sales) - 120,631 445,754 416,581 739,555
Specialised
Cultural
$
242,062,900
-
Gains or losses recognised in net result:
Impairments - - - - -
Depreciation - (567,122) (110,580) (353,303) (1,343,878)
-
-
Gains or losses recognised in other economic flows - other comprehensive income:
Revaluations 56,276,607 - - - -
Closing balance 310,676,607 32,296,026 752,515 2,249,490 62,303,839
-
242,062,900
A description of significant unobservable inputs to Level 3 valuations is as follows:
Asset Category Valuation technique Significant unobservable inputs
Specialised Land • Market approach • Community Service Obligation (CSO)
adjustment
Buildings (specialised and heritage) • Current Replacement Cost • Direct cost per square metre
• Useful life of buildings
Vehicles • Current Replacement Cost • Cost per unit
• Useful life of vehicles
Plant and Equipment • Current Replacement Cost • Cost per unit
• Useful life of plant and equipment
Infrastructure (specialised and heritage) • Current Replacement Cost • Cost per unit
• Useful life of infrastructure assets
Specialised Cultural Assets • Current Replacement Cost • Cost per unit
• Size of collections
7.3 Contingent liabilities
Contingent liabilities are:
h
h
possible obligations that arise from past events, whose existence will be confirmed only by the occurrence or non-occurrence of
one or more uncertain future events not wholly within the control of the entity; or
present obligations that arise from past events but are not recognised because:
h
h
it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligations;
or
the amount of the obligations cannot be measured with sufficient reliability.
Contingent liabilities are not recognised in the balance sheet and are classified as either quantifiable or non-quantifiable. If quantifiable,
contingent liabilities are measured at nominal value inclusive of GST payable.
Non-quantifiable contingent liability
A legal dispute has arisen between the Board and an Australian event promoter in relation to the existence of agreement to allow the
conduct of a music event within Melbourne Gardens in 2019. While discussions on the matter are in progress, the amount payable, if any,
cannot be reliably estimated at reporting date.
ROYAL BOTANIC GARDENS BOARD VICTORIA — ANNUAL REPORT 2018–19 107
Royal Botanic Gardens Board Victoria 2018-19 Financial Report Page 30