The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities that the FWBII can access at
measurement date.
Level 2: Inputs other than quoted prices that are included within Level 1 and which are observable for the assets or liabilities,
either directly or indirectly.
Level 3 Unobservable inputs for the assets or liabilities.

Note 6A: Fair Value Measurements, Valuations Techniques and Inputs Used

Note 6A: Fair value measurements, valuation techniques and inputs used
  Fair value measurements at the end of the reporting period Category
(Level 1, 2 or 3)		 For levels 2 and 3 fair value measurements
2015
$’000		 2014
$’000		 Valuation techniques Inputs used Range
(weighted average)		 Sensitivity of the fair value measurement to changes in unobservable inputs
Non-financial assets  
Land and buildings (leasehold improvements) 365 889 Level 3 Depreciated
replacement cost		 Replacement cost, total
useful life and remaining useful life		 1.5 yrs – 1.7 yrs (1.6 yrs) The significant unobservable inputs used in the fair value measurement of the Agency’s leasehold improvements and property, plant and equipment asset classes relate to the consumed economic benefit / asset obsolescence. A significant increase (decrease) in this input would result in a significantly lower (higher) fair value measurement.
Property, plant and equipment 518 95 Level 3 Depreciated replacement cost Replacement cost, total useful life and remaining useful life 1.2 years to 9.9 years
(1.5 years)
Total fair value measurements of assets in the Statement of Financial Position 883 984          

Fair value measurements – highest and best use differs from current use for non-financial assets (NFAs)

The FWBII’s assets are held for operational purposes and not held for the purposes of deriving a profit. The current use of all controlled assets is considered their highest and best use.

Recurring and non-recurring Level 3 fair value measurements – valuation process

The FWBII procured valuation services from Australian Valuation Office (AVO) at 30 June 2013 and relied on valuation models provided by AVO.

There is no significant change in the valuation technique since the prior year.

Note 6B: Level 1 and Level 2 Transfers for Recurring Fair Value Measurements

There have been no fair value measurements transfers between level 1 and level 2 during the year.

The Agency’s policy for determining when transfers between levels of the fair value hierarchy are deemed to have occurred can be found in Note 1.11.

Note 6C: Reconciliation for Recurring Level 3 Fair Value Measurements

Recurring Level 3 fair value measurements – reconciliation for assets

Non-Financial Assets
  Land and Buildings
(Leasehold Improvements)		 Property, Plant and Equipment Total
2015
$’000		 2014
$’000		 2015
$’000		 2014
$’000		 2015
$’000		 2014
$’000
As at 1 July 889 1,566 95 201 984 1,767
Total losses recongised in net
cost of services footnote*		 (678) (677) (130) (106) (808) (783)
Purchases 154 – 553 – 707 –
Total as at 30 June 365 889 518 95 883 984

Footnote* These losses are represented in the Statement of Comprehensive Income as depreciation expenses.

FWBII’s policy for determining when transfers between levels of the fair value hierarchy are deemed to have occurred can be found in Note 1.11.