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
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
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.