Territory Stories

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Details:

Title

Annual Report 2015 Motor Accidents (Compensation) Commission (MACC)

Other title

Tabled paper 1556

Collection

Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT

Date

2015-11-19

Description

Deemed

Notes

Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.

Language

English

Subject

Tabled papers

File type

application/pdf

Use

Copyright

Copyright owner

See publication

License

https://www.legislation.gov.au/Details/C2019C01622

Parent handle

https://hdl.handle.net/10070/273151

Citation address

https://hdl.handle.net/10070/799706

Page content

Northern Territory Motor Accidents (Compensation) Commission Notes to the Financial Statements - 30 June 2015Annual Report 2015 Page 97 Motor Accidents (Compensation) Commission Notes to the Financial Statements 30 June 2015 Motor Accidents (Compensation) Commission Annual Report 2014/2015 83 34. Investment Property 2015 2014 $000 $000 Reclassification from Property, Plant and Equipment 43,500 - Additions 118 - Revaluation of Property, Plant and Equipment (618) - 43,000 - Prior to 1 January 2015, there was no property held for investment. The property located at 24 Mitchell Street, Darwin has been reclassified from property, plant and equipment (see Note 16) to investment property, following the change of ownership associated with the transfer of TIO Insurance and Banking business to owners. The transfer changed the status of the property from owner occupied to investment properties. Measurement of fair value (i) Fair value hierarchy The fair value of MACCs property held for investment as at 30 June 2015 has been determined and approved by the MAC Commissioner on the basis of an independent valuation carried out at that date by Nick Bell of Knight Frank Valuations who is a certified practicing valuer of the Australian Valuation Office. The independent valuer provides the fair value of the property every 12 months. The fair value measurement for the property of $43 million has been categorised as Level 3 fair value based on the inputs to the valuation technique used (see Note 2.3(m)). (ii) Level 3 fair value The following table shows the valuation technique used in measuring the fair value of property, as well as the significant unobservable inputs used. Valuation technique Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement Capitalisation Approach: The valuation model considers yields indicated by sales by similar property investments to reflect any expectations of future growth in income and capital value. Adjustments are then made for any relevant rental reversion including letting up allowances for vacant space, incentives, leasing fees, capital expenditure and other appropriate capital allowances Current market rental per square metre. Vacancy periods (average 12 months after the end of each lease) Rent-free periods (1 year period on new leases). Capitalisation rate of 9.5% based on recent sales of comparable properties. The estimated fair value would increase (decrease) if: Expected market rental growth were higher (lower); Vacancy periods were shorter (longer); The occupancy rate were higher (lower); Rent-free periods were shorter (longer); or The capitalisation rate were lower (higher).


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