Barkly Regional Council annual report 2018-2019
Annual report 2018-2019
Barkly Regional Council
E-Publications; E-Books; PublicationNT; Barkly Regional Council annual report; Annual Report
Made available via the Publications (Legal Deposit) Act 2004 (NT).
Barkly Regional Council; Periodicals; Local government; Northern Territory; Barkly; Annual report
Barkly Regional Council
Barkly Regional Council annual report; Annual Report
2018 - 2019
Barkly Shire Council annual report
Barkly Regional Council
-19- Barkly Regional Council Notes to and forming part of the Financial Statements for the year ended 30 June 2019 Note 7 (cont) INFRASTRUCTURE, PROPERTY, PLANT & EQUIPMENT Valuation of Assets General Valuation Principles Accounting procedure: Upon revaluation, the current new replacement cost and accumulated depreciation are re-stated such that the difference represents the fair value of the asset determined in accordance with AASB 13 Fair Value Measurement: accumulated depreciation is taken to be the difference between current new replacement cost and fair value. In the case of land, fair value is taken to be the current replacement cost. Highest and best use: For land which Council has an unfettered right to sell, the highest and best use recognises the possibility of the demolition or substantial modification of some or all of the existing buildings and structures affixed to the land. Much of the land under Councils care and control is Crown land or has been declared as community land under the provisions of the Local Government Act 1999. Other types of restrictions also exist. For land subject to these restrictions, the highest and best use is taken to be the "highest and best use" available to Council, with a rebuttable presumption that the current use is the "highest and best use". The reason for the current use of a large proportion of Councils assets being other than the highest and best use relates to Councils principal role as the provider of services to the community, rather than the use of those assets for the generation of revenue. For buildings and other structures on and in the land, including infrastructure, highest and best use is determined in accordance with the land on and in which they are situated. Fair value hierarchy level 2 valuations: Certain land, and the buildings and structures thereon, are shown above as being based on fair value hierarchy level 2 valuation inputs. They are based on prices for similar assets in an active market, with directly or indirectly observable adjustments for specific advantages or disadvantages attaching to the particular asset. Fair value hierarchy level 3 valuations of land: Valuations of Crown land, community land and land subject to other restrictions on use or disposal, shown above as being based on fair value hierarchy level 3 valuation inputs, are based on prices for similar assets in an active market, but include adjustments for specific advantages or disadvantages attaching to the particular asset that are not directly or indirectly observable in that market, or the number and / or amount of observable adjustments of which are so great that the valuation is more fairly described as being based on level 3 valuation inputs. Fair value hierarchy level 3 valuations of buildings, infrastructure and other assets: There is no known market for these assets and they are valued at depreciated current replacement cost. This method involves: The determination of the cost to construct the asset (or its modern engineering equivalent) using current prices for materials and labour, the quantities of each being estimated based on recent experience of this or similar Councils, or on industry construction guides where these are more appropriate. The calculation of the depreciation that would have accumulated since original construction using current estimates of residual value and useful life under the prime cost depreciation method adopted by Council. This method has significant inherent uncertainties, relying on estimates of quantities of materials and labour, residual values and useful lives, and the possibility of changes in prices for materials and labour, and the potential for development of more efficient construction techniques. 74 2018 - 2019 Annual Report
Aboriginal and Torres Strait Islander people are advised that this website may contain the names, voices and images of people who have died, as well as other culturally sensitive content. Please be aware that some collection items may use outdated phrases or words which reflect the attitude of the creator at the time, and are now considered offensive.
We use temporary cookies on this site to provide functionality.
You are welcome to provide further information or feedback about this item by emailing TerritoryStories@nt.gov.au