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THE NATIONAL TRUST OF WESTERN AUSTRALIA NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018

Buildings (Level 3 fair values) Fair value for existing use specialised buildings is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, i.e. the current replacement cost. Current replacement cost is generally determined by reference to the market observable replacement cost of a substitute asset of comparable utility and the gross project size specifications, adjusted for obsolescence. Obsolescence encompasses physical deterioration, functional (technological) obsolescence and economic (external) obsolescence. Valuation using current replacement cost utilises the significant Level 3 input, consumed economic benefit/obsolescence of asset which is estimated by the Western Australian Land Information Authority (Valuations and Property Analytics). The fair value measurement is sensitive to the estimate of consumption/obsolescence, with higher values of the estimate correlating with lower estimated fair values of buildings. Basis of Valuation In the absence of market based evidence, due to the specialised nature of some non-financial assets, these assets are valued at Level 3 of the fair value hierarchy on an existing use basis. The existing use basis recognises that the restrictions or limitations have been placed on their use and disposal when they are not determined to be surplus to requirements. These restrictions are imposed by virtue of the assets being held to deliver a specific community service and the Trust’s enabling legislation. Amendments to AASB 136 Mandatory application of AASB 2016-4 Amendments to Australian Accounting Standards – Recoverable Amount of Non-Cash-Generating Specialised Assets of Not-for-Profit Entities has no financial impact for the Trust as it is classified as not-for-profit and regularly revalue’s specialised property, plant and equipment assets. Therefore, fair value the recoverable amount of such assets is expected to be materially the same as fair value. Information about significant unobservable inputs (Level 3) in fair value measurements Description

Fair value 2017 $000 42,591

Valuation technique

Unobservable inputs

Land

Fair value 2018 $000 39,807

Market approach

Buildings

42,312

43,428

Depreciated Replacement Cost

Selection of land with similar approximate utility Consumed economic benefit/obsolescence of asset Historical cost per square metre floor area (m2)

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Profile for National Trust of Western Australia

National Trust 207-18 Annual Report  

National Trust 207-18 Annual Report  

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