Investor Presentaiton
Department of Health
Notes to the financial statements
For the year ended on 30 June 2023
5.1
Infrastructure, property, plant and equipment (continued)
Subsequent measurement
Subsequent to initial recognition of an asset, the revaluation model is used for the measurement of:
• land
•
buildings
•
site infrastructure
Land is carried at fair value.
Buildings and infrastructure are carried at fair value less accumulated depreciation and accumulated impairment losses.
All other property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses.
Land and buildings are independently valued annually by the Western Australian Land Information Authority (Landgate) and recognised annually to ensure that the carrying
amount does not differ materially from the asset's fair value at the end of the reporting period.
Land and buildings were revalued as at 1 July 2022 by Landgate. The valuations were performed during the year ended 30 June 2023 and recognised at 30 June 2023. In
undertaking the revaluation, fair value was determined by reference to market values for land: $3,328,000 (2022: $3,155,000) and buildings $82,500 (2022: $74,000). For the
remaining balance, fair value of buildings was determined on the basis of current replacement cost and fair value of land was determined on the basis of comparison with
market evidence for land with low level utility (high restricted use land).
Site infrastructure is independently valued every 3 to 5 years by Rider Levett Bucknall WA Pty Ltd (Quantity Surveyor). These assets were independently revalued and
recognised at 30 June 2022.
Site infrastructures include roads, footpaths, paved areas, at-grade car parks, boundary walls, boundary fencing, boundary gates, covered ways, landscaping and
improvements, external stormwater and sewer drainage, external water, gas and electricity supply, and external communication cables.
Significant assumptions and judgements: the most significant assumptions and judgements in estimating fair value are made in assessing whether to apply the existing
use basis to assets and in determining estimated economic life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction
between market type assets and existing use assets.
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