Investor Presentaiton
Department of Health
Notes to the financial statements
For the year ended on 30 June 2023
8.3
Fair value measurements (continued)
Buildings and infrastructure (Level 3 fair values)
Fair value for existing use specialised buildings and infrastructure assets 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 Landgate. 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 and
infrastructure.
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 restrictions or limitations have been placed on their use and disposal when they are not determined to be surplus to
requirement. These restrictions are imposed by virtue of the assets being held to deliver a specific community service.
9
Other disclosures
This section includes additional material disclosures required by accounting standards or other pronouncements, for the understanding of this financial report.
Notes
Events occurring after the end of the reporting period
9.1
Future impact of Australian Accounting Standards not yet operative
Key management personnel
Related party transactions
Related bodies
Affiliated bodies
Services provided free of charge
Indian Ocean Territories
Special purpose accounts
Remuneration of auditor
Equity
Supplementary financial information
9.1
Events occurring after the end of the reporting period
There were no events occurring after the reporting period which had significant financial effects on these financial statements.
9.2
9.3
9.4
9.5
9.6
9.7
9.8
9.9
9.10
9.11
9.12
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Contents
About us Significant issues Report on operations Agency performance Operational disclosures Key performance indicators
Financial disclosures and compliance • AppendixView entire presentation