1. www.apv.net David Edgerton FCPA Director Quality + Expertise + Flexibility + Innovation = Confidence & Real Value The Practicals side of Fair Value Focus on Land and Buildings

2. www.apv.net Agenda Context AASB116 AASB13 APV’s approach and outputs

3. www.apv.net Context 2013 -14 – Land & Buildings or – Infrastructure Compliance Australian Accounting Standards – AASB116 Plant & Equipment – AASB140 Investment Properties – AASB5 Assets Held for Sale – AASB17 Leases ? – AASB136 Impairment Also AASB13 Fair Value Measurement !!!!

4. www.apv.net AASB116 (Key Requirements) Appropriate technique Componentisation Depreciate Depreciable Amount over useful life using a method that matches the pattern of consumption Must reflect “true and fair”

5. www.apv.net APV’s approach CPA Australia Guide to Valuation and Depreciation Based on Asset Management Framework Direct feeds to Asset Management Plan

6. www.apv.net Components

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12. AASB13 Not about the assets Its about the valuation !!! Detailed disclosures (about the valuation) Can only be provided by the valuer

13. www.apv.net Disclosures policies about when to recognise transfers between the various valuation hierarchy levels details about the processes used by the entity to undertake the valuation process the valuation techniques and inputs used a reconciliation between the fair values reported in the Balance Sheet with the summary of fair values detailed by Fair Value Measurement asset class allocated across the various levels of the valuation hierarchy For assets identified as being valued as level 3 – – Details of the unobservable inputs including information regarding their source, how they were evaluated, their sensitivity and relating impact on the fair value measurement – A movements reconciliation from the opening balance to the closing balance – Quantitative disclosures about the unobservable inputs Details of any assets not being used at their highest and best use

14. www.apv.net APV’s Outputs Example Valuation report Example valuation spreadsheet Other outputs – Audit queries & Auditors Pack – Ongoing technical advice Example Example - Land Example - Build

15. www.apv.net Quality Management Third party certified under ISO:9001 Quality Management The proof is in the pudding !

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17. It was fantastic working with Lachlan who was very professional and understanding of the small community mindset for a lot of the places he had to visit. Lachlan made the experience very easy and was also extremely helpful in explaining anything we threw at him. APV has definitely given us value for money in the whole exercise and we thank you very much for the Fair Value document as presented. Shire of Gnowangerup

18. www.apv.net Questions David Edgerton FCPA Email: David@apv.net Web: www.apv.net Mob: 0412 033 845 Work:(07) 3221 3499