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Note 6: Fair value measurement

The following table provides an analysis of assets and liabilities that are measured at fair value. The different levels of fair value hierarchy are defined below.

Level 1: Quoted process (unadjusted) in active markets for identical assets or liabilities that the APSC can access at measurement date.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

The APSC determines fair value for non-financial assets using level 3 inputs in the fair value hierarchy. The following table discloses the fair value at 30 June and the valuation techniques used to derive fair value.

Note 6a Fair value measurements - valuation technique and the inputs used for assets in 2015
  Fair value Category level Valuation technique(s)1 Inputs used Range (weighted average)2

1. The major input relevant to leasehold improvements is an estimate of replacement cost based upon the specifics of each particular leasehold improvement including construction type, use, services, specialist components and the like. The fair value is then assessed by having regard to that portion of the likely length of the lease term that has expired, the remaining lease term and remaining useful life. Assets in this class are considered on an individual basis, not on any average or weighted average basis, as each needs to be considered specifically to represent its characteristics.

2. The primary input for other property, plant and equipment is the replacement cost of the asset as at the date of valuation. The fair value is assessed by reference to the asset's physical and functional characteristics, the APSC's internal policy for each class, the adopted useful life and the expended and remaining useful life of each asset. Assets are considered on an individual basis, rather than from any predetermined averaging or weighted averages, however where there are numerous alike assets, for example, computers which are all identical and purchased on the same date, the assessment of one asset is then utilised for those alike assets.

The highest and best use of all non-financial assets are the same as their current use. No change in valuation technique occurred during the period.

Non-financial assets
Leasehold improvements 1,764 2,056 Level 3 Depreciated replacement cost See footnote 1 Replacement cost of $750 to $1,762 per square metre
Other property, plant and equipment 1,039 1,279 Level 3 Depreciated replacement cost See footnote 2 N/A