BERRY STREET VICTORIA INC . ABN 24 719 196 762 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 e )
Fair Value of Assets and Liabilities
The Association measures some of its assets at fair value on a recurring basis , consistent with the requirements of the applicable accounting standard .
‘ Fair value ’ is the price the Association would receive to sell an asset in an orderly ( i . e . unforced ) transaction between independent , knowledgeable and willing market participants at the measurement date .
As fair value is a market-based measure , the closest equivalent observable market pricing information is used to determine fair value . Adjustments to market values may be made having regard to the characteristics of the specific asset . The fair values of assets that are not traded in an active market are determined using one or more valuation techniques . These valuation techniques maximise , to the extent possible , the use of observable market data .
To the extent possible , market information is extracted from the principal market for the asset ( i . e ., the market with the greatest volume and level of activity for the asset ). In the absence of such a market , market information is extracted from the most advantageous market available to the entity at reporting date ( i . e ., the market that maximises the receipts from the sale of the asset , after taking into account transaction costs and transport costs )
For non-financial assets , the fair value measurement also takes into account a market participant ’ s ability to use the asset in its highest and best use or to sell it to another market participant that would use the asset in its highest and best use .
f )
Impairment of Non Financial Assets
At the end of each reporting period , the Association reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired . If such an indication exists , the recoverable amount of the asset , being the higher of the asset ’ s fair value less costs to sell and value in use , is compared to the asset ’ s carrying value . Any excess of the asset ’ s carrying value over its recoverable amount is expensed to the statement of comprehensive income .
Where the future economic benefits of the asset are not primarily dependent upon the asset ’ s ability to generate net cash inflows and when the Association would , if deprived of the asset , replace its remaining future economic benefits , value in use is determined as the depreciated replacement cost of an asset .
Where it is not possible to estimate the recoverable amount of an assets class , the Association estimates the recoverable amount of the cash-generating unit to which the class of assets belong .
Where an impairment loss on a revalued asset is identified , this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset .
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