24 Infrastructure, property, plant, equipment and vehicles

1. Land controlled by the PTA has been revalued as at 1 July 2010 by Landgate (Valuation Services) and Burgess Rawson. The valuations were performed during the year ended 30 June 2011 and recognised at 30 June 2011. The fair value was determined by reference to market values. See note 2(g).

   To ensure the valuations provided by Valuation Services were compliant at 30 June 2011 with the fair value requirements under AASB 116, Valuation Services provided the Department of Finance with information that tracked the general movement in the market value of land and in building construction costs from the 1 July 2010 (the date of valuation) to 30 June 2011. DTF reviewed the information and determined that the valuations provided by Valuation Services (as at 1 July 2010) were compliant with fair value requirements for 30 June 2011 reporting without further adjustment by reference to market values based on existing use.

   Land and buildings which are commercially leased were independently valued on the capitalised value of current lease by Burgess Rawson. The valuations were performed during the year ended 30 June 2011 and recognised at 30 June 2011.

2. Buildings, rollingstock, bus infrastructure, vessels and buses were last revalued on 30 June 2010 by independent valuers, engineering and management professionals at depreciated replacement cost.
3. Freight network infrastructure was revalued on 30 June 2010 at depreciated replacement cost. A model has been developed using independent third party audited information, engineering and independent valuers. The PTA has changed its valuation methodology from market value to depreciated replacement cost. As a reliable market value does not exist for the freight network infrastructure the effect and disclosure on the current and future periods cannot be determined.
4. Railway infrastructure was last revalued on 30 June 2008. Railway infrastructure has been revalued by PTA’s management professionals and third party vendors. The methodology adopted has been depreciated replacement cost with a modern equivalent asset capable of delivering the same service potential.
5. Construction in progress is valued at cost.

Reconciliations of the carrying amounts of infrastructure, property, plant, equipment and vehicles at the beginning and end of the current financial year are set out below.