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25 Infrastructure, property, plant, equipment and vehicles

(i) Land controlled by the PTA has been revalued as at 1 July 2008 by Landgate (Valuation Services) and Burgess Rawson. The valuations were performed during the year ended 30 June 2009 and recognised at 30 June 2009. 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 2009 with the fair value requirements under AASB 116, Valuation Services provided the Department of Treasury and Finance (DTF) with information that tracked the general movement in the market value of land and in building construction costs from the 1 July 2008 (the date of valuation) to 30 June 2009. DTF reviewed the information and determined that the valuations provided by Valuation Services (as at 1 July 2008) were compliant with fair value requirements for 30 June 2009 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 2009 and recognised at 30 June 2009.

(ii) See note 4 ‘key sources of estimation uncertainty’.

(iii) Railway infrastructure was last revalued on 30 June 2008. Railway infrastructure has been revalued by PTA's management professionals and third party vendors. A model has been developed based on contemporary costs from the New MetroRail Project adjusted by an appropriate index to reflect current replacement cost. The revaluation approach adopted also forms part of PTA costing guidelines applied to the Rail Access Regime. The methodology adopted has been depreciated replacement cost with a modern equivalent asset capable of delivering the same service potential.

(iv) For leased assets the fair value has been deemed to be their cost as at 30 June 2009.

(v) Construction in progress is valued at cost.

(vi) Some rollingstock is subject to an arrangement, involving a series of leases, prepayment and deposit transactions. The arrangement is accounted for as one linked transaction in accordance with its economic substance. The arrangement (i) does not restrict PTA’s use of rollingstock, (ii) has a term of 17 years, and (iii) includes options allowing PTA to purchase the rollingstock on certain specified dates.

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.