Text size
Menu
  1. About the report
  2. About AMSA
  3. Plan on a Page
  4. Transmittal letter
  5. Reporting requirements and responsible minister
  6. Annual performance statements
  7. Chairman's review
  8. Organisational profile
  9. Financial summary
  10. Our governance
    1. Planning
    2. Risk management
    3. Performance reporting
    4. Related entity transactions
    5. Public interest disclosure
    6. Disability report
    7. Statement of significant non-compliance issues
    8. Advertising and market research
    9. Judicial decisions and reviews by outside bodies
    10. Workers' compensation premium
  11. Vessel and seafarer safety
    1. Seafarer certification
    2. Compliance and enforcement
    3. International shipping
    4. Domestic commercial vessels
  12. Search and rescue
    1. Search and rescue aircraft replacement
    2. National Search and Rescue Council
    3. Medium-altitude Earth Orbit Search and Rescue system
    4. Beacon registration system upgrade
    5. Torres Strait Marine Safety Program
  13. Marine environment
    1. The National Plan for Maritime Environmental Emergencies
    2. Cape Upstart marine pollution incident
    3. Working with other regulators
  14. Navigation safety
    1. Shipping management
    2. Aids to navigation management
  15. Working with our community
    1. Domestic engagement
    2. International engagement
    3. Regional engagement
  16. Appendix 1: Financial statements
    1. Statement of comprehensive income
    2. Statement of financial position
    3. Statement of changes in equity
    4. Cash flow statement
    5. Overview
    6. Note 1: Expenses
    7. Note 2: Own-source income
    8. Note 3: Fair value measurement
    9. Note 4: Financial assets
    10. Note 5: Non-financial assets
    11. Note 6: Payables
    12. Note 7: Interest bearing liabilities
    13. Note 8: Provisions
    14. Note 9: Cash flow reconciliation
    15. Note 10: Contingent liabilities and assets
    16. Note 11: Senior management personnel remuneration
    17. Note 12: Related party disclosures
    18. Note 13: Remuneration of auditors
    19. Note 14: Financial instruments
    20. Note 15: Financial assets reconciliation
    21. Note 16: Reporting of outcomes
    22. Note 17: Regulatory charging summary
    23. Note 18: Budgetary reports and explanations of major variances
  17. Appendix 2: Non-financial performance
    1. SC1: Ship and vessel safety
    2. SC1: Environment protection
    3. SC1: Regulatory
    4. SC1: Search and rescue
    5. SC1: Projects
    6. SC2: Preparing for the future
    7. SC3: Ensuring a competent and fairly treated maritime workforce
    8. SC4: Influencing international arrangements
    9. SC5: Engaging with the community
    10. SC6: Ensuring a progressive and vibrant organisation
  18. Appendix 3: AMSA Board members
  19. References
  20. Compliance Index
  1. About the report
  2. About AMSA
  3. Plan on a Page
  4. Transmittal letter
  5. Reporting requirements and responsible minister
  6. Annual performance statements
  7. Chairman's review
  8. Organisational profile
  9. Financial summary
  10. Our governance
    1. Planning
    2. Risk management
    3. Performance reporting
    4. Related entity transactions
    5. Public interest disclosure
    6. Disability report
    7. Statement of significant non-compliance issues
    8. Advertising and market research
    9. Judicial decisions and reviews by outside bodies
    10. Workers' compensation premium
  11. Vessel and seafarer safety
    1. Seafarer certification
    2. Compliance and enforcement
    3. International shipping
    4. Domestic commercial vessels
  12. Search and rescue
    1. Search and rescue aircraft replacement
    2. National Search and Rescue Council
    3. Medium-altitude Earth Orbit Search and Rescue system
    4. Beacon registration system upgrade
    5. Torres Strait Marine Safety Program
  13. Marine environment
    1. The National Plan for Maritime Environmental Emergencies
    2. Cape Upstart marine pollution incident
    3. Working with other regulators
  14. Navigation safety
    1. Shipping management
    2. Aids to navigation management
  15. Working with our community
    1. Domestic engagement
    2. International engagement
    3. Regional engagement
  16. Appendix 1: Financial statements
    1. Statement of comprehensive income
    2. Statement of financial position
    3. Statement of changes in equity
    4. Cash flow statement
    5. Overview
    6. Note 1: Expenses
    7. Note 2: Own-source income
    8. Note 3: Fair value measurement
    9. Note 4: Financial assets
    10. Note 5: Non-financial assets
    11. Note 6: Payables
    12. Note 7: Interest bearing liabilities
    13. Note 8: Provisions
    14. Note 9: Cash flow reconciliation
    15. Note 10: Contingent liabilities and assets
    16. Note 11: Senior management personnel remuneration
    17. Note 12: Related party disclosures
    18. Note 13: Remuneration of auditors
    19. Note 14: Financial instruments
    20. Note 15: Financial assets reconciliation
    21. Note 16: Reporting of outcomes
    22. Note 17: Regulatory charging summary
    23. Note 18: Budgetary reports and explanations of major variances
  17. Appendix 2: Non-financial performance
    1. SC1: Ship and vessel safety
    2. SC1: Environment protection
    3. SC1: Regulatory
    4. SC1: Search and rescue
    5. SC1: Projects
    6. SC2: Preparing for the future
    7. SC3: Ensuring a competent and fairly treated maritime workforce
    8. SC4: Influencing international arrangements
    9. SC5: Engaging with the community
    10. SC6: Ensuring a progressive and vibrant organisation
  18. Appendix 3: AMSA Board members
  19. References
  20. Compliance Index

Note 3: Fair value measurement

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

  • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity 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.

Note 3A: Fair Value Measurements, Valuation Techniques and Inputs Used

This table is too large to display here. Click here to open the table in a new window.

Fair value measurements - Highest and Best Use 
AMSA’s assets are held for operational purposes and not held for the purposes of deriving a profit. 
The current use of all controlled assets is considered their highest and best use.

  1. AMSA did not measure any non-financial assets at fair value on a non-recurring basis as at 30 June 2016.
  2. There has been a change to the valuation techniques for Work In Progress (WIP) assets in the property, plant and equipment class and leasehold improvement class from carried at historical cost to fair value.

Sensitivity of the fair value measurement to changes in unobservable inputs for category level 3

  • Land - Market approach
    The significant unobservable inputs used in the fair value measurement of AMSA's land asset class relate to the adopted price per square metre. A significant increase (decrease) in market transactions would result in a significantly higher (lower) fair value measurement.
  • Building - Market approach
    The significant unobservable inputs used in the fair value measurement of AMSA's building asset class relate to the adopted price per square metre. A significant increase (decrease) in market transactions would result in a significantly higher (lower) fair value measurement.
  • Building - Depreciated replacement cost (DRC)
    A significant increase (decrease) in this consumed economic benefit / obsolesence of the asset would result in a significantly higher (lower) fair value measurement.
  • Leasehold improvement - Depreciated replacement cost (DRC)
    A significant increase (decrease) in this consumed economic benefit / obsolesence of the asset would result in a significantly higher (lower) fair value measurement.
  • Property, plant and equipment - Market approach
    A significant increase (decrease) in market transactions may result in a significantly higher (lower) fair value measurement.
  • Property, plant and equipment - Depreciated replacement cost (DRC)
    A significant increase (decrease) in this consumed economic benefit / obsolesence of the asset would result in significantly higher (lower) fair value measurement.
  • Provision for restoration - Depreciated replacement cost (DRC)
    A significant increase (decrease) in this consumed economic benefit / obsolesence of the asset would result in significantly higher (lower) fair value measurement.

Recurring and non-recurring Level 3 fair value measurements - valuation processes
AMSA tests the procedures of the valuation model as an asset materiality review at least once every 12 months (with a formal revaluation undertaken once every three years). If a particular asset class experiences significant and volatile changes in fair value (i.e. where indicators suggest that the value of the class has changed materially since the previous reporting period), that class is subject to specific valuation in the reporting period, where practicable, regardless of the timing of the last specific valuation. AMSA engaged Australian Valuation Solutions (AVS) to undertake a full revaluation and confirms that the models developed comply with AASB 13 Fair Value Measurement.

Significant Level 3 inputs utilised by AMSA are derived and evaluated as follows:

  • Land & buildings - Adjusted market transactions
    AMSA controls assets situated in remote locations where property markets experience few transactions. Reference has been made to available sales evidence together with other relevant information related to local economic, property zoning and property market conditions. AVS has utilised significant professional judgement in determining the fair value measurements.
  • Leasehold improvements, Buildings, Property, plant and equipment - Physical depreciation and obsolesence
    Assets that do not transact with enough frequency or transparency to develop objective opinions of value from observable market evidence have been measured utilising the Depreciated Replacement Cost approach. Under the Depreciated Replacement Cost approach the estimated cost to replace the asset is calculated and then adjusted to take into account physical depreciation and obsolesence. Physical depreciation and obsolesence has been determined based on professional judgement regarding physical, economic, and external obsolesence factors relevant to the asset under consideration. For all Leasehold Improvement assets, the consumed economic benefit / asset obsolesence deduction is determined based on the term of the associated lease.
  • Property, plant and equipment - Adjusted market transactions
    AMSA controls assets with limited markets. Reference has been made to prices and other relevant information generated by market transactions involving broadly comparable plant and equipment assets. AVS has utilised significant professional judgement in determining the fair value measurements.

    The weighted average is determined by assessing the fair value measurement as a proportion of the total fair value for the class against the total useful life of each asset.

 

Note 3B: Reconciliation for Recurring Level 3 Fair Value Measurements

This table is too large to display here. Click here to open the table in a new window.