Accounting

Liquid provides fully scoped valuations to assist both our private and public sector clients establish asset fair values for the purpose of inclusion in financial statements. Asset valuations are undertaken with reference to Australian Accounting Standards (i.e. AASB 13 Fair Value and AASB 116 Property, Plant and Equipment) and International Valuation Standards.

Other valuation inputs may also be derived from relevant Government policies and guidelines.

It is recognised valuations conducted within the regulatory framework of local standards may be subject to audit by external independent entities and valuation outcomes are utilised to assist a range of users in;

Making and evaluating decisions about the allocation of resources by the entity;
Assessing the financial performance of the entity; and
Discharging managerial accountability.

Liquid’s projects cover a broad range of asset types and portfolios including

Correctional Services – Prisons and Youth Detention Facilities
Educational – Universities, schools and child care centres
Police – Full portfolio valuations of police asset base including land, buildings, plant, marine and training assets.
Courts – Local Courts, District Courts, Supreme Courts, Federal Courts, Youth Courts, holding cells, legal libraries and paraphernalia.
Health – Public and private hospitals, nursing homes, medical centres and research facilities
Emergency Services – Fire Stations, country fire services, state emergency facilities, ambulance stations
Agricultural and Aquaculture – Research facilities, rural land holdings, aquaculture farms, hatcheries and licenses
Marine – Land and water based assets, harbours, marinas, commercial boats, aids to navigation including light houses, jetties, boat ramps and associated launch equipment, commercial and domestic berths, inter alia.
Transport Infrastructure – Train stations, airports, bus terminals, road networks, rail networks, bridges and overpasses, transport vehicles and accessories
Community Networks – Remote area electricity networks, town water supply and sewer networks, country and metropolitan road networks and infrastructure
National Parks – State and Federal land portfolios, arboretums, community open space
Sport – Olympic facilities including velodromes, football arenas, national sporting stadia, rifle ranges, international swimming complexes, track and field stadia, outdoor and indoor basketball and netball complexes, rowing courses
Entertainment – Casino’s, entertainment centres, convention centres, State theatres and plant and equipment

Liquid adds-value to all projects by providing advice on

Fair value
Insurance value
Componentisation (refer below)
Disclosure requirements (i.e. Input hierarchy)
Accumulated depreciation
Annual depreciation
Sensitivity analysis
Depreciation methodologies
Effective life categorisation
Residual life estimates
Gross values

Componentisation

Australian Accounting Standard 116 (AASB 116) promotes the concept of componentisation. Simply put; depreciation is applied to an asset on a component basis. That is, each part of an item of property, plant and equipment with a value significant in relation to the total value of the parent asset is depreciated separately. The depreciable amount of an asset is allocated on a systematic basis over the useful life of the asset. Liquid Pacific can assist clients discern what items of an asset are singularly significant (i.e. air-conditioning systems), the estimated current cost of the component item, its total useful life at the time of reporting and its remaining service potential.

To discuss your firm’s or Department’s portfolio or individual asset requirements contact Martin Burns, Liquid’s National Director of Valuations p: 1300 150 000, to initiate your next valuation project.

Relevant Accounting Standards for Asset Valuation