$’000
Opening balance 1 July 2013
4,007,711
Additions
256,298
Loss included in expenses
2,060
Depreciation
(159,387)
Disposals
(364)
Changes in fair value included in other comprehensive income
(29,099)
Closing balance 30 June 2014
4,077,219
Additions
401,236
Loss included in expenses
(25,525)
Depreciation
(168,424)
Changes in fair value included in other comprehensive income
(62,422)
Closing balance 30 June 2015
4,222,084
(iv) Valuation inputs and relationships to fair value
The following table summarises the information about the significant unobservable inputs used in level
3 fair value infrastructure asset measurements. See (ii) above for the valuation techniques adopted.
Valuation technique
Significant
unobservable
inputs
Inter-relationship between
significant unobservable inputs
and fair value measurements
Discounted cash flows: The valuation
model considers the present value of
expected payment, discounted using
a risk-adjusted discount rate. The
expected payment is determined by
considering the cashflow forecasts
for each business unit which is
comprised of the relevant CGUs. Risk
adjustments are made and terminal
value calculations are completed on a
probability basis.
•
•
Forecast
annual
revenue,
•
•
Maintenance
and capital
expenditure,
•
•
Risk-adjusted
discount rate
The estimated fair value would
increase (decrease) if; the annual
revenue growth rate were higher
(lower), if maintenance and capital
expenditure were lower (higher); or
the risk-adjusted discount rate were
lower (higher). Generally a change
in the annual revenue growth rate
is accompanied by a directionally
similar change in maintenance and
capital expenditure.
NOTE 10
FINANCIAL RISK MANAGEMENT
(CONTINUED)
(iii) Fair value measurements using significant unobservable inputs (level 3)
The following table presents the changes in level 3 items for the periods ended 30 June 2014 and 30
June 2015 for the Group:
95
