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(c) Property, plant and
equipment (continued)
(i) Basis of valuation
At 30 June 2017 the Group undertook a
fair value assessment using an income method
approach as there are no similar market
quoted assets. The net present value of the
cash flows for each business unit is compared
with the current carrying value and any
significant variance is taken to the financial
statements. Property, plant and equipment
reviews are undertaken annually to ensure
significant movements are identified and
accounted for.
The 30 June 2017 assessment resulted
in an upward revaluation of the Interstate
business unit’s assets. The result of this
year’s assessment is a $4.5m valuation
increment (2016: $12.8m valuation increment).
An additional impairment benefit of $1.0m
(2016: $3.0m impairment benefit) has been
recognised in the income statement.
The Hunter Valley business unit assets were
previously revalued. The result of this year’s
assessment is a $145.7m valuation decrement
(2016: $210.3m valuation decrement).
For further details on the calculation
refer to note 11(d)
If infrastructure assets were stated on
the historical cost basis less impairment,
the amounts would be as follows:
Consolidated
2017
$’000
2016
$’000
Infrastructure assets
Plant & Equipment
Cost
821,894
791,081
Accumulated depreciation
(237,796)
(212,173)
Net book amount
584,098
578,908
Leasehold Improvements
Cost
3,714,133
3,546,660
Accumulated depreciation
(717,242)
(595,402)
Net book amount
2,996,891
2,951,258
86
NOTE 7
NON-FINANCIAL ASSETS AND LIABILITIES (CONTINUED)