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Note 20: Property, Plant and Equipment (continued)

Specified cultural and heritage assets

There are difficulties associated with obtaining an objective valuation for the specified cultural and heritage assets of the Government. Details of the valuations of the most significant assets within this class are discussed in the following table:

Specified cultural and heritage assets
Actual
Carrying value of specified cultural and heritage assets 30 June
2012
$m 		30 June
2011
$m
National Library 846 844
Te Papa 824 776
National Archives 446 440
Conservation 350 344
Parliamentary Library 28 29
Other 20 23
2,514 2,456
Specified cultural and heritage assets (continued)
Description Valuer/Reviewer Approach Timing
National Library collections Internal valuation Valued by experienced staff in accordance with guidelines released by the New Zealand Library Association. Three-year valuation cycle with the latest full valuation completed as at 30 June 2011
Te Papa collections

Art  Art & Objects

Philatelic Mowbray Collectables Ltd; Archive History Webbs Auckland Ceramic Peter Wedde

 All collections are valued by based on market value by independent valuers. Valuations completed  at least once every three years with the latest valuations for all collections completed as at 30 June 2012
National archives Dunbar Sloane


The collection was divided into categories by format and age to associate records that could be said to have a broad commonality of value.  Items were then valued based on market assessments and comparisons with other items of a similar nature.  Three year cycle with the latest full valuation completed as at 30 June 2011
Conservation estate visitor buildings Internal valuation reviewed by Loganstone Limited Revaluations use output indices, verification by site visits and independent evaluation by Loganstone Limited to determine fair value. Annual valuation with the latest completed as at 30 June 2012
Parliament Library collection Internal valuation Valued by experienced staff in accordance with guidelines released by the New Zealand Library Association.  ODRC was used to value current use collections while permanently retained collections were valued at estimated market value using sources such as auction records and book dealers' catalogues. Annual valuation with the latest completed as at 30 June 2012

Other asset classes subject to revaluation

The details of valuations for each class of property, plant and equipment are in the table below:

Other asset classes subject to revaluation
Actual
Carrying value of other asset classes subject to revaluation 30 June
2012
$m 		30 June
2011
$m
State highways 17,546 16,802
Electricity generation assets 14,400 14,439
Specialist military equipment 3,220 3,331
Aircraft (excluding military) 2,250 1,805
37,416 36,377
Other asset classes subject to revaluation (continued)
Description Valuer/Reviewer Approach Timing

State highways

Roads, bridges, culverts, tunnels, underpasses including the formation works, road structure, drainage works and traffic facilities. Opus International Consultants Limited State highways are valued using depreciated replacement cost which derives the estimated present cost of constructing the existing assets by the most appropriate method of construction, reduced by factors for the age and condition of the asset. Annual valuation with the latest completed as at 30 June 2012

Electricity generation assets

Meridian Energy: Hydro stations and wind and solar farms Pricewaterhouse Coopers (PwC) Based on both the capitalisation of earnings methodology, applied to Meridian as a whole, and the discounted cash flow methodology.  Valuation completed at least once every five years with the latest valuation being as at 30 June 2011
Mighty River Power: Hydro and Geothermal stations and gas-fired generation plants PwC Based on net present value of future earnings of the assets on an existing use basis excluding disposal and restoration costs. Valuation completed at least once every five years with the latest valuation being as at 30 June 2012
Genesis Power: Thermal and Hydro stations and Wind farms Internal valuation independently reviewed by PwC Based on the net present value of future cash flows associated with the assets on an existing use basis excluding disposal and restoration costs. Valuation completed at least once every five years with the latest valuation being as at 30 June 2011

Specialist military equipment

Specialist Military Equipment Valuations were independently reviewed by Beca Valuations Limited Valuations use a market based approach unless reliable market evidence is not available, in which case optimised depreciated replacement cost (ODRC) is used to calculate fair value.  Valuation completed at least once every five years with the latest valuation being as at 30 June 2010

Aircraft

Aircraft and spare engines and flight simulators The Aircraft Value Analysis Company An external valuation is obtained to ascertain indicative market values of each aircraft on a stand-alone basis.   Annual valuation with the latest completed as at 30 June 2012
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