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  • 1.  asset valuations

    Posted 30-09-2020 10:28
    We  manage roads and stormwater infrastructure and have adopted a methodology for valuations and revaluations, in accordance with Australian accounting standards for non current assets.
    Your accounting standards may be different , but I can email a copy of our valuation methodology for reference ​

    Paul Samaratunge
    Glen Eira City Council
    Manager Infrastructure Assets

  • 2.  RE: asset valuations

    Posted 01-10-2020 04:55
    Hi Paul,

    Thank you for the offer.  My email address is in the signature below.  I am keen as a jelly bean to see your methodology. I worked at Gold Coast Water for a number of years so I am familiar, to some degree, with the AU accounting standard. US standards are similar but do have notable differences. Our methodology is actually based in large part on the recurring valuation project they used at GCW to value assets and estimate capital projects. I believe GHD was the consultant on that one if my memory serves me correctly. I look forward to your email and thank you once again!!


    Earl DuPriest

    Asset Management Program Manager
    Charleston Water System
    103 St. Philip Street | Charleston, SC 29403
    Tel: 843-727-7202
    Mob: 843-214-4310


  • 3.  RE: asset valuations

    Posted 02-10-2020 10:50
    Hi Paul,

    I would like a copy as well please.

    Darrell Mingo,
    County of Colchester,
    Truro, Nova Scotia, CA

    Darrell Mingo
    Municipality of the County of Colchester
    Engineering Technician
    Truro NS


  • 4.  RE: asset valuations

    Posted 02-10-2020 12:31

    Hi Paul, are you OK with uploading your valuation methodology to the discussion forum so that it is readily available to all?




    Chris Champion
    Non-Executive Director | NAMS Canada

    Mobile +61 407 207 934; Canada +1 (909) 786-1566






  • 5.  RE: asset valuations

    Posted 04-10-2020 14:40
      |   view attached

    Hi Chris

    As requested


    Paul Samaratunge
    Manager Infrastructure Assets


    Glen Eira City Council
    PO Box 42, Caulfield South 3162
    03 9524 3467 M +61 400 620 176


    The information in this electronic mail may be confidential. If you are not the intended recipient, please do not copy or use the information. If you have received this transmission in error, please delete it and inform us by email on  



  • 6.  RE: asset valuations

    Posted 06-10-2020 02:25
    Hi Paul,

    Thanks for sharing this information with others for reference!


    Nicole Allen
    NAMS Canada Inc
    Executive Director
    Canmore AB


  • 7.  RE: asset valuations

    Posted 06-10-2020 12:15

    Hi Earl, Et al

    We do not agree the approach to valuation for asset management purposes should be Fair Value as defined by Australian Accounting Standards, taken from International Financial Reporting Standards.

    An apple is not an orange but both grow on trees. Similarly asset management and financial management have different objectives and goals with few commonalities.

    Fair Value is the market value of an asset and is required to reflect what an entity could sell an asset for (exit price) in the market place.

    The Asset Management practices undertaken by many in this forum do not seek market inputs, rather a value which assists them to meet their objectives through the cost-effective lifecycle management of assets.

    We wouldn't expect AM practitioners to use the Market Value (Fair Value) of their assets to undertake the analysis they require or provide the outputs they need, and no doubt many would agree, because it is the incorrect measure.

    Post the 2008 financial crisis, standard setters, regulators and other leaders in the financial community realised that entities were not correctly recording asset values in their financial statements. The concept of Fair Value was lost on many users of financial statements. The definition of Fair Value pre-2013 was aligned with International Valuation Standards definition of Market Value and defined as

    Fair value is the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.

    In an attempt to reiterate the significance of Fair Value and to promote its definition, IFRS 13 Fair Value was developed and adopted by the Australian Accounting Standards Board (AASB 13). The definition changed to;

    the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date

    And if you read the Standard it is riddled with references to benchmarking Fair Value to markets.

    This leads to the globally accepted valuation equation:

    Fair Value = Market Value = Comparison of Sales Approach = Income Approach = Cost Approach

    The latter needs to adopt the same assumptions prevalent in all other approaches (i.e. market parameters).

    Glen Eira's valuation methodology for infrastructure is not uncommon but unfortunately does not explore other valuation methodologies which may (or may not) be more market related. It also refers to residual values which should not be included and ignores references to necessary adjustments for backlog capex, future capex, maintenance profiling, risk and a number of other 'market' related factors. Further, componentisation is not a market based output.

    As the AM community grows, hopefully it can develop its own inputs and definitions to better represent the practices it undertakes.

    Martin Burns [Designation]
    National Director of Valuations
    Liquid Pacific
    North Sydney


  • 8.  RE: asset valuations

    Posted 13-10-2020 23:36
    Hi Paul,

    Could you also email me the asset valuations for roads and stormwater and your valuation methodology. My email is

    thank you for sharing this.


    Arun Chulliyil
    Town of New Tecumseth