Notes 1-5

Note 1: Summary of Significant Accounting Policies

1.1     Objectives of the Department

The Department of Foreign Affairs and Trade (the department) is a not-for-profit Australian Government controlled entity.

The department’s role is to advance the interests of Australia and Australians internationally. This involves working to strengthen Australia’s security; enhancing Australia’s prosperity; delivering an effective and high quality aid program; and helping Australian travellers and Australians overseas.

The department provides foreign, trade and development policy advice to the Government. We work with other government agencies to ensure that Australia’s pursuit of its global, regional and bilateral interests is coordinated effectively.

The department is structured to meet three outcomes:

Outcome 1: The advancement of Australia's international strategic, security and economic interests including through bilateral, regional and multilateral engagement on Australian Government foreign, trade and international development policy priorities

Outcome 2: The protection and welfare of Australians abroad and access to secure international travel documentation through timely and responsive travel advice and consular and passport services in Australia and overseas

Outcome 3: A secure Australian Government presence overseas through the provision of security services and information and communications technology infrastructure, and the management of the Commonwealth's overseas property estate.

The department's activities that contribute towards these outcomes are classified as either departmental or administered.

Departmental activities involve the use of assets, liabilities, income and expenses controlled or incurred by the department in its own right. Administered activities involve the management or oversight by the department, on behalf of the Government, of items controlled or incurred by the Government.

The department conducts the following administered activities:

• Official development assistance
• Consular and passport services
• Public information services and public diplomacy
• International climate change engagement
• The New Colombo Plan
• Program to promote Australia’s international tourism interests
• Payments to international organisations.

The continued existence of the department in its present form and with its present programs is dependent on Government policy and on continuing funding by Parliament for the department's administration and programs.

On 1 November 2013 the Financial Management and Accountability Act Determination 2013/12 – Section 32 formally transferred the functions, assets and liabilities from the former Australian Aid Agency for International Development (AusAID) to the department. AusAID was abolished on 31 October 2013.

Immediately prior to the transfer AusAID was responsible for two outcomes:

Outcome 1: To assist developing countries to reduce poverty and achieve sustainable development, in line with Australia’s national interest.

Outcome 2: Australia’s national interest advanced by implementing a partnership between Australia and Indonesia for reconstruction and development (AIPRD).

From 1 November 2013 the international development function was integrated into the department initially as Outcome 4. It is now included as part of Outcome 1 to reflect the full integration of AusAID into the department.

Consistent with the Finance Minister’s Orders (FMOs) exemption of 23 June 2014, the financial statements of AusAID for the period 1 July 2013 up until its abolition are incorporated into the financial statements of the department as though they were the one entity. The comparative information contained in the department’s primary statements and notes include a separate column for AusAID’s 2012-13 results. Additional separate disclosures relating to AusAID’s results are included in the financial statements as specified in the FMOs exemption.

1.2     Monitoring of Constitutional and Other Legal Requirements

The Australian Government continues to have regard to developments in case law, including the High Court’s most recent decision on Commonwealth expenditure in Williams v Commonwealth [2014] HCA 23, as they contribute to the larger body of law relevant to the development of Commonwealth programs. In accordance with its general practice, the Government will continue to monitor and assess risk and decide on any appropriate actions to respond to risks of expenditure not being consistent with constitutional or other legal requirements.

Legal advice received by the Department of Finance indicated there could be breaches of section 83 of the Constitution under certain circumstances in relation to compliance with statutory conditions on payments from Special Appropriations, including special accounts, payments for long service leave, goods and services tax and payments under determinations of the Remuneration Tribunal. The department has reviewed its processes and controls over payments for these items to minimise the possibility for future breaches as a result of these payments. Following an updated risk assessment in 2013-14 the department has determined that there is a low risk of the certain circumstances mentioned in the legal advice applying to the department. The department is not aware of actual or potential breaches of section 83 in respect of these items.

1.3     Basis of Preparation of the Financial Report

The financial statements and notes are general purpose financial statements and are required by section 49 of the Financial Management and Accountability Act 1997 (FMA Act).

The financial statements and notes have been prepared in accordance with:

a) FMOs for reporting periods ending on or after 1 July 2011
b) Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The financial statements have been prepared on an accrual basis and are in accordance with the historical cost convention, except for certain assets and liabilities at fair value or amortised cost. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position.

The financial statements are presented in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Unless an alternative treatment is specifically required by an accounting standard or the FMOs, assets and liabilities are recognised in the Statement of Financial Position when and only when it is probable that future economic benefits will flow to the department or a future sacrifice of economic benefits will be required and the amounts of the assets or liabilities can be reliably measured. However, assets and liabilities arising under executory contracts equally proportionately unperformed are not recognised unless required by an accounting standard. Liabilities and assets that are unrecognised are reported in the schedule of commitments or the schedule of contingencies (other than unquantifiable or remote contingencies, which are reported at Note 12).

Unless an alternative treatment is specifically required by an accounting standard, income and expenses are recognised in the statement of comprehensive income when and only when the flow, consumption or loss of economic benefits has occurred and can be reliably measured.

1.4     Significant Accounting Judgements and Estimates

In the process of applying the accounting policies listed in this note, the department has made the following judgements that have had a significant impact on the amounts recorded in the financial statements:

• The fair value of land and buildings has been taken to be the market value of similar properties as determined by an independent valuer. In some instances, the department's buildings are purpose built and may in fact realise more or less in the market.
• The fair value of property, plant and equipment has been taken to be the market value of similar assets or depreciated replacement value as determined by an independent valuer.
• The employee provisions have been determined by reference to advice from the Australian Government Actuary.

1.5     New Australian Accounting Standard Requirements

Adoption of New Australian Accounting Standard Requirements

No accounting standard has been adopted earlier than the application date stated in the standard.

The following new accounting standards were issued prior to the signing of these statements by the Secretary and Chief Financial Officer and are applicable to the current reporting period:

All other new, revised or amending standards that were issued and applicable to the current reporting period did not have a financial impact, and are not expected to have a future financial impact on the department.

Future Australian Accounting Standard Requirements

The following new standards issued by the AASB are expected to have a material impact on the department’s financial statements for future reporting periods:

1.6     Revenue

Revenue from Government

Amounts appropriated for departmental outputs for the year (adjusted for formal additions and reductions) are recognised as revenue when the department gains control of the appropriation, except for certain amounts that relate to activities that are reciprocal in nature, in which case revenue is recognised only when it has been earned. Appropriations receivable are recognised at their nominal amounts.

Parental Leave Payments Scheme

The department offsets amounts received under the Parental Leave Payments Scheme (for payment to employees) by amounts paid to employees under that scheme, as these transactions are incidental to the main revenue-generating activities of the department. Amounts received by the department not yet paid to employees would be presented gross as cash and a liability (payable).

Sale of Goods and Rendering of Services

Revenue from the sale of goods is recognised when:

a) the risks and rewards of ownership have been transferred to the buyer
b) the department retains no managerial involvement or effective control over the goods
c) the revenue and transaction costs incurred can be reliably measured
d) it is probable that the economic benefits associated with the transaction will flow to the department.

Revenue from rendering of services is recognised by reference to the stage of completion of contracts at the reporting date. The revenue is recognised when:

a) the amount of revenue, stage of completion and transaction costs incurred can be reliably measured
b) the probable economic benefits of the transaction will flow to the department.

The stage of completion of contracts at the reporting date is determined by reference to the proportion that costs incurred to date bear to the estimated total costs of the transaction.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at the end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Other Revenue

Resources received free of charge are recognised as revenue, when and only when, a fair value can be reliably determined and the services would have been purchased if they had not been donated. Use of those resources is recognised as an expense.

Interest revenue is recognised using the effective interest method as set out in AASB 139 Financial Instruments: Recognition and Measurement.

1.7     Gains

Other Resources Received Free of Charge

Contributions of assets at no cost of acquisition or for nominal consideration are recognised as gains at their fair value when the asset qualifies for recognition, unless received from another government agency or authority as a consequence of a restructuring of administrative arrangements (refer to Note 10).

1.8     Transactions with the Government as Owner

Equity Injections

Amounts appropriated that are designated as 'equity injections' for a year (less any formal reductions) and departmental capital budgets are recognised directly in contributed equity in that year.

Restructuring of Administrative Arrangements

Net assets received from or relinquished to another government entity under a restructuring of administrative arrangements are adjusted at their book value directly against contributed equity.

Returns of contributed equity

The FMOs require that distributions to owners be debited to contributed equity unless in the nature of a dividend. In 2013-14, by agreement with the Department of Finance, the department returned from the Overseas Property Office net sale proceeds of $496,985 (2012-13: $1,423,478), as well as $79,447,000 initially allocated for the purchase of land.

1.9     Employee Benefits

Liabilities for services rendered by employees are recognised at the reporting date to the extent that they have not been settled.

Liabilities for 'short-term employee benefits' (as defined in AASB 119 Employee Benefits) and termination benefits expected within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefit liabilities are measured at the present value of the obligation at the end of the reporting period.

Leave

The liability for employee benefits includes provision for annual leave and long service leave. No provision has been made for sick leave for Australian-based employees, as all sick leave is non-vesting and the average sick leave taken in future years by employees of the department is estimated to be less than the annual entitlement for sick leave. In the case of locally engaged staff at overseas posts, where the entitlement is vested, a liability has been recognised.

The leave liabilities are calculated on the basis of employees' remuneration at the estimated salary rates that will be applied at the time the leave is taken. This includes the department's employer superannuation contribution rates to the extent that the leave is likely to be taken during service rather than paid out on termination.

The liability for long service leave has been determined with reference to an actuarial assessment conducted during 2013-14. The estimate of the present value of the liability takes into account attrition rates, pay increases, inflation and changes in the government bond rate.

Separation and Redundancy

Provision is made for separation and redundancy benefit payments. The department recognises a provision for separation and redundancy when it has developed a detailed formal plan and has informed those employees affected that it will carry out those terminations of employment.

In some countries, locally engaged staff at overseas posts are entitled to separation benefits. The provision for these benefits has been classified as an employee benefit.

Superannuation

The majority of Australian-based staff of the department are members of the Commonwealth Superannuation Scheme (CSS), the Public Sector Superannuation Scheme (PSS) or the Public Sector Superannuation accumulation plan (PSSap). The CSS and PSS are defined benefit schemes for the Australian Government. The PSSap is a defined contribution scheme.

The liability for defined benefits is recognised in the financial statements of the Australian Government and is settled by the Australian Government in due course. This liability is reported in the Department of Finance’s administered schedules and notes.

The department makes employer contributions to the employee superannuation schemes at rates determined by an actuary to be sufficient to meet the current cost to the Government of the superannuation entitlements of the department’s employees. The department accounts for the contributions as if they were contributions to defined contributions plans.

Where required, the department makes superannuation contributions to comply with overseas local labour laws. Australian-based staff who are engaged on a temporary basis and locally engaged staff overseas who are considered to be Australian residents for taxation purposes have compulsory employer superannuation contributions made on their behalf by the department to Australian Super or another complying fund as nominated by them.

The liability for superannuation recognised as at 30 June represents outstanding contributions for the final pay fortnight of the financial year.

1.10     Leases

A distinction is made between finance leases and operating leases. Finance leases effectively transfer from the lessor to the lessee substantially all the risks and rewards incidental to ownership of leased assets. An operating lease is a lease that is not a finance lease. In operating leases, the lessor effectively retains substantially all such risks and benefits.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount. The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a basis which is representative of the pattern of benefits derived from the leased assets. Lease incentives are recognised as other payables and amortised over the period of the lease on a straight line basis. The net present value of future net outlays in respect of surplus space under non-cancellable lease agreements is expensed in the period in which the space becomes surplus.

1.11     Borrowing Costs

All borrowing costs are expensed as incurred.

1.12     Cash

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

a) cash on hand
b) demand deposits in bank accounts with an original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value
c) cash held by outsiders
d) cash in special accounts.

1.13     Financial Assets

The department classifies its financial assets in the following categories:

a) financial assets at fair value through profit or loss
b) held-to-maturity investments
c) available-for-sale financial assets
d) loans and receivables.

The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. Financial assets are recognised and derecognised upon 'trade date'.

Effective Interest Method

The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, where appropriate, a shorter period. Income is recognised on an effective interest rate basis except for financial assets that are recognised at fair value through profit or loss.

Financial Assets at Fair Value through Profit or Loss

Financial assets are classified as financial assets at fair value through profit or loss where the financial assets:

a) have been acquired principally for the purpose of selling in the near future
b) are derivatives that are not designated and effective as a hedging instrument
c) are a part of an identified portfolio of financial instruments that the department manages together and has a recent actual pattern of short-term profit-taking.

Assets in this category are classified as current assets.

Financial assets at fair value through profit or loss are stated at fair value, with any resultant gain or loss recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest earned on the financial asset.

Held-to-Maturity Investments

Non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the department has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are recorded at amortised cost using the effective interest method less impairment, with revenue recognised on an effective yield basis.

Available-for-Sale Financial Assets

Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.

Available-for-sale financial assets are recorded at fair value. Gains and losses arising from changes in fair value are recognised directly in the reserves (equity) with the exception of impairment losses. Interest is calculated using the effective interest method and foreign exchange gains and losses on monetary assets are recognised directly in profit or loss. Where the asset is disposed of or is determined to be impaired, part (or all) of the cumulative gain or loss previously recognised in the reserve is included in profit for the period.

Loans and Receivables

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate.

Impairment of Financial Assets

Financial assets are assessed for impairment at the end of each reporting period.

Financial assets held at amortised cost

If there is objective evidence that an impairment loss has been incurred for loans and receivables or held-to-maturity investments held at amortised cost, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the asset's original effective interest rate. The carrying amount is reduced by way of an allowance account. The loss is recognised in the Statement of Comprehensive Income.

Available-for-sale financial assets

If there is objective evidence that an impairment loss on an available-for-sale financial asset has been incurred, the amount of the difference between its cost, less principal repayments and amortisation, and its current fair value, less any impairment loss previously recognised in expenses, is transferred from equity to the Statement of Comprehensive Income.

Financial assets held at cost

If there is objective evidence that an impairment loss has been incurred, the amount of the impairment loss is the difference between the carrying amount of the asset and the present value of the estimated future cash flows discounted at the current market rate for similar assets.

1.14     Financial Liabilities

Financial liabilities are classified as either financial liabilities at fair value through profit or loss or other financial liabilities. Financial liabilities are recognised and derecognised upon 'trade date'.

Financial Liabilities at Fair Value Through Profit or Loss

Financial liabilities at fair value through profit or loss are initially measured at fair value. Subsequent fair value adjustments are recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability.

Other Financial Liabilities

Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs. These liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

1.15     Suppliers and Other Payables

Supplier and other payables are recognised at amortised cost. Liabilities are recognised to the extent that the goods or services have been received (and irrespective of having been invoiced).

1.16     Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in the relevant schedules and notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are reported when settlement is probable but not virtually certain and contingent liabilities are disclosed when the probability of settlement is greater than remote.

1.17     Financial Guarantee Contracts

Financial guarantee contracts are accounted for in accordance with AASB 139 Financial Instruments: Recognition and Measurement. They are not treated as a contingent liability, as they are regarded as financial instruments outside the scope of AASB 137 Provisions, Contingent Liabilities and Contingent Assets.

1.18     Acquisition of Assets

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken. Financial assets are initially measured at their fair value plus transaction costs where appropriate.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor's accounts immediately prior to the restructuring (see Note 1.1). On 1 November 2013 the Financial Management and Accountability Act Determination 2013/12 – Section 32 formally transferred the functions, assets and liabilities from the former Australian Agency for International Development (AusAID). The international climate change and tourism industry functions were also assumed by the department during 2013-14 from the Department of Industry and the Department of Resources, Energy and Tourism respectively under the Administrative Arrangements Order issued on 18 September 2013.

1.19     Property, Plant and Equipment

Asset Recognition Threshold

Purchases of property, plant and equipment are recognised initially at cost in the statement of financial position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items that are significant in total).

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located. This is particularly relevant to 'make good' provisions in property leases taken up by the department where there exists an obligation to restore the property to its original condition on termination of the lease. These costs are included in the value of the department's leasehold improvements with a corresponding provision for the 'make good' recognised.

Revaluations

Fair values for each class of asset are determined as shown below.

Following initial recognition at cost, property, plant and equipment are carried at latest valuation less subsequent depreciation and impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets did not differ materially from the assets' fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the re-valued amount.

Assets held overseas are valued in local currencies and translated in to Australian dollars at the exchange rates current at the end of the reporting period.

Depreciation

Depreciable property, plant and equipment assets are written-down to their estimated residual values over their estimated useful lives to the department using, in all cases, the straight-line method of depreciation. Leasehold improvements are depreciated on a straight-line basis over the lesser of the estimated useful life of the improvements or the unexpired period of the lease.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

Impairment

All assets were assessed for indicators of impairment at 30 June 2014. Where indications of impairment existed, the asset's recoverable amount was estimated and an impairment adjustment made if the asset's recoverable amount was less than its carrying amount.

The recoverable amount of any asset is the higher of its fair value less costs of disposal and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset's ability to generate future cash flows, and the asset would be replaced if the department were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

1.20     Intangibles

The department’s intangibles comprise internally developed and commercially purchased software for internal use. These assets are carried at cost less accumulated amortisation and accumulated impairment losses except for purchases costing less than $2,000, which are expensed in the year of acquisition.

Software is amortised on a straight-line basis over its anticipated useful life. The useful life of the department’s software is 5 to 10 years (2013: 5 to 10 years).

All software assets were assessed for indications of impairment as at 30 June 2014.

1.21     Inventories

Inventories held for sale are valued at the lower of cost and net realisable value. Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Costs incurred in bringing each item of inventory to its present location and condition, are assigned as follows:

1. a) raw materials and stores – purchase cost on a first-in-first-out basis
2. b) finished goods and work-in-progress – cost of direct materials and labour plus attributable costs that can be allocated on a reasonable basis.

Inventories acquired at no cost or nominal consideration are initially measured at current replacement cost at the date of acquisition.

1.22     Taxation

The department is exempt from all forms of Australian taxation except Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST). Overseas, the department may be subject to Value Added Tax (VAT) on the purchase of goods and services.

Revenues, expenses, assets and liabilities are recognised net of GST except:

1. a) where the amount of GST incurred is not recoverable from the Australian Taxation Office
2. b) for receivables and payables.

1.23     Foreign Currency Transactions

Transactions denominated in a foreign currency are converted at the exchange rate at the date of the transaction. Foreign currency receivables and payables are translated at the exchange rates current at end of the reporting period. Exchange gains and losses are reported in the Statement of Comprehensive Income. The department does not enter into hedging arrangements for its foreign currency transactions and all foreign exchange gains or losses are considered non-speculative in nature.

1.24     Fair Value Measurement

The department deems transfers between levels of the fair value hierarchy to have occurred at the end of the reporting period.

Note 2: Events After the Reporting Period

Departmental

On 1 July 2014, the commencement of the Public Governance Performance and Accountability Act (PGPA Act) resulted in Appropriation Acts prior to 1 July 2012 being no longer available to agencies. The impact of this on DFAT has been to remove access to unspent annual departmental appropriations for 2010 -11 and 2011-12. The total amount of appropriations repealed is $113,103,237 (see Note 29C).

Note 5: Fair Value Measurements

The following tables provide an analysis of assets and liabilities that are measured at fair value. The different levels of the fair value hierarchy are defined below.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the department can access at measurement date.

Level 2: Input other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability.

Recurring and non-recurring Level 3 fair value measurements - valuation processes

The department revalued all land and building assets as part of the annual property portfolio valuation program as at 30 June 2014. Leasehold improvements and property, plant and equipment non-financial assets were revalued as at 30 June 2013 as part of the department's rolling revaluation program. All leasehold improvements and property, plant and equipment assets were subject to an independent review as at 30 June 2014 to ensure all asset classes were held at fair value. There is no change in the valuation technique since the prior year.

Recurring Level 3 fair value measurements - sensitivity of inputs

Adjusted market transactions

The significant unobservable inputs used in the fair value measurement of the department's land and buildings and property, plant and equipment asset class relate to adjustments to market transactions. A significant increase/(decrease) in this input would result in a significantly higher/(lower) fair value measurement.

Consumed economic benefit/obsolescence of asset

The significant unobservable inputs used in the fair value measurement of the department's buildings, leasehold improvements and property, plant and equipment asset classes relate to consumed economic benefit/asset obsolescence. A significant increase/(decrease) in this input would result in a significantly lower/(higher) fair value measurement.