TPG25-11 Valuation of Physical Non-Current Assets at Fair Value
The purpose of this Policy is to provide requirements and practical guidance for valuing physical non-current assets for general purpose financial reporting.
Issued: 30 November 2025 by Secretary, Treasury
Key information
- Status
- Active
- Type
- Treasury Policy and Guidelines
- Identifier
- TPG25-11
- Compliance
- Mandatory
Who needs to know and/or comply with this?
- Executive agencies related to Departments
- General Government Sector
- Public Financial Corporation
- Public Non-financial Corporation
- State Owned Corporations
About
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Physical non-current assets comprise a significant proportion of NSW public sector assets. These assets are used to meet Government objectives and desired outcomes through the delivery of goods and services.
The objective of valuing these assets is to report on the value of the future economic benefits embodied in the asset. This will provide relevant and reliable information for decision-making about resource allocation, performance measurement and accountability, and ensure a consistent approach to asset valuation across the NSW Public Sector.
After initial recognition, Australian Accounting Standards AASB 116 Property, Plant and Equipment (AASB 116) and AASB 140 Investment Property (AASB 140) require assets to be valued at fair value or cost. AASB 13 Fair Value Measurement (AASB 13) sets out in a single Accounting Standard how to measure fair value.
This Policy mandates physical non-current assets be measured at fair value under AASB 116 and AASB 140, consistent with Australian Bureau of Statistics, Government Finance Statistics (GFS) and AASB 1049 Whole of Government and General Government Sector Financial Reporting (AASB 1049).
This Policy provides a high-level summary of the requirements of AASB 13. It then provides additional guidance to help reporting GSF agencies apply AASB 13, AASB 116, AASB 140, AASB 136 Impairment of Assets (AASB 136) and AASB 1059 Service Concession Arrangements: Grantors (AASB 1059) in a public sector context. This Policy is not a substitute for the above accounting standards and must be read in conjunction with them.
The Policy also sets out requirements on how to conduct revaluations. For reporting GSF agencies except state owed corporations, it introduces a new mandate, with an exceptions process, to use the State’s valuation office, Value NSW (VNSW), as the external valuer for comprehensive and interim revaluations, based on a phased introduction - as prescribed in section 9 of this Policy.
Where relevant, International Accounting Standards Board (IASB) support materials, including illustrative examples, and International Valuation Standards Council (IVSC) pronouncements have been used or referenced to further explain how to apply AASB 13 in the NSW public sector context1.
Refer to Appendix A: Summary of changes from the previous version of this Policy, TPP 21-09 Valuation of Physical Non-Current Assets at Fair Value.