9.13.2 Land under roads
Land under roads includes land under roadways, road reserves, footpaths, nature strips and median strips.
An agency has had the choice of recognising land under roads acquired prior to 31 December 2007 (AASB 1051), as an asset (AASB 2014a). For the next reporting period after 31 December 2007, the entity was permitted to make a decision as to whether to recognise land under roads acquired before 1 July 2008. The final decision can be made at any time prior to the completion of the financial statements for the next financial reporting period, but will be effective as at the first day of that period. This approach for land acquired prior to 31 December 2007 can be applied retrospectively. The basis for valuing land acquired before 1 July 2008 is therefore fair value.
Valuation of land under roads may be regulated in some States/Territories and some States/Territories may require valuation of land under roads by registered valuers or a valuer approved by the responsible agency, e.g. Valuer-General as in the case of Victoria. The process for valuing land under roads pre- and post‑2008 is explained further below.
The Englobo basis of valuation of land under roads is based on developing a ‘raw land’ (undeveloped) value for land under roads.