NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT For the three months ended 31 March 2013 16. NON-CURRENT ASSETS — PROPERTY PLANT AND EQUIPMENT (CONTINUED) In determining the fair value of respective pastoral leasehold and freehold land assets shown in the financial statements the Directors initiate  periodic independent valuations through registered property valuers� Once these valuations have been considered and reviewed by the Directors  they are then adopted as Directors’ valuations� Disclosure of land and building assets measured at fair value included above and their categorisation in the fair value hierarchy can be seen below: Fair Value Inputs are summarised as follows: Level 1 Price Inputs – are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the  measurement date� Level 2 Price Inputs – are input prices other than quoted prices included within Level 1 that are observable for the asset or liability, either directly  or indirectly� Level 3 Price Inputs – are unobservable inputs for the asset or liability� For the 31 December 2012 financial year, all land and buildings were valued by external independent valuers� The fair values of freehold land, pastoral leases, buildings and improvements at 31 December 2012 were determined by reference to independent  valuations performed by Herron Todd White in December 2012� Fair value was determined by reference to an open market, being the amount for  which the asset could be exchanged between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction at  the valuation date�  At 31 December 2012 the revaluation decrement for two specific stations (pastoral leases) exceeded revaluations previously credited to the asset  revaluation reserve resulting in $8,085,000 being expensed to the Consolidated Income Statement� The revaluation surplus for all other properties  was credited to the asset revaluation reserve included in the equity section of the Consolidated Statement of Financial Position� The effective date of the revaluation was 31 December 2012� This was reviewed at 31 March 2013 by Herron Todd White and no material  difference was noted� After balance date, the Company commenced the process of selling two properties (refer note 32 for further details)� If freehold land, pastoral leases, buildings and improvements were measured using the deemed cost model (the fair value of the assets in 1995) the  carrying amounts would be as follows: Our cattle stations are generally held under a leasehold agreement with the Crown� Leasehold properties in Queensland are mainly pastoral  holdings which are term leases with a maximum period of 50 years� In the Northern Territory, the pastoral leases we hold have been granted on a  perpetual basis by the Northern Territory Government� While there is no obligation for leases to be renewed by the Queensland Government at expiry, we are not presently aware of any reason why  leases would not be renewed on substantially the same terms based upon past practice by the Queensland Government� 86 Australian Agricultural Company Limited (c) Pastoral leases (b) Revaluation of freehold land, pastoral leases, buildings and improvements Fair Value Input Type 31 Mar 2013  $000 31 Dec 2012  $000 31 Mar 2012  $000  (reviewed ) Level 1 None - - -  Level 2 Land & Buildings 547,377 547,890 573,805 Level 3 None - - - 547,377  547,890 573,805 31 Mar 2013  $000 31 Dec 2012  $000 31 Mar 2012  $000  (reviewed ) Deemed cost 303,502 301,984 272,585 Accumulated depreciation (32,473) (31,566) (28,897) Net carrying amount 271,029 270,418 243,688