Annual Report 2022-23(PDF, 12MB)

      Note 11. Receivables (continued)                                                                                                    Note 12. Other Assets
                                                                                                                                          §SSuubnote§




                                                                                                                                                        $ '000                                                                                 2023               2022
      Credit Risk Exposure and Impairment of Receivables
      The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets. No collateral
      is held as security.                                                                                                                              Current
                                                                                                                                                        Prepayments                                                                           2,854              2,898
       Council uses a provision matrix to measure the expected credit losses on statutory charges and other debtors. These                              Total Current Other Assets                                                           2,854              2,898
       calculations reflect current conditions and Council's view of economic conditions over the expected lives of the receivable. As
       well as historically observed default rates, calculated using credit losses experienced on past transactions for each group.

       Council considers forecasts of macroeconomic conditions such as inflation, unemployment rates and interest rates and their                       Note 13. Equity Investments
       expected impacts on the default rates. Using this forward-looking information, Council would adjust its historical loss rates
       upwards or downwards to incorporate these forecasts.                                                                               §Subnote§




                                                                                                                                                        Accounting recognition:
       After reviewing macro economic conditions, Council has determined that while forward looking conditions are expected to
       deviate from those observed historically, any potential impact is expected to be immaterial given the type and nature of Council   As at 1 July 2010 a water distribution and retail business called Unitywater was established in accordance with the South-East
       receivables, accordingly no forward looking adjustments were made.                                                                 Queensland Water (Distribution and Retail Restructuring) Act 2009 to deliver water and waste water services to customers
                                                                                                                                          within the local government areas of Moreton Bay Regional Council, Sunshine Coast Regional Council and Noosa Shire
       Expected Credit Loss Assessment                                                                                                    Council.
       The Council uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers,
       which comprise a very large number of small balances.                                                                              Under the Act, governance arrangements for Unitywater were established in a Participation Agreement which commenced
                                                                                                                                          from 1 July 2010. The agreement provides for participation rights to be held by the participating Councils. The participating
       Loss rates are calculated using a 'roll rate' method based on the probability of a receivable progressing through successive
                                                                                                                                          Councils are Noosa Shire Council, Moreton Bay Regional Council and the Sunshine Coast Regional Council. The Participation
       stages of delinquency to write-off.
                                                                                                                                          Rights effectively represent an investment in an associate by Noosa Shire Council.

                                                                                                                                          Investment in Associates are accounted for using the Equity method whereby the investment is initially recognised at cost and
      §TTootal§




                  2023                                                             Historical                               Lifetime




                                                                                                                                                                                                                                                                           Noosa Council Annual Report 2022 - 2023
                                                                   Closing      probability of        Loss given           expected       adjusted thereafter for the post-acquisition change in the Council’s share of the Unitywater's net assets.
                                                                   balance           default             default          credit loss
                  Ageing                                             $ '000                 %                 %                $ '000     Council's Statement of Comprehensive Income includes its share in Unitywater's profit or loss and other comprehensive income
                                                                                                                                          for the year ended 30 June 2023.
                  Statutory & Other Charges
                  Rates and Charges                                   4,940                0%                 0%                    –                                                          Council’s share of net income         Council’s share of net assets
                  Current                                             1,375             0.06%               100%                    1           $ '000                                                  2023              2022               2023              2022
                  1-30 days                                             431             0.30%               100%                    1
                                                                                                                                                Unitywater                                              5,846              6,508           102,648            100,140
                  31-60 days                                            273             1.18%               100%                    3
                                                                                                                                                Total                                                   5,846              6,508           102,648            100,140
                  61-90 days                                             57             1.84                100%                    1
                  90+ days                                            1,345             0.00%               100%                    –
                  Total                                              8,421                                                          6
                                                                                                                                          (b) Associates
      §TTootal§
                                                                                                                                          Council has incorporated the following Associates into its consolidated Financial Statements.
                  2022                                                             Historical                               Lifetime
                                                                   Closing      probability of        Loss given           expected             (a) Net carrying amounts – Council’s share
                                                                   balance            default            default          credit loss
                  Ageing                                             $ '000                 %                 %                $ '000                                                                   Nature of          Measurement
                                                                                                                                                $ '000                                                  relationship       method                     2023        2022
                  Statutory & Other Charges
                  Rates and Charges                                   4,685                0%                 0%                    –           Unitywater                                              Associate          Equity                 99,580        96,515
                  Current                                             2,018             0.07%               100%                    1           Total Carrying Amounts                                                                           99,580        96,515
                  1-30 days                                             134             0.25%               100%                    –
                  31-60 days                                             56             0.21%               100%                    –
                  61-90 days                                             55             1.11%               100%                    1
                  90+ days                                            1,248             0.00%               100%                    –
                  Total                                              8,196                                                          2




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