Annual Report 2017-18

                                                                                                   Financial Statements 2018



Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2018

Note 1. Summary of Significant Accounting Policies (continued)

     AASB 16 Leases                                              applied. All other disclosures relating to the measurement
                                                                 and financial risk management of financial instruments are
     AASB 16 Leases will require the recognition of all          included in Note 29.
     leases in the Statement of Financial Position. A lease
     liability will initially be measured at the present value   (1.g)    Taxation
     of the lease payments to be made over the lease
     term. A corresponding right-of-use asset will also be       Income of local authorities and public authorities is exempt
     recognised over the lease term. The overall impact of       from Commonwealth taxation except for Fringe Benefits Tax
     this standard is yet to be quantified and Council will
     review over the next reporting period.                      GST recoverable from the ATO or payable to the ATO is
                                                                 shown as an asset or liability respectively.
(1.e)     Critical accounting judgements and key
          sources of estimation uncertainty                      Unitywater pays Council an income tax equivalent in
                                                                 accordance with the requirements of the Local Government
In the application of Council's accounting policies,             Act 2009. Where the activity of such an entity is subject to
management is required to make judgements, estimates             the tax equivalents regime, the income tax expense is
and assumptions about carrying values of assets and              calculated on the operating surplus adjusted for permanent
liabilities that are not readily apparent from other sources.    differences between taxable and accounting income.
The estimates and associated assumptions are based on
historical experience and other factors that are considered
to be relevant. Actual results may differ from these
estimates. The estimates and ongoing assumptions are
reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and in future periods as relevant.

Judgements, estimates and assumptions that have a
potential significant effect are outlined in the following
financial statement notes:

          Investment Property - Note 11
          Valuation and depreciation of Property, Plant &
          Equipment - Note 12
          Provisions - Note 17
          Contingent Liabilities - Note 20.

(1.f)     Financial assets and financial liabilities

Council recognises a financial asset or a financial liability
in its Statement of Financial Position when, and only
when, Council becomes a party to the contractual
provisions of the instrument.
Noosa Shire Council has categorised and measured the
financial assets and financial liabilities held at balance
date as follows:

Financial assets

     Cash and cash equivalents. Note 9.
     Receivables - measured at amortised cost. Note 10.

Financial liabilities

     Payables - measured at amortised cost. Note 15.
     Borrowings - measured at amortised cost. Note 16.

Financial assets and financial liabilities are presented
separately from each other and offsetting has not been


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