Annual Report 2017-18

                                                                                                Financial Statements 2018



Noosa Shire Council

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

Note 16. Borrowings (continued)
                                                                                                      2018              2017
                                                                                      Notes           $'000             $'000


Reconciliation of Loan Movements for the year
Loans - Queensland Treasury Corporation
Opening balance at beginning of financial year                                                      38,036            38,118
Loans Raised                                                                                         1,165             2,697
Loan Interest Capitalised in Period                                                                  2,104             2,188
Principal Repayments                                                                                (5,164)           (4,967)
Book value at end of financial year                                                                36,141            38,036

The QTC loan market value at the reporting date was $40,141,537 (2017: $42,885,207). This represents the
value of the debt if Council repaid it at that date. As it is the intention of Council to hold the debt for its term, no
provision is required to be made in these accounts. No assets have been pledged as security by the council for
any liabilities.

Borrowings are all in $AUD and are underwritten by the Queensland State Government.



Note 17. Provisions
                                                                                                       2018             2017
Long service leave
Long service leave liability is measured as the present value of the estimated future cash outflows to be made
in respect of services provided by employees up to the reporting date. The value of the liability is calculated
using current pay rates and projected future increases in those rates and includes related employee on-costs.
The estimates are adjusted for the probability of the employee remaining in the Council's employment or other
associated employment which would result in the Council being required to meet the liability. Adjustments are
then made to allow for the proportion of the benefit earned to date, and the result is discounted to present
value. The interest rates attaching to Commonwealth Government guaranteed securities at the reporting date
are used to discount the estimated future cash outflows to their present value.


Where employees have met the prerequisite length of service and council does not have an unconditional right
to defer this liability beyond 12 months long service leave is classified as a current liability. Otherwise it is
classified as non-current.

Restoration Provisions
A provision is made for the cost of rehabilitation of assets and other future restoration costs where it is
probable the Council will be liable, or required, to incur such a cost on the cessation of use of the facility. This
liability is provided in respect of Quarries and Landfill sites.
The provision is measured at the expected cost of the work required discounted to current day values using an
appropriate rate. The current capital market yield bond rate is considered an appropriate rate with a maturity
date corresponding to the anticipated date of restoration.




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