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Annual Report 2020-21
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Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2021
Note 17. Leases (continued)
§Note/Subtotal§
Total per
Statement of
Financial
$ '000 < 1 year 1 – 5 years > 5 years Total Position
2021
Land 23 63 – 86 82
IT & Office Equipment 4 5 – 9 9
27 68 – 95 91
2020
Buildings 23 18 – 41 41
Land 23 87 – 110 104
IT & Office Equipment 10 10 – 20 18
56 115 – 171 163
Future Cash Outflows not reflected in the measurement of Lease Liabilities
§Subnote§
The slipway lease liability has been calculated based on the current 3 years average rental value at 6%, no adjustment has
been included for movement in the rental value over the remainder of the lease term. No allowance has been included for
restoration costs that may be incurred at the end of the lease. The lease also contains various restrictions and conditions
about what the site can be used for.
IT and Office equipment lease payments are generally fixed for the term of the arrangement and are not subject to any residual
values at the end of the lease.
Amounts included in the Statement of Comprehensive income related to Leases
§Subnote§
The following amounts have been recognised in the statement of comprehensive income for leases where Council is the
lessee.
$ '000 2021 2020
Expenses
Depreciation of Right-of-Use Assets 49 54
Interest Expense on Lease Liabilites 2 5
Expenses relating to Low-Value Assets 246 212
Net Expense relating to Leases 297 271
Total Cash Inflows/(Outflows) for Leases
§Subnote§
298 268
Leases at significantly below market value – concessionary / peppercorn leases
§Subnote§
Council has a number of leases at significantly below market for land which are used for access easements and parklands.
The leases are generally between 10 and 20 years and require payments between $1 and $143 per annum. The use of
the right-to-use asset is restricted by the lessors to specified community services which Council must provide, these services
are detailed in the leases.
Council does not believe that any of the leases in place are individually material.
Council as a Lessor
§Subnote§
When Council is a lessor, the lease is classified as either an operating or finance lease at inception date, based on whether
substantially all of the risks and rewards incidental to ownership of the asset have been transferred to the lessee. If the risks
and rewards have been transferred then the lease is classified as a finance lease, otherwise it is an operating lease.
continued on next page ... Page 35 of 61
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