Annual Report 2020-21

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2021

Note 3. Revenue (continued)

Capital grants
Capital grants received to enable Council to acquire or construct an item of property, plant and equipment to identified
specifications which will be under Council’s control and which is enforceable are recognised as revenue as and when the
obligation to construct or purchase is completed. For construction projects, this is generally as the construction progresses
in accordance with costs incurred since this is deemed to be the most appropriate measure of the completeness of the
construction project as there is no profit margin.

Donations and Contributions
Where assets are donated or purchased for significantly below fair value, the revenue is recognised when the asset is acquired
and controlled by the Council.

Donations and contributions are generally recognised on receipt of the asset since there are no enforceable performance
obligations.

Physical assets contributed to Council by developers in the form of road works, stormwater, land, infrastructure and park
equipment are recognised as revenue when Council obtains control of the asset and there is sufficient data in the form of
drawings and plans to determine the approximate specifications and values of such assets. Non-cash contributions with a
value in excess of the recognition thresholds are recognised as non-current assets. Those below the thresholds are recorded
as expenses.
§Subnote§




$ '000                                                                                              2021               2020

            (i) Operating

            General Purpose Grants                                                                  2,300              2,329
            State Government Subsidies and Grants                                                   1,496                949
            Commonwealth Government Subsidies and Grants                                            2,298              2,085
            Donations                                                                                  13                 70
            Contributions                                                                               –                 13

            Total Recurrent Grants, Subsidies, Contributions and Donations                         6,107              5,446



(ii) Capital

Capital revenue includes grants and subsidies received which ae tied to specific projects for the replacement or upgrade of
existing non-current assets and/or investment in new assets. It also includes non-cash contributions which are usually
infrastructure assets received from developers.

State Government Subsidies and Grants                                                              5,059               1,878
Commonwealth Government Subsidies and Grants                                                       3,866               3,364
Contributions                                                                                      2,522               2,058
Non-monetary Developer Assets Contributed by Developers at Fair Value                              1,730               1,100
                                                                                                  13,177               8,400

Total Capital Grants, Subsidies, Contributions and Donations                                      13,177              8,400




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