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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 10. Receivables §Note/Subtotal§ §Total§ $ '000 2021 2020 Current Rates and Charges 4,543 5,007 Other Debtors 12 12 GST Recoverable 808 688 Accrued Revenues 2,018 1,846 Fees and Charges 1,981 1,221 Loans and Advances to Community Organisations 125 125 Total 9,487 8,899 Less: Provision for Impairment Fees and Charges (2) (16) Total Provision for Impairment - Receivables (2) (16) Total Current Receivables 9,485 8,883 §Total§ Non-current Loans and Advances to Associates 49,218 49,218 Loans and Advances to Community Organisations 250 375 Total Non-Current Receivables 49,468 49,593 Refer also to Note 28 for further information about credit risk. §Total§ Interest is charged on outstanding rates (8.53% per annum from 1 July 2020, previously 9.83% per annum). No interest is charged on other debtors. There is no concentration of credit risk for rates and utility charges, fees and other debtors receivables. A loan agreement for the subordinated debt was executed on the 21 June 2013. The interest only loan structure terminates on the 30 June 2033 with the interest rate set by QTC annually. Applicable interest rate for 2021 was 4.51% (2020: 4.86%). §Total§ Accounting Policies Accounting Policies - Receivables Receivables are measured at amortised cost which approximates fair value at reporting date. Trade debtors are recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price. Settlement of these amounts is required within 30 days from invoice date. Accounting Policies - Grouping When Council has no reasonable expectation of recovering an amount owned by a debtor, and has ceased enforcement activity, the debt is written-off by directly reducing the receivable against the loss allowance. If the amount of debt written off exceeds the loss allowance, the excess is recognised as an impirment loss. Accounting for impairment losses is dependent upon the individual group of receivables subject to impairment. The loss allowance for grouped receivables reflects lifetime expected credit losses (ECL) and incorporates reasonable and supportable forward-looking information. Economic changes impacting debtors, and relevant industry data form part of the impairment assessment. Council has identified 3 distinctive groupings of its receivables: rates and charges, statutory charges and other debtors. Rates and charges: Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover outstanding rate debts and therefore the expected credit loss is immaterial. Impairment of rates and charges will occur only if arrears are deemed to be greater than the proceeds Council would receive from the sale of the respective property. Statutory charges: In some limited circumstances Council may write off impaired statutory charges, on this basis Council calculates an ECL for statutory charges (non-rates and utility charges). Although not material, disclosure is being made for the purposes of public interest and transparency. continued on next page ... Page 18 of 61
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