2015-01-12 General Committee Agenda Attachment 1 to Item 17 Noosa Council Report 2014

NOOSA SHIRE COUNCIL

 Notes to the Financial Statements
 For the six months ending 30 June 2014
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                     The calculation of this provision requires assumptions such as application of environmental legislation,
                     sile closure dates, available technologies and engineering cost estimates. These uncertainties may
                     result in future actual expenditure differing from amounts currently provided. Because of the long-term
                     nature of the liability, the most significant uncertainty in estimating the provision is the costs that will
                     be incurred. The provision recognised for quarry sites rehabilitation is reviewed at least annually and
                     updated based on the facts and circumstances available at the time.

   1, 26       Asset revaluation surplus
                     The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and
                     equipment that do not result from the use of those assets. Net incremental changes in the carrying
                     value of classes of non-current assets since their initial recognition are accumulated in the asset
                     revaluation surplus.

                     Increases and decreases on revaluation are offset within a class of assets.

                     Where a class of assets is decreased on revaluation, that decrease is offset first against the amount
                     remaining in the asset revaluation surplus in respect of that class. Any excess is treated as an expense.

                     When an asset is disposed of, the amount reported in surplus in respect of that asset is retained in the
                     assel revaluation surplus and not transferred to retained surplus.

    1,27        Retained surplus (deficit)
                     This represents the amount of Council’s net funds not set aside in reserves to meet specific future
                     needs,

    1,28        National competition pelicy
                     The Council has reviewed its activities and has identified 2 activities that are business activities.
                     Details of these activities can be found in note 34.
    1, 29       Rounding and comparatives
                     The financial statements have been rounded to ihe nearest $1.

    1.30        Trust funds held for outside parties
                     Funds held in the trust account on behalf of outside parties include those funds from the sale of land
                     for arrears in rates, deposits for the contracted sale of land, security deposits lodged to guarantee
                     performance and unclaimed monies (e.g. wages) paid into the trust account by the Council, The
                     Council performs only a custodian role in respect of these monies and because the monies cannot be
                     used for Council purposes, they are nol considered revenue nor brought to account in the financial
                     statements.

    1.31        Taxation
                     Income of local authorities and public authorities is exempt from Commonwealth taxation except for
                     Fringe Benefits Tax and Goods and Services Tax (‘GST’). The net amount of GST recoverable from
                     the Australian Taxation Office (ATO) or payable to the ATO is shown as an asset or liability
                     respectively. The Council pays payroll tax to the Queensland Government on certain activities.
                     Unitywater pays Council an income 1ax equivalent in accordance with the requirements of the Local
                     Gavernment Act 2009 . Where the activity of such an entity is subject to the tax equivalents regime, the
                     income tax expense is calculated on the operating surplus adjusted for permanent differences between
                     taxable and accounting income. These transactions are eliminated upon consolidation.

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