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
  7  (c)  Net gain on assets transferred from deamalgamated council
     On the 11th April 2013 legislation was enacted to separate the former Noosa Shire Council from the Sunshine Coast Regional Council (SCRC).
     Noosa Council has ‘been established with its former boundaries and includes an area of approximately 869 square kilometeres and a population of
      51,962. (2006 census).
      In accordance with AASB 3 Business Combinations , the net amount of all assets and liabilities transferred from Sunshine Coast Regional Council
      has been recognised as a gain on the restructure of local government.
      In some cases, adjustments have been made as a result of changes to accounting policy and the measurement of assets and liabilities signed off by
      the Transfer Committee.

      Details are as follows:
                                                                                       Book value          Adjustments by      Net Gain on
                                                                                       transferred          Noosa Shire        restructure of
                                                                                       from SCRC              Council        focal government
          Assets                                                           Note             $
               Current assets
                   Cash and cash equivalents                                               39,044,123                  -          39,044,123
                   Trade receivables                                          (a)            3,390,546                1,135        3,391,681
                   Inventory                                                                   109,115                 -             109,115
                                                                                           42,543,784                 1,135       42,544,919
               Non-current assets
                   Receivables                                                (b)          49,233,190               (15,673)      49,217,517
                   Participation rights - Unitywater                          (b)           60,997,643              (19,418)      60,978,225
                   Property, plant and equipment                             (c)          940,218,634           (61,434,755)     878,783,879
                    Intangible assets                                                          118,247                               118,247
                                                                                         1,050,567,714          (61,469,846) _ 989,097,868
               Total assets                                                              1,093,111,498          (61,468,711)   _1,031,642,787
          Liabilities
               Current liabilities
                   Trade payables                                                            3,001,192                 -           3,001,192
                    Provisions                                                               5,751,090                 -           5,751,090
                   Other                                                      (d)             576,052                69,168          645,220
                                                                                             9,328,334               69,168        9,397,502
               Non-current liabilities
                    Borrowings                                                              40,048,048                            40,048,048
                   Provisions                                                 {e)            4,648,150            3,120,919        7,769,069
                                                                                            44,696,198            3,120,919       47,817,117
               Total liabilities                                                            54,024,532            3,190,087       57,214,619
               De-amalalgamation expenses capitalised                          (f)          -                     2,230,042        2,230,042
          Net gain on restructure of local government                                    1,039,086,966           (66,888,840)    972,198,126

      Details of adjustments to opening balances
 (a)  Details of adjustments to opening balances for receivables
      Trade and other receivables                                                                                      1,135
      Total adjustment                                                                                                 1,135
      An adjustment was made to the opening balance for Regulatory Management receivables to align the migrated data with balances transferred.

 (b)  Detail of adjustments to opening balances for investment in associate
      Unitywater loan receivable                                                                                     (15,673)
      Unitywater participation righis                                                                                (19,418)
      Total adjustment                                                                                               (35,091)
                                                                                                                                 QAO
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