2018-12-11 S&O Agenda - Attachment 1 to Item 20 - Tourism Noosa Annual Report 2017-2018

Plant and equipment that have been contributed at no cost, or for nominal cost are recognised
           at the fair value of the asset at the date it is acquired.
           Depreciation
           The depreciable amount of all fixed assets, including buildings and capitalised lease assets but
           excluding freehold land, is depreciated on a straight-line basis over the asset's useful life to the
           entity commencing from the time the asset is available for use. Leasehold improvements are
           depreciated over the shorter of either the unexpired period of the lease or the estimated useful
           lives of the improvements.
           The depreciation rates used for each class of depreciable assets are:
           Class of Fixed A:                               Depreciation Rate
           Plant and equip                                     7.5 - 40%
           The assets’ residual values and useful lives are reviewed and adjusted, if appropriate, at the
           end of each reporting period.
           Gains and losses on disposals are determined by comparing proceeds with the carrying
           amount. These gains or losses are recognised as income in profit or loss in the period in which
           they arise. When revalued assets are sold, amounts included in the revaluation surplus relating to
           that asset are transferred to retained surplus.
 (d)       Leases
           Leases of property, plant and equipment where substantially all the risks and benefits incidental
           to the ownership of the asset (but not the legal ownership) are transferred to the entity, are
           classified as finance leases.
           Finance leases are capitalised, recognising an asset and a liability equal to the present value of
           the minimum lease payments, including any guaranteed residual values.
           Leased assets are depreciated on a straight-line basis over their estimated usetul lives where IT Is
           likely that the entity will obtain ownership of the asset. Lease payments are allocated between
           the reduction of the lease liability and the lease interest expense for the period.
           Lease payments for operating leases, where substantially all the risks and benefits remain with
           the lessor, are recognised as expenses on a straight-line basis over the lease term.
           Lease incentives under operating leases are recognised as a liability and amortised on a straight-
           line basis over the life of the lease term.
 (e)       Impairment of Assets
           At the end of each reporting period, the entity reviews the carrying values of its tangible and
           intangible assets to determine whether there is any indication that those assets have been
           impaired. If such an indication exists, the recoverable amount of the asset, being the higher of
           the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value.
           Any excess of the asset's carrying value over its recoverable amount is recognised in profit or
           loss.
           Where the future economic benefits of the asset are not primarily dependent upon the asset's
           ability to generate net cash inflows and when the entity would, if deprived of the asset, replace
           its remaining future economic benefits, value in use is determined as the depreciated
           replacement cost of an asset.
           Where it is not possible to estimate the recoverable amount of an individual asset, the entity
           estimates the recoverable amount of the cash-generating unit to which the asset belongs.
           Where an impairment loss on a revalued asset is identified, this is recognised against the
           revaluation surplus in respect of the same class of asset to the extent that the impairment loss
           does not exceed the amount in the revaluation surplus for that class of asset.
(f)        Employee Provisions
           Provision is made for the company's liability for employee benefits arising from services
           rendered by employees to the end of the reporting period. Employee provisions that are
           expected to be settled within one year have been measured at the amounts expected to be
           paid when the liability is settled. Employee provisions payable later than one year have been
           measured at the present value of the estimated future cash outflows to be made for those
           benefits. In determining the liability, consideration is given to employee wage increases and the
           probability that the employee may not satisfy vesting requirements. Those cash outflows are
           discounted using market yields on national government bonds with terms to maturity that match
           the expected timing of cash flows attributable to employee provisions.
           Contributions are made by the entity to an employee superannuation fund and are charged
           as expenses when incurred.