2016-11-08 S&O Agenda - Item 3, Attachment 1 - Local Economic Plan

                                                                                              Financial Statements 2016



 Noosa Shire Council

 Notes to the Financial Statements
    for the year ended 30 June 2016

 Note 1 Summary of Significant Accounting Policies


(1.a)      Basis of preparation                              (1.c)    Date of Authorisation

These general purpose financial statements are for           The financial statements were authorised for issue on
the period 1 July 2015 to 30 June 2016 and have              the date they were submitted to the Auditor-General
been prepared in compliance with the requirements            for final signature. This is the date the management
of the Local Government Act 2009 and the Local               certificate is signed.
Government Regulation 2012. Consequently, these
financial statements have been prepared in                   (1.d)    Adoption of New              and      Revised
accordance     with   all  Australian    Accounting                   Accounting Standards
Standards, Australian Accounting Interpretations and
other authoritative pronouncements issued by the             In the current year, Council adopted all of the new and
Australian Accounting Standards Board.                       revised Standards and Interpretations issued by the
                                                             Australian Accounting Standards Board (MSB) that
These financial statements have been prepared                are relevant to its operations and effective for the
under the historical cost convention except for the          current reporting period. The adoption of the new and
following:                                                   revised Standards and Interpretations has not
                                                             resulted in any material changes to Council's
•     Financial assets and liabilities, certain classes of   accounting policies.
      property, plant and equipment and investment
      property which are measured at fair value;             Noosa Shire Council has not applied any Australian
                                                             Accounting Standards and Interpretations that have
Council is constituted under the Queensland Local            been issued but are not yet effective with the
Government Act 2009 and is domiciled in Australia.           exception of MSB 2015-7 Amendments to Australian
                                                             Accounting Standards - Fair Value Disclosures of
Council uses the Australian dollar as its functional         Not-for-Profit Public Sector Entities. Generally Council
currency and its presentation currency.                      applies standards and interpretations in accordance
                                                             with their respective commencement dates. The
Amounts included in the financial statements have            retrospective application of MSB 2015-7 has
been rounded to the nearest $1,000 unless                    exempted Council from the disclosure of quantitative
otherwise indicated.                                         information and sensitivity analysis for some
                                                             valuations categorised within Level 3 of the fair value
Comparative information has been restated where              hierarchy.
necessary to be consistent with disclosures in the
current reporting period.                                    At the date of authorisation of the financial report,
                                                             AASB 9 Financial Instruments and MSB 2015-6
(1.b)     Statement of Compliance                            Amendments to Australian Accounting Standards -
                                                             Extending Related Party Disclosures to Not-for-Profit
These general purpose financial statements comply            Public Sector Entities are the only new accounting
with all accounting standards and interpretations            standards with a future application date that are
issued by the Australian Accounting Standards                expected to have a material impact on Council's
Board (AASB) that are relevant to Council's                  financial statements.
operations and effective for the current reporting
period. Because the Council is a not-for-profit entity       As a result, Council will be required to measure its
and the Australian Accounting Standards include              financial assets, including its investment in Unitywater
requirements for not-for-profit entities which are           at fair value. There will be no financial impact on the
inconsistent with International Financial Reporting          financial statements.
Standards     (IFRS),     to  the    extent     these
inconsistencies are applied, these financial                 From 1 July 2016 MSB 124 Related Party
statements do not comply with IFRS. The main                 Disclosures will apply to Council, which means that
impacts are the offsetting of revaluation and                Council will disclose more information about related
impairment gains and losses within a class of                parties and transactions with those related parties.
assets, and the timing of the recognition of non-
reciprocal grant revenue.


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