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 (continued)


(1.e)   Critical accounting judgements and               Non-cash contributions
        key sources of estimation uncertainty
                                                         Non-cash contributions with a value in excess of the
In the application of Council's accqunting policies.     recognition thresholds, are recognised as revenue
management is required to make judgements,               and as non-current assets. Non-cash contributions
estimates and assumptions about carrying values of       below the thresholds are recorded as revenue and
assets and liabilities that are not readily apparent     expenses.
from other sources. The estimates and associated
assumptions are based on historical experience and       Physical assets contributed to Council by developers
other factors that are considered to be relevant.        in the form of road works, stormwater, infrastructure
Actual results may differ from these estimates. The      and park equipment are recognised as revenue when
estimates and ongoing assumptions are reviewed on        the development becomes "on maintenance" (i.e. the
an ongoing basis.          Revisions to accounting       Council obtains control of the assets and becomes
estimates are recognised in the period in which the      liable for any ongoing maintenance) and there is
estimate is revised and in future periods as relevant.   sufficient data in the form of drawings and plans to
                                                         determine the approximate specifications and values
Judgements, estimates and assumptions that have a        of such assets. All non-cash contributions are
potential significant effect are outlined in the         recognised at the fair value of the contribution
following financial statement notes:                     received on the date of acquisition

    •   Investment Property- Note 1.k and Note 10        Cash contributions
    •   Valuation and depreciation of Property,
        Plant & Equipment- Note 1.! and Note 11          Council receives cash contributions from property
    o   Provisions- Note 1.n and 1.p and Note 16         developers to construct assets such as roads and
    •   Contingent Liabilities - Note 19.                footpaths. Where agreements between Council and
                                                         the developers relating to these contributions are
                                                         determined to fall within the scope of AASB
(1.f)   Revenue
                                                         Interpretation 18 Transfers of Assets from Customers,
                                                         these contributions are recognised as revenue when
Rates, levies, grants and other revenue are
                                                         the related service obligations are fulfilled.
recognised as revenue on receipt of funds or earlier
upon unconditional entitlement to the funds.
                                                         Interest and dividends
Rates and levies
                                                         Interest received from term deposits is accrued over
                                                         the term of the investment. Dividends are recognised
Where rate monies are received prior to the
                                                         once they are formally declared by the directors of the
commencement of the rating/levying period, the
                                                         associated entities.
amount is recognised as revenue in the period in
which they are received, otherwise rates are
                                                         Fees and Charges
recognised at the commencement of rating period.
                                                         Fees and charges are recognised upon unconditional
Grants and subsidies
                                                         entitlement to the funds. Generally this is upon
                                                         lodgement of the relevant applications or documents,
Grants, subsidies and contributions that are non-
                                                         issuing of the infringement notice or when the service
reciprocal in nature are recognised as revenue in the
                                                         is provided.
year in which Council obtains control over them.

Where grants are received that are reciprocal ir.        (1.g)   Financial assets and financial
nature, revenue is recognised as the various                     liabilities
performance obligations are fulfilled under the
funding agreement. Council does not currently have       Council recognises a financial asset or a financial
any reciprocal grants.                                   liability in its Statement of Financial Position when,
                                                         and only when, Council becomes a party to the
                                                         contractual provisions of the instrument.


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