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)

Noosa Shire Council has categorised and measured         (1.i)    Investments
the financial assets and financial liabilities held at
balance date as follows:                                 Term deposits in excess of three months are reported
                                                         as investments, with deposits of less than three
Financial assets                                         months being reported as cash equivalents.

•      Cash and cash equivalents                         (1.j)    Investment in Associate
•      Receivables - measured at amortised cost
       (Note 1.h)                                        As at 1 July 2010 a water distribution and retail
                                                         business called Unitywater was established in
Financial liabilities                                    accordance with the South-East Queensland Water
                                                         (Distribution and Retail Restructuring) Act 2009 to
•      Payables - measured at amortised cost (Note       deliver water and waste water services to customers
       1.m)                                              within the local government areas of Moreton Bay
•      Borrowings - measured at amortised cost (Note     Regional Council, Sunshine Coast Regional Council
       1.0)                                              and Noosa Shire Council.

Financial assets and financial liabilities are           Under the Act, governance arrangements for
presented separately from each other and offsetting      Unitywater were established in a Participation
has not been applied. All other disclosures relating     Agreement which commenced from 1 July 2010. The
to the measurement and financial risk management         agreement provides for participation rights to be held
of financial instruments are included in note 26.        by the participating Councils. The participating
                                                         Councils are Noosa Shire Council, Moreton Bay
(1.h)     Receivables                                    Regional Council and the Sunshine Coast Regional
                                                         Council. The Participation Rights effectively represent
Trade receivables are recognised at the amounts          an investment in an associate by Noosa Shire Council
due at the time of sale or service delivery i.e. the     and are disclosed in note 22.
agreed purchase price I contract price. Settlement
of these amounts is required within 30 days from         (1.k)   Investment property
invoice date.
                                                         Investment property is property held for the primary
The collectability of receivables is assessed            purpose of earning rentals and/or capital appreciation.
periodically and if there is objective evidence that
Council will not be able to collect all amounts due,     Investment property is measured using the fair value
the carrying amount is reduced for impairment The        model. This means all investment property is initially
loss is recognised in finance costs. The amount of       recognised at cost (including transaction costs) and
the impairment is the difference between the asset's     then subsequently revalued annually at the balance
carrying amount and the present value of the             date.
estimated cash flows discounted at the effective
interest rate.                                           Gains or losses arising from changes in the fair value
                                                         of investment property are recognised as incomes or
All known bad debts were written-off at 30 June.         expenses respectively for the period in which they
Subsequent recoveries of amounts previously              arise. Investment property is not depreciated and is
written off in the same period are ·recognised as        not tested for impairment.
finance costs in the Statement of Comprehensive
Income. If an amount is recovered in a subsequent        (1.1)   Property, Plant & Equipment
period it is recognised as revenue.
                                                         Each class of property, plant and equipment is carried
Because Council is empowered under the provisions        at cost or fair value less, where applicable, any
of the Local Government Act 2009 to sell an owner's      accumulated      depreciation     and     accumulated
property to recover outstanding rate debts, Council      impairment losses. Items of property, plant and
does not impair any rate receivables.                    equipment with a total value of less than $5,000, and
                                                         $15,000 for Buildings, except for land and network


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