Annual Report 2014

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NOOSA SHIRE COUNCIL

Notes to the Financial Statements
For the six months ending 30 June 2014

   1           Significant accounting policies

   1,1         Basis of preparation
                    These general purpose financial statements are for the period | January 2014 to 30 June 2014 and have
                    been prepared in compliance with the requirements of the Local Government Act 2009 and the Local
                    Government Regulation 20/2, Consequently, these financial statements have been prepared in
                    accordance with ail Australian Accounting Standards, Australian Accounting Interpretations and other
                    authoritative pronouncements issued by the Australian Accounting Standards Board.

                    These financial statements have been prepared under the historical cost convention except for the
                    revaluation of certain non-current assets.

   1.2         Statement of compliance
                    These general purpose financial statements comply with all accounting standards and interpretations
                    issued by the Australian Accounting Standards Board (AASB) that are relevant to Council's operations
                    and effective for the current reporting period. Because the Council is a not-for-profit entity and the
                    Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent
                    with Intemational Financial Reporting Standards (IFRS), to the extent these inconsistencies are
                    applied, these financial statements do not comply with IFRS.
                    The main impacts are the offsetting of revaluation and impairment gains and losses within a class of
                    assets, and the timing of the recognition of non-reciprocal grant revenue.

   1.3         Basis of consolidation
               (i) Associates
                    Associates are entities that Noosa Shire Council has significant influence over. Significant influence is
                    the power to participate in the financial, operating and policy decisions but does not constitute controi
                    or joint control. Investments in associates are accounted for in the financial statements using the equity
                    method and are carried at the lower of cost and recoverable amount. Under this method, the
                    consolidated entity's share of post acquisition profits and losses of associates is recognised in the
                    Statement of Comprehensive Income and the interest in the equity of the associates is recognised in the
                    Statement of Financial Position. The cumutative post acquisition movements are adjusted against the
                    cost of the investment.

               (ii) Other transactions with associates
                    Dividends
                    Dividends declared and paid are treated in accordance with the equity basis of accounting set out

                    Tax Equivalents
                     Unitywater operates under an income tax equivalent regime, with all tax paid being distributed to the
                    participating Councils on a pro-rata basis to their participation rights. Tax is payable quarterly based
                    on a percentage of the Unitywater gross revenue.
                     Participant loans
                     Participant loans provide for a fixed interest rate with quarterly interest only payments. Interest
                     payments are not eliminated as part of the equity accounting in associates disclosure. The amount of
                     the participant loan remains unchanged.

                     Council had an interest in one (1) associate during the year being Unitywater and is inctuded in Note
                     1.17

    1.4        Constitution
                     The Noosa Shire Council is constituted under the Queensland Local Government Act 2009 and is
                     domiciled in Australia.

    1.5         Date of authorisation
                     The financial statements are authorised for issue on the date it was submitted to the Auditor-General
                     for final signature. This is the date the management certificate is signed.

    1.6         Currency
                     The Councif uses the Australian dollar as its functional currency and its presentation currency.

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