Annual Report 2014

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   NOOSA SHIRE COUNCIL

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

      1.7        Adoption of new and revised Accounting Standards
                       In the current year, Council adopted all of the new and revised Standards and Interpretations issued by
                       the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for
                       the current reporting period. The adoption of the new and revised Standards and Interpretations has
                       not resulted in any material changes to Council's accounting policies. However the Application of
                      AASB 13 Fair Value Measurement and AASB 2011-8 Amendments to Australian Accounting
                       Standards arising from AASB 13 for the first time this year has resulted in greater disclosures,

                       At the date of authorisation of the financial statements, the Standards and Interpretations listed below Effective for annual
                       were in issue but not yet effective.                                                              report periods
                                                                                                                         beginning on are
                                                                                                                         afler:
                  AASB 9 Financial Instruments (December 2009)                                                            1 January 2017
                 AASB 1055 Budgetary Reporting                                                                            ] July 2014
                  2009-11 Amendments to Australian Accounting Standards arising from AASB 9 (December 2009)               1 January 2015
                  AASB 2010-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2010}           1 January 2015
                  AASB 2013-1 Amendments to AASB 1049 - Relocation of Budgetary Reporting Requirements                    1 July 2014

                       AASB 9 Financial Instruments (effective from 1 January 2015)
                       AASB 9, which replaces AASB 139 Financial Instruments: Recognition and Measurement , is effective
                       for reporting periods beginning on or afer | January 2015 and must be applied retrospectively. The
                       main impact of AASB 9 is to change the requirements for the classification, measurement and
                       disclosures associated with financial assets.
                       Under the new requirements the four current categories of financial assets stipulated in AASB 139 will
                       be replaced with two measurement categories: fair value and amortised cost and financiai assets wilt
                       only be able to be measured at amortised cost where very specific conditions are met,
                       As a result, Councit will be required to measure its financial assets at fair value.
                       AASB 12 contains the disclosure requirements for interests in other entities including unconsolidated
                       structured entities, While the Council is yet to compicte a review of disclosure, no significant changes
                       are anticipated, based on those presently made.
      1.8         Critical accounting judgements and key sources of estimation uncertainty
                       In the application of Council's accounting policies, management is required to make judgements,
                       estimates and assumptions about carrying values of assets and liabilities that are not readily apparent
                       from other sources. The estimates and associated assumptions are based on historical experience and
                       other factors that are considered to be relevant. Actual results may differ from these estimates. The
                       estimates and ongoing assumptions are reviewed on an ongoing basis. Revisions to accounting
                       estimates are recognised in the period in which the estimate is revised and in future periods as relevant.

                       Judgements, estimates and assumptions that have a potential significant effect are outlined in the
                       following financial statement notes:
                            Valuation and depreciation of property, plant and equipment - note 1.18 and note 19 Fair value
                            measurements
                            Impairment of property, plant and equipment - note 1.20 and note 18 (b)
                            Provisions - note 1.23 and note 22
                            Valuation of finance leases - note 1,21
                            Contingent liabilities - note 28

      1,9         Revenue
                       Rates, levies, grants and other revenue are recognised as revenue on receipt of funds or earlier upon
                       unconditional entitlement to the funds.

       1.9   (a)       Rates and levies
                       Where rate monies are received prior to the commencement of the rating/levying period, the amount is
                       recognised as revenue in the period in which they are received, otherwise rates are recognised at the
                       commencement of rating period.

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