Annual Report 2014

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 NOOSA SHIRE COUNCIL

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

   1.5    (b)       Grants and subsidics
                    Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue in the
                    year in which Council obtains control over them.

   1d     ©         Non-cash contributions
                    Non-cash contributions including physical assets, in excess of $5,000 in value are recognised as
                    revenue and as non-current assets. Non-cash contributions below $5,000 are recorded as revenue and
                    expenses.

                    Physical assets contributed to Council by developers in the form of road works, stormwater, water and
                    wastewater infrastructure and park equipment are recognised as revenue when the development
                    becomes “on maintenance" (i.e. the Counci obtains control of the assets and becomes liable for any
                    ongoing maintenance) and there is sufficient data in the form of drawings and plans to determine the
                    approximate specifications and values of such assets. All non-cash contributions are recognised at the
                     fair value of the contribution received on the date of acquisition
   1.9    (d)       Cash contributions
                    Council receives cash contributions from property developers to construct assets such as roads and
                     footpaths, Where agreements between Council and the developers relating to these contributions are
                    determined to fall within the scope of AASB Interpretation 18 Transfers of Assets from Customers
                    these contributions are recognised as revenue when the related service obligations are fulfilled.

   1.9    (c}       Rental income
                    Rental revenue from investment and other property is recognised as income on a periodic straight line
                    basis over the lease term.

    19 6             Interest and dividends
                     Interest received from term deposits is accrucd over the term of the investment. Dividends are
                    recogniscd once they are formally declared by the directors of the associated entity,
   1.9    (g)       Sales revenue
                     Sale of goods is recognised when the the significant risks and rewards of ownership are transferred to
                     the buyer, generally when the customer has taken undisputed delivery of the goods.
                    The council generates revenues from a number of services, Revenue from contracts and recoverable
                    works generally comprises a recoupment of material costs together with an hourly charge for use of
                    equipment and employees. Contract revenue and associated costs are recognised by reference to the
                    stage of completion of the contract activity at the reporting date. Revenue is measured at the fair valuc
                    of consideration received or receivabie in relation to that activity. Where consideration is received for
                     the service in advance it is included in other liabilities and is recognised as revenue in the period when
                     the service is performed.

    1.9   th)        Fees and Charges
                     Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is upon
                     lodgement of the relevant applications or documents, issuing of the infringement notice or when the
                     service is provided.
    1,10       Financial assets and liabilities
                     Council recognises a financial asset or a financial liability in its Statement of Financial Position when,
                     and only when, Council becomes a party to the contractual provisions of the instrument.

                     Noosa Shire Council has categorised and measured the financial assets and financial liabilities held at
                     balance date as foliows:

                          Financial assets
                          Cash and cash equivalents (note 1.11)
                          Receivables - measured at amortised cost less any impairment (note 1.12)
                          Other financial assets (finance leases) - measured at fair value (note 1.21)

                          Financial liabilities
                          Payables - measured at amortised cost (note 1.22}
                          Borrowings - measured at amortised cost (note 1.24)
                     Financial assets and financial liabilities are presented separately from each other and offsetting has not
                     been applied.
                     All other disclosures relating to the measurement and financial risk management of financial
                     instruments are included in note 33.

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