Annual Report 2014

,        NOOSA SHIRE COUNCIL

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

            1.11        Cash and cash equivalents
                              Cash and cash equivalents includes cash on hand, al] cash and cheques receipted but not banked at the
                              year end, deposits held at call with financial institutions, other short-term, highly liquid investments
                              with original maturities of three months or less that are readily convertible to known amounts of cash
                              and which are subject to an insignificant risk of changes in value, and bank overdrafis.

            1,12        Receivables
                              Trade receivables are recognised at the amounts due at the time of sale or service delivery i.e. the
                              agreed purchase price / contract price. Settlement of these amounts is required within 30 days from
                              invoice date.

                              The collectability of receivables is assessed periodically and if there is objective evidence that Council
                              will not be able to collect al] amounts due, the carrying amount is reduced for impairment. The loss is
                              recognised in finance costs. The amount of the impairment is the difference between the asset’s
                              carrying amount and the present value of the estimated cash flows discounted at the effective interest
                              rate.

                              Ali known bad debts were written-off at 30 June. Subsequent recoveries of amounts previously written
                             off in the same period are recognised as finance costs in the Statement of Comprehensive Income. If
                              an amount is recovered in a subsequent period it is recognised as revenue.

                              Because Council is empowered under the provisions of the Lecal Government Act 2009 to scil an
                              owner's property to recover outstanding rate debts, Counci! does not impair any rate receivables.

                              Loans and advances are recognised in the same way as other receivables. Terms are usually a
                              maximum of five years with interest charged at negotiated rates. Security is not nonmally obtained.

            1.13         Inventories
                              Stores and raw materials held for resale are valued at the lower of cost and net realisable value and
                              include, where applicable, direct material, direct labour and an appropriate portion of variable and
                              fixed overheads. Costs are assigned on the basis of weighted average cost.

                              Inventories held for distribution (internal consumption) are:
                               * goods to be supplied at no, or nominal, charge, and
                               * goods to be used for the provision of services at no, or nominal, charge.
                              Inventory for distribution is valued at cost, adjusted when applicable for any loss of service potential.

                              Land acquired by Council with the intention of reselling it (with or without further development) is
                              classified as inventory. This land is valued at the lower of cost or net realisable value. As an inventory
                              item, this land held for resale is treated as a current asset. Proceeds from the sale of this land will be
                              recognised as sales revenue on the signing of a valid unconditional contract of sale.

             1,14        Other financial assets
                              Other financial assets are recognised at cost.

             1,15        Non current assets held for sale
                              Items of property, plant and equipment are reclassified as non-current assets as held for sale when the
                              carrying amount of these assets will be recovered principally through a sales transaction rather than
                              continuing use. Non-current assets classified as held for sale are available for immediate sale in their
                              present condition and management believe the sale is highly probable. Non-current assets held for sale
                              are measured at the lower of their carrying amount and fair value less cost to sell and are not
                              depreciated. On the eventual sale of these assets a gain or loss is recognised,

             1,16        Investments
                              Term deposits in excess of three months are reported as investments, with deposits of Jess than three
                              months being reportcd as cash equivalents.

                                                                                                                                              cettified statements
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