Annual Report 2014

“A         . .

NOOSA SHIRE COUNCIL

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

                    Amonrtisation methods, estimated useful lives and residual values are reviewed at the end of each
                    reporting period and adjusted where appropriate. Details of the estimated useful lives assigned to each
                    class of intangible assets are shown in note 20.

   1,20        impairment of non current assets
                    Each non-current physical and intangible asset and group of assets is assessed for indicators of
                    impaimment annually. Efan indicator of possible impairment exists, the Council determines the asset's
                    tecoverable amount. Any amount by which the asset’s carrying amount exceeds the recoverable
                    amount is recorded as an impairment loss. The recoverable amount of an asset is the higher of its fair
                    value less costs to sell and its value in use,

                    An impairment loss is recognised immediately in the Statement of Comprehensive Income, unless the
                    assel is carvied at a revalued amount. When the asset is measured at a revalued amount, the
                    impainnent loss is offset against the asset revaluation surplus of the relevant class to the extent
                    available.

                     Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
                     revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed
                     the carrying amount that would have been determined had no impainnent loss been reeognised for the
                     asset in prior years. A reversal of an impairment loss is recognised as income unless the asset is
                     carvied at a revalued amount, in which case the reversal of the impairment loss is treated as a
                     revaluation surplus increase.

   1,21        Leases
                     Leases of plant and equipment under which the Council as lessee/lessor assumes/transfers substantially
                     all the risks and benefits incidental to the ownership of ihe asset, but not the legal ownership, are
                     classified as finance leases. Other leases, where substantially all the risks and benefits remain with the
                     lessor, are classifted as operating leases.
                     The council has no finance leases.

                     Operating leases
                     Payments made under operating leases are expensed in equal instalments over the accounting periods
                     covered by the lease term, except where an alternative basis is more representative of the pattern of
                     benefits to be derived from the leased property.

   1, 22        Payables
                     Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the
                     agreed purchase/contract price net of applicable discounts other than contingent discounts. Amounts
                     owing are unsecured and are generally setiled on 30 day terms.

   1,23         Liabilities - employee benefits
                     Liabilities are recognised for employec benefits such as wages and salaries, annual leave and long
                     service leave in respect of services provided by the employees up to the reporting date. Liabilities for
                     employee benefits are assessed at cach reporting date,

         {a}         Salaries and wages
                     A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting
                     date at current pay rates in respect of employees' services up to that date. This liability represents an
                     accrued expense and is included in note 21 as a payabie.
          (b}        Annual leaye
                     A liability for annual leave is recognised. As Council] does not have an unconditional right to defer
                     settlement of the annual leave beyond the !2 months after the reporting date, annual leave is classified
                     as current, and eaiculated based on projected future wage and salary levels and related employee on-
                     costs, and discounted to present values. This is currently disclosed in Note 21 asa payable.

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