Council archive · source document
Annual Report 2023-24
Very large file (13.9 MB): the original may take a few minutes to open or download. The page text below is quick to read.
Original PDF page 112, section 1. The text section number identifies this passage in the reader.
Noosa Council Noosa Council
Financial Performance
Notes to the Financial Statements Notes to the Financial Statements
for the year ended 30 June 2024 for the year ended 30 June 2024
Note 11. Receivables (continued) Note 12. Other Assets
§Note/Subtotal§
§Subnote§
$ '000 2024 2023
Credit Risk Exposure and Impairment of Receivables
The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets. No collateral
Current
is held as security.
Prepayments 1,102 2,854
Council uses a provision matrix to measure the expected credit losses on statutory charges and other debtors. These Total Current Other Assets 1,102 2,854
calculations reflect current conditions and Council's view of economic conditions over the expected lives of the receivable. As
well as historically observed default rates, calculated using credit losses experienced on past transactions for each group.
Note 13. Equity Investments
§Note§
Council considers forecasts of macroeconomic conditions such as inflation, unemployment rates and interest rates and their
expected impacts on the default rates. Using this forward-looking information, Council would adjust its historical loss rates
upwards or downwards to incorporate these forecasts.
§Subnote§
Accounting recognition:
After reviewing macro economic conditions, Council has determined that while forward looking conditions are expected to
deviate from those observed historically, any potential impact is expected to be immaterial given the type and nature of Council As at 1 July 2010 a water distribution and retail business called Unitywater was established in accordance with the South-East
receivables, accordingly no forward looking adjustments were made. Queensland Water (Distribution and Retail Restructuring) Act 2009 to deliver water and waste water services to customers
within the local government areas of Moreton Bay Regional Council, Sunshine Coast Regional Council and Noosa Shire
Expected Credit Loss Assessment Council.
The Council uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers,
which comprise a very large number of small balances. Under the Act, governance arrangements for Unitywater were established in a Participation Agreement which commenced
from 1 July 2010. The agreement provides for participation rights to be held by the participating Councils. The participating
Loss rates are calculated using a 'roll rate' method based on the probability of a receivable progressing through successive Councils are Noosa Shire Council, Moreton Bay Regional Council and the Sunshine Coast Regional Council. The Participation
stages of delinquency to write-off. Rights effectively represent an investment in an associate by Noosa Shire Council.
§Total§
Investment in Associates are accounted for using the Equity method whereby the investment is initially recognised at cost and
2024 Historical Lifetime adjusted thereafter for the post-acquisition change in the Council’s share of the Unitywater's net assets.
Closing probability of Loss given expected
balance default default credit loss Council's Statement of Comprehensive Income includes its share in Unitywater's profit or loss and other comprehensive income
222 Ageing $ '000 % % $ '000 for the year ended 30 June 2024. 223
Statutory & Other Charges
Council’s share of net income Council’s share of net assets
Rates and Charges 5,549 0% 0% – $ '000 2024 2023 2024 2023
Current 2,848 0.05% 100% 2
1-30 days 3,565 0.25% 100% 9 Unitywater 6,490 5,846 107,368 102,648
31-60 days 772 1.10% 100% 8 Total 6,490 5,846 107,368 102,648
61-90 days 370 2.35% 100% 8
90+ days 1,417 0.00% 100% –
Total 14,521 27
(b) Associates
§Subnote§
Council has incorporated the following Associates into its consolidated Financial Statements.
§Total§
2023 Historical Lifetime
(a) Net carrying amounts – Council’s share
§Total§
Closing probability of Loss given expected
balance default default credit loss
Ageing $ '000 % % $ '000 Nature of Measurement
$ '000 relationship method 2024 2023
Statutory & Other Charges
Rates and Charges Unitywater Associate Equity 103,744 99,580
4,940 0% 0% –
Current Total Carrying Amounts 103,744 99,580
1,375 0.06% 100% 1
1-30 days 431 0.30% 100% 1
Noosa Council Annual Report 23/24
31-60 days 273 1.18% 100% 3
61-90 days 57 0.02% 100% 1
90+ days 1,345 0.00% 100% –
Total 8,421 6
Page 19 of 60 continued on next page ... Page 20 of 60
See the original
The page text is free to read. Viewing or downloading an original file needs an account.
Log in to see the originalLog in to download the original file
The download may take a few minutes. On mobile data, it is best to wait for Wi-Fi.