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Annual Report 2023-24
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Noosa Council
Financial Performance
Noosa Council
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 16. Intangible Assets Note 17. Contract Balances (continued)
§Note/Subtotal§
§Subnote§
$ '000 2024 2023 $ '000 2024 2023
Intangible Assets are as follows: Classified as:
Current Contract Liabilities 8,167 24,643
Opening Gross Carrying Value 1,137 891 Total Contract Liabilities 8,167 24,643
Disposals – (21)
Transfers from/(to) Property, Plant and Equipment (328) –
Revenue recognised that was included in the contract liability balance at the
Work in Progress – 267 beginning of the year
Closing Gross Carrying Value 809 1,137
Opening Accumulated Amortisation and Impairment (530) (499) Funds to construct Council controlled assets 16,736 2,254
Amortisation in the Period (41) (48) Funds received in advance of services provided 114 101
Accumulated Amortisation charges written off – 17 Total Revenue included in the Contract Liability 16,850 2,355
Closing Accumulated Amortisation and Impairment (571) (530)
Total Intangible Assets - Net Book Value 238 607
Note 18. Leases
§Note§
§Subnote§
Software assets have a finite life estimated at 10 years.
Council as a Lessee
Council has leases in place over property and various IT and Office equipment. Council has applied the exception to lease
Note 17. Contract Balances
§Note§
accounting for leases of low-value assets and short-term leases.
Where Council assesses that an agreement contains a lease, a right of use asset and lease liability is recognised on inception
§Subnote§
Contract assets represents the excess of costs incurred in relation to a contract with the customer or construction of an of the lease. Council does not separate lease and non-lease components for any class of assets and has accounted for lease
242 asset over the amounts that council has invoiced the customer or the grantor. Where Council has invoiced the customer or payments as a single component. 243
the grantor amounts in excess of what it has incurred in relation to a contract or in constructing an asset, this gives rise to a
contract liability. The right-of-use asset is measured using the cost model where cost on initial recognition comprises: the lease liability, initial
direct costs, prepaid lease payments, estimated cost of removal and restoration, less any lease incentives received. The
right-of-use is depreciated over the lease term on a straight-line basis and assessed for impairment in accordance with the
§Total§
$ '000 2024 2023
impairment of asset accounting policy.
(a) Contract Assets The lease liability is initially recognised at the present value of the remaining lease payments at the commencement of the
Current lease. The discount rate is the rate implicit in the lease, however where this cannot be readily determined then the Council’s
Contract Assets 6,962 958 incremental borrowing rate for a similar term with similar security is used.
Total Current Contract Assets 6,962 958
Exceptions to Lease Accounting
Classified as:
Current Contract Assets 6,962 958 Council has applied the exceptions to lease accounting for both short-term leases (i.e. leases with a term of less than or equal
Total Contract Assets to 12 months) and leases of low-value assets. Council recognises the payments associated with these leases as an expense
6,962 958
on a straight-line basis over the lease term.
Contracts to Construct Council Owned Assets 6,962 958
Terms and Conditions of Leases
Buildings
(b) Contract Liabilities
§Total§
Council has entered into a lease for additional office space for an initial term of 5 years with 2 x 3 year options. The lease is
for a five year term with the option of a further two, three year extensions. This lease includes fixed annual increases with
Current market reviews due at the end of each term.
Land
Noosa Council Annual Report 23/24
Grants Council leases a parcel of land which is currently being utilised as a commercial slipway. The term of the lease was for 20
Funds received upfront to construct Council controlled assets 7,754 24,220 years and will expire in 2025, there are no extension provisions contained in the lease. Rent is calculated based on a 3
Total Grants 7,754 24,220 years average rental value at 6% and is payable for the term of the lease.
Other Services IT and Office Equipment
Non-capital performance obligations not yet satisfied 413 423 Council leases a number of items of equipment, many of these assets are considered low value and are therefore not
Total Other Services subject to lease accounting. The more significant items have lease terms of 3 or more years with fixed payments for the
413 423
term of the lease.
Total Current Contract Liabilities 8,167 24,643
continued on next page ... Page 32 of 60 continued on next page ... Page 33 of 60
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