Annual Report 2019-20

Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2020

Note 3. Revenue            (continued)

                                                                                                  2020           2019
                                                                                  Notes           $'000          $'000


(b). Fees and Charges

2020 accounting policy
Revenue arising from fees and charges is recognised when or as the performance obligation is completed and the
customer receives the benefit of the goods / services being provided.
The performance obligation relates to the specific services which are provided to the customers and generally the
payment terms are within 30 days of the provision of the service or in some cases, the customer is required to pay
on arrival, for example caravan parks. There is no material obligation for Council in relation to refunds or returns.

Licences granted by Council are all either short-term or low value and all revenue from licences is recognised at
the time that the licence is granted rather than the term of the licence.

Revenue from infringements is recognised on issue of infringment notice after applying the expected credit loss
model relating to impairment of receivables for initial recognition of statutory receivables.

2019 accounting policy
Fees and charges are recognised when council is unconditionally entitled to those funds. Generally this is upon
lodgement of the relevant applications or documents, issuing of the infringement notice or when the service is
provided.

Building and Development Fees                                                                    2,919           3,216
Permits and Licences                                                                               846             944
Fines and Penalties                                                                                242             233
Registration Fees                                                                                  401             381
Parking Penalties                                                                                  799           1,007
User Fees and Charges                                                                              727             777
Other Statutory Fees                                                                               510             501

TOTAL FEES AND CHARGES                                                                          6,444           7,059

(c). Sales Revenue

Sale of goods revenue is recognised when the customer has taken delivery of the goods. Revenue from services
is recognised when the service is rendered.

Revenue from contracts and recoverable works generally comprises a recoupment of material costs together with
an hourly charge for use of equipment and employees. This revenue and the associated costs are recognised by
reference to the stage of completion of the contract activity, based on costs incurred at the reporting date. 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.

The COVID-19 pandemic has impacted Council sales revenue for the 2019/20 financial year due to the closure
of key community facilities between March and June 2020. thse closures included holiday parks, aquatic centre
and leisure centre facilities.




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