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


(d) Grants, Subsidies, Contributions and Donations (continued)
Capital grants
Capital grants received to enable Council to acquire or construct an item of property, plant and equipment to
identified specifications which will be under Council’s control and which is enforceable are recognised as revenue
as and when the obligation to construct or purchase is completed. For construction projects, this is generally as
the construction progresses in accordance with costs incurred since this is deemed to be the most appropriate
measure of the completeness of the construction project as there is no profit margin.

Where assets are donated or purchased for significantly below fair value, the revenue is recognised when the
asset is acquired and controlled by the Council.

2019 accounting policy

Grants, subsidies, donations and contributions that are non-reciprocal in nature are recognised as revenue when
recognised as revenue when Council obtains control over them, which is usually upon receipt of funds. Where
grants are received that are reciprocal in nature, revenue is recognised as the various performance obligations
under the funding agreement are fulfilled. In 2019, Council did not have any reciprocal grants.
Physical assets contributed to Council by developers in the form of road works, stormwater, water and wastewater
infrastructure and park equipment are recognised as revenue when the development becomes "on maintenance"
(i.e. the Council obtains control of the assets and becomes liable for any ongoing maintenance) and there is
sufficient data in the form of drawings and plans to determine the approximate specifications and values of such
assets. Non-cash contributions with a value in excess of the recognition thresholds are recognised as non-current
assets. Those below the thresholds are recorded as expenses.

Developers also pay cash trunk infrastructure charges to contribute to the provision of trunk infrastructure, such
as roads, bridges and stormwater. These contributions fall within the scope of AASB 1058. Where there is an
enforceable agreement which ties these funds to a specific performance obligation, then revenue will be met when
the obligations are met. The majority of Council's infrastructure charges do not have enforceable performance
obligations and are therefore recognised as revenue when received.

(i) Recurrent

General Purpose Grants                                                                       2,329          2,269
State Government Subsidies and Grants                                                          949            742
Commonwealth Government Subsidies and Grants                                                 2,085          2,398
Donations                                                                                       70             28
Contributions                                                                                   13              3
Other Non-government Subsidies                                                                   -              7

TOTAL RECURRENT GRANTS, SUBSIDIES,
CONTRIBUTIONS AND DONATIONS                                                                 5,446          5,447




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