Annual Report 2019-20

Noosa Shire Council

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

Note 13. Investment Property
                                                                                                  2020            2019
                                                                                   Notes          $'000           $'000

Investment property is property held for the primary purpose of earning rentals and/or capital appreciation. This
includes land held by Council for a currently undetermined future use. Investment property does not include
community housing or other property held to provide a social service.
Investment property is initially recognised at cost (including transaction costs) and subsequently at fair value.
Where investment property is acquired for significantly below fair value it is recorded at fair value on initial
recognition.
Gains or losses arising from changes in the fair value of investment property are recognised as incomes or
expenses respectively for the period in which they arise. Investment property is not depreciated and is not
tested for impairment.

Owned Investment Property

Fair Value at Beginning of Financial Year                                                        3,300           4,167
Revaluation Decrement                                                                             (300)           (867)

TOTAL INVESTMENT PROPERTY                                                                       3,000           3,300

Operating expenses in respect of investment property are reported in Note 6 and 18.

Note 14. Property, Plant and Equipment
Recognition
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation and accumulated impairment losses. Items of property, plant and equipment with a total
value of less than $5,000, $1,000 for computer equipment and $15,000 for Buildings, except for land and network
assets (which have a recognition threshold of $1) are treated as an expense in the year of acquisition. All other
items of property, plant and equipment are capitalised.
The classes of property, plant and equipment recognised by Council are reported in the table contained in this

Acquisition of assets
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition, including freight in, architect's fees, engineering design fees
and all other establishment costs.
Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair
value by Council valuation where that value exceeds the recognition thresholds for the respective asset class.
Fair value is the price that would be received to sell the asset in an orderly transaction between market
participants at the measurement date.
Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful
life of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major
component of an asset to maintain its service potential is capitalised.

Valuation
Land and improvements, buildings, major plant and all infrastructure assets are measured on the revaluation
basis, at fair value, in accordance with AASB 116 Property, Plant and Equipment and AASB 13 Fair Value
requirements. Other plant and equipment and work in progress are measured at cost.

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