Annual Report 2019-20

Noosa Shire Council

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

Note 18. Leases (continued)
                                                                                                2020            2019
                                                                                  Notes         $'000           $'000

Exceptions to lease accounting

Council has applied the exceptions to lease accounting for both short-term leases (i.e. leases with a term of
less than or equal to 12 months) and leases of low-value assets. Council recognises the payments associated
with these leases as an expense on a straight-line basis over the lease term.

Leases at significantly below market value / concessionary leases

Council has elected to measure the right of use asset arising from the concessionary leases at cost which is
based on the associated lease liability at initial recognition.

Terms and conditions of leases

Buildings
Council leases a building which is used as office space. The lease is for a two year term with the option of a further
two, 1 year extensions. This lease includes a fixed annual increase and no market review date. It is reasonably
certain that Council will exercise one of the 1 year extensions.

Land
Council leases a parcel of land which is currently being utilised as a commercial slipway. The term of the lease was
for 20 years and will expire in 2025, there are no extension provisions contained in the lease. Rent is calculated
based on a 3 years average rental value at 6% and is payable for the term of the lease.

IT and Office Equipment
Council leases a number of items of equipment, many of these assets are considered low value and are therefore no
subject to lease accounting. The more significant items have lease terms of 3 years and fixed payments for the
term of the lease
                                                                                  Notes         $'000           $'000
Right of Use Assets

                                                                            IT and Office    description
                                                Buildings          Land       Equipment         here…                Total
                                                   $'000          $'000            $'000          $'000              $'000


2020
Adoption of AASB 16 at 1 July 2019                  63            124               13                           200
Additions to Right-of-Use Assets                     -              -               15                            15
Depreciation charge                                (23)           (22)              (9)              -           (54)
Balance at 30 June 2020                             40            102               19               -           161


Lease Liabilities

Classified as:
Current Lease Liability                                                                            54                   -
Non-current Lease Liability                                                                       110                   -
Total Lease Liabilities                                                                           164                   -



                                                                                                           page 33