Annual Report 2019-20

Noosa Shire Council

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

Note 19. Payables
                                                                                                 2020           2019
                                                                                  Notes          $'000          $'000

Trade creditors
Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed
purchase/contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured
and are generally settled on 30 day terms.
Employee related accruals
Employee related accruals comprise annual leave, long service leave and accrued salaries and wages in respect of
services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each
reporting date. Where it is expected that the leave will be paid in the next twelve months the liability is treated as a
current liability. Otherwise the liability is treated as non-current.

Current
Employee Entitlements                                                                              90              85
ATO - net GST payable                                                                             124             106
Trade Creditors                                                                                 1,367           2,332
Accruals                                                                                        4,583           3,279
Employee Related Accruals                                                                       1,528           1,249
TOTAL CURRENT PAYABLES                                                                         7,692           7,051

Note 20. Borrowings
Loans payable are measured at amortised cost using the effective interest rate method. The effective interest
rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the
financial instrument. Borrowing costs, which includes interest calculated using the effective interest method and
administration fees, are expensed in the period in which they arise. Costs that are not settled in the period in which
they arise are added to the carrying amount of the borrowing.
All borrowing costs are expensed in the period in which they are incurred.
Borrowings are classified as current liabilities unless Council has an unconditional right to defer settlement of the
liability for at least 12 months after the balance date.
Council adopts an annual debt policy that sets out council's management of existing and future debt. Council's
current policy is to only borrow for capital projects and for a term no longer than the expected life of the asset.
Council also aims to comply with the Queensland Treasury Corporation's borrowing guidelines and ensure that
sustainability indicators remain within acceptable levels at all times.

Current
Loans - Queensland Treasury Corporation                                                         3,023           3,112

TOTAL CURRENT BORROWINGS                                                                       3,023           3,112

Non-current
Loans - Queensland Treasury Corporation                                                        18,493         21,120

TOTAL NON-CURRENT BORROWINGS                                                                  18,493         21,120


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