Annual Report 2019-20

Noosa Shire Council

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

Note 30. Financial Instruments and Financial Risk Management                                 (continued)

                                                                                              2020               2019
                                                                                              $'000              $'000


At 30 June 2020, the exposure to credit risk for trade receivables by type of counterparty was as follows:

Community Organisations                                                                        500                 625
Property Charges                                                                             5,096               4,582
Fees and Charges                                                                             1,116               1,294
GST Recoverable                                                                                688                 632
Associates                                                                                  49,218              49,218
Other                                                                                           12                  32
Total                                                                                      56,630             56,383

                                                                               2020            2020                  2019
                                                                         Not credit-         Credit-
                                                                          impaired         impaired
                                                                             $'000            $'000              $'000

A summary of the Council's exposure to credit risk for trade receivables is as follows:
Not Past Due                                                                 1,030               -               1,282
Past Due 31-60 Days                                                             48               -                 133
Past Due 61-90 Days                                                             43               -                  57
More than 90 Days                                                            5,806             (10)              5,072
Loans to Community Organisations                                               500               -                 625
Loans and Advances to Associates                                            49,218               -              49,218
Loss Allowance                                                                  (5)              -                  (4)
Total                                                                      56,640              (10)           56,383
                                                                                  -                                    -
Refer to Note 10 for further details.

Accounting policies

Accounting policy - Receivables
Receivables are measured at amortised cost which approximates fair value at reporting date. Trade debtors are
recognised at the amounts due at the time of sale or service delivery i.e. the agreed purchase/contract price.
Settlement of these amounts is required within 30 days from invoice date.

Accounting policy - Grouping
When Council has no reasonable expectation of recovering an amount owned by a debtor, and has ceased
enforcement activity, the debt is written-off by directly reducing the receivable against the loss allowance.
If the amount of debt written off exceeds the loss allowance, the excess is recognised as an impirment loss.
Accounting for impairment losses is dependent upon the individual group of receivables subject to impairment.
The loss allowance for grouped receivables reflects lifetime expected credit losses (ECL) and incorporates
reasonable and supportable forward-looking information. Economic changes impacting debtors, and relevant
industry data form part of the impairment assessment.
Council has identified 3 distinctive groupings of its receivables: rates and charges, statutory charges and other
debtors.



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