2015-10-14 Audit & Risk Committee Meeting - Draft Annual Financial Statements

NOOSA SHIRE COUNCIL

Notes to the Financial Statements
For the year ended 30 June 2015

  1         Significant accounting policies

  1. 1      Basis of preparation
            These general purpose financial statements are for the period 1 July 2014 to 30 June 2015 and
            have been prepared in compliance with the requirements of the Local Government Act 2009 and
            the Local Government Regulation 2012 . Consequently, these financial statements have been
            prepared in accordance with all Australian Accounting Standards, Australian Accounting
            Interpretations and other authoritative pronouncements issued by the Australian Accounting
            Standards Board.

            Comparatives reflect a 6 month reporting period from the 1 January to 30 June 2014.

            These financial statements have been prepared under the historical cost convention except for
            the revaluation of certain non-current assets.

            Council is constituted under the Queensland Local Government Act 2009 and is domiciled in
            Australia.

            Council uses the Australian dollar as its functional currency and its presentation currency and
            amounts have been rounded to the nearest $1.

  1. 2      Statement of compliance
            These general purpose financial statements comply with all accounting standards and
            interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to
            Council's operations and effective for the current reporting period. Because the Council is a not-
            for-profit entity and the Australian Accounting Standards include requirements for not-for-profit
            entities which are inconsistent with International Financial Reporting Standards (IFRS), to the
            extent these inconsistencies are applied, these financial statements do not comply with IFRS.
            The main impacts are the offsetting of revaluation and impairment gains and losses within a class
            of assets, and the timing of the recognition of non-reciprocal grant revenue.



            Council had an interest in one (1) associate during the year being Unitywater and is included in
            note 1.11

  1. 3      Date of authorisation
            The financial statements are authorised for issue on the date it was submitted to the Auditor-
            General for final signature. This is the date the management certificate is signed.


  1. 4      Adoption of new and revised Accounting Standards
            In the current year, Council adopted all of the new and revised Standards and Interpretations
            issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations
            and effective for the current reporting period. The adoption of the new suite of consolidation
            standards resulted in some material changes to Council's accounting policies. These standards
            comprised AASB 10 Consolidated Financial Statements, AASB 11 Joint Arrangements, AASB 12
            Disclosure of Interests in Other Entities, AASB 127 (revised 2011) Separate Financial
            Statements and AASB 128 (revised 2011) Investments in Associates and Joint Ventures .



  1. 5      Critical accounting judgements and key sources of estimation uncertainty
            In the application of Council's accounting policies, management is required to make judgements,
            estimates and assumptions about carrying values of assets and liabilities that are not readily
            apparent from other sources. The estimates and associated assumptions are based on historical
            experience and other factors that are considered to be relevant. Actual results may differ from
            these estimates. The estimates and ongoing assumptions are reviewed on an ongoing basis.
            Revisions to accounting estimates are recognised in the period in which the estimate is revised
            and in future periods as relevant.


            Judgements, estimates and assumptions that have a potential significant effect are outlined in the
            following financial statement notes:




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