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

               Investment Property - note 1.12 and note 12
               Valuation and depreciation of property, plant and equipment - note 1.13 and note 14 Fair value
               measurements
               Provisions - note 1.18 and note 17
               Contingent liabilities - note 22

  1. 6         Revenue
               Rates, levies, grants and other revenue are recognised as revenue on receipt of funds or earlier
               upon unconditional entitlement to the funds.

  1. 6   (a)       Rates and levies
               Where rate monies are received prior to the commencement of the rating/levying period, the
               amount is recognised as revenue in the period in which they are received, otherwise rates are
               recognised at the commencement of rating period.

  1. 6   (b)        Grants and subsidies
               Grants, subsidies and contributions that are non-reciprocal in nature are recognised as revenue
               in the year in which Council obtains control over them.

  1. 6   (c)        Cash contributions
               Council receives cash contributions from property developers to construct assets such as roads
               and footpaths. Where agreements between Council and the developers relating to these
               contributions are determined to fall within the scope of AASB Interpretation 18 Transfers of
               Assets from Customers these contributions are recognised as revenue when the related service
               obligations are fulfilled.

  1. 6   (d)        Interest and dividends
               Interest received from term deposits is accrued over the term of the investment. Dividends are
               recognised once they are formally declared by the directors of the associated entity.


  1. 6   (e)       Fees and Charges
               Fees and charges are recognised upon unconditional entitlement to the funds. Generally this is
               upon lodgement of the relevant applications or documents, issuing of the infringement notice or
               when the service is provided.

  1. 7         Financial assets and liabilities
               Council recognises a financial asset or a financial liability in its Statement of Financial Position
               when, and only when, Council becomes a party to the contractual provisions of the instrument.


               Noosa Shire Council has categorised and measured the financial assets and financial liabilities
               held at balance date as follows:

               Financial assets
               Cash and cash equivalents (note 1.8)
               Receivables - measured at amortised cost (note 1.9)

               Financial liabilities
               Payables - measured at amortised cost (note 1.15)
               Borrowings - measured at amortised cost (note 1.17)

               Financial assets and financial liabilities are presented separately from each other and offsetting
               has not been applied. All other disclosures relating to the measurement and financial risk
               management of financial instruments are included in note 28.

  1. 8         Cash and cash equivalents
               Cash and cash equivalents includes cash on hand, all cash and cheques receipted but not
               banked at the year end, deposits held at call with financial institutions, other short-term, highly
               liquid investments with original maturities of three months or less that are readily convertible to
               known amounts of cash and which are subject to an insignificant risk of changes in value, and
               bank overdrafts.




                                                                      Page 7