Annual Report 2016-17

                                                                                         Financial Statements 2017



Noosa Shire Council

Notes to the Financial Statements
 for the year ended 30 June 2017

Note 1. Summary of Significant Accounting Policies (continued)

Contracts and a number of Interpretations.        It     Noosa Shire Council has categorised and measured
contains a comprehensive framework for the               the financial assets and financial liabilities held at
recognition, measurement and disclosure of revenue       balance date as follows:
from contracts with customers. Council is reviewing
the way revenue is measured and recognised to            Financial assets
identify whether AASB 15 will have a material
impact.                                                  •   Cash and cash equivalents. Note 8.
                                                         •   Receivables - measured at amortised cost. Note
AASB 16 Leases is applicable from 1 July 2019 and            9.
will require the recognition of all leases on the
balance sheet.    A lease liability will be initially    Financial liabilities
measured at the present value of the lease
payments to be made over the lease term. A               •   Payables- measured at amortised cost.
corresponding right-of-use asset will also be                Note 14.
recognised to record the right to use the leased item    •   Borrowings - measured at amortised cost.        Note
over the lease term. The overall impact of this              15.
standard is yet to be quantified and Council will
review over the next reporting period.                   Financial assets and financial liabilities are presented
                                                         separately from each other and offsetting has not
 (1.e) Critical accounting judgements and                been applied. All other disclosures relating to the
       key sources of estimation uncertainty             measurement and financial risk management of
                                                         financial instruments are included in note 27.
In the application of Council's accounting policies,
management is required to make judgements,               (1.g)    Taxation
estimates and assumptions about carrying values of
assets and liabilities that are not readily apparent     Income of local authorities and public authorities is
from other sources. The estimates and associated         exempt from Commonwealth taxation except for
assumptions ate based on historical experience and       Fringe Benefits Tax and Goods and Services Tax
other factors that are considered to be relevant.        ('GST'). The net amount of GST recoverable from the
Actual results may differ from these estimates. The      A TO or payable to the ATO is shown as an asset or
estimates and ongoing assumptions are reviewed on        liability respectively.
an ongoing basis.          Revisions to accounting
estimates are recognised in the period in which the      Unitywater pays Council an income tax equivalent in
estimate is revised and in future periods as relevant.   accordance with the requirements of the Local
                                                         Government Act 2009. Where the activity of such an
Judgements, estimates and assumptions that have a        entity is subject to the tax equivalents regime, the
potential significant effect are outlined in the         income tax expense is calculated on the operating
following financial statement notes:                     surplus adjusted for permanent differences between
                                                         taxable and accounting income.
    •   Investment Property - Note 10
    •   Valuation and depreciation of Property,
        Plant & Equipment - Note 11
    •   Provisions - Note 16
    •   Contingent Liabilities - Note 19.

(1.f)   Financial assets and financial
        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.



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