2015-11-16 GC Agenda - Item 3, Attach 1 - Annual Report 2014-15

                                                                                                                QAO
                                                                                                         certified statements



NOOSA SHIRE COUNCIL

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

  1.\6 (a)        Landfill sites
             The provision represents the present value of the anticipated future costs associated with the
             closure of the Eumundi Rd landfill sites, decontamination and monitoring of historical residues
             and leaching on the site.
             The calculation of lhis provision requires assumptions such as application of environmental
             legislation, site closure dates, available technologies and engineering cost estimates. These
             uncertainties may result in future actual expenditure differing from amounts currently provided.
             Because of the long-term nature of the liability, the most significant uncertainty in estimating the
             provision is the costs that will be incurred.

             The provision recognised for the Eumundi Rd landfill sites is reviewed at least annually and
             updated based on the facts and circumstances available at the time. Management estimates that
             the site will fully close in 2054 and that site restoration wHl occur progressively over the
             subsequent thirty years.

  1.18 (b)       Quarry sites
             The provision represents the present value of the anticipated future costs associated with the
             dosure of the Ringtail Creek quarry sites, reclamation and rehabilitation of the site.

             The calculation of this provision requires assumptions such as application of environmental
             legislation. site closure dates. available technologies and engineering cost estimates. These
             uncertainties may result in future actual expenditure differing from amounts currently provided.
             Because of the long.tenn nature of the liability, the most significant uncertainty in estimating the
             provision is the costs that will be incurred. The provision recognised for quarry sites rehabilitation
             is reviewed at least annually and updated based on the facts and circumstances available at the
             time.

  1.19       National competition policy
             The Council has reviewed its activities and has identified 2 activities that are business activities.
             Details of these activities can be found in note 29.

  1.20       Taxation
             Income of local authorities and public authorities is exempt from Commonwealth taxation except
             for Fringe Benefits Tax and Goods and Services Tax ('GST). The net amount of GST
             recoverable from the Australian Taxation Office (ATO) or payable to the ATO is shown as an
             asset or liability respectively.

             UnityNater pays Council an income tax equivalent in accordance with the requirements of the
             Local Government Act 2009. Where the activity of such an entity is subject to the tax equivalents
             regime. the income tax expense is calculated on the operating surplus adjusted for permanent
             differences between taxable and accounting income.




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