Annual Report 2018-19

                                                                                             Financial Statements 2019



Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2019

Note 11. Investment Property
                                                                                                   2019              2018
                                                                                   Notes           $'000             $'000


Investment property is property held for the primary purpose of earning rentals and/or capital appreciation.
Investment property is measured using the fair value model. This means all investment property is initially
recognised at cost (including transaction costs) and then subsequently revalued annually at the balance date.
Gains or losses arising from changes in the fair value of investment property are recognised as incomes or
expenses respectively for the period in which they arise. Investment property is not depreciated and is not tested
for impairment.

Fair value at beginning of financial year                                                          4,167            4,405
Revaluation decrement                                                                               (867)            (238)

TOTAL INVESTMENT PROPERTY                                                                         3,300            4,167

Operating expenses in respect of investment property are reported in Note 6 and 23.




Note 12. Property, Plant and Equipment
                                                                                                    2019             2018
Recognition
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and accumulated impairment losses. Items of property, plant and equipment with a total value of less
than $5,000, $1,000 for computer equipment and $15,000 for Buildings, except for land and network assets (which
have a recognition threshold of $1) are treated as an expense in the year of acquisition. All other items of property,
plant and equipment are capitalised.
The classes of property, plant and equipment recognised by Council are reported in the table contained in this note.

Acquisition of assets
Acquisitions of assets are initially recorded at cost. Cost is determined as the fair value of the assets given as
consideration plus costs incidental to the acquisition, including freight in, architect's fees and engineering design
fees and all other establishment costs.
Property, plant and equipment received in the form of contributions, are recognised as assets and revenues at fair
value by Council valuation where that value exceeds the recognition thresholds for the respective asset class. Fair
value is the price that would be received to sell the asset in an orderly transaction between market participants at
the measurement date.

Routine operating maintenance, repair costs and minor renewals to maintain the operational capacity and useful life
of the non-current asset is expensed as incurred, while expenditure that relates to replacement of a major
component of an asset to maintain its service potential is capitalised.




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