Annual Report 2021-22

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2022

Note 11. Receivables (continued)

Other debtors: Council identifies other debtors as receivables which are not rates and charges or statutory charges. This
includes, but is not limited to property leases, respite services, venue hire, commercial waste charges and grants.

Credit risk exposure and impairment of receivables
The maximum exposure to credit risk at balance date for receivables is the gross carrying amount of those assets. No collateral
is held as security.

Council uses a provision matrix to measure the expected credit losses on statutory charges and other debtors. These
calculations reflect current conditions and Council's view of economic conditions over the expected lives of the receivable. As
well as historically observed default rates, calculated using credit losses experienced on past transactions for each group.

Council considers forecasts of macroeconomic conditions such as inflation, unemployment rates and interest rates and their
expected impacts on the default rates. Using this forward-looking information, Council would adjust its historical loss rates
upwards or downwards to incorporate these forecasts.

After reviewing macro economic conditions, Council has determined that while forward looking conditions are expected to
deviate from those observed historically, any potential impact is expected to be immaterial given the type and nature of Council
receivables, accordingly no forward looking adjustments were made.

Expected credit loss assessment
The Council uses an allowance matrix to measure the expected credit losses of trade receivables from individual customers,
which comprise a very large number of small balances.

Loss rates are calculated using a 'roll rate' method based on the probability of a receivable progressing through successive
stages of delinquency to write-off.
§Total§




2022                                                                        Historical                               Lifetime
                                                           Closing       Probability of        Loss Given           Expected
                                                           Balance            Default             Default         Credit Loss
Ageing                                                       $ '000                  %                 %                $ '000

Rates and Charges                                             4,685                 0%                  0%                   –
Statutory Charges and Other Debtors                               –
Current                                                       2,018              0.07%               100%                    1
1-30 days                                                       134              0.25%               100%                    –
31-60 days                                                       56              0.21%               100%                    –
61-90 days                                                       55              1.11%               100%                    1
90+ days                                                      1,248              0.00%               100%                    –
Total                                                         8,196                                                          2


§Total§




2021                                                                        Historical                               Lifetime
                                                           Closing       Probability of        Loss Given           Expected
                                                           Balance            Default             Default         Credit Loss
Ageing                                                       $ '000                  %                 %                $ '000

Rates and Charges                                             4,537                 0%               100%                    –
Statutory Charges and Other Debtors                               –
Current                                                       1,641              0.00%               100%                    1
1-30 days                                                        60              0.08%               100%                    –
31-60 days                                                       32              0.09%               100%                    –
61-90 days                                                       39              0.22%               100%                    1
90+ days                                                      1,035              0.01%               100%                    –
Total                                                         7,344                                                          2




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