2017-12-12 S&O Agenda - Attachment 1 to Item 9 - Tourism Noosa Annual Report 2016-17

      Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as
      appropriate, only when it is probable that future economic benefits associated with the item will flow to
      the company and the cost of the item can be measured reliably. All other repairs and maintenance are
      recognised as expenses in profit or loss in the financial period in which they are incurred.

      Plant and equipment that have been contributed at no cost, or for nominal cost are recognised at the fair
      value of the asset at the date it is acquired.
      Depreciation
      The depreciable amount of all fixed assets, including buildings and capitalised lease assets but excluding
      freehold land, is depreciated on a straight-line basis over the asset's useful life to the entity commencing
      from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of
      either the unexpired period of the lease or the estimated useful lives of the improvements.
      The depreciation rates used for each class of deprecaiable assets are:

      Closs of Fixed Asset                                                   Depreciation Rote
      Plant and Equipment                                                         7.5 - 40%

      The assets' residual vales and useful lives are reviewed and adjusted, if appropriate, at the end of each
      reporting period.
      Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These
      gains or losses are recognised as income in profit or loss in the period in which they arise. When revalued
      assets are sold, amounts included in the revaluation surplus relating to that asset are transferred to
      retained surplus.

(d)   Leases
      Leases of property, plant and equipment where substantially all the risks and benefits incidental to the
      ownership of the asset (but not the legal ownership) are transferred to the entity, are classified as finance
      leases.

      Finance leases are capitalised, recognising an asset and a liability equal to the present value of the
      minimum lease payments, including any guaranteed residual values.

      Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that
      the entity will obtain ownership of the asset. Lease payments are allocated between the reduction of the
      lease liability and the lease interest expense for the period.
      Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor,
      are recognised as expenses on a straight-line basis over the lease term.
      Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis
      over the life of the lease term.
(e)   Impairment of Assets
      At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible
      assets to determine whether there is any indication that those assets have been impaired. If such an
      indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs
      to sell and value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value
      over its recoverable amount is recognised in profit or loss.

      Where the future economic benefits of the asset are not primarily dependent upon the asset's ability to
      generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future
      economic benefits, value in use is determined as the depreciated replacement cost of an asset.

      Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the
      recoverable amount of the cash-generating unit to which the asset belongs.

      Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation
      surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the
      amount in the revaluation surplus for that class of asset.