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

(f)   Employee Provisions
      Provision is made for the company's liability for employee benefits arising from services rendered by
      employees to the end of the reporting period. Employee provisions that are expected to be settled within
      one year have been measured at the amounts expected to be paid when the liability is settled.
      Employee provisions payable later than one year have been measured at the present value of the
      estimated future cash outflows to be made for those benefits. In determining the liability, consideration is
      given to employee wage increases and the probability that the employP.P. mciy not satisfy vesting
      requirements. Those cash outflows are discounted using market yields on national government bonds with
      terms to maturity that match the expected timing of cash flows attributable to employee provisions.

      Contributions are made by the entity to an employee superannuation fund and are charged as expenses
      when incurred.

(g)   Cash on Hand
      Cash on hand includes cash on hand, deposits held at-call with banks, other short-term highly liquid
      investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are
      shown within short-term borrowings in current liabilities on the statement of financial position.

(h)   Accounts receivable and other debtors
      Accounts receivable and other debtors include amounts due from members as well as amounts
      receivable from customers for goods sold in the ordinary course of business. Receivables expected to be
      collected within 12 months of the end of the reporting period are classified as current assets. All other
      receivables are classified as non-current assets.
      Accounts receivable are initially recognised at fair value and subsequently measured at amortised cost
      using the effective interest rate method, less any provision for impairment. Refer to Note l (e) for further
      discussion on the determination of impairment losses.

(I)   Goods and Srvices Tax (GST)
      Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
      GST incurred is not recoverable from the Australian Taxation Office (ATO).
      Receivables and payables are stated inclusive of the amount ot GST receivable or payable. The net
      amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in
      the statement of financial oosition.
      Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or
      financing activities which are recoverable from, or payable to, the ATO are presented as operating cash
      flows included in receipts from customers or payments to suppliers.

(j)   Income Tax
      No provision for income tax has been raised as the entity is exempt from income tax under Div 50 of the
      Income Tax Assessment Act 1997.

(k)   Provisions
      Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events,
      for which it is probable that an outflow of economic benefits will result and that outflow can be reliably
      measured. Provisions recognised represent the best estimate of the amounts required to settle the
      obligation at the end of reporting period.

(I)   Comparative Figures
      Where required by Accounting Standards comparative figures have been adjusted to conform with
      changes in presentation for the current financial year.
      When an entity applies an accounting policy retrospectively, makes a retrospective restatement or
      reclassifies items in its financial statements, a statement of financial position as at the beginning of the
      earliest comparative period must be disclosed.

(m)   Accounts Payable and Other Payables
      Accounts payable and other payables represent the liability outstanding at the end of the reporting
      period for goods and services received by the company during the reporting period which remain
      unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of
      recognition of the liability.
(n)   Critical Accounting Estimates and Judgements
      The directors evaluate estimates and judgments incorporated into the financial statements based on
      historical knowledge and best available current information. Estimates assume a reasonable expectation
      of future events and are based on current trends and economic data, obtained both externally and
      within the company.

(o)   Economic Independence
      Tourism Noosa Ltd is dependent on the collection of the Tourism Levy via the Noosa Council for the
      majority of its revenue to operate the business. At the date of this report, the Board of Directors confirms
      that Tourism Noosa Ltd have an agreement with the Noosa Council to collect the levy on behalf of
      Tourism Noosa Ltd for 3 years, and, following a review, to collect the levy for a further 2 years.