Annual Report 2015-16

Financial Statements 2016

 Noosa Shire Council

 Notes to the Financial Statements
 for the year ended 30 June 2016
 Note 1. Summary of Significant Accounting Policies (continued)

 Noosa Shire Council has categorised and measured       (1.i)   Investments
 the financial assets and financial liabilities held at
 balance date as follows:                               Term deposits in excess of three months are reported
                                                        as investments, with deposits of less than three
Financial assets                                        months being reported as cash equivalents.
 e   Cash and cash equivalents                          (1.j)   Investment in Associate
 e   Receivables -    measured at amortised cost
     (Note 1.h)                                         As at 1 July 2010 a water distribution and retail
                                                        business   called  Unitywater   was   established  in
 Financial liabilities                                  accordance with the South-East Queensland Water
                                                        (Distribution and Retail Restructuring) Act 2009 to
 e   Payables - measured at amortised cost (Note        deliver water and waste water services to customers
     1.m)                                               within the local government areas of Moreton Bay
 e   Borrowings - measured at amortised cost (Note      Regional Council, Sunshine Coast Regional Council
     1.0)                                               and Noosa Shire Council.
 Financial  assets   and   financial  liabilities are © Under    the  Act,  governance    arrangements    for
 presented separately from each other and offsetting    Unitywater   were   established  in  a _ Participation
 has not been applied. All other disclosures relating | Agreement which commenced from 1 July 2010. The
 to the measurement and financial risk management       agreement provides for participation rights to be held
 of financial instruments are included in note 26.      by   the  participating Councils.  The   participating
                                                        Councils are Noosa Shire Council,      Moreton Bay
 (1.h)   Receivables                                    Regional Council and the Sunshine Coast Regional
                                                        Council. The Participation Rights effectively represent
 Trade receivables are recognised at the amounts        an investment in an associate by Noosa Shire Council
 due at the time of sale or service delivery i.e. the   and are disclosed in note 22.
 agreed purchase price / contract price.  Settlement
 of these amounts is required within 30 days from       (1.k)   Investment property
 invoice date.
                                                        Investment property is property held for the primary
 The   collectability of  receivables  is  assessed     purpose of earning rentals and/or capital appreciation.
 periodically and if there is objective evidence that
 Council will not be able to collect all amounts due,   Investment property is measured using the fair value
 the carrying amount is reduced for impairment. The     model. This means all investment property is initially
 loss is recognised in finance costs. The amount of — recognised at cost (including transaction costs) and
 the impairment is the difference between the asset’s | then subsequently revalued annually at the balance
 carrying amount and the present value of the           date.
 estimated cash flows discounted at the effective
 interest rate.                                         Gains or losses arising from changes in the fair value
                                                        of investment property are recognised as incomes or
 All known bad debts were written-off at 30 June.       expenses respectively for the period in which they
 Subsequent    recoveries  of   amounts   previously    arise. Investment property is not depreciated and is
 written off in the same period are recognised as       not tested for impairment.
 finance costs in the Statement of Comprehensive
 Income. If an amount is recovered ina subsequent       (1.1)   Property, Plant & Equipment
 period it is recognised as revenue.
                                                        Each class of property, plant and equipment is carried
 Because Council is empowered under the provisions      at cost or fair value less, where applicable, any
 of the Local Government Act 2009 to sellan owner's   = accumulated     depreciation     and    accumulated
 property to recover outstanding rate debts, Council    impairment losses.   Items of property,   plant and
 does not impair any rate receivables.                  equipment with a total value of less than $5,000, and
                                                        $15,000 for Buildings, except for land and network

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