Toowoomba Regional Council
Notes to the Financial Statements
for the year ended 30 June 2016
Note 1. Significant Accounting Policies (continued)
Non-cash contributions
Non-cash contributions with a value in excess of the
recognition thresholds are recognised as revenue
and as non-current assets. Non-cash contributions
below the thresholds are recorded as revenue and
expenses.
Physical assets contributed to Council by developers
in the form of road works, stormwater, water and
wastewater infrastructure and park equipment are
recognised as revenue when the development
becomes "on maintenance" (i.e. the Council obtains
control of the assets and becomes liable for any
ongoing maintenance) and there is sufficient data in
the form of drawings and plans to determine the
approximate specifications and values of such
assets. All non-cash contributions are recognised at
the fair value of the contribution received on the date
of acquisition.
Cash contributions
Developers also pay infrastructure charges for trunk
infrastructure, such as pumping stations, treatment
works, mains, sewers and water pollution control
works. These infrastructure charges are not within
the scope of AASB Interpretation 18 because there
is no performance obligation associated with them.
Consequently, the infrastructure charges are
recognised as income when received.
date. Revenue is measured at the fair value of
consideration received or receivable in relation to that
activity. Where consideration is received for the
service in advance it is included in other liabilities and
is recognised as revenue in the period when the
service is performed.
Fees and Charges
Fees and charges are recognised upon unconditional
entitlement to the funds. Generally this is upon
lodgement of the relevant applications or documents,
issuing of the infringement notice or when the service
is provided.
1. h
Council recognises a financial asset or a financial
liability in its Statement of Financial Position when,
and only when, Council becomes a party to the
contractual provisions of the instrument.
Toowoomba Regional Council has categorised and
measured the financial assets and financial liabilities
held at balance date as follows:
Financial assets
Interest and dividends
Interest received from term deposits is accrued over
the term of the investment.
Dividends are
recognised once they are formally declared by the
directors of the controlled entity.
The Council generates revenues from a number of
services including road and earthworks. Revenue
from contracts and recoverable works generally
comprises a recoupment of material costs together
with an hourly charge for use of equipment and
employees. Contract revenue and associated costs
are recognised by reference to the stage of
completion of the contract activity at the reporting
Cash and cash equivalents – note 10
Receivables - measured at amortised cost less
any impairment - note 1.i and note 11
Investments
Financial liabilities
Sales revenue
Sale of goods is recognised when the significant
risks and rewards of ownership are transferred to the
buyer, generally when the customer has taken
undisputed delivery of the goods.
Financial assets and liabilities
Payables - measured at amortised cost - note 1.k
and note 15
Borrowings - measured at amortised cost - note
1.m and note 16
Financial assets and financial liabilities are presented
separately from each other and offsetting has not
been applied.
1. i
Receivables
Trade receivables are recognised at the amounts due
at the time of sale or service delivery (i.e. the agreed
purchase price / contract price). Settlement of these
amounts is required within 30 days from invoice date.
The collectability of receivables is assessed
periodically and if there is objective evidence that
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CHAPTER 6 Financial report
TOOWOOMBA REGIONAL COUNCIL Annual Report 2015 - 2016