Financial Statements 2017
Toowoomba Regional Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Significant Accounting Policies (continued)
Actual results may differ from these estimates. The
estimates and ongoing assumptions are reviewed on
an ongoing basis.
Revisions to accounting
estimates are recognised in the period in which the
estimate is revised and in future periods as relevant.
Judgements, estimates and assumptions that have a
potential significant effect are outlined in the
following financial statement notes:
1. g
Valuation and depreciation of property, plant
and equipment - Note 1.j and Note 12 & 13
Provisions - Note 1.l, 1.n and Note 17
Contingent liabilities - Note 21
Revenue
Rates and levies
Where rate monies are received prior to the
commencement of the rating/levying period, the
amount is recognised as revenue in the period in
which they are received, otherwise rates are
recognised at the commencement of rating period.
Grants and subsidies
Grants, subsidies and contributions that are non-
reciprocal in nature are recognised as revenue in the
year in which Council obtains control over them.
Internal restrictions that have been placed on
Council's cash and cash equivalents are disclosed in
Note 4.
Where grants are received that are reciprocal in
nature, revenue is recognised as the various
performance obligations under the funding
agreement are fulfilled. Council does not currently
have any reciprocal grants.
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.
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.
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.
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
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.
page 8
46
TOOWOOMBA REGIONAL COUNCIL I Annual Report 2016 - 2017