Financial Statements 2017
Toowoomba Regional Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Significant Accounting Policies (continued)
assets are reviewed at the end of each reporting
period and adjusted where necessary to reflect any
changes in the pattern of consumption, physical
wear
and
tear,
technical
or
commercial
obsolescence, or management intentions. The
condition assessments performed as part of the
annual valuation process for assets measured at
depreciated current replacement cost are used to
estimate the useful lives of these assets at each
reporting date. Details of the range of estimated
useful lives for each class of asset are shown in
Note 12.
Land under roads
Land under roads acquired before 30 June 2008 is
recognised as a non-current asset where the Council
holds title or a financial lease over the asset.
Land under the road network within the Council area
that has been dedicated and opened for public use
under the Land Act 1994 or the Land Title Act 1994
is not controlled by Council but is controlled by the
State pursuant to the relevant legislation. Therefore
this land is not recognised in these financial
statements.
1. k
Payables
Trade creditors are recognised upon receipt of the
goods or services ordered and are measured at the
agreed purchase price or contract price net of
applicable discounts other than contingent
discounts. Amounts owing are unsecured and are
generally settled on 30 day terms.
1. l
Liabilities - Employee Benefits
Liabilities are recognised for employee benefits such
as wages and salaries, annual leave and long
service leave in respect of services provided by the
employees up to the reporting date. Liabilities for
employee benefits are assessed at each reporting
date. Where it is expected that the leave will be paid
in the next twelve months the liability is treated as a
current liability. Otherwise the liability is treated as
non-current.
accrued expense and is included in Note 15 as a
payable.
Annual leave
A liability for annual leave is recognised. Amounts
expected to be settled within 12 months are
calculated on current wage and salary levels and
includes related employee on-costs. Amounts not
expected to be settled within 12 months are
calculated on projected future wage and salary levels
and related employee on-costs, and are discounted to
present values.
This liability represents an accrued expense and is
reported in Note 15 as a payable.
As Council does not have an unconditional right to
defer this liability beyond 12 months annual leave is
classified as a current liability.
Long service leave
A liability for long service leave is measured as the
present value of the estimated future cash outflows to
be made in respect of services provided by
employees up to the reporting date. The value of the
liability is calculated using current pay rates and
projected future increases in those rates and includes
related employee on-costs. The estimates are
adjusted for the probability of the employee remaining
in the Council's employment or other associated
employment which would result in the Council being
required to meet the liability. Adjustments are then
made to allow for the proportion of the benefit earned
to date, and the result is discounted to present value.
The interest rates attaching to Commonwealth
Government guaranteed securities at the reporting
date are used to discount the estimated future cash
outflows to their present value. This liability is
reported in Note 17 as a provision.
Where employees have met the prerequisite length of
service and Council does not have an unconditional
right to defer this liability beyond twelve months, long
service leave is classified as a current liability.
Otherwise it is classified as non-current.
Salaries and wages 1. m
Borrowings
A liability for salaries and wages is recognised and
measured as the amount unpaid at the reporting
date at current pay rates in respect of employees'
services up to that date. This liability represents an Borrowings are initially recognised at fair value plus
any directly attributable transaction costs. Subsequent
to initial recognition these liabilities are measured at
amortised cost.
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Annual Report 2016 - 2017 I TOOWOOMBA REGIONAL COUNCIL
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