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Annual Financial Statements for year ended 30 June 2012
Notes to the Financial Statements
Table 1: Statement of Financial Position (extract)
Non Current Assets
2011 (Revised)
Movement
2011 (Original)
Infrastructure, Property, Plant & Equipment
1,124,054,331
73,606,507
1,050,447,824
Equity
2011 (Revised)
Movement
2011 (Original)
Asset Revaluation Reserve
395,147,194
73,912,758
321,234,436
Table 2: Statement of Changes in Equity (extract)
2011
Asset Revaluation
Reserve (Revised)
Movement
Asset Revaluation
Reserve (Original)
Balance At End of Previous Reporting Period
326,958,350
0
326,958,350
Adjustment Due to Compliance With Revised Accounting Standards
0
0
0
Restated Opening Balance
326,958,350
0
326,958,350
Gain on Revaluation of Infrastructure, Property, Plant & Equipment
68,188,844
73,912,758
(5,723,914)
Balance At End of Period
395,147,194
73,912,758
321,234,436
Table 3 Statement of Comprehensive Income (extract)
2011 (Revised)
Movement
2011 (Original)
Net Surplus / (Deficit) transferred to Equity Statement
12,848,466
0
12,848,466
Other Comprehensive Income - Changes in revaluation surplus -
infrastructure, property, plant & equipment
68,188,844
73,912,758
(5,723,914)
Total Other Comprehensive Income
68,188,844
73,912,758
(5,723,914)
Total Comprehensive Income
81,037,310
73,912,758
7,124,552
Table 4 Non-current Assets – Infrastructure, Property Plant & Equipment (extract)
Infrastructure
Infrastructure Assets
2011 (Revised) $
Movement
2011 (Original) $
Infrastructure at valuation
1,128,115,874
73,912,758
1,054,203,116
Accumulated depreciation
(517,708,622)
0
(517,708,622)
Book value June 30
610,407,252
73,912,758
536,494,494
Infrastructure-change in book value
2011 (Revised) $
Movement
2011 (Original) $
Opening written down balance July 1
544,410,379
0
544,410,379
Acquisitions for the year
20,251,684
0
20,251,684
Depreciation for the year
(15,695,792)
0
(15,695,792)
Revaluations
61,440,981
73,912,758
(12,471,777)
Closing balance June 30
610,407,252
73,912,758
536,494,494
6.6 Error in prior financial year
As part of the annual revaluation of Council’s infrastructure
assets, our external valuers, Maloney Field Services,
discovered an inadvertent error in the valuation of the
following categories of infrastructure assets for the financial
year ending 30 June 2011: Footpaths, Kerbing, Reserve,
Footpaths, Road Pavement and Road Seal.
The reason given by our valuers was an incorrect condition
rating was applied within these 5 asset categories which
incorrectly overstated the level of asset consumption. This
had the accounting effect of overstating their accumulated
depreciation and understating their written down value as
at 30 June 2011.
This means the revaluation decrement of $12.47 million
for infrastructure should have been disclosed as a
revaluation increment of $61.44 million
The error meant that the Infrastructure, Property Plant and
Equipment line item and the Revaluation Reserve on both
the Statement of Financial Position and the Statement of
Changes in Equity were understated by $73.91 million as
at 30 June 2011.
There was no effect on the Operating Surplus (hence no
profit & loss effect) as disclosed in Statement of
Comprehensive Income; the Cash Flow Statement or
Uniform Presentation of Finances.
In accordance with AASB 108 “Accounting Policies,
Changes in Accounting Estimates and Errors “paragraph 49,
the following tables represent the changes in the relevant
line items for the comparative year 2010/2011.