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41
Annual Financial Statements for year ended 30 June 2012
Notes to the Financial Statements
The liability expected to be settled within 12 months, as
it applies to Administrative staff, is unchanged from
previous years and is accrued at the nominal rate as at
balance date. Amounts expected to be paid beyond 12
months are accrued at the present value of estimated
future cash outflows as at 31 December 2013.
10 Joint Ventures and Associated Entities
Council participates in cooperative arrangements with
other levels of government and other Councils for the
provision of services and facilities. Further detail is
outlined in Note 28.
11 Leases
Lease arrangements have been accounted for in
accordance with Australian Accounting Standard
AASB 117.
In respect of finance leases, where Council substantially
carries all of the risks incident to ownership, the leased
items are initially recognised as assets and liabilities
equal in amount to the present value of the minimum
lease payments. The assets are disclosed as assets under
lease, and are amortised to expense over the period
during which the Council is expected to benefit from
the use of the leased assets. Lease payments are
allocated between interest expense and reduction of the
lease liability, according to the interest rate implicit in
the lease.
The Council had no finance leases during the 2010-11
or 2011-12 reporting periods.
In respect of operating leases, where the lessor
substantially retains all of the risks and benefits incident
to ownership of the leased items, lease payments are
charged to expense over the lease term.
12 GST Implications
In accordance with Interpretation 1031 “Accounting
for the Goods & Services Tax”
• Receivables and Creditors include GST receivable
and payable.
• Except in relation to input taxed activities, revenues
and operating expenditures exclude GST receivable
and payable.
• Non-current assets and capital expenditures include
GST net of any recoupment.
• Amounts included in the Statement of Cash Flows
are disclosed on a gross basis.
13 Comparative Information
In accordance with Local Government (Financial
Management) Regulations 2011, this financial report
has been prepared using the Model Financial
Statements. Comparative information has been
reclassified to be consistent with the current year
disclosure of information.
14 New Accounting Standards Not Adopted in
the Current Period
The following new and revised Standards and
Interpretations have been adopted in the current year
and have affected the amounts reported in these
financial statements. Details of other Standards and
Interpretations adopted in these financial statements but
that have had no effect on the amounts reported are set
out below.
Standards affecting presentation and disclosure
• Amendments to AASB 7 ‘Financial Instruments’:
Disclosure
• The amendments (part of AASB 2010-4 ‘Further
Amendments Australian Accounting Standards
arising from the Annual Improvements Project’1)
clarify the required level of disclosures about credit
risk and collateral held and provide relief from
disclosures previously required regarding
renegotiated loans
• Amendment to AASB 101 ‘Presentation of Financial
Statements’ The amendments (part of AASB 2010-4
‘Further Amendments.)
• Australian Accounting Standards arising from the
Annual Improvements Project’1) clarify that an
entity may choose to present the required analysis
of items of other comprehensive income either in
the statement of changes in equity or in the notes to
the financial statements
Standards and Interpretations affecting the reported
results or financial position
There are no new and revised Standards and
Interpretations adopted in these financial statements
affecting the reporting
Standards and Interpretations adopted with no effect
on financial statements
The following new and revised Standards and
Interpretations have also been adopted in these
financial statements. Their adoption has not had any
significant impact on the amounts reported in these
financial statements but may affect the accounting for
future transactions
• AASB 2010-5 ‘Amendments to Australian
Accounting Standards’
The Standard makes numerous editorial
amendments to arrange of Australian Accounting
Standards and Interpretations. The application of
AASB 2010-5 has not had any material effect on
amounts reported in the Group’s consolidated
financial statements
• AASB 2010-6 ‘Amendments to Australian
Accounting Standards – Disclosures on Transfers of
Financial Assets’
The application of AASB 2010-6 makes
amendments to AASB 7 ‘Financial Instruments –
Disclosures’ to introduce additional disclosure
requirements for transactions involving transfer of
financial assets These amendments are intended to
provide greater transparency around risk exposures
when a financial asset is transferred and
derecognised but the transferor retains some level
of continuing exposure in the asset. To date the
Group has not entered into any transfer
arrangements of financial assets that are
derecognised but with some level of continuing
exposure in the asset. Therefore the application
of the amendments has not had any material effect
on the disclosures made in the consolidated
financial statements