ANNUAL REPORT 2007-2008 CITY OF GREATER GEELONG

CITY OF GREATER GEELONG
NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2008
1 Significant Accounting Policies (cont’d)
(p) Impairment of assets
CITY OF GREATER GEELONG ANNUAL REPORT 2007-2008
At each reporting date, the Council reviews the carrying
value of its assets to determine whether there is any
indication that these assets have been impaired. If such
an indication exists, the recoverable amount of the asset,
being the higher of the asset's fair value less costs to sell
and value in use, is compared to the asset's carrying
value. Any excess of the asset's carrying value over its
recoverable amount is expensed to the income statement.
(q) Rounding
Unless otherwise stated, amounts in the financial report
have been rounded to the nearest thousand dollars.
(r) Non-current assets held for sale
A non-current asset held for sale is measured at the lower
of its carrying amount and fair value less costs to sell.
(s) Financial Guarantees
Financial guarantee contracts are recognised as a liability
at the time the guarantee is issued. The liability is
initially measured at fair value, and if there is a material
increase in the likelihood that the guarantee may have to
be exercised, at the higher of the amount determined in
accordance with AASB 137 Provisions, Contingent
Liabilities and Contingent Assets and the amount initially
recognised less cumulative amortisation, where
appropriate. In the determination of fair value,
consideration is given to factors including the probability
of default by the guaranteed party and the likely loss to
Council in the event of default.
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