ANNUAL REPORT 2007-2008 CITY OF GREATER GEELONG

CITY OF GREATER GEELONG
NOTES TO THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2008
41 Capital expenditure (cont’d)
(a) Renewal
Expenditure on an existing asset which returns the service potential or the life of the asset up to that which it had originally. It is periodically required expenditure, relatively large (material)
in value compared with the value of the components or sub-components of the asset being renewed. As it reinstates existing service potential, it has no impact on revenue, but may
reduce future operating and maintenance expenditure if completed at the optimum time.
CITY OF GREATER GEELONG ANNUAL REPORT 2007-2008
(b) Upgrade
Expenditure which enhances an existing asset to provide a higher level of service or expenditure that will increase the life of the asset beyond that which it had originally. Upgrade expenditure
is discretionary and often does not result in additional revenue unless direct user charges apply. It will increase operating and maintenance expenditure in the future because of the
increase in the Council’s asset base.
42 Pending Accounting Standards
The following Australian Accounting Standards have been issued or amended and are applicable to the Council but are not yet effective. They have not been adopted in preparation
of the financial statements at reporting date.
Application Application
date of
date for
AASB amendment Standard affected Outline of amendment standard Council
AASB 1004 Contributions AAS 27 Financial Reporting by Local Governments As this Standard broadly reproduces the requirements relating to contributions 01-Jul-2008 01-Jul-2008
contained in AAS 27, there will be no direct impact on the financial report.
AASB 1051 Land Under Roads AAS 27 Financial Reporting by Local Governments In respect to land under roads acquired before 30 June 2008; allows a Council to elect 01-Jul-2008 01-Jul-2008
to recognise or not to recognise an asset; requires any adjustment upon recognition
to be made against accumulated surplus; requires a Council to disclose its accounting
policy; allows a Council to elect to adopt the fair value or a previous revaluation;
requires any above elections to be made effective as at 1 July 2008. Requires that
land under roads acquired after 30 June 2008 is accounted for in accordance with AASB 116.
AASB 1052 Disaggregated AAS 27 Financial Reporting by Local Governments As this Standard broadly reproduces the requirements relating to disaggregated 01-Jul-2008 01-Jul-2008
Disclosures
disclosures contained in AAS 27, there will be no direct impact on the financial report.
AASB 2007-9 Amendments to AAS 27 Financial Reporting by Local Governments As this Standard broadly reproduces the requirements relating to certain relevant 01-Jul-2008 01-Jul-2008
Australian Accounting Standards Amendments to AASB 3, AASB 5, AASB 8 requirements contained in AAS 27, there will be no direct impact
arising from the review AASB 101, AASB 114, AASB 116, on the financial report
of AAS's 27, 29 and 31 AASB 127, AASB 137
2008 2007
$000 $000
43 Auditors Remuneration
Fee to Conduct External Audit - Auditor General 68 66
68 66
187