2010 - Yarriambiack Council

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NOTES TO THE ACCOUNTS Note 1 Significant Accounting Policies (continued) (i) Accounting for Investments in Associates Council's investment in associates is accounted for by the equity method as the Council has the ability to influence rather than control the operations of the entities. The investment is initially recorded at the cost of acquisition and adjusted thereafter for post-acquisition changes in the Council's share of the net assets of the entities. Audited statements were not available at the time of preparing the Council’s financial report. The Council’s share of the net assets is calculated on the same ratio as it contributes to the operating costs of the service. The annual contribution is included as an expense in the Comprehensive Income Statement. (j) Tender deposits Amounts received as tender deposits and retention amounts controlled by Council are recognised as Trust funds until they are returned or forfeited (refer note 25). (k) Employee Benefits Wages and Salaries Liabilities for wages, salaries, rostered days off and bonuses are recognised and are measured as the amount unpaid at balance date and include appropriate oncosts such as workers compensation costs. Annual Leave Annual leave entitlements are accrued on a pro rata basis in respect of services provided by employees up to balance date. Annual leave expected to be paid within 12 months is measured at nominal value based on the amount including appropriate oncosts, expected to be paid when settled. Annual leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows Long Service Leave Long service leave entitlements payable are assessed at balance date having regard to expected employee remuneration rates on settlement, employment related oncosts and other factors including accumulated years of employment on settlement, and experience of employee departure per year of service. Long service leave expected to be paid within 12 months is measured at nominal value based on the amount expected to be paid when settled. Long service leave expected to be paid later than one year has been measured at the present value of the estimated future cash outflows to be made for these accrued entitlements. Commonwealth bond rates are used for discounting future cash flows. Classification of employee benefits An employee benefit liability is classified as a current liability if the Council does not have an unconditional right to defer settlement for at least 12 months after the end of the period. This would include all annual leave and unconditional long service leave entitlements. Superannuation A liability is recognised in respect of Council’s present obligation to meet the unfunded obligations of defined benefit superannuation schemes to which its employees are members. The liability is defined as the Council’s share of the scheme’s unfunded position, being the difference between the present value of employees’ accrued benefits and the net market value of the scheme’s assets at balance date. The liability also includes applicable contributions tax of 17.25% The superannuation expense for the reporting year is the amount of the statutory contribution the Council makes to the superannuation plan which provides benefits to its employees together with any movements (favourable / unfavourable) in the position of any defined benefits schemes. Details of these arrangements are set out in Note 32. Annual Report 2009/10 51
NOTES TO THE ACCOUNTS Note 1 Significant Accounting Policies (continued) Sick Leave gratuity A gratuity is provided to all employees who have accumulated 20 years of service with this Council or its immediate predecessors. The liability represents a set proportion of accumulated sick leave that is paid on resignation, retirement or retrenchment. At balance date, the liability is measured at the present value of estimated future cash flows to be made for this entitlement. Commonwealth bond rates are used for discounting future cash flows. (l) Leases Finance Leases Leases of assets where substantially all the risks and benefits incidental to ownership of the asset, but not the legal ownership, are transferred to the Council are classified as financial leases. Finance leases are capitalised, recording an asset and a liability equal to the present value of the minimum lease payments, including any guaranteed residual value. Leased assets are amortised on a straight line basis over their estimated useful lives to the Council where it is likely that the Council will obtain ownership of the asset or over the term of the lease, whichever is the shorter. Leased assets are currently being amortised over a 1 to 5 year period. Operating leases Lease payments for operating leases are recognised as an expense in the years in which they are incurred as this reflects the pattern of benefits derived by the Council. (m) Allocation between Current and Non-Current In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next twelve months, being the Council’s operational cycle, or if the Council does not have an unconditional right to defer settlement of a liability for at least 12 months after the reporting date. (n) Agreements equally proportionately unperformed The Council does not recognise assets and liabilities arising from agreements that are equally proportionately unperformed in the balance sheet. Such agreements are recognised on an “as incurred” basis. (o) Web Site Costs Costs in relation to websites are charged as an expense in the period in which they are incurred. (p) Goods and Services Tax Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (q) Impairment of Assets 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 assets carrying value. Any excess of the assets carrying value over its recoverable amount is expensed to the comprehensive income statement. Annual Report 2009/10 52
Page 2 and 3: CONTENTS SHIRE AT A GLANCE 2 REPORT
Page 4 and 5: REPORT FROM THE MAYOR As Mayor of Y
Page 6 and 7: COUNCILLOR PROFILES Mayor Jean Wise
Page 8 and 9: SENIOR MANAGEMENT Chief Executive O
Page 10 and 11: DEPARTMENTAL REPORTS Department of
Page 12 and 13: Community Services Gavin Blinman Ob
Page 14 and 15: Infrastructure Services Management
Page 16 and 17: CONTRIBUTIONS & DONATIONS (continue
Page 18 and 19: • Yarriambiack Shire Council will
Page 20 and 21: December 2009 • Cr Jean Wise repl
Page 22 and 23: • Yarriambiack Shire Council, wit
Page 24 and 25: INFORMATION TO BE MADE AVAILABLE TO
Page 26 and 27: ABOUT US Equal Employment Opportuni
Page 28 and 29: VICTORIAN GOVERNMENT INDICATORS 201
Page 30 and 31: Summary of explanations of major va
Page 32 and 33: INDEPENDENT AUDIT Annual Report 200
Page 34 and 35: STANDARD STATEMENTS Notes to the St
Page 36 and 37: STANDARD INCOME STATEMENT Major Var
Page 38 and 39: STANDARD BALANCE SHEET Major Varian
Page 40 and 41: STANDARD CASH FLOW STATEMENT Major
Page 42 and 43: CERTIFICATION OF STANDARD STATEMENT
Page 44 and 45: GENERAL PURPOSE FINANCIAL STATEMENT
Page 46 and 47: GENERAL PURPOSE FINANCIAL STATEMENT
Page 48 and 49: NOTES TO THE ACCOUNTS INTRODUCTION
Page 50 and 51: NOTES TO THE ACCOUNTS Note 1 Signif
Page 54 and 55: NOTES TO THE ACCOUNTS Note 1 Signif
Page 56 and 57: NOTES TO THE ACCOUNTS Note 3 Rates
Page 58 and 59: NOTES TO THE ACCOUNTS Note 5 User c
Page 60 and 61: NOTES TO THE ACCOUNTS Note 12 Contr
Page 62 and 63: NOTES TO THE ACCOUNTS Note 17 Cash
Page 64 and 65: NOTES TO THE ACCOUNTS Note 22 Prope
Page 66 and 67: NOTES TO THE ACCOUNTS Note 22 Prope
Page 68 and 69: NOTES TO THE ACCOUNTS Note 26 Provi
Page 70 and 71: NOTES TO THE ACCOUNTS Note 28 Reser
Page 72 and 73: NOTES TO THE ACCOUNTS Note 32 Super
Page 74 and 75: NOTES TO THE ACCOUNTS Note 36 Finan
Page 80 and 81: NOTES TO THE ACCOUNTS Note 38 Relat
Page 82 and 83: NOTES TO THE ACCOUNTS Note 39 Reven
Page 84 and 85: NOTES TO THE ACCOUNTS Note 41 Capit
Page 86 and 87: NOTES TO THE ACCOUNTS CERTIFICATION
Page 88: NOTES TO THE ACCOUNTS INDEPENDENT A

2010 - Yarriambiack Council

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