2010 - Yarriambiack Council

NOTES TO THE ACCOUNTS
Note 1 Significant Accounting Policies (continued)
(r)
Rounding
Unless otherwise stated, amounts in the report have been rounded to the nearest thousand dollars.
Figures in the financial statement may not equate due to rounding.
(s)
Non-current asset 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 and are not subject to depreciation. Non current assets are treated as current and
classified as held for sale if their carrying value will be recovered through a sale transaction rather
than through continuing use. This condition is regarded as not met only when the sale is highly
probably and the asset’s sale is expected to be completed within 12 months of the date of
classification
(t)
Inventories
Inventories held for distribution are measured at cost adjusted when applicable for any loss of service
potential. Other inventories are measured at the lower of cost and net realisable value.
(u)
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 material increases 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.
(v)
Contingent assets and contingent liabilities and commitments
Contingent assets and contingent liabilities are not recognised in the balance sheet but disclosed by
way of a note and, if quantifiable, are measured at nominal value. Contingent assets and liabilities
are present inclusive of GST receivable or payable respectively.
Commitments are not recognised in the Balance Sheet. Commitments are disclosed at their nominal
value and inclusive of the GST payable.
Annual Report 2009/10 53