Annual Report 2004-2005 - City of Vincent

NOTES TO AND FORMING PARTS OF THE FINANCIAL STATEMENTS
Notes to and forming parts of the Financial Statements
for the year ended 30 June 2005
1. SIGNIFICANT ACCOUNTING POLICIES (CONT)
(f)
Investments
All investments are made in accordance with the Trustees Act and are valued at cost with interest revenue recognised as accrued.
(g)
Leases
The Council has no obligations under finance leases at balance date.
In respect of operating leases, where the lessor effectively retains substantially the entire risks and benefits incidental to
ownership of the leased items, lease payments are charged to expense over the lease term.
(h)
Rates, Grants, Donations and other Contributions
The rating and reporting periods coincide. Control over assets acquired from rates is obtained at the commencement of the
rating period or, where earlier, upon receipt of rates.
Grants, donations and other contributions are recognised as revenues when the Council obtains control over the assets
comprising the contributions. Control over granted assets is normally obtained upon their receipt or upon prior notification that
a Grant has been secured, and the timing of commencement of control depends upon the arrangements that exist between the
grantor and the Council. Contributions not received over which the Council has control are recognised as receivables.
Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended
in a particular manner or used over a particular period, and those conditions were undischarged at the reporting date, the
nature of and amounts pertaining to those undischarged conditions are disclosed in Note 5. The note also discloses the
amount of contributions recognised as revenues in a previous reporting period which were obtained in respect of the Council’s
operations for the current reporting period.
(i)
Stock on Hand and Work in Progress
Stock on hand and work in progress are valued at the lower of cost and net realisable value.
(j)
Interest in Regional Council
The Council is participant with 6 other Councils, namely the cities of Joondalup, Wanneroo, Stirling, Perth and the Towns of
Cambridge and Victoria Park.
Information about the Mindarie Regional Council is set out in Note 20.
(k)
Payables
Trade payables and other accounts payable are recognised when the Council becomes obliged to make future payments
resulting from the purchase of goods and services.
(l)
Rounding
All figures shown in the financial report have been rounded off to the nearest dollar and some minor variations between
schedules may result.
(m)
Comparatives
Comparative figures are, where appropriate, reclassified as to be comparable with the figures presented for the current
financial year.
(n)
Goods and Services Tax
In accordance with recommended practice, revenues, expenses and assets capitalised are stated net of any GST recoverable.
Receivables and payables in the Statement of Financial Position are stated inclusive of applicable GST.
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TOWN OF VINCENT _ A NNUAL R EPORT 2004-2005