King Island Council Annual Report 2011-2012 (1921 kb)

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King Island CouncilNotes to the Financial ReportFor the Year Ended 30 June 2012(q)(r)Allocation between current and non-currentIn the determination of whether an asset or liability is current or non-current, consideration is given to the time when eachasset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled withinthe next twelve months, being Council's operational cycle, or if Council does not have an unconditional right to defersettlement of a liability for at least 12 months after the reporting date.TaxationCouncil is exempt from all forms of taxation except Fringe Benefits Tax, Payroll Tax and the Goods and Services Tax.Goods and Services Tax (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred isnot recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost ofacquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are showninclusive of GST.Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investingand financing activities, which are disclosed as operating cash flows.(s)(t)Impairment of assetsAt each reporting date, Council reviews the carrying value of its assets to determine whether there is any indication thatthese assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of theasset's fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the assetscarrying value over its recoverable amount is expensed to the Statement of Comprehensive Income, unless the asset iscarried at the revalued amount in which case, the impairment loss is recognised directly against the revaluation reserve inrespect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluationsurplus for that same class of asset. For non-cash generating assets of Council such as roads, drains, public buildingsand the like, value in use is represented by the deprival value of the asset approximated by its written down replacementcost.RoundingUnless otherwise stated, amounts in the financial report have been rounded to the whole dollar.(u)Significant Business ActivitiesCouncil is required to report the operating capital and competitive neutrality costs in respect of each significant businessactivity undertaken by the council. Council's disclosure is reconciled in note 40. Council has determined, based uponmateriality that King Island Aerodrome and its Road Making Unit as defined in note 40 are considered significant businessactivities. Competitive neutrality costs include notional costs i.e. income tax equivalent, rates and loan guarantees inpreparing the information disclosed in relation to significant business activities.12
King Island CouncilNotes to the Financial ReportFor the Year Ended 30 June 2012(v)Pending Accounting StandardsThe following Australian Accounting Standards have been issued or amended and are applicable to Council but are not yet effective.They have not been adopted in preparation of the financial report at reporting date.Standard / Interpretation Summary Applicable for annualreporting periodsbeginning or ending onImpact on LocalGovernmentfinancial statementsAASB 9: Financial InstrumentsAASB 13: Fair Value MeasurementAASB 119: Employee BenefitsThese standards are applicable retrospectively and amend theclassification and measurement of financial assets. Council has notyet determined the potential impact on the financial statements.Specific changes include:* simplifying the classifications of financial assets into those carried atamortised cost and those carried at fair value;* removing the tainting rules associated with held-to-maturity assets;* simplifying the requirements for embedded derivatives;* removing the requirements to separate and fair value embeddedderivatives for financial assets carried at amortised cost;* allowing an irrevocable election on initial recognition to present gainsand losses on investments in equity instruments that are not held fortrading in other comprehensive income. Dividends in respect of theseinvestments that are a return on investment can be recognised in profitor loss and there is no impairment or recycling on disposal of theinstrument; and* reclassifying financial assets where there is a change in an entity'sbusiness model as they are initially classified based on:a. the objective of the entity's business model for managing thefinancial assets; andb. the characteristics of the contractual cash flows.This Standard defines fair value, sets out a framework for measuringfair value and requires disclosures about fair value measurements.There is no financial impact.This Standard supersedes AASB 119 Employee Benefits, introducinga number of changes to accounting treatments. This Standard wasissued in September 2011.Applicable for annualreporting periodscommencing on or after1 January 2013.Applicable for annualreporting periodscommencing on or after1 January 2013.Applicable for annualreporting periodscommencing on or after1 January 2013.These changes areexpected to provide somesimplification in theaccounting for anddisclosure of financialinstruments.No financial impact.Council has not yetdetermined the applicationor the potential impact ofthe Standard.AASB 2009-11: Amendments toAustralian Accounting Standardsarising from AASB 9 [AASB 1, 3, 4, 5,7, 101, 102, 112, 118, 121, 127, 128,131, 132, 136, 139, 1023 & 1038 andint 10 & 12]AASB 2010-7: Amendments toAustralian Accounting Standardsarising from AASB 9 (December 2010)[AASB 1, 3, 4, 5, 7, 101, 102, 112, 118,121, 127, 128, 131, 132, 136, 139,1023 & 1038 and int 2, 5, 10, 12, 19 &127][Modified by AASB 2010-7]This Standard makes consequential amendments to other AustralianAccounting Standards and interpretations as a result of issuing AASB9 in December 2010.Applicable for annual Council has not yetreporting periodsdetermined the applicationcommencing on or after 1 July or the potential impact of2013.the Standard.Applicable for annualreporting periodscommencing on or after1 January 2013.Council has not yetdetermined the applicationor the potential impact ofthe Standard.13
Page 1 and 2: King Island CouncilAnnual Report 20
Page 3 and 4: ContentsKing Island ...............
Page 5 and 6: Mayor’s MessageOur ability to dea
Page 8 and 9: Achievements 2011-20121 Facilitated
Page 10 and 11: Who we areVision Statement for King
Page 12 and 13: CouncillorsMayor Greg BarrattMember
Page 14 and 15: Meeting Attendance Section 72 (1) (
Page 16 and 17: King Island Strategic Plan 2011-202
Page 18 and 19: Community DevelopmentCultural Centr
Page 20 and 21: Youth Development OfficerPrincipal
Page 22 and 23: Community & Economic DevelopmentCOM
Page 24 and 25: Regulatory ServicesREGULATORYSERVIC
Page 26 and 27: Infrastructure ServicesINFRASTRUCTU
Page 28 and 29: EngineeringPERFORMANCE MEASURES - E
Page 30 and 31: Statutory Reporting RequirementsGra
Page 32 and 33: Appendix - Financial ReportsKing Is
Page 34 and 35: King Island CouncilStatement of Com
Page 36 and 37: King Island CouncilStatement of Cha
Page 38 and 39: King Island CouncilNotes to the Fin
Page 68 and 69: Note 36Operating leasesKing Island
Page 82: King Island CouncilMeech StreetCurr

King Island Council Annual Report 2011-2012 (1921 kb)

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