Notes to the Financial Statements for the year ended 30 June 2016
Note 1 . Significant Accounting Policies
1 . a Basis of preparation
These general purpose financial statements are for the period 1 July 2015 to 30 June 2016 and have been prepared in compliance with the requirements of the Local Government Act 2009 and the Local Government Regulation 2012 . Consequently , these financial statements have been prepared in accordance with all Australian Accounting Standards , Australian Accounting Interpretations and other authoritative pronouncements issued by the Australian Accounting Standards Board .
These financial statements have been prepared under the historical cost convention except for financial assets and liabilities and certain classes of property , plant and equipment which are measured at fair value .
The financial statements have been rounded to the nearest $ 1,000 .
Comparative information has been restated where necessary to be consistent with disclosures in the current reporting period .
Recurrent / Capital Classification
Revenue and expenditure are presented as " recurrent " or " capital " in the Statement of Comprehensive Income on the following basis :
Capital Revenue includes grants and subsidies received which are tied to specific projects for the replacement or upgrade of existing non-current assets and / or investment in new assets . It also includes non-cash contributions which are usually infrastructure assets received from developers .
The following transactions are classified as either " Capital Income " or " Capital Expenses " depending on whether they result in accounting gains or losses : - Disposal of non-current assets - Discount rate adjustments to restoration provisions - Revaluations of property , plant and equipment .
All other revenue and expenses have been classified as " recurrent ".
1 . b Statement of Compliance
These general purpose financial statements comply with all accounting standards and interpretations issued by the Australian Accounting Standards
Board ( AASB ) that are relevant to Council ' s operations and effective for the current reporting period . Because the Council is a not-for-profit entity and the Australian Accounting Standards include requirements for not-for-profit entities which are inconsistent with International Financial Reporting Standards ( IFRS ), to the extent these inconsistencies are applied , these financial statements do not comply with IFRS . The main impacts are the offsetting of revaluation and impairment gains and losses within a class of assets , and the timing of the recognition of non-reciprocal grant revenue .
1 . c Constitution
The Toowoomba Regional Council is constituted under the Queensland Local Government Act 2009 and is domiciled in Australia .
1 . d Date of Authorisation
The financial statements were authorised for issue on the date they were submitted to the Auditor-General for final signature . This is the date the management certificate was signed .
1 . e Adoption of New and Revised Accounting Standards
In the current year , Council adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board ( AASB ) that are relevant and material to its operations and effective for the current reporting period . The adoption of the new and revised Standards and Interpretations has not resulted in any material changes to Council ' s accounting policies .
Toowoomba Regional Council has applied early adoption for AASB 2015-7 Amendments to Australian Accounting Standards - Fair Value Disclosures of Not- For-Profit Public Sector Entities . This has exempted Council from disclosure of quantitative information and sensitivity analysis for some valuations categorised within Level 3 of the fair value hierarchy . Early application is permitted for annual reporting periods beginning on or after 1 January 2005 but before 1 July 2016 .
Other than the above Council generally applies standards and interpretations in accordance with their respective commencement dates .
142 CHAPTER 6 Financial report TOOWOOMBA REGIONAL COUNCIL Annual Report 2015 - 2016