Financial Statements 2017
Toowoomba Regional Council
Notes to the Financial Statements
for the year ended 30 June 2017
Note 1. Significant Accounting Policies (continued)
Borrowing costs are expensed as they fall due for
payment in line with their agreed loan repayment
schedules.
1. n
Restoration Provisions
A provision is made for the cost of restoration in
respect of refuse dumps and quarries where it is
probable the Council will be liable, or required, to
incur such a cost on the cessation of use of these
facilities. The provision is measured at the expected
cost of the work required, discounted to current day
values using the interest rates attaching to
Commonwealth Government guaranteed securities
with a maturity date corresponding to the anticipated
date of the restoration.
Within each restoration provision there may be many
site locations some of which can be on Council
controlled land and some which are not. The
following accounting treatments apply depending on
the site location:
Restoration on land not controlled by Council
Where the restoration site is on State reserves which
the Council does not control, the cost of the
provisions for restoration of these sites has to be
treated as an expense in the year the provision is
first recognised. Changes in the provision due to
either time, discount rate or expected future cost are
treated as an expense or income in the reporting in
which they arise.
Restoration on land controlled by Council
Restoration sites that are situated on Council
controlled land and are classified as site
improvement assets. The provision for restoration is,
therefore, included as a site improvement asset.
Changes in the provision not arising from the
passing of time are added to or deducted from the
asset revaluation surplus. If there is no available
revaluation surplus, increases in the provision are
treated as an expense and recovered out of future
decreases (if any).
The Council has the following restoration provisions:
Refuse sites
The provision represents the present value of the
anticipated future costs associated with the closure
of the refuse sites, decontamination and monitoring
of historical residues and leaching on these sites.
The calculation of this provision requires assumptions
such as application of environmental legislation, site
closure dates, available technologies and engineering
cost estimates. These uncertainties may result in
future actual expenditure differing from amounts
currently provided. Due to the long-term nature of
the liability, the most significant uncertainty in
estimating the provision is the costs that will be
incurred.
The provision recognised for refuse sites is reviewed
at least annually and updated based on the facts and
circumstances available at the time.
Quarry sites
The provision represents the present value of the
anticipated future costs associated with the closure of
the quarry sites, reclamation and rehabilitation of
these sites.
The calculation of this provision requires assumptions
such as application of environmental legislation, site
closure dates, available technologies and engineering
cost estimates. These uncertainties may result in
future actual expenditure differing from amounts
currently provided. Because of the long-term nature of
the liability, the most significant uncertainty in
estimating the provision is the costs that will be
incurred. The provision recognised for quarry sites
rehabilitation is reviewed at least annually and
updated based on the facts and circumstances
available at the time.
1. o
National Competition Policy
The Council has reviewed its activities and has
identified its business activities. Details of these
activities can be found in Note 25.
1. p
Taxation
Income of local authorities and public authorities is
exempt from Commonwealth taxation except for
Fringe Benefits Tax and Goods and Services Tax
(‘GST’). The net amount of GST recoverable from the
ATO or payable to the ATO is shown as an asset or
liability respectively.
The Council pays payroll tax to the Queensland
Government on certain activities.
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TOOWOOMBA REGIONAL COUNCIL I Annual Report 2016 - 2017