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Alice Springs Town Council 2003/2004 Annual Report



Alice Springs Town Council 2003/2004 Annual Report

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Annual report 2003/2004; Alice Springs Town Council annual report


Alice Springs Town Council


E-Publications; E-Books; PublicationNT; Annual Report




Made available via the Publications (Legal Deposit) Act 2004 (NT).




Alice Springs (N.T.). Council -- Periodicals; Local government -- Northern Territory -- Alice Springs -- Periodicals

Publisher name

Alice Springs Town Council

Place of publication

Alice Springs


Annual Report



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Copyright owner

Alice Springs Town Council

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Page content

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS for the year ended 30 June 2005 Note 1 - Significant Accounting Policies (cont) Page 10 8.3 Valuation The Recoverable Amount Test of paragraph 30 of AAS 10 (AASB 1010) does not apply to the Council. 8.4 Depreciation of Non-Current Assets All assets recognised are systematically depreciated over their useful lives in a manner which reflects the consumption of the service potential embodied in those assets. Depreciation is recognised on a straight-line basis. Major depreciation periods for each class of asset are provided in Note 9 to these accounts. Depreciation periods for infrastructure assets have been estimated based on the best information available to Council, but appropriate records covering the entire life cycle of these assets are not available, and extreme care should be used in interpreting financial information based on these estimates. 9. Payables Goods & Services Creditors are amounts due to external parties for the supply of goods and services and are recognised as liabilities when the goods and services are received. Creditors are normally paid 30 days after the month of invoice. No interest is payable on these amounts. Payments Received in Advance & Deposits Amounts received from external parties in advance of service delivery, and security deposits held against possible damage to Council assets, are recognised as liabilities until the service is delivered or damage reinstated, or the amount is refunded as the case may be. 10. Borrowings Loans are carried at their principal amounts which represent the present value of future cash flows associated with servicing the debt. Interest is accrued over the period to which it relates, and is recorded as part of Payables. 11. Employee Benefits 11.1 Salaries, Wages & Compensated Absences Liabilities for employees entitlements to salaries, wages and compensated absences (other than long service leave not expected to be paid or settled within 12 months of reporting date) are accrued at nominal amounts (including payroll based oncosts) measured in accordance with Australian Accounting Standard AASB 1028 Employee Benefits. Liabilities for employee benefits not expected to be paid or settled within 12 months are measured as the present value of the estimated future cash outflows (including payroll based oncosts) to be made in respect of services provided by employees up to the reporting date. Present values are calculated using government guaranteed securities rates with similar maturity terms. No accrual is made for sick leave as Council experience indicates that, on average, sick leave taken in each reporting period is less than the entitlement accruing in that period, and this experience is expected to recur in future reporting periods. Council does not make payment for untaken sick leave. 11.2 Superannuation The Council makes employer superannuation contributions in respect of its employees to the Local Government Superannuation Scheme. The Scheme has two types of membership, each of which is funded differently. Accumulation Fund Members The accumulation fund receives both employer and employee contributions on a progressive basis. Employer contributions are normally based on a fixed percentage of employee earnings in accordance with Superannuation Guarantee Legislation (9% in 2004/05; 9% in 2003/04). No further liability accrues to the employer as the superannuation benefits accruing to employees are represented by their share of the net assets of the Fund.