Territory Stories

2013/14 City of Darwin annual report

Details:

Title

2013/14 City of Darwin annual report

Other title

City of Darwin annual report 2013/14

Creator

City of Darwin

Collection

E-Publications; E-Books; PublicationNT; City of Darwin annual report; Annual Report

Date

2014-11-26

Notes

Made available by via Publications (Legal Deposit) Act 2004 (NT)

Language

English

Subject

Darwin (N.T.); Council; Periodical; Annual report

Publisher name

City of Darwin

Place of publication

Darwin

Series

City of Darwin annual report; Annual Report

Volume

2013/14

File type

application/pdf

Use

Copyright

Copyright owner

City of Darwin

License

https://www.legislation.gov.au/Details/C2019C00042

Parent handle

https://hdl.handle.net/10070/817299

Citation address

https://hdl.handle.net/10070/817300

Page content

CITY OF DARWIN Annual Report 2013/14 CITY OF DARWIN Annual Report 2013/14 156 157 Notes to the Financial Statements for the year ended 30 June 2014 Notes to the Financial Statements for the year ended 30 June 2014 Note 1. Summary of Significant Accounting Policies CONTINUED (1.r) Non-Current Assets (or Disposal Groups) Held for Sale & Discontinued Operations Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of either (i) their carrying amount and (ii) fair value less costs to sell, if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. The exception to this is plant and motor vehicles which are turned over on a regular basis. Plant and motor vehicles are retained in Non Current Assets under the classification of Property, Plant and Equipment - unless the assets are to be traded in after 30 June and the replacement assets were already purchased and accounted for as at 30 June. For any assets or disposal groups classified as Non- Current Assets held for sale, an impairment loss is recognised at any time when the assets carrying value is greater than its fair value less costs to sell. Non-current assets classified as held for sale are presented separately from the other assets in the balance sheet. A Discontinued Operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately on the face of the income statement. (1.s) Payables Trade creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/ contract price net of applicable discounts other than contingent discounts. Amounts owing are unsecured and are generally settled on 30 day terms. (1.t) Liabilities - Employee Benefits Liabilities are recognised for employee benefits such as wages and salaries, annual leave and long service leave in respect of services provided by the employees up to the reporting date. Liabilities for employee benefits are assessed at each reporting date. Annual Leave and Long Service Leave Where employees have an unconditional entitlement the liability is treated as a current liability. Otherwise the liability is treated as non-current and reliable estimates of probabilities of it becoming unconditional are applied. They are measured at the amounts expected to be paid when the liabilities are settled, including related on-costs. Employee benefits expected to be settled later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. Non-current amounts are calculated on projected future wage and salary levels and related employee on-costs, and are discounted to present values. The interest rates attaching to Commonwealth Government guaranteed securities at the reporting dates are used to discount the estimated future cash outflows to their present value. Salaries and wages A liability for salaries and wages is recognised and measured as the amount unpaid at the reporting date at current pay rates in respect of employees services up to that date. This liability represents an accrued expense and is reported in Note 16 as a payable. Sick leave Liabilities for non vesting sick leave are recognised at the time when the leave is taken and measured at the rates paid or payable, and accordingly no liability has been recognised in these reports. Superannuation The superannuation expense for the reporting period is the amount of the contribution the Council makes to the superannuation plan which provides benefits to its employees. Details of those arrangements are set out in Note 26. (1.u) Borrowings and Borrowing Costs Borrowings are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these liabilities are measured at amortised cost. All borrowing costs are expensed in the period in which they are incurred. No borrowing costs are capitalised on qualifying assets. (1.v) Provisions Provisions for legal claims, service warranties and other like liabilities are recognised when: Council has a present legal or constructive obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses. Note 1. Summary of Significant Accounting Policies CONTINUED Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of managements best estimate of the expenditure required to settle the present obligation at the reporting date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. (1.w) Asset Revaluation Reserve The asset revaluation surplus comprises adjustments relating to changes in value of property, plant and equipment that do not result from the use of those assets. Net incremental changes in the carrying value of classes of non-current assets since their initial recognition are accumulated in the asset revaluation reserve. Increases and decreases on revaluation are offset within a class of assets. Where a class of assets is decreased on revaluation, that decrease is offset first against the amount remaining in the asset revaluation reserve in respect of that class. Any excess is treated as an expense. When an asset is disposed of, the amount reported in the asset revaluation reserve in respect of that asset is retained in the asset revaluation reserve and not transferred to retained surplus. (1.x) Retained Surplus This represents the amount of Councils net funds not set aside in reserves to meet specific future needs. (1.y) Reserves Restricted Reserves Restricted reserves are identified under legislation and/ or other legal agreements. The use of these reserves must comply with legal requirements. Car Parking Shortfall Developer Contributions These reserves hold contributions from property developers to be used to fund future car parking infrastructure in line with the developer contribution plan. Car Parking Shortfall Rate Levy Income This reserve holds income generated from parking special rates to be used for the provision, operation and maintenance of land, facilities and improvements for or in connection with the parking of vehicles in the central business district. Developer Contributions These reserves hold contributions from developers to be used to fund future road and stormwater drainage construction. Special Purpose Unexpended Grants This reserve holds unspent grants and contributions received subject to specific expenditure requirements. The funds are held in reserve until expended in accordance with the grant or contribution conditions. Darwin Entertainment Centre Air Conditioning Replacement This reserve holds funds to be used for the future replacement or upgrade of the air conditioning system. Market Site Development This reserve holds lease income from Mindil, Nightcliff and Parap markets to provide for future upgrades of market sites. Waste Management This reserve holds funds to be used for the future development and rehabilitation of the Shoal Bay Waste Disposal site or alternative waste disposal methods. All Other Reserves All other reserves are generally identified by Council resolution or operational requirements for funds set aside for the future replacement or renewal of major assets or for unanticipated major expenditure such as a natural disaster. These reserves are not required under legislation and if required, can be utilised by the Council for other purposes. Asset Replacement & Refurbishment This reserve holds funds to be used for the future rehabilitation of major assets. Carry Forward Works This reserve holds funds relating to projects that have not been completed in the current financial year but have been identified to be completed in a future period. Coastal Foreshore Management This reserve holds funds to be used for projects relating to coastal foreshore management. < >


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