Gawler 2012-13 Annual Report - page 165

Town of Gawler Annual Report 2012/13
Page 165
introduction • summary • strategic directions •
statutory information
• index
Gawler River Floodplain Management Authority
Notes to the Financial Statements for the year ended 30
June 2013
(j) Revenue
Revenue from the sale of services is recognised upon the delivery of the service to customers.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to
the financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established.
All revenue is stated net of the amount of goods and services tax (GST).
(k) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of assets that
necessarily take a substantial period of time to prepare for their intended use or sale, are added to the
cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in the income statement in the period in which they are incurred.
(l) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Tax Office. In this circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables
and payables in the balanced sheet are shown inclusive of GST.
(m) Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes
in presentation for the current financial year.
(n) Financial Instruments
Financial Instruments are initially measured at cost on trade date, which includes transaction costs, when
the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are
measured as set out below.
Financial assets at fair value through profit and loss
A financial asset is classified in this category if acquired principally for the purpose of selling in the short
term or if so designated by management. Derivatives are also categorised as held for trading unless they
are designated as hedges. Realised and unrealised gains and losses are rising from changes in the fair
value of these assets are included in the income statement in the period in which they arise.
Available-for-sale financial assets
Available-for-sale financial assets include any financial assets not included in the above categories.
Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from
changes in fair value are taken directly to equity.
Financial Liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal
payments and amortisation.
(o) Critical Accounting Estimates and Judgments
The Subsidiary evaluates estimates and judgments incorporated into the financial report based on
historical knowledge and best available current information.
Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the subsidiary.
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