Gawler 2013-14 Annual Report - page 170

Town of GawlerAnnual Report 2013/14
Page170
introduction • summary • strategic directions •
statutory information
• index
Fair value level 3valuations of buildings, infrastructureandother assets
–There isnoknownmarket
for theseassets and theyare valuedat depreciated current replacement cost. Themethod involves:
Thedeterminationof the cost to construct theasset (or itsmodernengineeringequivalent) using
current prices formaterialsand labour, thequantitiesof eachbeingestimatedbasedon recent
experienceof thisor similar Councils, oron industry constructionguideswhere thesearemore
appropriate.
The calculationof thedepreciation thatwouldhaveaccumulated sinceoriginal constructionusing
current estimatesof residual valueanduseful lifeunder theprime cost depreciationmethod
adoptedbyCouncil.
Themethodhas significant inherent uncertainties, relyingonestimatesof quantities ofmaterials
and labour, residual valuesanduseful lives, and thepossibilityof changes inprices formaterialsand
labour, and thepotential for development ofmoreefficient construction techniques.
i)
Depreciation
Enturaadvise that theaccumulateddepreciation shouldbeassessedat $1.387millionas at June
2014.
Thedepreciationperiod for theBruceEastickNorthParaFloodMitigationDam isbasedonan
expected lifeof 80 years.
j)
Revenue
Revenue from the saleof services is recognisedupon thedeliveryof the service to customers.
Interest revenue is recognisedonaproportional basis taking intoaccount the interest rates
applicable to the financial assets.
Dividend revenue is recognisedwhen the rights to receiveadividendhasbeenestablished.
All revenue is statednet of theamount of goods and services tax (GST).
2
Functions /Activitiesof theAssociation
a)
Revenues andexpenseshavebeenattributed to the following functions / activities,
descriptionsofwhichare set out inNoteb.
b)
Theactivitiesof theAuthorityare categorised into the following function / activities:
Administration: Theoperationsof theAuthorityand itsBoard
Other Environment: FloodMitigation
c)
Functionsof theGawlerRiver FloodplainManagement Authority
(excludingdepreciation)
1...,160,161,162,163,164,165,166,167,168,169 171,172,173,174,175,176,177,178,179,180,...181
Powered by FlippingBook