Long term deposits Total
No strategic investments were disposed of during 2019, and there were no transfers of any cumulative gain or loss within equity relating to these investments.
Accounting policy for investments
Accounting policy under AASB 9 – applicable from 1 July 2018
Financial instruments are recognised initially on the date that the Council becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).
Financial Assets
All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.
Classification
On initial recognition, Council classifies its financial assets into the following category – those measured at:
– amortised cost
Financial assets are not reclassified subsequent to their initial recognition.
Amortised cost
Assets measured at amortised cost are financial assets where:
– the business model is to hold assets to collect contractual cash flows, and
– the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
Council’s financial assets measured at amortised cost comprise trade and other receivables and cash and cash equivalents in the Statement of Financial Position.
Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest rate method less provision for impairment.
Interest income, impairment and gains or loss on de-recognition are recognised in profit or loss.
–
2018
–
– 325,763
2019
Current Non-current
325,763
325,763
370,843
364,087
–
401,599
325,763 Financial assets at amortised cost / held to
maturity (2018)
370,843 Current
–
‘Financial assets at amortised cost’ / ‘held to
maturity’ (2018) 370,843
2018 2019
–
–
–
370,843
– –
Non-current
X8A1T
ORDINARY MEETING OF COUNCIL 27 AUGUST 2019
Financial Statements 2019
The Hills Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 6(b). Investments
(continued)Accounting policy for investments (continued)
Accounting policy under AASB 139 – applicable for 2018 comparatives only Classification
Council classifies its financial assets in the following categories: financial assets at fair value through profit or loss; loans and receivables; held-to-maturity investments; and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to-maturity, re-evaluates this designation at each reporting date.
Held to maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that Council’s management has the positive intention and ability to hold to maturity.
Assets in this category are measured at amortised cost.
Recognition and de-recognition
Regular purchases and sales of financial assets are recognised on trade date: the date on which Council commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the Income Statement. Investments are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and Council has transferred substantially all the risks and rewards of ownership.
When securities classified as available-for-sale are sold, the accumulated fair value adjustments recognised in equity are included in the Income Statement as gains and losses from investment securities.
Impairment of financial assets
Council assesses at the end of each reporting period whether there is objective evidence that a financial asset or group of financial assets is impaired. A financial asset or a group of financial assets is impaired and impairment losses are incurred only if there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a ‘loss event’) and that loss event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
2019
2019 2018 2018
ORDINARY MEETING OF COUNCIL 27 AUGUST 2019
Financial Statements 2019
The Hills Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 6(c). Restricted cash, cash equivalents and investments – details
$ ’000
Total cash, cash equivalents and investments
attributable to:
External restrictions (refer below) Internal restrictions (refer below) Unrestricted
$ ’000
Details of restrictions
External restrictions – other Developer contributions – general Specific purpose unexpended grants Domestic waste management External restrictions – other Total external restrictions Internal restrictions
Carry over recurrent operations Child care
Future fund
Hills community care Infrastructure
Insurance / workers compensation Land development
Plant
Recurrent operations Total internal restrictions
TOTAL RESTRICTIONS 369,083
Current
–
401,599
– Non-current
107,838
–
8,439
364,087
2018 2019
401,599
Notes 25,919
364,087
32,516
–
–
2019
– 153,053
2018 –
– 230,330
160,768
2,601
3,328 3,605
147,751 1,730
1,424 633
4,295
12,486
7,060
6,884
3,431 216,030
Non-current
216,030
153,053
153,053 107,838
21,542 7,798
107,838
17,658 230,330
18,790
619
338,168
22,671
13,379 91,601
141,617 2018
2019 Current
–
–
7,141
X8A20T
ORDINARY MEETING OF COUNCIL 27 AUGUST 2019
Financial Statements 2019
The Hills Shire Council
Notes to the Financial Statements
for the year ended 30 June 2019
Note 7. Receivables
$ ’000 Purpose
Rates and annual charges Interest and extra charges Accrued revenues – Interest on investments Government grants - RMS Government grants - Education Government grants - Other Net GST receivable Debtors – applications Debtor – City of Parramatta Other debtors – Bio Banking
Other debtors – Hills Basketball Association Other debtors - RPL Scheme
Other debtors – Utility Providers Other debtors