Policy Name SIGNIFICANT ACCOUNTING POL?CIES

CouncilPolicy

Mff

Number

Name

FlNO6

SIGNIFICANT ACCOUNTINGPOLICIES

Principles/Framework

SOA 10 Year CommunityStrategic Plan 2012-2022Goal s - Inspiring Governance

File No GV20

Aim To provide guidelines for thepreparation of the financial report.

ApprovalDate

OCM 17 February 1998OCM 15 June 2004OCM 19 November 2014

Monitor &

ReviewExecutive Manager CorporateServices

Application:All Staff

Last Review 26 April 2017

NextReview 2018

StatutoryEnvironment

Local Government Act 1 995

Local Government (FinancialManagement) Regulations 1996

Review

PeriodEvery 1 year

This policy is to remain in force until otherwise determined by (he Council or superseded.

PolicyNumber FINO6

Policy (a) Basis of AccountingThe financial report is a general purpose financial report which has been preparedin accordance with applicable Australian Accounting Standards and the LocalGovernment Act 1995 (as amended) and the Local Government Act 1995 (asamended) and accompanying regulations (as amended). The report has also beenprepared on the accrual basis under the convention of historical cost accounting.

(b) Critical accounting estimatesThe preparation of a financial report in conformity with Australian AccountingStandards requires management to make judgements, estimates and assumptionsthat effect the application of policies and reported amounts of assets and Iiabilities,income and expenses.

The estimates and associated assumptions are based on historical experienceand various other factors that are believed to be reasonable under the

circumstances; the results of which form the basis of making the judgementsabout carrying values of assets and liabilities that are not readily apparent fromother sources. Actual results may differ from these estimates.

(c) The Local Government Reporting EntityAll Funds through which the Council controls resources to carry on its functionshave been included in the financial statements forming part of this financial report.In the process of reporting on the local government as a single unit, all transactionsand balances between those funds (for example, Ioans and transfers betweenFunds) have been eliminated. All monies held in the Trust Fund are excluded fromthe financial statements, but a separate statement of those monies appears as aNote to this financial report

(d) Goods and Services TaxRevenues, expenses and assets are recognised net of the amount of GST, exceptwhere the amount of GST incurred is not recoverable from the Australian TaxationOffice (ATO). Receivables and payables are stated inclusive of GST receivable orpayable. The net amount of GST recoverable from, or payable to, the ATO isincluded with receivables or payables in the statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flowsarising from investing or financing activities which are recoverable from, or payableto, the ATO are presented as operating cash flows.

(e) Cash and Cash EquivalentsCash and cash equivalents include cash on hand, cash at bank, deposits availableon demand with banks and other short term highly Iiquid investments that arereadily convertible to known amounts of cash and which are subject to aninsignificant risk of changes in value and bank overdrafts. Bank overdrafts arereported as short term borrowings in current Iiabilities in the statement of financialposition.

(f) Trade and Other ReceivablesTrade and other receivables include amounts due from ratepayers for unpaid ratesand service charges and other amounts due from third parties for goods sold andservices performed in the ordinary course of business.

Receivables expected to be collected within 12 months of the end of the reportingperiod are classified as current assets. All other receivables are classified as non-

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current assets. Collectability of trade and other receivables is reviewed on anongoing basis. Debts that are known to be uncollectible are written off whenidentified. An allowance for doubtful debts is raised when there is objectiveevidence that they will not be collectible.

(g) InventoriesGeneral

Inventories are measured at the Iower of cost and net realisable value. Net

realisable value is the estimated selling price in the ordinary course of businessIess the estimated costs of completion and the estimated costs necessary to makethe sale.

Land held for sale

Land held for development and sale is valued at the Iower of cost and net realisablevalue. Cost includes the cost of acquisition, development, borrowing costs andholding costs until completion of development. Finance costs and holding chargesincurred after development is completed are expensed. Gains and losses arerecognised in profit or loss at the time of signing an unconditional contract of sale ifsignificant risks and rewards, and effective control over the Iand, are passed on tothe buyer at this point. Land held for sale is classified as current except where it isheld as non-current based on the Council's intentions to release for sale.

(h) Fixed AssetsEach class of fixed assets within either property, plant and equipment orinfrastructure, is carried at cost or fair value as indicated Iess, whereapplicable, any accumulated depreciation and impairment Iosses. Mandatoryrequirement to revalue non-current assets Effective from I July 2012, the LocalGovernment (Financial Management) Regulations were amended and themeasurement of non-current assets at Fair Value became mandatory.

During the year ended 30 June 2013, the Shire commenced the process of adoptingFair Value in accordance with the Regulations. Whilst the amendments initiallyallowed for a phasing in of fair value in relation to fixed assets over three years, asat 30 June 2015 all non-current assets were carried at Fair Value in accordance

with the the requirements.

Thereafter, each asset class must be revalued in accordance with the regulatoryframework established and the Shire revalues its asset classes in accordance with

this mandatory timetable. Relevant disclosures, in accordance with therequirements of Australian Accounting Standards, have been made in the financialreport as necessary.

Land under control

In accordance with Local Government (Financial Management) Regulation 16(a),the Shire was required to include as an asset (by 30 June 2013), Crown Landoperated by the Iocal government as a golf course, showground, racecourse orother sporti-ng or recreational facility of State or Regional significance.

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Upon initial recognition, these assets were recorded at cost in accordance withAASB 116. They were then classified as Land and revalued along with other Iandin accordance with the other policies detailed in this Note.

Initial recognition and measurement between mandatory revaluation datesAll assets are initially recognised at cost and subsequently revalued in accordancewith the mandatory measurement framework detailed above. In relation to this initialmeasurement, cost is determined as the fair value of the assets given asconsideration plus costs incidental to the acquisition. For assets acquired at no costor for nominal consideration, cost is determined as fair value at the date ofacquisition. The cost of non-current assets constructed by the Shire includes thecost of all materials used in construction, direct Iabour on the project and anappropriate proportion of variable and fixed overheads.

Individual assets acquired between initial recognition and the next revaluation ofthe asset class in accordance with the mandatory measurement framework detailedabove, are carried at cost Iess accumulated depreciation as management believesthis approximates fair value They will be subject to subsequent revaluation at thenext anniversary date in accordance with the mandatory measurement frameworkdetailed above.

Revaluation

Increases in the carrying amount arising on revaluation of assets are credited to arevaluation surplus in equity. Decreases that offset previous increases of the sameasset are recognised against revaluation surplus directly in equity. All otherdecreases are recognised in profit or loss.

Land under roads

In Western Australia, all land under roads is Crown Land, the responsibility formanaging which, is vested in the Iocal government. Effective as at I July 2008,Council elected not to recognise any value for Iand under roads acquired on orbefore 30 June 2008. This accords with the treatment available in AustralianAccounting Standard AASB 1051 Land Under Roads and the fact LocalGovernment (Financial Management) Regulation 16(a)(i) prohibits localgovernments from recognising such Iand as an asset.

In respect of Iand under roads acquired on or after I July 2008, as detailed above,LocalaGovernment (Financial Management) Regulation 16(a)(i) prohibits localgovernments from recognising such Iand as an asset. Whilst such treatment is;consistent with the requirements of AASB 1051, Local Government (FinancialManagement) Regulation 4(2) provides, in the event of such an inconsistency, theLocal-Government (Financ!al Management) Regulations prevail. Consequently,any land under roads acquired on or after I July 2008 is not included as an assetof the Shire.

DepreciationThe depreciable amount of all fixed assets including buildings but excludingfreehold land, are depreciated on a straight-Iine basis over the individual asset'suseful Iife from the time the asset is held ready for use. Leasehold improvementsare depreciated over the shorter of either the unexpired period of the Iease or theestima!ed useful life of the improvements. When an item of property, plant andequipment is revalued, any accumulated depreciation at the date of the revaluationis treated in one of the following ways:

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a) Restated proportionately with the change in the gross carrying amount of theasset so that the carrying amount of the asset affer revaluation equals its revaluedamount; orb) Eliminated against the gross carrying amount of the asset and the net amountrestated to the revalued amount of the asset.

Major depreciation periods used for each class of depreciable asset are:

BuildingsFurniture and EquipmentComputer EquipmentOffice EquipmentPlant and EquipmentMotor VehiclesInfrastructure Other

Water Supply Piping & Drainage SystemsSewerage PipingFootpaths

15 to 100 years4 to 10 years3 yearss years3 to 15 years3-s years10-100 years100 years100 years35-50 years

1 -9%

1 0-25%

33.33%

20%

B-45oA

33%

1 .50 - 1 0o/o1%

1%

2-3%

Gravel roadsConstruction/Road BaseGravel Sheet

* 80 years12years

1.25%

8.33%

Formed Roads (unsealed)* Construction/Road Base 80 years 1.25o/fi

Sealed Roads and StreetsConstruction/Road Base* 80 years 1.25o/o

Major re-surfacing Bituminous SealsAsphalt Surfaces

14years30 years

7.14%

3.30o/o

The assets residual values and useful Iives are reviewed, and adjusted ifappropriate, at the end of each reporting period. An asset's carrying amount iswritten down immediately to its recoverable amount if the asset's carrying amountis greater than its estimated recoverable amount. Gains and losses on disposalsare determined by comparing proceeds with the carrying amount. These gains andIosses are included in the statement of comprehensive income in the period inwhich they arise.

Capitalisation thresholdExpenditure under the thresholds listed below is not capitalised. Rather, it isrecorded on an asset inventory listing.

- Land

- Buildings- Plant & Equipment- Furniture & Equipment- lnfrastructure

Nil (All Land Capitalised)10,0005,0005,000

10,000

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(i) Fair Value of Assets and LiabilitiesWhen performing a revaluation, the Shire uses a mix of both independent andmanagement valuations using the following as a guide:

Fair Value is the price that the Shire would receive to sell the asset or would haveto pay to transfer a liability, in an orderly (i.e. unforced) transaction betweenindependent, knowledgeable and willing market participants at the measurementdate.

As fair value is a market-based measure, the closest equivalent observable marketpricing information is used to determine fair value. Adjustments to market valuesmay be made having regard to the characteristics of the specific asset or Iiability.The fair values of assets that are not traded in an active market are determined

using one or more valuation techniques. These valuation techniques maximise, tothe extent possible, the use of observable market data.

To the extent possible, market information is extracted from either the principalmarket for the asset or Iiability (i.e. the market with the greatest volume and levelof activity for the asset or liability) or, in the absence of such a market, the mostadvantageous market available to the entity at the end of the reporting period (i.e.the market that maximises the receipts from the sale of the asset after taking intoaccount transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account amarket participant's ability to use the asset in its highest and best use or to sell it toanother market participant that would use the asset in its highest and best use.

Fair value hierarchyAASB 13 requires the disclosure of fair value information by level of the fair valuehierarchy, which categorises fair value measurement into one of three possiblelevels based on the lowest level that an input that is significant to the measurementcan be categorised into as follows:

Level 1

Measurements based on quoted prices (unadjusted) in active markets for identicalassets or Iiabilities that the entity can access at the measurement date.

Level 2

Measurements based on inputs other than quoted prices included in Level 1 thatare observable for the asset or Iiability, either directly or indirectly.

Level 3Measurements based on unobservable inputs for the asset or Iiability.

The fair values of assets and Iiabilities that are not traded in an active market aredetermined using one or more valuation techniques. These valuation techniquesmaximise, to the-extent possible, the use of observable market data. If all significant:nputs reqauired to measure fair value are observable, the asset or liability is includedfn' Level 2. If one or more significant inputs are not based on observable market

Policy Number FINO6

data, the asset or Iiability is included in Level 3.

Valuation techniquesThe Shire selects a valuation technique that is appropriate in the circumstancesand for which sufficient data is available to measure fair value. The availability ofsufficient and relevant data primarily depends on the specific characteristics of theasset or Iiability being measured. The valuation techniques selected by the Shireare consistent with one or more of the following valuation approaches:

Market approachValuation techniques that use prices and other relevant information generated bymarket transactions for identical or similar assets or liabilities.

Income approachValuation techniques that convert estimated future cash flows or income andexpenses into a single discounted present value.

Cost approachValuation techniques that reflect the current replacement cost of an asset atits current service capacity.

Each valuation technique requires inputs that reflect the assumptions that buyersand sellers would use when pricing the asset or Iiability, including assumptionsabout risks. When selecting a valuation technique, the Shire gives priority to thosetechniques that maximise the use of observable inputs and minimise the use ofunobservable inputs. Inputs that are developed using market data (such as publiclyavailable information on actual transactions) and reflect the assumptions thatbuyers and sellers would generally use when pricing the asset or liability areconsidered observable, whereas inputs for which market data is not available andtherefore are developed using the best information available about suchassumptions are considered unobservable.

As detailed above, the mandatory measurement framework imposed by the LocalGovernment (Financial Management) Regulations requires, as a minimum, allassets carried at a revalued amount to be revalued in accordance with the

regulatory framework.

(j) Financial Instruments

Initial recognition and measurementFinancial assets and financial liabilities are recognised when the Shire becomes aparty to the contractual provisions to the instrument. For financial assets, this isequ!valent to the date that the Shire commits itself to either the purchase or sale ofthe asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs,except where the instrument is classified 'at fair value through profit or Ioss', inwhich case transaction costs are expensed to profit or Ioss immediately.

Classification and subsequent measurementFinancial instruments are subsequently measured at fair value, amortised costusing the effective interest rate method, or at cost.

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Amortised cost is calculated as:

(a) the amount in which the financial asset or financial Iiability is measured atinitial recognition;

(b) Iess principal repayments and any reduction for impairment; and

(c) plus or minus the cumulative amortisation of the difference, if any, betweenthe amount initially recognised and the maturity amount calculated using theeffective interest rate method.

The effective interest method is used to allocate interest income or interest

expense over the relevant period and is equivalent to the rate that discountsestimated future cash payments or receipts (including fees, transaction costs andother premiums or discounts) through the expected Iife (or when this cannot bereliably predicted, the contractual term) of the financial instrument to the netcarrying amount of the financial asset or financial Iiability. Revisions to expectedfuture net cash flows will necessitate an adjustment to the carrying value with aconsequential recognition of an income or expense in profit or Ioss.

Classification and subsequent measurement (continued)

(i) Financial assets at fair value through profit and IossFinancial assets are classified at "fair value through profit or loss" when they areheld for trading for the purpose of short-term profit taking. Such assets aresubsequently measured at fair value with changes in carrying amount beingincluded in profit or loss. Assets in this category are classified as current assets.

(ii) Loans and receivablesLoans and receivables are non-derivative financial assets with fixed ordeterminable payments that are not quoted in an active market and aresubsequently measured at amortised cost. Gains or losses are recognised in profitor Ioss. Loans and receivables are included in current assets where they areexpected to mature within 12 months after the end of the reporting period.

(iii) Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets with fixedmaturities and fixed or determinable payments that the Shire has the positiveintention and ability to hold to maturity. They are subsequently measured atamortised cost. Gains or Iosses are recognised in profit or loss.

Held-to-maturity investments are included in current assets, where they areexpected to mature within 12 months after the end of the reporting period. All otherinyestments are classified as non-current.

(iv) Available-for-sale financial assetsAyailable-for-sale financial assets are non-derivative financial assets that are eithernot suitable to be classified into other categories of financial assets due to theirnature, or they are designated as such by management. They compriseinvestments in the equity of other entities where there is neither a fixed maturity norfixed or determinable payments.

Policy Number FINO6

They are subsequently measured at fair value with changes in such fair value (i.e.gains or Iosses) recognised in other comprehensive income (except for impairmentlosses). When the financial asset is derecognised, the cumulative gain or Iosspertaining to that asset previously recognised in other comprehensive income isreclassified into profit or loss.

Available-for-sale financial assets are included in current assets, where they areexpected to be sold within 12 months after the end of the reporting period. All otheravailable-for-sale financial assets are classified as non-current.

(v) Financial liabilitiesNon-derivative financial Iiabilities (excluding financial guarantees) are subsequentlymeasured at amortised cost. Gains or Iosses are recognised in profit or Ioss.

ImpairmentA financial asset is deemed to be impaired if, and only if, there is objective evidenceof impairment as a result of one or more events (a "loss event") havingoccurred, which will have an impact on the estimated future cash flows of thefinancial asset(s).

In the case of available-for-sale financial assets, a significant or prolonged declinein the market value of the instrument is considered a Ioss event. Impairment Iossesare recognised in profit or loss immediately. Also, any cumulative decline in fairvalue previously recognised in other comprehensive income is reclassified to profitor loss at this point. In the case of financial assets carried at amortised cost, Iossevents may include: indications that the debtors or a group of debtors areexperiencing significant financial difficulty, default or delinquency in interest orprincipal payments; indications that they will enter bankruptcy or other financialreorganisation; and changes in arrears or economic conditions that correlate withdefaults.

For financial assets carried at amortised cost (including loans and receivables), aseparate allowance account is used to reduce the carrying amount of financialassets impaired by credit Iosses. After having taken all possible measures ofrecovery, if management establishes that the carrying amount cannot be recoveredby any means, at that point the written-off amounts are charged to the allowanceaccount or the carrying amount of impaired financial assets is reduced directly if noimpairment amount was previously recognised in the allowance account.

DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cashflows expire or the asset is transferred to another party whereby the Shire no Iongerhas any'significant continual involvement in the risks and benefits associated withthe asset.

Financial liabilities are derecognised where the related obligations are discharged,cancelled or expired. The difference between the carrying amount of the financialliability extingu!shed or transferred to another party and the fair value of theconsideration paid, including the transfer of non-cash assets or liabilities assumed,is recognised in profit or Ioss.

0) Impairment of Assets

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In accordance with Australian Accounting Standards the Shire's assets, other thaninventories, are assessed at each reporting date to determine whether there is anyindication they may be impaired.

Where such an indication exists, an impairment test is carried out on the asset bycomparing the recoverable amount of the asset, being the higher of the asset's fairvalue less costs to sell and value in use, to the asset's carrying amount.

Any excess of the asset's carrying amount over its recoverable amount isrecognised immediately in profit or loss, unless the asset is carried at a revaluedamount in accordance with another Standard (e.g. AASB 116) whereby anyimpairment loss of a revalued asset is treated as a revaluation decrease inaccordance with that other Standard. For non-cash generating assets such asroads, drains, public buildings and the like, value in use is represented by thedepreciated replacement cost of the asset.

(k) Trade and Other PayablesTrade and other payables represent liabilities for goods and services provided tothe Shire prior to the end of the financial year that are unpaid and arise when theShire becomes obliged to make future payments in respect of the purchase of thesegoods and services. The amounts are unsecured, are recognised as a currentIiability and are normally paid within 30 days of recognition.

(l) Employee BenefitsShort-term employee benefitsProvision is made for the Shire's obligations for short-term employee benefits.Short-term employee benefits are benefits (other than termination benefits) that areexpected to be settled wholly before 12 months after the end of the annual reportingperiod in which the employees render the related service, including wages, salariesand sick Ieave. Short-term employee benefits are measured at the (undiscounted)amounts expected to be paid when the obligation is settled.

The Shire's obligations for short-term employee benefits such as wages, salariesand sick Ieave are recognised as a part of current trade and other payables in thestatement of financial position. The Shire's obligations for employees' annual leaveand long service leave entitlements are recognised as provisions in the statementof financial position.

Other Iong-term employee benefitsProvision is made for employees' Iong service Ieave and annual Ieave entitlementsnot expected to be settled -wholly within 12 months after the end of the annualreporting period in which the employees render the related service. Other Iong-termemployee benefits are measured at the present value of the expected futurepayments to be made to employees. Expected future payments incorporateanticipated future wage and salary levels, durations of service and employeedepartures and are dis-counted at rates determined by reference to market yields atthe end of the reporting period on government bonds that have maturity dates thatapproximate the' terms of the obl:gations. Any remeasurements for changes inassumptions of obligations for other Iong-term employee benefits are recognised inprofit or loss in the periods in which the changes occur.

The Shire's obligations for long-term employee benefits are presented as non-current provisions in its statement of financial position, except where the Shire does

Policy Number FINO6

not have an unconditional right to defer settlement for at Ieast 12 months after theend of the reporting period, in which case the obligations are presented as currentproVlslons.

(m) Borrowing CostsBorrowing costs are recognised as an expense when incurred except where theyare directly attributable to the acquisition, construction or production of a qualifyingasset. Where this is the case, they are capitalised as part of the cost of theparticular asset until such time as the asset is substantially ready for its intendeduse or sale.

(n) ProvisionsProvisions are recognised when the Shire has a present legal or constructiveobligation, as a result of past events, for which it is probable that an outflow ofeconomic benefits will result and that outflow can be reliably measured. Provisionsare measured using the best estimate of the amounts required to settle theobligation at the end of the reporting period.

(o) LeasesLeases of fixed assets where substantially all the risks and benefits incidental tothe ownership of the asset, but not Iegal ownership, are transferred to the Shire,are classified as finance Ieases.

Finance leases are capitalised recording an asset and a Iiability at the Ioweramounts equal to the fair value of the Ieased property or the present value of theminimum Iease payments, including any guaranteed residual values. Leasepayments are allocated between the reduction of the Iease Iiability and the leaseinterest expense for the period.

Leased assets are depreciated on a straight line basis over the shorter of theirestimated useful lives or the lease term. Lease payments for operating Ieases,where substantially all the risks and benefits remain with the Iessor, are charged asexpenses in the periods in which they are incurred.

Lease incentives under operating Ieases are recognised as a liability and amortisedon a straight Iine basis over the Iife of the lease term.

(p) Investment in AssociatesAn associate is an entity over which the Shire has significant influence. Significantinfluence is the power to participate in the financial operating policy decisions ofthat entity but i's not control or joint control of those policies. Investments inassociate-s are accounted for in the financial statements by applying the equitymethod of accounting, whereby the investment is initially recognised at cost andadjusted thereafter for the post-acquisition change in the Shire's share of net assetsof -the associate. In addition, the Shire's share of the profit or Ioss of the associateis included in the Shire's profit or Ioss.

The carrying amount of the investment includes, where applicable, goodwill relatingto the associate. Any discount on acquisition, whereby the Shire's share of the netfair value of the associate exceeds the cost of investment, is recognised in profit orloss in the period in which the investment is acquired.

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Profits and Iosses resulting from transactions between the Shire and the associateare eliminated to the extent of the Shire's interest in the associate. When the Shire's

share of Iosses in an associate equals or exceeds its interest in the associate, theShire discontinues recognising its share of further Iosses unless it has incurred Iegalor constructive obligations or made payments on behalf of the associate. When theassociate subsequently makes profits, the Shire will resume recognising its shareof those profits once its share of the profits equals the share of the Iosses notrecognised.

(q) Interests in Joint ArrangementsJoint arrangements represent the contractual sharing of control between parties ina business

venture where unanimous decisions about relevant activities are required.

Separate joint venture entities providing joint venturers with an interest to net assetsare classified as a joint venture and accounted for using the equity method. Referto note 1 (o) for a description of the equity method of accounting.

Joint venture operations represent arrangements whereby joint operators maintaindirect interests in each asset and exposure to each Iiability of the arrangement. TheShire's interests in the assets

liabilities, revenue and expenses of joint operations are included in the respectiveline items of the financial statements. Information about the joint ventures is set outin Note 16.

(r) Rates, Grants, Donations and Other Contributions

Rates, grants, donations and other contributions are recognised as revenues whenthe local government obtains control over the assets comprising the contributions.

Control over assets acquired from rates is obtained at the commencementof the rating period or, where earlier, upon receipt of the rates.

Where contributions recognised as revenues during the reporting period wereobtained on the condition that they be expended in a particular manner or usedover a particular period, and those conditions were undischarged as at the reportingdate, the nature of and amounts pertaining to those undischarged conditions aredisclosed in Note 2(c) . That note also discloses the amount of contributionsrecognized as revenues in a previous reporting period which were obtained inrespect of the Iocal government's operations for the current reporting period.

(s) SuperannuationThe Shire contributes to a number of Superannuation Fundsemployees. All funds towhich ;he Shire contributes are defined contribution plans.

on behalf of

(t) Current and Non-Current ClassificationIn the determination of whether an asset or Iiability is current or non-current,consideration is given to the time when each asset or Iiability is expected to besettled. The asset or liability is classified as current if it is expected to be settledwithin the next 12 months,- being the Shire's operational cycle. In the case ofIiabilities where the Shire does not have the unconditional right to defer settlement

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beyond 12 months, such as vested Iong service Ieave, the Iiability is classified ascurrent even if not expected to be settled within the next 12 months. Inventoriesheld for trading are classified as current even if not expected to be realised in thenext 12 months except for Iand held for sale where it is held as non-current basedon the Shire's intentions to release for sale.

(u) Rounding Off FiguresAll figures shown in this annual financial report, other than a rate in the dollar, arerounded to the nearest dollar.

(v) Comparative FiguresWhere required, comparative figures have been adjusted to conform with changesin presentation for the current financial year. When the Shire applies an accountingpolicy retrospectively, makes a retrospective restatement or reclassifies items in itsfinancial statement, an additional (third) statement of financial position as at thebeginning of the preceding period in addition to the minimum comparative financialstatements is presented.

(w) Budget Comparative FiguresUnless otherwise stated, the budget comparative figures shown in this annualfinancial report relate to the original budget estimate for the relevant item ofdisclosure.

Signature(Signed) -#

This policy is to remain in force bintil otherwise de}ermined by the Council or superseded.

tslt?/

(PrintName)Shire

President

Kerry White