Statement of Accounting Policies (ii) Interests in Joint Committees Returned Servicemen Association cemetery plots, community housing, There is a contractual arrangement whereby Council and Kaikoura District community safety and environmental control. Council (KDC) undertake an activity that is subject to joint control. Provision of Services Partial Cost Recovery/Subsidised The Council’s share of jointly controlled assets and any liabilities incurred jointly Revenue from a subsidised sale of services is recognised as non-exchange with KDC are recognised in the Council’s financial statements on a revenue. Revenue from a contract to provide services is recognised by proportionate basis and classified according to their nature. reference to the outstanding obligations of the contract at reporting date at reporting date. Liabilities and expenses incurred directly in respect of interests in jointly controlled assets are accounted for on an accrual basis.Revenue from the Vested Assets sale or use of Council’s share of the output of jointly controlled assets, and its Assets vested in Council, with or without conditions, are recognised as share of the joint committee expenses, are recognised when it is probable that revenue, at fair value, when controls over the assets is obtained. the economic benefits associated with the transactions will flow to/from the Council and their amount can be measured reliably. Financial/Development Contributions Financial/Development contributions are recognised as revenue when Where Council transacts with the joint committee, unrealised profits and losses received. If the service for which the contribution as charged is not undertaken are eliminated to the extent of Council’s share in the joint venture, except to the in the same year Financial/Development contributions received are allocated to extent that unrealised losses provide evidence of impairment of the asset. the appropriate Reserve until such a time Council provides, or is able to provide, the service. (iii) Revenue Most of the Council’s revenue is from non-exchange transactions accounted for Revenue from Exchange Transactions under PBE IPSAS 23. Exchange transactions are recognised under PBE Water billing Revenue IPSAS 9 . Professional judgement is exercised to determine whether the Water Billing is recognised on an accrual basis. substance of a transaction is non-exchange or exchange. Provision of Services full Cost Recovery For non-exchange revenue there is a recognition of a liability to the extent of Significant revenue from full cost recovery sale of services is recognised as unfulfilled conditions. exchange revenue. Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract at reporting date. Revenue from Non-Exchange Transactions Rates Revenue Sales of Goods Rates revenue is a non-exchange revenue and are set annually by a resolution Sales of goods are recognised when goods are delivered and title has passed. of Council and relate to a financial year. All ratepayers are invoiced within the financial year for which the rates have been set. Revenue is measured at the Interest and Dividends fair value of consideration received or receivable. Rates revenue is recognised Interest revenue is accrued on a time basis, by reference to the principal by Council as being revenue when the Council has struck the rates and outstanding and at the effective interest rate applicable. Dividend revenue from provided the rates assessment. investments is recognised when the shareholders’ rights to receive payment have been established. Government Subsidies and Grants NZTA roading subsidies (received in respect of maintaining the roading (iv) Borrowing Costs infrastructure) and other government grants/subsidies are recognised as All borrowing costs are recognised as an expense in the period in which they revenue upon entitlement ie; when conditions relating to eligible expenditure are incurred and are calculated using effective interest method. have been fulfilled. This revenue is shown as subsidy revenue. Other Government assistance received includes contributions towards the upkeep of 2018-2028 Long Term Plan Page 241