TOWN OF VICTORIA PARK NOTES TO AND FORMING PART OF THE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2022

Significant Accounting Policies

Financial liabilities

Trade and other payables

Trade and other payables represent liabilities for goods when the Town becomes a party to the contractual and services provided to the Town prior to the end of the provisions of the instrument. financial year that are unpaid and arise when the Town becomes obliged to make future payments in respect Non-derivative financial liabilities (excluding financial of the purchase of these goods and services. guarantees) are subsequently measured at amortised The amounts are unsecured, are recognised as a cost. current liability and are usually paid within 30 days of recognition. The carrying amounts of trade and other Financial liabilities are derecognised where the related payables are considered to be the same as their fair obligations are discharged, cancelled or expired. The values, due to their short-term nature. difference between the carrying amount of the financial liability extinguished or transferred to another party and Prepaid rates the fair value of the consideration paid, including the Prepaid rates are, until the taxable event has occurred transfer of non-cash assets or liabilities assumed, is (start of the next financial year), refundable at the request recognised in profit or loss. of the ratepayer. Rates received in advance are initially recognised as a financial liability. When the taxable event occurs, the financial liability is extinguished and the Town recognises revenue for the prepaid rates that have not been refunded.

Financial liabilities are initially recognised at fair value

Town Of Victoria Park

Notes To And Forming Part Of The Financial Report For The Year Ended 30 June 2022

12.OTHER

The Town expects to satisfy the performance obligations from contracts with customers unsatisfied at the end of the reporting period to be satisfied within the next 12 months.

Performance obligations in relation to capital grant/contribution liabilities are satisfied as project milestones are met or completion of construction or acquisition of the asset.

SIGNIFICANT ACCOUNTING POLICIES

Contract liabilities

Capital grant/contribution liabilities

Contract liabilities represent the Town's obligation to Capital grant/contribution liabilities represent the Town's transfer goods or services to a customer for which the obligations to construct recognisable non-financial Town has received consideration from the customer. assets to identified specifications to be controlled the Town which are yet to be satisfied. Capital grant/contribution

Contract liabilities represent obligations which are not liabilities are recognised as revenue when the yet satisfied. Contract liabilities are recognised as revenue obligations in the contract are satisfied. when the performance obligations in the contract are satisfied.