Profits and losses resulting from transactions between the Shire of Goomalling and the associate are eliminated to the extent of the Shire of Goomalling's interest in the associate.

When the Shire of Goomalling's share of losses in an associate equals or exceeds its interest in the associate, the Shire of Goomalling discontinues recognising its share of further losses unless it has incurred legal or constructive obligations or made payments on behalf of the associate. When the associate subsequently makes profits, the Shire of Goomalling will resume recognising its share of these profits once its share of the profits equals the share of the losses not recognised.

Joint arrangements represent the contractual sharing of control between parties in a business venture where unanimous decisions about relevant activities are required.

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

Joint venture operations represent arrangements whereby joint operators maintain direct interests in each asset and exposure to each liability of the arrangement. The Shire of Goomalling's interests, in the assets, liabilities, revenue and expenses of joint operations are included in the respective line items of the financial statements. Information about the joint ventures is set out in Note 19.

In the determination of whether an asset or liability is current or non-current, consideration is given to the time when each asset or liability is expected to be settled. The asset or liability is classified as current if it is expected to be settled within the next 12 months, being the Shire of Goomalling's operational cycle. In the case of liabilities where the Shire of Goomalling does not have the unconditional right to defer settlement beyond 12 months, such as vested long service leave, the liability is classified as current even if not expected to be settled within the next 12 months. Inventories held for trading are classified as current even if not expected to be realized in the next 12 months except for land held for sale where it is held as non-current based on the Shire of Goomalling's intentions to release for sale.