ABN: 80 001 072 073 · 2019-11-04 · ABN: 80 001 072 073 Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2019 Note 2019 $ 2018 $ Revenue 4 1,447,372

Woonona Bowling & Recreation Club LimitedABN: 80 001 072 073

Financial Statements

For the Year Ended 30 June 2019

DRAFT

Woonona Bowling & Recreation Club Limited

ABN: 80 001 072 073




Contents Page

Directors' Report 1

Auditor's Independence Declaration

Financial Report4

Statement of Profit or Loss and Other Comprehensive Income 5

Balance Sheet 6

Statement of Changes in Equity 7

Statement of Cash Flows 8

Notes to the Financial Statements 9

Directors' Declaration 27

Independent Auditor's Report 28

DRAFT


ABN: 80 001 072 073

Directors' Report

30 June 2019

Your Directors present their report on Woonona Bowling & Recreation Club Limited for the financial yearended 30 June 2019.

Information on directors

The names of each person who has been a director during the year and to the date of this report are:

Name Position Qualifications, experience andspecial responsibilities

Appointed/resigned

P Webb Chairman Retired

M Appleton Director Retired

T Johnson Director Company Director

K Rootsey Director Retired

J Smede Director Retired

J Fryday Director Police Officer Appointed 7 December 2018T Faricy Director Appointed 7 December 2018

A Mangles Director Sales Representative Resigned XXXXXXD Tully Director Facilities Management Resigned xxxxxxx

Directors have been in office since the start of the financial year to the date of this report unless otherwisestated.

Review of operations

The result of the Company amounted to a loss of $ 286,600 (2018: loss of $203,887).

Principal activities

The principal activities of Woonona Bowling & Recreation Club Limited during the financial year were tomaintain and conduct a Bowling Club for the accommodation of the members of the Club, to promote thegame of Bowls and to encourage social activities between the members of the Club.

No significant changes in the nature of the entity's activity occurred during the financial year.

Short term objectives

The Company's short term objectives are to provide a venue where members and visitors can enjoy the gameof bowls in a relaxed and friendly environment.

1.

DRAFT

SMilgate

Highlight

SMilgate

Highlight


ABN: 80 001 072 073

Directors' Report

30 June 2019

Long term objectives

The Company's long term objectives are not only to promote and encourage further development in the gameof bowls, but as well remain a viable and profitable establishment for years to come so the venue can providemembers with new services and amenities.

Strategy for achieving the objectives

To achieve these objectives, the Company has adopted the following strategies:• implement cost cutting measures to areas that are deemed non-value added; and• member drives to increase the Company’s membership base.

Performance measures

The Company assesses its performance in terms of its achievement of strategic and financial objectives withreference to:• the quality of the service and facilities provided to members;• the ability to generate strong cash flows from its operating activities;• the trading and overall financial result; and• the stability of the balance sheet with respect to the Company’s liquidity and the totals levels of debt.

Members guarantee

The Woonona Bowling & Recreation Club Limited is a Company limited by guarantee. In the event of, and forthe purpose of winding up of the Company, the amount capable of being called up from each member and anyperson or association who ceased to be a member in the year prior to the winding up, is limited to $ 2 formembers, subject to the provisions of the Company's constitution.

At 30 June 2019 the collective liability of members was $ 2,242 (2018: $ 2,770).

2.

DRAFT


ABN: 80 001 072 073

Directors' Report

30 June 2019

Meetings of directors

During the financial year, 0 meetings of Directors were held. Attendances by each Director during the yearwere as follows:

Directors' Meetings

Number eligible to attend Number attended

P Webb - -

M Appleton - -

T Johnson - -

K Rootsey - -

J Smede - -

J Fryday - -

T Faricy - -

A Mangles - -

D Tully - -

Auditor's independence declaration

The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, forthe year ended 30 June 2019 has been received and can be found on page 4 of the financial report.

Signed in accordance with a resolution of the Board of Directors.

P WebbChairman

Wollongong

28 October 2019

3.

DRAFT

SMilgate

Highlight

SMilgate

Highlight

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001to the Directors of Woonona Bowling & Recreation Club Ltd

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Daley Audit

Stephen MilgatePartner

Wollongong

28 October 2019

Liability limited by a Scheme approved under Professional Standards Legislation.

4.

DRAFT


ABN: 80 001 072 073

Statement of Profit or Loss and Other Comprehensive Income


Note

2019

$

2018

$

Revenue 4 1,447,372 1,451,848

Other revenue 4 43,658 45,208

Employee benefits expense (527,036) (524,817)

Cost of sales (463,599) (463,021)

Clubhouse operation expense (356,134) (321,391)

Member expenses (143,040) (132,046)

Depreciation and amortisation expense 7 (161,727) (142,437)

Sponsorship and donations (34,123) (28,915)

Finance costs (15,046) (9,852)

Other operating expenses (76,925) (78,464)

Result for the year (286,600) (203,887)

Other comprehensive income:

Items that will not be reclassified to profit or loss

Other comprehensive income for the year - -

Total comprehensive income for the year (286,600) (203,887)

The accompanying notes form part of these financial statements.

5.

DRAFT


ABN: 80 001 072 073

Balance Sheet

As at 30 June 2019

Note

2019

$

2018

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 6 145,355 332,812

Trade and other receivables 5,000 5,000

Inventories 31,938 34,561

Other assets 5,180 15,756

TOTAL CURRENT ASSETS 187,473 388,129

NON-CURRENT ASSETS

Property, plant and equipment 7 3,034,565 3,144,322

Investment property 8 720,000 720,000

TOTAL NON-CURRENT ASSETS 3,754,565 3,864,322

TOTAL ASSETS 3,942,038 4,252,451

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 105,962 70,796

Borrowings 10 26,678 1,389

Employee benefits 11 125,735 100,286

TOTAL CURRENT LIABILITIES 258,375 172,471

NON-CURRENT LIABILITIES

Borrowings 10 138,970 248,611

Employee benefits 11 1,704 1,780

TOTAL LIABILITIES 399,049 422,862

NET ASSETS 3,542,989 3,829,589

EQUITY

Reserves 16 1,913,581 1,913,581

Retained earnings 1,629,408 1,916,008

TOTAL EQUITY 3,542,989 3,829,589


6.

DRAFT


ABN: 80 001 072 073

Statement of Changes in Equity


RetainedEarnings

$

AssetRevaluation

Surplus

$

Total

$

Balance at 1 July 2018 1,916,008 1,913,581 3,829,589

Result for the year (286,600) - (286,600)

Balance at 30 June 2019 1,629,408 1,913,581 3,542,989

Balance at 1 July 2017 2,119,895 1,913,581 4,033,476

Result for the year (203,887) - (203,887)

Balance at 30 June 2018 1,916,008 1,913,581 3,829,589


7.

DRAFT


ABN: 80 001 072 073

Statement of Cash Flows


Note

2019

$

2018

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 1,629,081 1,631,164

Payments to suppliers and employees (1,681,003) (1,738,552)

Interest received 787 6,255

Finance costs - (9,852)

Net cash (used by) operating activities (51,135) (110,985)

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for property, plant and equipment (51,970) (528,364)

Redemption of/(payments) for held-to-maturity investments - 380,480

Net cash (used by) investing activities (51,970) (147,884)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repayment of borrowings (84,352) -

Proceeds from borrowings - 250,000

Net cash (used by)/provided by used by financing activities (84,352) 250,000

Net increase/(decrease) in cash and cash equivalents held (187,457) (8,869)

Cash and cash equivalents at beginning of year 332,812 341,681

Cash and cash equivalents at end of financial year 6 145,355 332,812


8.

DRAFT


ABN: 80 001 072 073

Notes to the Financial Statements


The financial report covers Woonona Bowling & Recreation Club Limited as an individual entity. WoononaBowling & Recreation Club Limited is a not-for profit Company limited by guarantee, incorporated anddomiciled in Australia.

The functional and presentation currency of Woonona Bowling & Recreation Club Limited is Australian dollars.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordancewith the Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act2001.

The financial statements have been prepared on an accruals basis and are based on historical costsmodified, where applicable, by the measurement at fair value of selected non-current assets, financialassets and financial liabilities.

Significant accounting policies adopted in the preparation of these financial statements are presentedbelow and are consistent with prior reporting periods unless otherwise stated.

2 Summary of Significant Accounting Policies

(a) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probablethat economic benefits associated with the transaction will flow to the Company and specificcriteria relating to the type of revenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presentednet of returns, discounts and rebates.

All revenue is stated net of the amount of goods and services tax (GST).

Sale of goods

Revenue from the sale of goods is recognised at the point of delivery as this corresponds to thetransfer of significant risks and rewards of ownership of the goods and the cessation of allinvolvement in those goods.

9.

DRAFT


ABN: 80 001 072 073



2 Summary of Significant Accounting Policies (continued)

(a) Revenue and other income (continued)

Donations

Donations and bequests are recognised as revenue when received.

Interest revenue

Interest revenue is recognised using the effective interest rate method, which for floating ratefinancial assets is the rate inherent in the instrument.

Rental income

Investment property revenue is recognised on a straight-line basis over a period of the lease term soas to reflect a constant periodic rate of return on the net investment.

Subscriptions

Revenue from the provision of membership subscriptions is recognised on a straight line basis overthe period of membership.

(b) Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

(c) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investmentswhich are readily convertible to known amounts of cash and which are subject to an insignificantrisk of change in value.

Bank overdrafts also form part of cash equivalents for the purpose of the statement of cash flowsand are presented within current liabilities on the balance sheet.

10.

DRAFT


ABN: 80 001 072 073




(d) Inventories

Inventories are measured at the lower of cost and net realisable value. Cost of inventory isdetermined using the first-in-first-out basis and is net of any rebates and discounts received.

Net realisable value is the estimated selling price in the ordinary course of business, less theestimated costs of completion and the costs necessary to make the sale. Net realisable value isestimated using the most reliable evidence available at the reporting date and inventory is writtendown through an obsolescence provision if necessary.

(e) Property, plant and equipment

Each other class of property, plant and equipment is carried at cost or fair value as indicated less,where applicable, any accumulated depreciation and impairment losses.

Under the cost model, the asset is carried at its cost less any accumulated depreciation and anyimpairment losses. Costs include purchase price, other directly attributable costs and the initialestimate of costs of dismantling and restoring the asset, where applicable.

Under the revaluation model, assets are carried at fair value at the revaluation date less anysubsequent accumulated depreciation and impairment losses. Revaluations are performedwhenever there is a material movement in the value of an asset under the revaluation model.

Land and buildings

Land is measured using the revaluation model.

Depreciation

Property, plant and equipment, excluding freehold land, is depreciated on either a straight-line ordiminishing value basis over the assets useful life to the Company, commencing when the asset isready for use.

11.

DRAFT


ABN: 80 001 072 073




(e) Property, plant and equipment (continued)

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Buildings 2.5 - 5%

Plant and equipment 9 - 50%

Office equipment 9 - 50%

Poker machines 13 - 40%

(f) Financial instruments

Accounting policy applied from 1 July 2018

Financial instruments are recognised initially on the date that the Company becomes party to thecontractual 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 areexpensed as incurred).

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised costor fair value, depending on the classification of the financial assets.

Classification

On initial recognition, the Company classifies its financial assets into the following categories, thosemeasured at:

amortised cost

fair value through profit or loss - (FVTPL)

Financial assets are not reclassified subsequent to their initial recognition unless the Companychanges its business model for managing financial assets.

12.

DRAFT


ABN: 80 001 072 073




(f) Financial instruments (continued)

Financial assets (continued)

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 are solely payments of

principal and interest on the principal amount outstanding.

The Company's financial assets measured at amortised cost comprise trade and other receivablesand cash and cash equivalents in the balance sheet.

Subsequent to initial recognition, these assets are carried at amortised cost using the effectiveinterest rate method less provision for impairment.

Interest income and impairment are recognised in profit or loss. Gain or loss on derecognition isrecognised in profit or loss.

Financial assets through profit or loss

All financial assets not classified as measured at amortised cost or fair value through othercomprehensive income as described above are measured at FVTPL.

Net gains or losses, including any interest income are recognised in profit or loss.

Impairment of financial assets

Impairment of financial assets is recognised on an expected credit loss (ECL) basis for financialassets measured at amortised cost

When determining whether the credit risk of a financial assets has increased significantly sinceinitial recognition and when estimating ECL, the Company considers reasonable and supportableinformation that is relevant and available without undue cost or effort. This includes bothquantitative and qualitative information and analysis based on the Company's historical experienceand informed credit assessment and including forward looking information.

13.

DRAFT


ABN: 80 001 072 073






The Company uses the presumption that an asset which is more than 30 days past due has seen asignificant increase in credit risk.

The Company uses the presumption that a financial asset is in default when:

the other party is unlikely to pay its credit obligations to the Company in full, without

recourse to the Company to actions such as realising security (if any is held); or

the financial assets is more than 90 days past due.

Credit losses are measured as the present value of the difference between the cash flows due to theCompany in accordance with the contract and the cash flows expected to be received. This isapplied using a probability weighted approach.

Trade receivables

Impairment of trade receivables has been determined using the simplified approach in AASB 9which uses an estimation of lifetime expected credit losses. The Company has determined theprobability of non-payment of the receivable and multiplied this by the amount of the expected lossarising from default.

The amount of the impairment is recorded in a separate allowance account with the loss beingrecognised in finance expense. Once the receivable is determined to be uncollectable then the grosscarrying amount is written off against the associated allowance.

Where the Company renegotiates the terms of trade receivables due from certain customers, thenew expected cash flows are discounted at the original effective interest rate and any resultingdifference to the carrying value is recognised in profit or loss.

Other financial assets measured at amortised cost

Impairment of other financial assets measured at amortised cost are determined using the expectedcredit loss model in AASB 9. On initial recognition of the asset, an estimate of the expected creditlosses for the next 12 months is recognised. Where the asset has experienced significant increase incredit risk then the lifetime losses are estimated and recognised.

14.

DRAFT


ABN: 80 001 072 073





Financial liabilities

The Company measures all financial liabilities initially at fair value less transaction costs,subsequently financial liabilities are measured at amortised cost using the effective interest ratemethod.

The financial liabilities of the Company comprise trade payables, bank and other loans.

Accounting policy applied prior to 1 July 2018

Financial instruments are recognised initially using trade date accounting, i.e. on the date that theCompany 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 areexpensed as incurred).

Financial assets

Financial assets are divided into the following categories which are described in detail below:

loans and receivables;

held-to-maturity investments.

Financial assets are assigned to the different categories on initial recognition, depending on thecharacteristics of the instrument and its purpose. A financial instrument’s category is relevant to theway it is measured and whether any resulting income and expenses are recognised in profit or lossor in other comprehensive income.

All income and expenses relating to financial assets are recognised in the statement of profit or lossand other comprehensive income in the ‘interest income’ or ‘interest expense’ line itemrespectively.

Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments thatare not quoted in an active market. They arise principally through the provision of goods andservices to customers but also incorporate other types of contractual monetary assets.

15.

DRAFT


ABN: 80 001 072 073






After initial recognition these are measured at amortised cost using the effective interest ratemethod, less provision for impairment. Any change in their value is recognised in profit or loss.

The Company’s trade and other receivables fall into this category of financial instruments.

In some circumstances, the Company renegotiates repayment terms with customers which maylead to changes in the timing of the payments, the Company does not necessarily consider thebalance to be impaired, however assessment is made on a case-by-case basis.

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinablepayments and fixed maturity. Investments are classified as held-to-maturity if it is the intention ofthe Company's management to hold them until maturity.

Held-to-maturity investments are subsequently measured at amortised cost using the effectiveinterest method, with revenue recognised on an effective yield basis. In addition, if there isobjective evidence that the investment has been impaired, the financial asset is measured at thepresent value of estimated cash flows. Any changes to the carrying amount of the investment arerecognised in profit or loss.

Financial liabilities

Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ orother financial liabilities depending on the purpose for which the liability was acquired.

The Company‘s financial liabilities include borrowings, trade and other payables which aremeasured at amortised cost using the effective interest rate method.

Impairment of Financial Assets

At the end of the reporting period the Company assesses whether there is any objective evidencethat a financial asset or group of financial assets is impaired.

16.

DRAFT


ABN: 80 001 072 073




(g) Impairment of non-financial assets

At the end of each reporting period the Company determines whether there is an evidence of animpairment indicator for non-financial assets.

Where this indicator exists and regardless for indefinite life intangible assets and intangible assetsnot yet available for use, the recoverable amount of the asset is estimated.

Where assets do not operate independently of other assets, the recoverable amount of the relevantcash-generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal andthe value in use. Value in use is the present value of the future cash flows expected to be derivedfrom an asset or cash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised inprofit or loss.

Reversal indicators are considered in subsequent periods for all assets which have suffered animpairment loss.

(h) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services renderedby employees to the end of the reporting period. Employee benefits that are expected to be whollysettled within one year have been measured at the amounts expected to be paid when the liabilityis settled.

Employee benefits expected to be settled more than one year after the end of the reporting periodhave been measured at the present value of the estimated future cash outflows to be made forthose benefits. In determining the liability, consideration is given to employee wage increases andthe probability that the employee may satisfy vesting requirements. Cashflows are discounted usingmarket yields on high quality corporate bond rates incorporating bonds rated AAA or AA by creditagencies, with terms to maturity that match the expected timing of cashflows. Changes in themeasurement of the liability are recognised in profit or loss.

17.

DRAFT


ABN: 80 001 072 073




(i) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST),except where the amount of GST incurred is not recoverable from the Australian Taxation Office(ATO).

Receivables and payables are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables orpayables in the balance sheet.

Cash flows in the statement of cash flows are included on a gross basis and the GST component ofcash flows arising from investing and financing activities which is recoverable from, or payable to,the taxation authority is classified as operating cash flows.

(j) Investment property

Investment property is held to generate long term rental yields and capital growth.

Investment property is carried at fair value, determined annually by independent valuers. Changesto fair value are recorded in the statement of profit or loss and other comprehensive income asother income/expenses.

(k) Change in accounting policy

During the current year, AASB 9 - Financial Instruments has become mandatory, which has not had amaterial impact (in the current year or retrospectively) upon the measurement of assets, liabilities,equity, income or expenses, not upon the disclosures required in this financial report.

(l) Going concern

The financial report has been prepared on a going concern basis which contemplates the continuityof normal business activities and the realisation of assets and settlement of liabilities in the ordinarycourse of business.

Due to the losses recorded over the past two financial years being $286,600 for the year ended 30June 2019, and $203,887 for the year ended 30 June 2018, the entity now has current liabilities thatexceeds current assets by $70,902. These losses have reduced the net assets of the entity by$490,487 during this two year period.

18.

DRAFT

SMilgate

Highlight


ABN: 80 001 072 073




(l) Going concern (continued)

Included in current liabilities are $125,735 (2018: $100,286) of employee entitlements whichalthough expected to be partly realised as non-current liabilities, have been recorded as currentunder the requirements of the Australian Accounting Standards, given the Company does not havean unconditional right to defer them beyond 12 months from balance date.

The Company continues to take steps to ensure that it can continue to trade as a going concernthrough an ongoing plan to reduce operating costs and identifying opportunities to increaserevenues.

Should any of the following transpire, that then will have a significant impact on the ability of theentity to continue as a going concern and therefore whether it will realise its assets and liabilities inthe normal course of business and at the amounts stated in the financial report:

The Company's present trading not improve,

The cost-saving measures not eventuate to the extent estimated; or

The Company's bankers withdraw their financial support.

Where the Company is no longer considered to be a going concern, the financial report would haveto be prepared on a liquidation basis, where the realisation value assumes importance, additionalliabilities may accrue and the current versus non-current classification of liabilities becomes lesscritical than the seniority features of debt and other preferences in liquidation.

19.

DRAFT

SMilgate

Highlight


ABN: 80 001 072 073



3 Critical Accounting Estimates and Judgments

The Directors make estimates and judgements during the preparation of these financial statementsregarding assumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing thefinancial statements, however as additional information is known then the actual results may differ fromthe estimates.

The significant estimates and judgements made have been described below.

Key judgments - investment property

The Directors have assessed the non-core land and buildings owned by the Company to be an investmentproperty as it is being held to generate long term rental yields and capital growth.

Key estimates - impairment of property, plant and equipment

The Company assesses impairment at the end of each reporting period by evaluating conditions specific tothe Company that may be indicative of impairment triggers.

Key estimates - useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, basedon the expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence thatmay change the utility of certain property, plant and equipment.

Key estimates - employee entitlements

As described in the accounting policies, provisions are measured at management’s best estimate of theexpenditure required to settle the obligation at the end of the reporting period. These estimates are madetaking into account a range of possible outcomes and will vary as further information is obtained.

20.

DRAFT


ABN: 80 001 072 073



4 Revenue and Other Income

2019

$

2018

$

Revenue from continuing operations

- Bar sales 784,016 760,547

- Poker machine revenue 381,850 421,546

- Poker machine GST rebate 17,180 17,180

- Raffle income 92,276 100,372

- TAB commission (net) 3,435 4,054

- Commissions income 9,575 14,683

- Keno commissions 11,008 19,065

- Member subscriptions 28,530 28,238

- Other operating income 13,413 4,861

- Bowls income 65,341 57,387

- Green fees 40,748 23,915

1,447,372 1,451,848

Other revenue

- Interest received 787 6,255

- Rental income 39,459 38,513

- Net gain/(loss) on disposal of assets - 440

- Donations 3,412 -

43,658 45,208

1,491,030 1,497,056

5 Result for the Year

Superannuation contributions 39,449 42,013

6 Cash and Cash Equivalents

Cash on hand 64,231 56,804

Cash at bank 81,124 276,008

145,355 332,812

21.

DRAFT


ABN: 80 001 072 073



7 Property, Plant and Equipment

2019

$

2018

$

Land - Clubhouse - at Directors' valuation 2,060,000 2,060,000

Buildings

At cost 1,288,040 1,282,929

Accumulated depreciation (649,662) (547,235)

638,378 735,694

2,698,378 2,795,694

Plant and equipment

At cost 745,666 698,806


225,251 185,956

Poker machines

At cost 551,266 551,266


110,936 162,672

3,034,565 3,144,322

(a) Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between thebeginning and the end of the current financial year:

Land andbuildings

$

Plant andequipment

$

Pokermachines

$

Total

$

Balance at the beginning of year 2,795,694 185,956 162,672 3,144,322

Additions 5,111 46,859 - 51,970

Depreciation expense (102,427) (7,564) (51,736) (161,727)

Balance at 30 June 2019 2,698,378 225,251 110,936 3,034,565

22.

DRAFT


ABN: 80 001 072 073



7 Property, Plant and Equipment (continued)

(a) Movements in Carrying Amounts (continued)

A valuation was performed on the Company's land at 30 June 2017. At the end of each reporting period,the Directors update their assessment of the fair value of each instrument, taking into account the mostrecent valuation.

Core and Non-Core Property

As required under section 41J of the Registered Clubs Act 1976, the Company is required to specify thecore property and non-core properties owned as at the end of the financial year. Accordingly, theDirectors considers as core property the licensed premises from which the Club operates at Greta Street,Woonona, including all freehold land referred to in the title deed of the main licenses premises site.

The investment property at note 8 is not considered to be a core property of the Company given that it isnot the defined premises of the Company, nor any facility provided by the Company for the use of itsmembers and their guests, nor any other property declared, by a resolution passed by a majority of themembers present at a general meeting of the ordinary members of the Company, to be core property ofthe Company.

8 Investment Property

2019

$

2018

$

Balance at beginning of year 720,000 720,000

Fair value adjustments - -

Balance at end of year 720,000 720,000

The Company's investment property is carried at fair value.

9 Trade and Other Payables

Trade payables 27,542 21,736

GST payable/(receivable) 15,304 (3,829)

Subscriptions in advance 16,302 17,164

Other payables 46,814 35,725

105,962 70,796

23.

DRAFT


ABN: 80 001 072 073



10 Borrowings

2019

$

2018

$

CURRENT

Bank loans 26,678 1,389

NON-CURRENT

Bank loans 138,970 248,611

Securities pledged

These borrowings are secured by:

a registered mortgage over the investment property at note 8; and

a general security agreement over all present and after acquired property.

11 Employee Benefits

CURRENT

Provision for employee benefits 75,404 57,510

Long service leave 50,331 42,776

125,735 100,286

NON-CURRENT

Long service leave 1,704 1,780

12 Financial Risk Management

The main risks Woonona Bowling & Recreation Club Limited is exposed to through its financial instrumentsare credit risk, liquidity risk and market risk consisting of interest rate risk.

The Company's financial instruments consist mainly of deposits with banks, accounts receivable, accountspayable and bank loans.

24.

DRAFT


ABN: 80 001 072 073



12 Financial Risk Management (continued)

The totals for each category of financial instruments, measured in accordance with AASB 9 (2018: AASB139) as detailed in the accounting policies to these financial statements, are as follows:

Note

2019

$

2018

$

Financial Assets

Cash and cash equivalents 6 145,355 332,812

Trade and other receivables 5,000 5,000

Total financial assets 150,355 337,812

Financial Liabilities

Financial liabilities at amortised cost

Trade and other payables 9 89,660 53,632

Borrowings 10 165,648 250,000

Total financial liabilities 255,308 303,632

Net fair values

Fair value estimation

Fair values are those amounts at which an asset could be exchanged, or a liability settled, betweenknowledgeable, willing parties in an arm’s length transaction.

Fair values derived may be based on information that is estimated or subject to judgment, where changesin assumptions may have a material impact on the amounts estimated. Areas of judgment and theassumptions have been detailed below. Where possible, valuation information used to calculate fair valueis extracted from the market, with more reliable information available from markets that are activelytraded.

13 Interests of Key Management Personnel

The total remuneration paid to key management personnel of the Company is $48,166 (2018: $ 47,433).

25.

DRAFT


ABN: 80 001 072 073



14 Contingent Liabilities and Contingent Assets

In the opinion of the Directors, the Company did not have any contingencies at 30 June 2019 (30 June2018: None).

15 Related Party Transactions

Transactions between related parties are on normal commercial terms and conditions no more favourablethan those available to other parties unless otherwise stated.

There have been no transactions with any related parties.

16 Reserves

Asset revaluation reserve

The asset revaluation reserve records realised gains on revaluation of property, plant and equipmentrecorded at fair value.

17 Events after the end of the Reporting Period

The financial report was authorised for issue on 28 October 2019 by the Board of Directors.

No matters or circumstances have arisen since the end of the financial year which significantly affected ormay significantly affect the operations of the Company, the results of those operations or the state ofaffairs of the Company in future financial years.

26.

DRAFT


ABN: 80 001 072 073

Directors' Declaration

The Directors of the Company declare that:

1. The financial statements and notes, as set out on pages 5 to 26, are in accordance with the CorporationsAct 2001 and:

a. comply with Australian Accounting Standards - Reduced Disclosure Requirement; and

b. give a true and fair view of the financial position as at 30 June 2019 and of the performance for theyear ended on that date of the Company.

2. In the Directors' opinion, there are reasonable grounds to believe that the Company will be able to pay itsdebts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

P Webb

Chairman

Wollongong

28 October 2019

27.

DRAFT

Independent Audit Report to the members of Woonona Bowling & Recreation Club Limited

Report on the Audit of the Financial Report

Opinion

We have audited the financial report of Woonona Bowling & Recreation Club Limited (the Company), whichcomprises the balance sheet as at 30 June 2019, the statement of profit or loss and other comprehensiveincome, the statement of changes in equity and the statement of cash flows for the year then ended, andnotes to the financial statements, including a summary of significant accounting policies, and the Directors'declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act2001, including:

(i) giving a true and fair view of the Company's financial position as at 30 June 2019 and of its financialperformance for the year ended; and

(ii) complying with Australian Accounting Standards - Reduced Disclosure Requirements and the CorporationsRegulations 2001.

Basis for Opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under thosestandards are further described in the Auditor's Responsibilities for the Audit of the Financial Report section ofour report. We are independent of the Company in accordance with the auditor independence requirementsof the Corporations Act 2001 and the ethical requirements of the Accounting Professional and EthicalStandards Board's APES 110 Code of Ethics for Professional Accountants ("the Code") that are relevant to ouraudit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordancewith the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.

28.

DRAFT


Material Uncertainty Related to Going Concern

We draw attention to Note 2(l) in the financial report, which indicates that the Company incurred a net loss of$268,600 during the year ended 30 June 2019 and, as of that date, the Company's current liabilities exceededits total assets by $70,902. As stated in Note 2(l), these events or conditions, along with other matters as setforth in Note 2(l), indicate that a material uncertainty exists that may cast significant doubt on the Company'sability to continue as a going concern. Our opinion is not modified in respect of this matter.

Information Other than the Financial Report and Auditor's Report Thereon

The Directors are responsible for the other information. The other information is the Directors report for theyear ended 30 June 2019, but does not include the financial report and our auditor’s report thereonaccompanying the financial report.

Our opinion on the financial report does not cover the other information and accordingly we do not expressany form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, indoing so, consider whether the other information is materially inconsistent with the financial report or ourknowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information obtained prior to the date of this auditor'sreport, we conclude that there is a material misstatement of this other information, we are required to reportthat fact. We have nothing to report in this regard.

Responsibilities of Directors for the Financial Report

The Directors of the Company are responsible for the preparation of the financial report that gives a true andfair view in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and theCorporations Act 2001 and for such internal control as the Directors determine is necessary to enable thepreparation of the financial report that gives a true and fair view and is free from material misstatement,whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or haveno realistic alternative but to do so.

29.

DRAFT

SMilgate

Highlight


Auditor's Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with Australian Auditing Standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of thefinancial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing andAssurance Standards Board website at: https://www.auasb.gov.au/auditors_responsibilities/ar4.pdf. Thisdescription forms part of our auditor’s report.

Daley Audit

Stephen MilgatePartner

Wollongong 28 October 2019

Liability limited by a Scheme approved under Professional Standards Legislation.

30.

DRAFT

ABN: 80 001 072 073 · 2019-11-04 · ABN: 80 001 072 073 Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 30 June 2019 Note 2019 $ 2018 $ Revenue 4 1,447,372

Documents