vincentia golf club limited a.b.n. 80 000 751 324 … · 2017. 7. 13. · company is wound up, the...

VINCENTIA GOLF CLUB LIMITED

A.B.N. 80 000 751 324

FINANCIAL REPORT

FOR THE YEAR ENDED

28 FEBRUARY 2017


A.B.N. 80 000 751 324

CONTENTSDirectors' Report 2

Independent Audit Report 5

Auditor's Independence Declaration 8

Statement of Profit or Loss & Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Statement of Cash Flows 12

Notes to the Financial Statements 13

Directors' Declaration 31

Disclaimer on Additional Financial Information 32

Supplementary Information 33


A.B.N. 80 000 751 324

DIRECTORS' REPORT

Your directors present their report on the company for the financial year ended 28 February 2017.

Principal Activities

The principal activities of the company during the financial year were:

To provide and maintain a licensed golf club.

No significant changes in the state of affairs occurred during the financial year.

On 14 March 2017, Vincentia Golf Club amalgamated with St Georges Basin Country Club Limited.

Objectives & Strategies

The short and long term objectives of the company are to provide club facilities to members and guests.

The strategy for achieving these objectives is to conservatively manage and monitor the company's financialposition, and ensure that member facilities are kept at the highest of standards, within the constraints of thebudget.

Performance Measurement

The company uses industry accepted financial and non-financial KPI's to monitor performance.

Membership

The number of members registered in the Register of Members at 28 February 2017 were as follows:

Ordinary Members 273

Social Members 1,170

Life Members 1

Junior Members 5

Total Members 1,449 1,286

The company is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If thecompany is wound up, the Constitution states that each member is liable to contribute a maximum of $2each towards meeting any outstanding obligations of the entity. At 28 February 2017 the collective liability ofmembers was $2,898 (29 February 2016: $2,572).

Directors

The names of the directors in office at any time during or since the end of the year are:

Nicholas Burke President

Qualifications, experience, and special duties:

Retired Consultant.Board Member 7 years.

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DIRECTORS' REPORT

Keith Pinkard Vice President


Retired.Board Member 4 years.

Les Clayton Director


Retired.Board Member 4 years.Finance and Amalgamation Committee Member.

Ronda Hazelton Director



Ronald Martyn Director



Gary Morrison Director



Sean Flanagan Director


Qualified Fitter and Turner.Board Member 2 years.

Patricia Lenehan Previous Director

Resigned 28/05/2016


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

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DIRECTORS' REPORT

Summary of Meeting Attendances:

12 ordinary meetings and 1 special meeting were held during the year.

Number of Number of

Meetings Eligible Meetings

To Attend Attended

1 Nicholas Burke 13 13

2 Keith Pinkard 13 12

3 Les Clayton 13 11

4 Ronda Hazelton 13 12

5 Ronald Martyn 13 12

6 Gary Morrison 13 12

7 Sean Flanagan 13 11

8 Patricia Lenehan 4 2

Auditor's Independence Declaration

The lead auditor's independence declaration for the year ended 28 February 2017 has been received andcan be found on page 8 of the financial report.

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

Director: ______________________

Nicholas Burke

Dated

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INDEPENDENT AUDIT REPORT

TO THE MEMBERS OF


A.B.N. 80 000 751 324

Audit Opinion

We have audited the financial report of Vincentia Golf Club Limited (the company), which comprises thestatement of financial position as at year ended 28 February 2017, the statement of comprehensive income,statement of changes in equity and statement of cash flows for the year then ended, and notes to thefinancial statements, including a summary of significant accounting policies, and the directors' declaration.

In our opinion, except for the matters referred to below, the accompanying financial report of Vincentia GolfClub Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company's financial position as at the year ended 28February 2017 and of their performance and cash flows for the year ended on thatdate; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations2001.

Basis of 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 sectionof our report. We are independent of the company in accordance with the auditor independencerequirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional andEthical Standards Board's APES 110 Code of Ethics for Professional Accountants (the Code) that arerelevant to our audit of the financial report in Australia. We have also fulfilled our other ethicalresponsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been givento the Directors of the company, would be in the same terms if given to the Directors as at the time of thisauditor's report.

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

Emphasis of Matter

Without qualifying our audit opinion, we draw attention to Note 1 "Amalgamation" in the financial reports,which explains that the Club amalgamated with St Georges Basin Country Club Limited on 14/3/2017 andthe assets and liabilities of Vincentia Golf Club were taken over by St Georges Basin Country Club.

Other Information

The Directors are responsible for the other information. The other information does not include the financialreport and our auditor's report thereon, but comprises the Supplementary Information contained in theannual report, which we obtained prior to the date of this auditor's report.

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

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TO THE MEMBERS OF


A.B.N. 80 000 751 324

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, we conclude that there is a material misstatement of this otherinformation, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the 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 and the Corporations Act 2001 and for suchinternal control as the Directors determine is necessary to enable the preparation of the financial report thatgives 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 tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using the goingconcern basis of accounting unless the directors either intend to liquidate the company or to ceaseoperations, or have no realistic alternative but to do so.

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 conductedin accordance with the Australian Auditing Standards will always detect a material misstatement when itexists. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic decisions of users taken on thebasis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing andAssurance Standards Board website at: http://www.auasb.gov.au/Home.aspx. This description forms part ofour auditor's report.

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TO THE MEMBERS OF


A.B.N. 80 000 751 324

Matters Relating to the Electronic Presentation of the Audited Financial Report

The auditor's report relates to the financial report of Vincentia Golf Club Limited for the financial year ended28 February 2017 included on the company's website. The directors are responsible for the integrity of thecompany's website. We have not been engaged to report on the integrity of the company's website. Theauditor's report refers only to the statements named above. It does not provide an opinion on any otherinformation which may have been hyperlinked to/from these statements. If users of this report are concernedwith the inherent risks arising from electronic data communications they are advised to refer to the hardcopy of the audited financial report to confirm the information included in the audited financial reportpresented on this website.

Booth Partners

____________________________

David Murphy, CA

52 Osborne Street, Nowra NSW 2541

Dated

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AUDITOR'S INDEPENDENCE DECLARATION

UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OF


A.B.N. 80 000 751 324

I declare that, to the best of my knowledge and belief, during the year ended 28 February 2017, therehave been no contraventions of:

i) the auditor independence requirements as set out in the Corporations Act 2001 in relation tothe audit; and

ii) any applicable code of professional conduct in relation to the audit.

Booth Partners

David Murphy, CA


Dated

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A.B.N. 80 000 751 324

STATEMENT OF PROFIT OR LOSS AND COMPREHENSIVE INCOME

FOR THE YEAR ENDED 28 FEBRUARY 2017

2017 2016

Note $ $

Revenue 2 1,474,537 1,563,732

Other income 2 - 687

Cost of sales (280,383) (290,633)

Administration, security wages & wage on costs (134,304) (129,786)

Bar operating expenses (217,747) (206,455)

Borrowing cost expenses (81,511) (96,313)

Courtesy bus expenses (8,222) (14,815)

Depreciation & amortisation expenses (160,451) (153,778)

Golf course expenses (193,684) (148,161)

Golf Shop (47,978) (60,344)

Keno operating expenses (6,188) (6,090)

Occupancy expenses (173,083) (175,626)

Poker machine operating expenses (27,399) (29,558)

Promotion & entertainment expenses (73,306) (99,677)

TAB operating expenses (23,831) (24,166)

Other expenses (104,974) (102,382)

Profit (Loss) before income tax 3 (58,524) 26,635

Income tax expense - -

Profit (loss) attributable to members of thecompany (58,524) 26,635

Total comprehensive income (loss) attributable tomembers of the company (58,524) 26,635

The accompanying notes form part of these financial statements.

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STATEMENT OF FINANCIAL POSITION

AS AT 28 FEBRUARY 2017

2017 2016

Note $ $

CURRENT ASSETS

Cash and cash equivalents 4 61,749 52,928

Trade and other receivables 5 16,303 27,821

Inventories 6 55,636 50,549

Other current assets 7 10,267 12,295

TOTAL CURRENT ASSETS 143,955 143,593

NON-CURRENT ASSETS

Financial assets 8 750 750

Property, plant and equipment 9 5,494,892 5,552,191

TOTAL NON-CURRENT ASSETS 5,495,642 5,552,941

TOTAL ASSETS 5,639,597 5,696,534

CURRENT LIABILITIES

Trade and other payables 10 153,973 100,815

Borrowings 11 1,309,322 56,479

Short term provisions 12 43,839 20,047

Other current liabilities 13 40,141 83,061

TOTAL CURRENT LIABILITIES 1,547,275 260,402

NON-CURRENT LIABILITIES

Borrowings 11 - 1,274,678

Long term provisions 12 2,172 12,780

TOTAL NON-CURRENT LIABILITIES 2,172 1,287,458

TOTAL LIABILITIES 1,549,447 1,547,860

NET ASSETS 4,090,150 4,148,674

EQUITY

Reserves 14 2,975,799 2,975,799

Retained earnings 1,114,351 1,172,875

TOTAL EQUITY 4,090,150 4,148,674


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STATEMENT OF CHANGES IN EQUITY


RetainedProfits Reserves Total

Balance at 1 March 2015 1,146,240 2,975,799 4,122,039

Profit (loss) for the year 26,635 - 26,635

Other comprehensive income for the year - - -

Total comprehensive income attributable tomembers of the entity 26,635 - 26,635

Balance at 29 February 2016 1,172,875 2,975,799 4,148,674

Balance at 1 March 2016 1,172,875 2,975,799 4,148,674

Profit (loss) for the year (58,524) - (58,524)

Other comprehensive income for the year - - -Total comprehensive income attributable tomembers of the entity (58,524) - (58,524)

Balance at 28 February 2017 1,114,351 2,975,799 4,090,150


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STATEMENT OF CASH FLOWS


2017 2016

Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from members and visitors 1,401,422 1,537,792

Payments to suppliers and employees (1,250,032) (1,403,227)

Interest paid (53,701) (55,872)

Rent received 41,713 38,765

Net cash provided by (used in) operating activities 139,402 117,458

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for property, plant and equipment (108,746) (14,895)

Net cash provided by (used in) investing activities (108,746) (14,895)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of borrowings (1,305,748) (56,641)

Net cash provided by (used in) financing activities (1,305,748) (56,641)

Net increase (decrease) in cash held (1,275,092) 45,922

Cash at beginning of financial year 45,781 (142)

Cash at end of year 4 (1,229,311) 45,780


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NOTES TO THE FINANCIAL STATEMENTS


1 Summary of Significant Accounting Policies

Basis of Preparation

The financial statements are general purpose financial statements that have been prepared inaccordance with the requirements of the Australian Accounting Standards - Reduced DisclosureRequirements of the Australian Accounting Standards Board and the Corporations Act 2001. Thecompany is a not-for-profit entity for financial reporting purposes under Australian AccountingStandards.

Australian Accounting Standards set out accounting policies that the AASB has concluded wouldresult in the financial statements containing relevant and reliable information about transactions,events and conditions to which they apply. Material accounting policies adopted in the preparationof these financial statements are presented below. They have been consistently applied unlessotherwise stated.

The financial statements, except for cash flow information, have been prepared on an accrual basisand are based on historical costs, modified, where applicable, by the measurement at fair value ofselected non-current assets, financial assets and financial liabilities. The amounts presented in thefinancial statements have been rounded to the nearest dollar.

The financial statements of Vincentia Golf Club Limited for the year ended 28 February 2017 wereauthorised for issue in accordance with a resolution of the directors on .

On 14 March 2017 Vincentia Golf Club Limited amalgamated with St Georges Basin Country ClubLimited. As at that date, the assets and liabilities of Vincentia Golf Club were taken over by StGeorges Basin Country Club.

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Revenue and Other Income

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 cessation of all involvementin those goods.

Grant revenue is recognised in the statement of comprehensive income when the entity obtainscontrol of the grant and it is probable that the economic benefits gained from the grant will flow tothe entity and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive thecontribution, the recognition of the grant as revenue will be deferred until those conditions aresatisfied.

Vincentia Golf Club Limited receives non-reciprocal contributions of assets from the governmentand other parties for zero or nominal value. These assets are recognised at fair value on the date ofacquisition in the statement of financial position, with a corresponding amount of income recognisedin the statement of comprehensive income.

Donations and bequests are recognised as revenue when received.

Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-termhighly liquid investments with original maturities of three months or less, and bank overdrafts. Bankoverdrafts are shown within borrowings in current liabilities on the balance sheet.

Trade and Other Receivables

Trade receivables are recognised initially at the transaction price (i.e. cost) and are subsequentlymeasured at cost less provision for impairment. Receivables expected to be collected within 12months of the end of the reporting period are classified as current assets. All other receivables areclassified as non-current assets.

At the end of each reporting period, the carrying amount of trade and other receivables arereviewed to determine whether there is any objective evidence that the amounts are notrecoverable. If so, an impairment loss is recognised immediately in statement of comprehensiveincome.

Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on afirst-in first-out basis.

Stores are valued at cost.

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Prepayments

Prepayments are recognised when a payment is made for services that the company expects toutilise over a period of time. Prepayments are measured at the unexpended portion of thecontractual cost of the services. Expenditure is transferred to profits and losses on a straight linebasis over the period to which it relates.

Property, Plant and Equipment

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

Property

Freehold land and buildings are shown at their fair value (being the amount for which an asset couldbe exchanged between knowledgeable willing parties in an arm's length transaction), based onperiodic, but at least triennial, valuations by external independent valuers, less accumulateddepreciation for buildings.

Increases in the carrying amount arising on revaluation of land and buildings are credited to arevaluation surplus in other comprehensive income. Decreases that offset previous increases of thesame asset are recognised against revaluation surplus directly in other comprehensive income; allother decreases are recognised in profit or loss.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carryingamount of the asset and the net amount is restated to the revalued amount of the asset.

Freehold land and buildings are measured at cost less depreciation. It is the policy of the entity tohave annual appraisals by the directors to ensure the carrying amount is not in excess of therecoverable amount from those assets.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carryingamount of the asset and the net amount is restated to the revalued amount of the asset.

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Plant and Equipment

Plant and equipment are measured on the cost basis and are therefore carried at cost lessaccumulated depreciation and any accumulated impairment losses. In the event the carryingamount of plant and equipment is greater than the estimated recoverable amount, the carryingamount is written down immediately to the estimated recoverable amount and impairment lossesrecognised either in profit or loss or as a revaluation decrease if the impairment losses relate to arevalued asset. A formal assessment of recoverable amount is made when impairment indicatorsare present.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, asappropriate, only when it is probable that future economic benefits associated with the item will flowto the company and the cost of the item can be measured reliably. All other repairs andmaintenance are recognised as expenses in profit or loss during the financial period in which theyare incurred.

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

Class of Fixed Asset Depreciation Rate

Buildings 2.5%

Plant & Equipment 15 - 40%

Poker Machines 20 - 40%

The asset's residual values and useful lives are reviewed, and adjusted if appropriate, at the end ofeach reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset'scarrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.These gains or losses are included in the statement of comprehensive income. When revaluedassets are sold, amounts included in the revaluation reserve relating to that asset are transferred toretained earnings.

Financial Instruments

Initial Recognition and Measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to thecontractual provisions to the instrument. For financial assets, this is equivalent to the date that thecompany commits itself to either purchase or sell the asset (i.e. trade date accounting adopted).

Financial instruments are initially measured at fair value plus transaction costs except where theinstrument is classified 'at fair value through profit or loss', in which case transaction costs areexpensed to profit or loss immediately.

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Classification and Subsequent Measurement

Financial instruments are subsequently measured at fair value, amortised cost using the effectiveinterest rate method, or cost. Fair value represents the amount for which an asset could beexchanged or a liability settled, between knowledgeable, willing parties. Where available, pricesquoted in an active market are used to determine fair value. In other circumstances, valuationtechniques are adopted.

Amortised cost is the amount at which the financial asset or financial liability is measured at initialrecognition less principal repayments and any reduction for impairment, and adjusted for anycumulative amortisation of the difference between that initial amount and the maturity amountcalculated using the effective interest method.

The effective interest method is used to allocate interest income or interest expense over therelevant period and is equivalent to the rate that exactly discounts estimated future cash paymentsor receipts (including fees, transaction costs and other premiums or discounts) through theexpected life (or when this cannot be reliably predicted, the contractual term) of the financialinstrument to the net carrying amount of the financial asset or financial liability. Revisions toexpected future net cash flows will necessitate an adjustment to the carrying amount with aconsequential recognition of an income or expense item in profit or loss.

(i) Financial assets at fair value through profit or loss

Financial assets are classified as 'fair value through profit or loss' when they are held fortrading for the purpose of short term profit taking, derivatives not held for hedging purposes,or when they are designated as such to avoid an accounting mismatch or to enableperformance evaluation where a group of financial assets is managed by key managementpersonnel on a fair value basis in accordance with a documented risk management orinvestment strategy. Such assets are subsequently measured at fair value with changes incarrying amount being included in profit or loss.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinablepayments that are not quoted in an active market and are subsequently measured atamortised cost. Gains or losses are recognised in profit or loss through the amortisationprocess and when the financial asset is derecognised.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturitiesand fixed or determinable payments, and it is the company's intention to hold theseinvestments to maturity. They are subsequently measured at amortised cost. Gains or lossesare recognised in profit or loss through the amortisation process and when the financial assetis derecognised.

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(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either notcapable of being classified into other categories of financial assets due to their nature, or theyare designated as such by management. They comprise investments in the equity of otherentities where there is neither a fixed maturity nor fixed or determinable payments.

They are subsequently measured at fair value with changes in such fair value (i.e. gains orlosses) recognised in other comprehensive income (except for impairment losses and foreignexchange gains and losses). When the financial asset is derecognised, the cumulative gainor loss pertaining to that asset previously recognised in other comprehensive income isreclassified into profit or loss.

Available-for-sale financial assets are classified as current assets when they are expected tobe sold within 12 months after the end of the reporting period. All other available-for-salefinancial assets are classified as non-current assets.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequentlymeasured at amortised cost. Gains or losses are recognised in profit or loss through theamortisation process and when the financial liability is derecognised.

Impairment

At the end of each reporting period, the company assesses whether there is objective evidence thata financial instrument has been impaired. In the case of available-for-sale financial instruments, aprolonged decline in the value of the instrument is considered to determine whether an impairmenthas arisen. Impairment losses are immediately recognised in profit or loss. Also, any cumulativedecline in fair value previously recognised in other comprehensive income is reclassified to profit orloss at this point.

In the case of available-for-sale financial assets, a significant or prolonged decline in the marketvalue of the instrument is considered to constitute a loss event. Impairment losses are recognised inprofit or loss immediately. Also, any cumulative decline in fair value previously recognised in othercomprehensive income is reclassified to profit or loss at this point.

In the case of financial assets carried at amortised cost, loss events may include: indications thatthe debtors or a group of debtors are experiencing significant financial difficulty, default ordelinquency in interest or principal payments; indications that they will enter bankruptcy or otherfinancial reorganisation; and changes in arrears or economic conditions that correlate with defaults.

For financial assets carried at amortised cost (including loans and receivables), a separateallowance account is used to reduce the carrying amount of financial assets impaired by creditlosses. After having taken all possible measures of recovery, if management establishes that thecarrying amount cannot be recovered by any means, at that point the written off amounts arecharged to the allowance account of the carrying amount of impaired financial assets is reduceddirectly if no impairment amount was previously recognised in the allowance accounts.

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When the terms of financial assets that would otherwise have been past due or impaired have beenrenegotiated, the company recognised the impairment for such financial assets by taking intoaccount the original terms as if the terms have not been renegotiated so that the loss events thathave occurred are duly considered.

Derecognition

Financial assets are derecognised when the contractual rights to receipt of cash flows expires or theasset is transferred to another party whereby the entity no longer has any significant continuinginvolvement in the risks and benefits associated with the asset. Financial liabilities are derecognisedwhere the related obligations are either discharged, cancelled or expire. The difference between thecarrying amount of the financial liability extinguished or transferred to another party and the fairvalue of consideration paid, including the transfer of non-cash assets or liabilities assumed, isrecognised in profit or loss.

Impairment of Assets

At each reporting date, the company reviews the carrying values of its tangible and intangibleassets to determine whether there is any indication that those assets have been impaired. If suchan indication exists, the recoverable amount of the asset, being the higher of the asset's fair valueless costs to sell and value in use, is compared to the asset's carrying value. Any excess of theasset's carrying value over its recoverable amount is expensed to the income statement, unless theasset is carried at a revalued amount in accordance with another standard. Any impairment loss ofa revalued asset is treated as a revaluation decrease in accordance with that other standard.

Where it is not possible to estimate the recoverable amount of an individual asset, the companyestimates the recoverable amount of the cash-generating unit to which the asset belongs.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Trade and Other Payables

Trade and other payables represent the liability outstanding at the end of the reporting period forgoods and services received by the company during the reporting period which remain unpaid. Thebalance is recognised as a current liability with the amounts normally paid within 30 days ofrecognition of the liability.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where theamount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances,the GST is recognised as part of the cost of acquisition of the asset or as part of an item of theexpense. Receivables and payables in the statement of financial position are shown inclusive ofGST.

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Cash flows are presented on a gross basis, except for the GST component of investing andfinancing activities which are disclosed as operating cash flows.

Income Tax

The company is exempt from income tax under section 50-45 of the Income Tax Assessment Act1997.

Employee Benefits

Short term employee benefits

Provision is made for the company's obligation for short-term employee benefits. Short-termemployee benefits are benefits (other than termination benefits) that are expected to be settledwholly within 12 months after the end of the annual reporting period in which the employees renderthe related service, including wages and salaries. Short-term employee benefits are measured atthe (undiscounted) amounts expected to be paid when the obligation is settled.

The company's obligations for short-term employee benefits such as wages and salaries arerecognised as a part of current liabilities in the statement of financial position.

Other long-term employee benefits

The company classifies employee's long service leave and annual leave entitlements as otherlong-term employee benefits as they are not expected to be settled wholly within 12 months afterthe end of the annual reporting period in which the employees render the related service. Provisionis made for the company's obligation for other long-term employee benefits, which are measured atthe present value of the expected future payments to be made to employees. Expected futurepayments incorporate anticipated future wage and salary levels, durations of service and employeedepartures, and are discounted at rates determined by reference to market yields at the end of thereporting period on government bonds that have maturity dates that approximate the terms of theobligations. Upon the remeasurement of obligations for other long-term employee benefits, the netchange in the obligation is recognised in profit or loss classified under employee benefits expense.

The company's obligations for long-term employee benefits are presented as non-current liabilitiesin the statement of financial position, except where the company does not have an unconditionalright to defer settlement for at least 12 months after the end of the reporting period, in which casethe obligations are presented as current liabilities.

Provisions

Provisions are recognised when the company has a legal or constructive obligation, as a result ofpast events, for which it is probable that an outflow of economic benefits will result and that outflowcan be reliably measured. Provisions recognised represent the best estimate of the amountsrequired to settle the obligation at the end of the reporting period.

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Leases

Financial assets and financial liabilities are recognised when the entity becomes a party to thecontractual provisions to the instrument. For financial assets, this is equivalent to the date that thecompany commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).Financial instruments are initially measured at fair value plus transaction costs except where theinstrument is classified "at fair value through profit or loss" in which case transaction costs arerecognised immediately as expenses in profit or loss.

Finance leases are capitalised, recognising an asset and a liability equal to the present value of theminimum lease payments, including any guaranteed residual values.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it islikely that the entity will obtain ownership of the asset. Lease payments are allocated between thereduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with thelessor, are recognised as expenses on a straight-line basis over the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on astraight-line basis over the life of the lease term.

Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production that necessarilytake a substantial period of time to prepare for their intended use or sale, are added to the cost ofthose assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in the income statement in the period in which they areincurred.

Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform tochanges in presentation for the current financial year.

Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial report based onhistorical knowledge and best available current information.

Estimates assume a reasonable expectation of future events and are based on current trends andeconomic data, obtained both externally and within the Company.

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2017 2016

$ $

2 Revenue

Operating activities

Bar Sales 574,293 581,659

Poker Machine Net Clearances 527,645 581,518

Bistro 44,038 39,834

Golf Course Income 93,887 92,482

Golf Shop Income 160,720 166,116

Keno Commission 14,597 14,706

TAB Commission 12,461 9,556

Sundry Income 46,896 77,861

1,474,537 1,563,732

Non-operating activities

Profit on disposal of property, plant and equipment - 687

- 687

1,474,537 1,564,419

3 Profit from Ordinary Activities

Profit from ordinary activities before income taxexpense has been determined after:

Expenses:

Cost of sales 280,383 290,633

Borrowing Costs 24,934 40,442

Interest Paid - Loans 43,125 50,100

Interest Paid - Overdraft 13,452 5,771

Borrowing costs 81,511 96,313

Depreciation of non-current assets 160,450 153,778

Accounting Services 13,125 14,262

Auditors Remuneration 14,500 14,500

Total Auditor's Remuneration 27,625 28,762

Revenue and Net Gains:

Net gain on disposal of plant and equipment - 687

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$ $

4 Cash and Cash Equivalents

Current

Cash on Hand 40,484 40,938

ANZ - TAB Account 12,267 11,990

ANZ - Course Improvement Account 8,998 -61,749 52,928

At 28 February 2017, the Club had an overdraft facilityin place of $1,300,000. This amount was previouslyrecognised as a commercial bill. However, with theamalgamation going through, this amount wasapproved as an overdraft until it was paid out by StGeorges Basin Country Club on the 14/3/2017.

Reconciliation of cash

Cash at the end of the financial year as shown in thestatement of cash flows is reconciled to the relateditems in the balance sheet as follows:

Cash and cash equivalents 61,749 52,928

ANZ - Current Account (1,291,060) (7,147)

(1,229,311) 45,781

5 Trade and Other Receivables

Current

Other Debtors 16,303 27,821

6 Inventories

Current

Stock on Hand - Other 12,906 14,196

Stock on Hand- Bistro Requisites 10,002 10,059

Stock on Hand 32,728 26,294

55,636 50,549

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$ $

7 Other Current Assets

Current

Prepayments 10,267 12,295

8 Financial Assets

Non-Current

Available-for-sale financial assets

The Independent Liquor Group Co-Op Ltd 750 750

750 750

9 Property, Plant and Equipment

Land and Buildings

Golf Course & Clubhouse Land, at Valuation 2003 1,500,000 1,500,000

Golf Course Additional Land, at Valuation 2006 405,641 405,641

1,905,641 1,905,641

Clubhouse Building and Sheds, at Valuation 2003 2,393,685 2,393,685

Golf Course Development Costs, at Valuation 2003 1,954,311 1,954,311

Less: Accumulated Depreciation (917,866) (843,433)

3,430,130 3,504,563

Total Land and Buildings 5,335,771 5,410,204

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A.B.N. 80 000 751 324



2017 2016

$ $

Plant and Equipment

Motor Vehicles - 1,800

Less: Accumulated Depreciation - (1,332)

- 468

Golf Shop Furniture & Equipment 7,086 7,086

Less: Accumulated Depreciation (3,883) (2,466)

3,203 4,620

Poker Machines - at cost 376,123 376,123

Less: Provision for Depreciation (370,039) (318,152)

6,084 57,971

Golf Course Plant and Equipment 117,951 168,804

Less Accumulated Depreciation (110,470) (155,700)

7,481 13,104

Bar Equipment 129,221 129,221


23,494 27,804

Plant and Equipment - Kitchen 71,549 68,549


7,589 6,757

Furniture and Fittings and General Items 382,604 365,689


39,758 31,263

Leased Assets 85,975 -

Less: Accumulated Depreciation (14,463) -

71,512 -

Total Plant and Equipment 159,121 141,987

Total Property, Plant and Equipment 5,494,892 5,552,191

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$ $

All of the land owned by the club is located at 49Murray Street Vincentia and is considered 'CoreProperty' (as defined in the Registered Club Act 1976).

Asset Revaluations

The Club, in accordance with the Directors'undertaking, last commissioned a valuation of land andbuildings as at 4 February 2003. The basis of thevaluation was the market value of the assets on agoing concern basis. The independent valuation wasconducted by Rodger P. Wall, AAPA, CertifiedPractising Valuer of Walsh and Monaghan Pty Ltd. TheClub's property is recorded in the Club's Statement ofFinancial Position based upon this valuation.

The property was also valued on 6 May 2008 for ANZBank for financing purposes by GE Hawden for MartinMorris and Jones Pty Ltd. The value of the land,including all improvements was $6,631,000. TheDirectors have reviewed the ANZ Bank valuation andnoted that it is consistent with the valuation on 4February 2003 as the market value does not differmaterially from the book value. Therefore, thevaluation on 4 February 2003 has continued to beused as the valuation basis for the Club's property.

Movements in Carrying Amounts

Movements in carrying amount for each class of property, plant and equipment between thebeginning and the end of the financial year:

CarryingValue

CarryingValue

1 Mar 2016 Additions Disposals Depreciation 28 Feb 2017

Land & Buildings 5,410,204 - - (74,433) 5,335,771

Plant & Equipment 141,987 22,770 (5,594) (71,554) 87,609

Leased Assets - 85,975 - (14,463) 71,512

5,552,191 108,745 (5,594) (160,450) 5,494,892

Page 26


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2017 2016

$ $

10 Trade and Other Payables

Current

Trade Creditors and Accrued Expenses 153,973 96,679

Premium Finance Liability - 4,136

153,973 100,815

Financial liabilities at amortised cost classified astrade and other payables

Trade and other payables:

- Total current 153,973 100,815

- Total non-current - -

11 Borrowings

Current

ANZ - Current Account 1,291,060 7,147

ANZ - Commercial Bill - 31,070

Loans - Junior Sub-Group 18,262 18,262

Total current borrowings 1,309,322 56,479

Non-Current

ANZ Commercial Bill - 1,268,930

Poker Machine Loans - 5,748

Total non-current borrowings - 1,274,678

Total borrowings 1,309,322 1,331,157

Page 27


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$ $

12 Provisions

Current

Provision for Annual Leave 36,566 20,047

Provision for Long Service Leave 7,273 -

43,839 20,047

Non-Current

Provision for Long Service Leave 2,172 12,780

Aggregate Employee Benefit Liability 46,011 32,827

13 Other Liabilities

Current

Function deposits held 1,500 282

Other Income in Advance 15,101 20,345

Poker Machine Tax Rebate 4,295 4,295

Subscriptions in Advance 19,245 58,139

40,141 83,061

14 Reserves

Capital Asset Revaluation Reserve 2,975,799 2,975,799

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$ $

15 Capital and Leasing Commitments

Operating Lease Commitments

Non-cancellable operating leases contracted for butnot capitalised in the financial statements:

Payable - minimum lease payments

Not later than 12 months 18,351 -

Between 12 months and five years 2,249 -

20,600 -

Vincentia Golf Club has 3 Operating Leases, includingAugusta Finance, Classic Funding and Ricoh. TheAugusta Finance lease is for Golf Carts and the currentportion amounts to $12769 while the non currentportion is $0. The Classic Funding lease is for kitchenequipment and the current portion amounts to $3506while the non current portion is $0. The Ricoh lease isfor the printer and the current portion amounts to$2076 while the non current is $2249.

16 Events After the Reporting Period

On 14/3/2017 Vincentia Golf Club Limitedamalgamated with St Georges Basin Country ClubLimited. As at that date, the assets and liabilities ofVincentia Golf Club were taken over by St GeorgesBasin Country Club.

Amalgamation - -

17 Key Management PersonnelCompensation

Total Compensation 71,175 7,939

18 Related Party Transactions

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

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$ $

19 Financial Risk Management

The company's financial instruments consist mainly ofdeposits with banks, accounts receivable and payable,and leases.

The carrying amounts for each category of financialinstruments, measured in accordance with AASB 139as detailed in the accounting policies to these financialstatements, are as follows:

Financial Assets

Cash and cash equivalents 61,749 52,928

Loans and receivables 16,303 27,821

Available for sale financial assets 750 750

Total Financial Assets 78,802 81,499

Financial Liabilities

Financial Liabilities at amortised cost

- Trade and other payables 153,973 100,815

- Borrowings 1,309,322 1,331,157

Total Financial Liabilities 1,463,295 1,431,972

20 Fair Value Measurements

The company has the following assets, as set out inthe table below, that are measured at fair value on arecurring basis after their initial recognition. Thecompany does not subsequently measure anyliabilities at fair value on a recurring basis and has noassets or liabilities that are measured at fair value on anon-recurring basis.

Recurring fair value measurements

Property, plant and equipment

Freehold Land 1,905,641 1,905,641

Freehold Buildings 3,430,130 3,504,563

5,335,771 5,410,204

Page 30


A.B.N. 80 000 751 324

DIRECTORS' DECLARATION

The directors of the company declare that:

1. The financial statements and notes are in accordance with the Corporations Act 2001 and:

(a) comply with Australian Accounting Standards.

(b) give a true and fair view of the financial position of the company as at 28 February 2017 and ofits performance for the year ended on that date.

2. In the directors' opinion there are reasonable grounds to believe that the company will be ableto pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the board of directors.

Director: ____________________________

Nicholas Burke

Dated

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A.B.N. 80 000 751 324

DISCLAIMER ON ADDITIONAL FINANCIAL INFORMATION

The additional information on the following pages is in accordance with the books and records ofVincentia Golf Club Limited which have been subjected to the auditing procedures applied in theaudit of the company for the year ended 28 February 2017. It will be appreciated that the audit didnot cover all details of the additional financial information. Accordingly, we do not express an opinionon such financial information and no warranty of accuracy or reliability is given.

In accordance with our firm policy, we advise that neither the firm nor any member or employee ofthe firm undertakes responsibility arising in any way whatsoever to any person (other than thecompany) in respect of such information, including any errors or omissions therein, arising throughnegligence or otherwise however caused.

Booth Partners

Rebeka Schroeder


Dated

Page 32


A.B.N. 80 000 751 324

SUPPLEMENTARY INFORMATION

DEPARTMENTAL PROFIT AND LOSS STATEMENT


2017 2016

Note $ $

Bar Trading

Bulk Beer 309,613 321,604

Wine & Spirits 141,752 145,446

Bottles & Cans 72,766 62,919

Sundries 50,162 51,690

574,293 581,659

LESS: COST OF GOODS SOLD

Opening Stock 26,294 35,166

Closing Stock (32,728) (26,294)

Purchases 275,102 267,262

Bar Gas 3,055 2,706

Freight & Cartage 1,482 2,279

273,205 281,119

GROSS PROFIT FROM TRADING 301,088 300,540

EXPENDITURE

Bar Superannuation 17,845 14,501

Depreciation 4,310 5,071

Long Service Leave Provision (3,088) 5,720

Repairs & Maintenance 5,092 7,257

Wages 187,849 171,274

Wastage 10,049 7,703

222,057 211,526

NET PROFIT 79,031 89,014


Page 33


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Note $ $

Bistro Trading

Bistro Rent 41,713 38,765

Bistro Function Surcharge 2,325 1,069

44,038 39,834

EXPENDITURE

Bistro Requisites - (796)


Electricity & Gas 10,003 11,630

Hire of Plant & Equipment 4,206 5,043

Repairs & Maintenance 600 6,173

16,977 24,280

NET PROFIT 27,061 15,554


Page 34


A.B.N. 80 000 751 324




2017 2016

Note $ $

Poker Machine Trading

Gross Clearances 1,649,677 1,648,680

Less: Payouts (1,139,212) (1,084,342)

Poker Machine GST Rebate 17,180 17,180

527,645 581,518

EXPENDITURE

Central Monitoring 12,272 11,924


Poker Machine Analyst 624 1,872

Poker Machine Superannuation 422 422


Wages 4,440 4,440

79,286 88,295

NET PROFIT 448,359 493,223


Page 35


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2017 2016

Note $ $

Golf Course Trading

Members Subscriptions 63,899 62,981

Course Improvement Levy 6,660 6,256

Competition Fees 1,920 -

Sponsorships & Advertising 7,408 4,963

Golf Cart Levy 3,708 3,130

Advertising - Program Book 2,086 2,686

Course Donations 100 8,048

Pavers Income - 1,309

Course Machinery Income 8,106 3,109

93,887 92,482

EXPENDITURE

Annual & Long Service Leave Provision 8,815 5,463

Borrowing Costs 24,934 40,442

Capitation Fees 9,761 10,478

Course Machinery Expenditure 8,106 3,109

Course Superannuation 9,050 6,726


Electricity 5,518 3,377

Fuel & Oil 7,599 5,149

Golf Link Expense 740 807

Inter Club Competition Costs 2,445 903

Printing 1,215 3,619

R & M - Course 29,335 23,456

Rates - Golf Course 4,832 4,814

Repairs & Maintenance Course Equipment 9,393 3,128

Sub Group Expenses 164 162


Page 36


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2017 2016

Note $ $

Telephone 797 554

Training - 855

Trophies 11,213 8,737

Wages 95,273 70,794

Working Bee 143 204

247,277 211,053

NET LOSS (153,390) (118,571)


Page 37


A.B.N. 80 000 751 324




2017 2016

Note $ $

Keno Trading

Keno Takings 49,684 49,929

Less: Payments Club Gaming (36,587) (37,070)

Bonus Commission 1,500 1,847

14,597 14,706

EXPENDITURE

Depreciation 7 9

Keno Stationery 38 (57)

Keno Superannuation 399 399


Wages 4,200 4,200

6,195 6,099

NET PROFIT 8,402 8,607


Page 38


A.B.N. 80 000 751 324




2017 2016

Note $ $

TAB Trading

TAB Commissions 12,461 9,556

12,461 9,556

EXPENDITURE

Depreciation 223 223

Sky Channel 18,237 18,274

TAB Expenses 995 1,293

TAB Superannuation 399 399

Wages 4,200 4,200

24,054 24,389

NET LOSS (11,593) (14,833)


Page 39


A.B.N. 80 000 751 324




2017 2016

Note $ $

Golf Shop Trading

Competition Fees 49,356 50,885

Green Fees 40,560 39,732

Members Levy 17,515 20,413

Cart Hire 33,099 31,763

Club Hire 2,631 2,477

Golf Balls 3,848 4,010

Drinks and Snacks 5,614 6,733

Sundry Items 2,432 4,233

Golf Lessons 860 1,744

Golf Cart Sponsorship 4,805 4,126

160,720 166,116

LESS: COST OF GOODS SOLD

Opening Stock Golf Shop 3,461 2,560

Closing Stock Golf Shop (2,308) (3,461)

Drinks & Snacks 2,470 3,870

Golf Ball Purchases 1,894 1,163

Sundry Purchases 1,018 4,224

Golf Cart R & M 627 1,132

Golf Shop Wastage 16 26

7,178 9,514

GROSS PROFIT FROM TRADING 153,542 156,602

EXPENDITURE

Annual & Long Service Leave Provision 8,522 4,092

Cart Hire Leasing 17,026 17,026


Golf Shop Superannuation 4,557 5,724

Wages 47,978 60,344

79,500 88,456

NET PROFIT 74,042 68,146


Page 40


A.B.N. 80 000 751 324


PROFIT AND LOSS STATEMENT


2017 2016

$ $

INCOME

Bar Trading 79,031 89,014

Bistro Trading 27,061 15,554

Poker Machine Trading 448,359 493,223

Golf Course Trading (153,390) (118,571)

Keno Trading 8,402 8,607

TAB Trading (11,593) (14,833)

Golf Shop Trading 74,042 68,146

Profit on Sale of Fixed Assets - 687

Sundry Income 21 46,896 77,861

518,808 619,688

LESS : EXPENDITURE

Accounting Services 13,125 14,262

Advertising & Sponsorships 264 472

Annual Leave Provision 10,708 7,485

Auditors Remuneration 14,500 14,500

Bank Charges 4,030 2,969

Cleaning Materials & Laundry 15,029 12,942

Courtesy Bus Expenses 8,222 15,410

Depreciation - Buildings 59,842 59,842

Depreciation - Furniture and Fittings 4,660 5,073

Depreciation - Office & Club Equipment 17,993 2,452

Electricity & Gas 37,443 41,965

Entertainment & Promotion Expenses 74,580 100,833

General Expenses 22 11,370 16,010

Insurance 48,881 54,877

Interest Paid 56,577 55,871

Long Service Leave Provision (301) 569

Loss on Sale of Non-current Assets 5,594 -

Printing & Stationery 1,030 5,182

Rates - Club Property 2,597 2,645


Page 41


A.B.N. 80 000 751 324


PROFIT AND LOSS STATEMENT


2017 2016

$ $


Security 3,639 4,807

Superannuation 13,508 14,226

Telephone 5,122 7,761

Wages - Other 145,346 130,476

Water Rates 11,741 11,722

577,332 593,053

OPERATING PROFIT (58,524) 26,635


Page 42


A.B.N. 80 000 751 324

NOTES TO THE SUPPLEMENTARY INFORMATION


2017 2016

$ $

21 Sundry Income

ATM Commission 12,944 13,847

Christmas Cheer Income 595 -

Club Video Advertising 1,455 2,171

Commissions 1,733 1,638

Donations 227 18

Hire of Club House 8,441 6,705

Hire of Courtesy Bus 136 -

Insurance Recoveries - 12,090

Other Income 2,160 7,386

Pool Table - 534

Sponsorship of Bus 968 982

Subscriptions - Social Members 10,967 14,693

Tooheys Promotion 4,500 12,880

Trivia Income 2,770 3,417

Wages Subsidy - Trainees - 1,500

46,896 77,861


These statements should be read in conjunction with the attached disclaimer of Booth Partners.

Page 43


A.B.N. 80 000 751 324

NOTES TO THE SUPPLEMENTARY INFORMATION


2017 2016

$ $

22 General Expenses

Bad and Doubtful Debts 1,455 409

Computer Software 2,519 2,669

Duty Officers Meals & Drinks 32 74

Fees & Permits 691 1,135

Filing Fees 80 -

Fines & Penalties 624 4,348

Flowers & Wreaths 23 -

Photocopier Lease 2,076 2,076

Registered Clubs Association 3,516 3,448

Staff Meals & Drinks 541 1,129

Subscriptions & Memberships 180 93

Travelling Expenses 115 518

Unders & Overs (646) (458)

Uniforms & Training 164 569

11,370 16,010


These statements should be read in conjunction with the attached disclaimer of Booth Partners.

Page 44

vincentia golf club limited a.b.n. 80 000 751 324 … · 2017. 7. 13. · company is wound up, the...

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