STATEMENT OF FINANCIAL POSITION

As at 30 June 2022

The above Statement should be read in conjunction with the accompanying notes

Statement Of Changes In Net Assets Attributable To Unitholders

For the Financial Year ended 30 June 2022

Statement Of Cash Flows

For the Financial Year ended 30 June 2022

Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2022

1. Summary of Significant Accounting Policies

Basis of preparation

This general purpose financial report for the financial year ended 30 June 2022 has been prepared in accordance with the Corporations Act 2001, Accounting Standards and Interpretations, and complies with other requirements of the law.

The functional currency is in Australian Dollars and the level of rounding is to the nearest dollar.

Statement of compliance

The financial statement complies with Australian Accounting Standards and International Financial Reporting Standards (IFRS). The Scheme is a profit entity.

The financial statements were authorised for issue by the directors. The directors have the ability to amend the financial statements after issue.

In the application of A-IFRS management is required to make judgments, estimates and assumptions about carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstance, the results of which form the basis of making the judgments. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The accounting policies set out below have been applied in preparing the financial statements for the year ended 30 June 2022 and the comparative information presented in these financial statements.

Adoption of new and revised accounting standards

The Scheme has adopted all standards which became effective for the first time at 30 June 2022, the adoption of these standards has not caused any material adjustments to the reported financial position, performance or cash flow of the Scheme.

Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2022

Significant Accounting Policies

Accounting policies set out below have been applied consistently to all periods presented in these financial statements and the policies are selected and applied in a manner, which ensures that the resulting financial information satisfies the concepts of relevance and reliability, thereby ensuring that the substance of the underlying transactions and other events is reported.

(a) Financial Instruments Financial Assets

The financial assets of the Scheme have been reclassified into one of the following categories on adoption of AASB 9 based on primarily the business model in which a financial asset is managed and its contractual cash flow characteristics:

• Measured at amortised cost

• Fair value through profit or loss (FVTPL)

• Fair value through other comprehensive income - debt instruments (FVOCI - debt)

• Fair value through other comprehensive income - equity instruments (FVOCI - equity).

Impairment of financial assets

The incurred loss model from AASB 139 has been replaced with an expected credit loss model in AASB 9 for assets measured at amortised cost, contract assets and fair value through other comprehensive income. This has not resulted in the earlier recognition of credit loss (bad debt provisions).

Impairment of non-financial assets

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

Where an indicator exists and regardless for indefinite life intangible assets and intangible assets not 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 relevant cash generating unit (CGU) is estimated.

The recoverable amount of an asset or CGU is the higher of the fair value less costs of disposal and the value in use. Value in use is the present value of the future cash flows expected to be derived from an asset or cashgenerating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognised in profit or loss. Reversal indicators are considered in subsequent periods for all assets which have suffered an impairment loss.

(b) Cash and cash equivalents

Cash comprises current deposits with banks Cash equivalents are short-term highly liquid investments readily convertible to known amounts of cash, subject to an insignificant risk of changes in value, and are held for the purpose of meeting short-term cash commitments rather than for investment or any other purposes.

Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2022

(c) Revenue

The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promised goods or services to customers at an amount that reflects the consideration the Scheme expects to receive in exchange for those goods or services. Revenue is recognised by applying a fivestep model as follows:

1. Identify the contract with the customer

2. Identify the performance obligations

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations

5. Recognise revenue as and when control of the performance obligations

(d) Expenses

Is Transferred

All expenses are recognised in the income statement on an accrual basis. Included in other expenses is insurance, rates and land tax paid by the Scheme.

(e) Income Tax

Deferred taxes have not been recognised in the financial statements in relation to differences between the carrying amounts of assets and liabilities and their respective tax bases, including taxes on capital gains which could arise in the event of a sale of investments for the amount at which they are stated in the financial statements. In the event that taxable gains are realised by the Scheme, these gains would be included in the taxable income that is assessable in the hands of the unit holders as noted above.

Realised capital losses are not distributed to unit holders but are retained within the Scheme to be offset against any realised capital gains. The benefit of any carried forward capital losses are also not recognised in the financial statements. If in any period realised capital gains exceed realised capital losses, including those carried forward from earlier periods and eligible for offset, the excess is included in taxable income that is assessable in the hands of unit holders in that period and is distributed to unit holders in accordance with the requirements of the Scheme Constitution.

(f) Application and Redemptions

Applications received for units in the Scheme are recorded net of any entry fees payable prior to the issue of units in the Scheme. Redemptions from the Scheme are recorded gross of any exit fees payable after the cancellation of units redeemed.

The application and redemption prices are determined as the net assets attributable to unit holders of the Scheme adjusted for the estimated transaction costs, divided by the number of units on issue on the date of the application or redemption.

(g) Redeemable Units

All redeemable units issued by the Scheme provide investors with the right to require redemption for cash and give rise to a financial liability. In accordance with the Constitution, the Scheme is contractually obliged to redeem units at redemption price, which includes an allowance for transaction costs incurred by the Scheme on disposal of its assets required to fund the redemptions.

(h) Unit Prices

The unit price is based on unit price accounting outlined in the Scheme's constitution.

Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2022

(i) Goods and Services Tax

Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), recoverable from the Australian Taxation Office (ATO): i. where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or ii. for receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from the Australian Taxation Office is included in receivables in the balance sheet.

(j) Payables

Trade payables and other accounts payable are recognised when the Scheme becomes obliged to make future payments resulting from the purchase of goods & services

(k) Receivables

Trade receivables and other receivables are recorded at amortised cost less impairment.

(l) Inventory

Inventories relate to cattle and are valued at the lower of cost and net realisable value. Cost is determined on the average cost basis and comprises the cost of purchase and transport cost.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

(m) Biological Assets

Biological assets comprise of trees not yet harvested. Biological assets are measured at fair value less costs to sell, with any change recognised in the income statement. Cost to sell includes all costs that would be necessary to sell the assets, including freight and direct selling costs.

The fair value of a biological asset is based on its present location and condition. If an active market or other effective market exists for a biological asset or agricultural produce in its present location and condition, the quoted price in that market is the appropriate basis for determining the fair value of that asset.

(n) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment of losses. Items of property, plant and equipment acquired for nil or nominal considerations have been recorded at the acquisition date at fair value. Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and any impairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of the costs of dismantling and restoring the asset, where applicable. Assets measured using the revaluation model are carried at fair value at the revaluation date less any subsequent accumulated depreciation and impairment losses. Revaluations are performed whenever there is a material movement in the value of an asset under the revaluation model.

Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2022

Land

Land is measured using the revaluation model.

Building

Plant and equipment are measured using the cost model.

Plant and equipment

Plant and equipment are measured using the cost model.

Depreciation

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

At the end of each annual reporting period, the depreciation method, useful life and residual value of each asset is reviewed. Any revisions are accounted for prospectively as a change in estimate.

(o) Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Scheme.

Sale and cost of agricultural produce and livestock

Revenue from the sale of agricultural produce and livestock is recognised when the goods has been delivered to the customer, the customer has accepted the product and collectability of the related receivable is probable. The cost of wood produced represents the shared cost of all Growers and mainly relates to the wood production, transportation and storage.

Revenue Recognition

Trees in the ground at the reporting date are measured at their fair value less costs to sell. Immediately prior to harvest the fair value is determined on an estimated yield per hectare basis at the commodity’s quoted spot price in the marketplace.

Taxes

The Scheme is subject to income and capital gains taxes in numerous jurisdictions. Significant judgement is required to determine the total provision for current and deferred taxes. The Scheme recognises liabilities for current taxes based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income and deferred tax provisions in the period in which the determination is made. Deferred tax assets and liabilities are recognised on a net basis to the extent they relate to the same fiscal unity and fall due in approximately the same period.

Notes to and forming part of the Financial Statements for the Financial Year Ended 30 June 2022

The plantation was independently valued as at June 2021 by Margules Groome based on their fair market value.