DROUGHTMASTER AnnualReport Report Annual 2020 2020 Australia’s natural wonder
Droughtmaster Stud Breeders’ Society Limited ABN 19 010 129 683 For the year ended 31 March 2020 Prepared by WLW Group Pty Ltd
DROUGHTMASTER AnnualReport Report Annual 2020 2020 2. President’s Report 6. General Manager’s Report 8. Directors’ Report 10. Directors’ Declaration 14. Statement of Comprehensive Income 16. Statement of Financial Position 17. Movements in Equity 18. Notes to the Financial Statements 25. Auditor’s Report 27. Compilation Report
President’s Report
I
am pleased to put forward the Annual Report
The activities of the Society detailed in the
for the Droughtmaster Stud Breeders’ Society
financial records have mainly been focussed
Limited for the financial year ended 31 March
on growing and promoting the Droughtmaster
2020.
breed,
The Operating Profit of the Society amounted to $38,384 and the Net Income after Appropriations and Extraordinary Items was $128,936. A number of items of note include: • legal expenses well exceeded estimates our
independent
auditor
noted
that
significant legal expenses from the previous year continued into the financial year ended 31 March 2020, stemming from legal advice sought in the lead up to the 2019 AGM; • the BIN Steer research project – in the reported
year,
the
Society
purchased
2 consignments of steers and sold 4 consignments of steers, contributing to non-operating
income,
given
this
is
a
research project; and • the Society continued to make a $20,000 annual
provision
Management
–
for
Animal
although
the
Health Society’s
engagement,
and identifying growth opportunities – whilst remaining compliant with our responsibilities.
Of particular focus ... Society General Manager Recruitment In October, a national search resulted in the appointment of Simon Gleeson to the position of General Manager of the Society. Simon has nearly 20 years’ experience in agriculture, finance, commercial
and
corporate
strategy,
resources,
membership-based
natural
organisations
and sports administration and has injected new energy into the role. Much of Simon’s introduction to the role has focussed on the foundational requirements of the Society and refreshing our approach.
Foundational Requirements
independent auditor has noted that the
Strategic Plan
Society’s amended Terms and Conditions for
A Strategic Planning exercise that included
2020 Society Sponsored Sales now mitigate
surveying members resulted in the compilation
this risk and as a result this provision may
and release of our Strategic Plan “The Road
no longer be required; and
Ahead” to the membership in November 2019.
• the strong financial position allowed for the
The Strategic Plan has guided the Board and
write down of some Society merchandise –
Society’s activities in future proofing the Society,
which was considered well overdue.
solidifying our position as one of Australia’s most
The financial position of the Society is strong, especially
considering
the
extremely
tough
period of drought that was felt in the reported period, and is still continuing in some parts of the country. 2
member
encouraging participation of younger generations
Operating Result
–
improving
valuable cattle breeds and creating a valued membership experience.
President’s
Report Todd Heyman President
Corporate Sponsorship The Society undertook a number of initiatives in – Asahi & Droughtmaster Lager Society policies and efficiency
the financial year ended 31 March 2020 aimed at
In October 2019, the Society executed a sponsorship
improving the way we do business:
deal
• The
development
and
approval
of
an
with
Asahi
Breweries
attached
to
the
Droughtmaster Lager product launched in mid-2019.
updated Delegation and Authority Policy;
This sponsorship deal included a cash component
• The onboarding of EmploySure to update the
from Asahi Breweries to the Droughtmaster Stud
Society’s policies and procedures, employee
Breeders Society, a quantity of Droughtmaster
handbook, employment contracts, and staff
lager product for use at sales and events, and a
job descriptions.
EmploySure have also
contribution towards a joint promotional video /
conducted a Health and Safety Audit for
advertorial cofunded between the Society and
the Society;
Asahi Breweries.
• The implementation of a new accounting
The Society looks forward to building a much
system for the Society (from MYOB to
stronger relationship between Asahi and our
Xero), to improve financial management
members over the coming years.
and reporting structures; and
The Board, through the General Manager, is
• The
commencement
of
development
of
investigating
other
corporate
sponsorship
new Sub-Committee charters, to clarify and
options, with the intention being that they not
improve the way in which sub-Committees
only generate income to support our sales, events
(such as Sale sub-Committees) work with the
and activities, but also offer mutually beneficial
office, the Board and across the membership.
arrangements where possible. 2020 ANNUAL REPORT 3
Expansion of BREEDPAN data In the context of discussions concerning performance data, the Board also agreed that Droughtmaster BREEDPLAN data will include data from the Repronomics and BIN steer project. To date, the Repronomics Project has generated more than 5,800 calves representing more than 320 sires from 119 different stud prefixes. Of these, close to 2500 are Droughtmaster by around 130 sires. The female animals have female fertility measurements as well as carcase, temperament, structure and many other important traits as well as a DNA profile. The BIN Project is a collaboration project between the Droughtmaster Stud Breeders’ Society Limited, Australian Brahman Breeders Association and a consortium of Santa Gertrudis breeders. This project purchases the steer portion of the Repronomics project cattle and follows them through to slaughter, collecting important data including Carcase scanning measurements for p8, Rib fat, EMA and IMF, along with weights and structural soundness measurements prior to slaughter. All steers are MSA graded in the abattoir and a meat sample sent to the meat science lab in Armidale for IMF, tenderness and meat colour measurements. This meat science data is the first data collected for the breed that will be included in the BREEDPLAN analysis.
Breed White Paper As many would remember, earlier this year, the Board and General Manager requested that Tropical Beef Technology Services (TBTS) develop a White Paper for distribution to members discussing DNA testing, genetic technologies, genetic conditions and relevant project work involving Droughtmasters. This White Paper has been distributed to members and is available on the website outlining: • Background information about DNA testing and its current application within the beef industry, 4
• Straightforward definitions of terms commonly used in the genomics era e.g. reference population, single-step, • A description of the many benefits of collecting performance information (phenotypes) and testing to understand the genetic makeup of an animal (genotyping), and • An outline of key research projects involving and benefiting the Droughtmaster breed (Repronomics, Northern BIN). Beyond the period reported in this Annual Report, there has been a continued focus on growing and promoting the Droughtmaster breed, improving member engagement, encouraging participation of younger generations and identifying growth opportunities. I would like to express both mine and the Board’s appreciation for the efforts and achievements of the General Manager and office staff over the last year. Many of the Society’s activities would not be possible without your patience, planning and astute, professional advice. Finally, it is hopefully apparent to members that the period disclosed in this Annual Report covers the start of a period of renewed positive vigour for the breed. In this vein, I would like to once again thank the many naturally positive and enthusiastic members who have continued to contribute to Society Committees, initiatives across the country and for your ongoing part in promoting the breed, its qualities and its future. As always, members are encouraged to contact their Zone or National Directors should there be anything they wish to raise with the Board.
Todd Heyman
DROUGHTMASTER 2020 SNAPSHOT
2020 ANNUAL REPORT 5
General Manager’s Report
I
t has been a privilege to be part of the
thank all our member volunteers who represent
Droughtmaster Stud Breeders Society Limited
the various committees for the Society, our
over the past six months as the General Manager
sponsors and our key stakeholders for their
and I thank the many members who gave me a
support and assistance over the past year.
warm welcome. I would also like to thank the
This support is vital to the Society and I would
Board, led by President Todd Heyman for their
certainly encourage anyone to offer assistance
support and guidance during this time.
on these committees in the future if you feel you
My first couple of months involved working
can add value and assist with the advancement
with the Board on setting the strategy for the
of the breed.
breed and the Society which was created from a
Finally, I would like to thank the team in the
member survey, undertaken in September 2019
office for their ongoing dedication in what was
along with Board input.
a challenging year. We have a very busy year
The strategy titled, “The Road Ahead� was prepared
ahead and look forward to continually delivering
as a two year plan to provide transparency to
against the commitments in the strategic plan.
the membership on the direction the Board was
We have a number of new initiatives for the
taking the Society and the breed, and also to
breed and the members and the future is looking
provide the business with a road map to work
bright. I am looking forward to getting around
towards.
and meeting more of the membership in the
The purpose of the Society is to promote,
coming year.
develop and protect the brand and the breed and enhance membership of the breed by delivering more efficient services, benefits and value. In all our work to date, we have kept that focus in mind along with our ambition to be recognised nationally throughout the entire supply chain (paddock to plate) as a breed that was developed in Australia to suit the Australian environment for its resilience and exceptional meat quality. I would therefore like to update you on the progress against the strategic plan since it was implemented for the financial year just past. We have been required to rebuild some of our foundations so that we can deliver tangible outcomes for the membership which are outlined on the next page. In addition to the work being undertaken in the office, I would like to take this opportunity to 6
Simon Gleeson
General Manager’s
Report Simon Gleeson General Manager
Building A Solid Foundation
2019/2020 Actions Undertaken
Membership
Regular and efficient communication to members. Mentoring NextGen Committee.
Corporate Governance
Implementation of charters for sub-committees, on-boarding Employsure to update staff employment contracts and policies and procedures.
Promotion and Marketing
Commissioned a review and refresh of our brand positioning and strategy which will result in a new logo, tagline and colours along with a new and modern website, negotiated a new arrangement for the Droughtmaster Australia Magazine (Digest), undertook a more concentrated effort to promote the breed throughout the supply chain.
Financial Management
Implemented a new accounting system (transitioned from MYOB to Xero) to improve efficiency, reporting and analysis of the business. Delivered a budget to mirror the objectives set out in the strategic plan.
Society Sponsored Sale Reviews
Commissioned new branding for consistency and for brand identification in the market, reviewed the terms and conditions for Society Sponsored Sales to understand external risks to the Society and the breed.
Sponsorship and Partnerships
Initiated corporate partnerships with Asahi and sent out expressions of interest to other potential partners.
Breed Development
Commissioned a white paper on DNA and EBVs for educational purposes to our members. Applied for Government grants.
Data Capture & Utilisation
Provided periodic data and information to members on the Repronomics and BIN research projects, incentivised members to participate in BREEDPLAN to increase data capture by offering member discounts.
2020 ANNUAL REPORT 7
Directors’ Report Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Your directors
present
their report
on
the
After Balance Sheet Events
company for the financial year ended 31 March
There are no material balance sheet events
2020. The names of the directors in the office at
occurring after year end.
any time during, or since the end of the year is Name
Meetings Attended
Clinton Gartrell
6
5
operations in future financial years have not been
Daniel Green
2
2
included in this report as the inclusion of such
Douglas Birch
2
2
Douglas Miles
5
3
Jack Stewart-Moore
6
5
Jeff Williams
6
4
Ken McKenzie
4
4
any significant environmental regulation under
Kevin Woolcock
3
3
a law of the Commonwealth or of a state or
Roger Underwood
4
4
territory.
Sean Barrett
6
5
Todd Heyman
4
4
Will Haviland
4
4
Likely developments in the operations of the company and the expected results of those
information is likely to result in unreasonable prejudice to the company.
Environmental Issues The company’s operations are not regulated by
Dividends Paid or Recommended No dividends were paid during the year and no recommendation is made as to the dividends. The directors do not recommend the payment of
Principal Activities The principal activities of the company during
a dividend.
the financial year were promoting and recording
No options over interest in the company were
the Droughtmaster breed of cattle. No significant
granted during or since the end of the financial
changes in the company’s state of affairs occurred
year and there were no options outstanding at
during the financial year.
the date of this report.
Operating Result
Proceedings on Behalf of Company
The
Operating
Profit
before
Non-Operating
Income and Expenditure, Appropriations and Extraordinary
Items
of
the
company
after
providing for income tax amounted to $38,384.
The
extraordinary
activity
No person has applied of leave of Court to bring proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or
Extraordinary Items reflected
in
the
financial statements relates to the ongoing legal costs arising from the independent investigation carried out by Cooper Grace Ward lawyers. 8
Future Developments
Meetings Eligible to Attend
any part of those proceedings. The Company was not party to any such proceedings during the year.
Director’s
Report Directors Benefits During or since the financial year, no Director of the Company has received or become entitled to receive a benefit by reason of a contract made by the Company or a related corporation of a Director or with a firm of which he is a member or with a company in which he has a substantial financial interest. Signed in accordance with a resolution of the Board of Directors:
Mr Todd Heyman Dated: 26 June 2020
Mr Roger Underwood Dated: 26 June 2020 2020 ANNUAL REPORT 9
Directors’ Declaration Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
The directors have determined that the company is not a reporting entity and that this special purpose financial report should be prepared in accordance with the accounting policies outlined in Note 1 to the financial statements. The directors of the company declare that: 1. The financial statements and notes, as set out on pages 1 to 19 are in accordance with the Corporations Act 2001 (a) comply
with
Australian
Accounting
Standards as described in Note 1 to the
financial
statements
and
the
Corporations Regulations 2001 (b) give a true and fair view of the financial position as at 31 March 2020 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial statements 2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to 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.
Mr Todd Heyman Dated: 26 June 2020
Mr Roger Underwood Dated: 26 June 2020 10
Directors’
Declaration
2020 ANNUAL REPORT 11
12
Financial
Report Prepared by WLW Group Pty Ltd
2020 ANNUAL REPORT 13
Statement of Comprehensive Income Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Income Interest Income
2019/20
2018/19
10,137
12,528
Inventory Fees
445,910
447,632
Membership Fees
128,888
131,536
164,691
173,254
57,341
54,798
Promotion Income - Levies Promotion Income - Other Sponsored Sales
169,873
175,175
Transfer Fees
25,558
26,297
Total Income
1,002,398
1,021,219
1,002,398
1,021,219
2019/20
2018/19
4,000
7,482
Total Income
Less Operating Expenses Accountancy Fees Amortisation - Improvements Auditors Remuneration Bad Debts Written Off Bank Charges Computers
6,743
6,743
4,000
8,000
940
-
1,910
2,077
8,570
11,002
Data Processing Charges - ABRI
37,974
37,889
Depreciation
19,763
15,900
Doubtful Debts Electricity & Gas
-
1,017
3,690
3,887
Employment Expenses Clerical - Labour Hire
-
584
2,904
1,659
Fringe Benefits Tax Expense
1,891
1,950
Provision - Annual Leave
9,481
14,110
6,066
7,487
431
-
Employee Expenses
Provision - Long Service Leave Staff Amenities Staff Training Superannuation Wages & Salaries Total Employment Expenses General Expenses Insurance
930
-
25,670
28,025
274,609
284,260
321,981
338,074
3,995
3,409
10,524
10,067
Legal Fees
32,682
4,867
Meetings
65,568
50,842
5,626
7,223
Motor Vehicles Permit and Licence Fees Postage Printing & Stationery Promotional Expenses Rates
2,112
2,419
7,594
8,435
12,413
15,693
197,888
204,461
6,296
5,243
Repairs & Maintenance
6,419
10,568
Sponsored Sales Costs
169,873
175,175
10,728
10,837
8,116
8,840
Tropical Breeds Research Telephones Write-Off Merchandise Stock Total Less Operating Expenses
Operating Profit
14,609
-
964,014
950,151
38,384
71,069
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
14
Non-Operating Income and Expenses
2019/20
2018/19
Non-Operating Income and Expenses Bad Debts Recovered BIN Research Project - Expenses BIN Research Project - Net Amount Recovered Sale of Research Steers Flood Relief Trade Mission Income Trade Mission Expenses Total Non-Operating Income and Expenses
Net Income Before Appropriations and Extraordinary Items Less Extraordinary Items Legal Costs Incurred
-
1,456
(235,658)
(94,192)
393,141
157,606
(19,474)
-
-
10,023
-
(3,000)
138,009
71,893
176,393
142,962
2019/20
2018/19
27,457
26,700
Provision - Future Legal Expenses
-
27,426
Settlement Fund Neil Donaldson Termination
-
65,000
27,457
119,126
Total Less Extraordinary Items
Less Appropriations Provision Animal Health Management
20,000
20,000
Total Less Appropriations
20,000
20,000
128,936
3,836
Net Income After Appropriations and Extraordinary Items
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
2020 ANNUAL REPORT 15
Statement of Financial Position Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Assets
NOTES
31 MARCH 2020
31 MARCH 2019
Current Assets Cash and Cash Equivalents Cash on Hand Bank - NAB #1680 Bank - NAB #7061 Total Cash and Cash Equivalents Term Deposits
460
460
22,946
22,033
11,598
101,248
35,005
123,741
100,000
50,000
Rural Bank #301866489
100,000
35,000
Rural Bank #302094909
150,000
120,000
Rural Bank #302040324
350,000
205,000
37,757
Total Term Deposits Trade and Other Receivables
2
458,716
Merchandise Stock on Hand
3
14,609
24,221
91,959
242,484
Research BIN Project - Livestock on Hand Prepayments Total Current Assets
-
2,430
950,289
635,631
Non-Current Assets Financial Assets
4
12,800
14,302
Plant, Property and Equipment
5
787,635
792,968
Total Non-Current Assets
800,435
807,271
1,750,724
1,442,902
NOTES
31 MARCH 2020
31 MARCH 2019
-
1,017
6
192,092
70,408
192,092
71,425
247,536
188,377
Total Assets
Liabilities Current Liabilities Provision Doubtful Debts Trade Creditors, Accruals and Income Received in Advance Total Current Liabilities Non-Current Liabilities Provisions Total Non-Current Liabilities Total Liabilities
Net Assets
Member’s Funds
7
247,536
188,377
439,628
259,802
1,311,096
1,183,100
31 MARCH 2020
31 MARCH 2019
Retained Earnings
1,311,096
1,183,100
Total Member’s Funds
1,311,096
1,183,100
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
16
Movements in Equity Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Equity Opening Balance
31 MARCH 2020
31 MARCH 2019
1,183,100
3,560
Opening Balance Retained Earnings
-
1,175,817
192,092
1,175,817
Profit for the Period
127,996
3,724
Total Increases
127,996
3,724
1,311,096
1,183,100
Total Opening Balance Increases
Total Equity
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
2020 ANNUAL REPORT 17
Notes to the Financial Statements Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
1. Summary of Significant Accounting Policies The financial report is a special purpose financial
No other Accounting Standards, Accounting
report prepared to satisfy the financial report
Interpretations or other authoritative
preparation requirements of the Corporations Act
pronouncements of the Australian Accounting
2001. The directors have determined that the
Standards Board have been applied.
company is not a reporting entity. Droughtmaster Stud Breeders Society Ltd is a company limited by guarantee, incorporated and domiciled in Australia. Each member of the Company undertakes to contribute to the assets of the Company, an amount not exceeding twenty dollars($20) in the event of the same being wound up.
Reporting basis and conventions The financial report has been prepared on an accruals basis and is based on historic costs modified, where applicable, by the revaluation of selected non current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. The following is a summary of the material
Basis of Preparation
accounting policies adopted by the company
The financial report has been prepared in
in the preparation of the financial report. The
accordance with the requirements of the
accounting policies have been consistently
Corporations Act 2001 and the following
applied, unless otherwise stated.
applicable Australian Accounting Standards and Australian Accounting Interpretations:
Accounting Policies
AASB 101: Presentation of Financial Statements
Income Tax
AASB 107: Cash Flow Statements
No provision for taxation is necessary because
AASB 108: Accounting Policies, Changes in
the Company is exempt from tax under Section
Accounting Estimates and Errors AASB 110:
50-45 of Item 9.1(c) of the Income Tax Act of 1997.
Events after the Balance Sheet Date AASB 116: Property, Plant and Equipment AASB 118: Revenue
Inventories Inventories are measured at the lower of cost and net realisable value. Cost of inventory is
AASB 119: Employee Benefits
determined using the first-in-first-out basis and
AASB 137: Provisions, Contingent Liabilities and
is net of any rebates and discounts received.
Contingent Assets
Net realisable value is the estimated selling price in
AASB 139: Recognition and Measurement of
the ordinary course of business, less the estimated
Financial instruments
costs of completion and the costs necessary to
AASB 1031: Materiality
make the sale. Net realisable value is estimated
AASB 1048: Interpretation and Application of Standards
using the most reliable evidence available at the reporting date and inventory is written down through an obsolescence provision if necessary.
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
18
Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment.
are measured at fair value plus transaction costs (except for instruments measured at fair value through profit or loss where transaction costs are expensed as incurred).
Land and buildings
Loans and Receivables
Land and buildings are measured using the cost
Loans and receivables are non-derivative
model. Plant and equipment Plant and equipment are measured using the cost model.
financial assets with fixed or determinable payments that are not quoted in an active market. They arise principally through the provision of goods and services to customers but also incorporate other types of contractual
Depreciation
monetary assets.
Land and Buildings is depreciated on a straight line
After initial recognition these are measured
basis over the assets useful life to the Company,
at amortised cost using the effective interest
commencing when the asset is ready for use.
method, less provision for impairment. Any
The depreciable amount of all other property,
change in their value is recognised in profit or
plant and equipment, except for freehold land is
loss.
depreciated on a diminishing value method from
The company’s trade and most other
the date that management determine that the
receivables fall into this category of financial
asset is available for use.
instruments.
Leased assets and leasehold improvements are
Significant receivables are considered for
amortised over the shorter of either the unexpired
impairment on an individual asset basis when
period of the lease or their estimated useful life.
they are past due at the reporting date or when
The estimated useful lives used for each class
objective evidence is received that a specific
of depreciable asset are shown below:
counterparty will default.
Assets held under a finance lease and leasehold
The amount of the impairment is the difference
improvements are depreciated over the shorter of
between the net carrying amount and the
the term of the lease and the assets useful life.
present value of the future expected cash flows associated with the impaired
Financial Instruments Financial instruments are recognised initially using trade date accounting i.e. on the date that company becomes party to the contractual provisions of the instrument. On initial recognition, all financial instruments
receivable.
In some circumstances, the company renegotiates repayment terms with customers which may lead to changes in the timing of the payments, the company does not necessarily consider the balance to be impaired, however assessment is made on a case-by-case basis.
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
2020 ANNUAL REPORT 19
Notes to the Financial Statements
(cont.)
Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Available-for-sale financial assets Available-for-sale financial assets are nonderivative financial assets that do not qualify for inclusion in any of the other categories of financial assets or which have been designated in this category. The company’s available-for-sale financial assets include listed securities. All available for sale financial assets are measured at fair value, with subsequent changes in value recognised in other comprehensive income. Gains and losses arising from financial instruments classified as available-for-sale are only recognised in profit or loss when they are sold or when the investment is impaired. In the case of impairment or sale, any gain or loss previously recognised in equity is transferred to the profit or loss. Subsequent recoveries of amounts previously written off are
Where this indicator exists 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, except for goodwill.
Financial Assets
credited against other expenses in profit or loss.
Recognition
A significant or prolonged decline in value of
Financial assets are initially measured at cost
an available-for-sale asset below its cost is
on trade date, which includes transaction
objective evidence of impairment, in this case,
costs, when the related contractual rights
the cumulative loss that has been recognised
or obligations exist. Subsequent to initial
in other comprehensive income is reclassified
recognition these instruments are measured as
from equity to profit or loss as a reclassification
set out below.
adjustment. Any subsequent increase in the value of the asset is taken directly to other comprehensive income.
Impairment of Non Financial Assets At the end of each reporting period, the company determines whether there is an evidence of an impairment indicator for non
Available for sale financial assets All investments are classified as available for sale financial assets. Available for sale financial assets are reflected at fair value unless the fair value cannot be reliably measured. Unrealised gains and losses arising from changes in fair value are taken directly to equity.
financial assets. The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
20
Fair Value
Share Capital
Fair value is determined based on current bid
Ordinary shares are classified as equity.
prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.
Employee Benefits Provision is made for the company’s liability for employee benefits arising from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits expected to be settled more than one year after the end of the reporting period have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may satisfy vesting requirements. Cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows. Changes in the measurement of the liability are recognised in profit or loss. Employee benefits are presented as current
Incremental costs directly attributable to the issue of ordinary shares and share options which vest immediately are recognised as a deduction from equity, net of any tax effects.
Provisions Provisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
Cash and Cash Equivalents Cash and cash equivalents comprises cash on hand, demand deposits and short term investments which are readily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
Revenue and Other Income Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economic benefits associated with the transaction will flow to the company and specific criteria relating to the type of revenue as noted below has been satisfied. All revenue is stated net of the amount of goods and services tax (GST).
liabilities in the statement of financial position
Sale of Goods
if the company does not have an unconditional
Revenue is recognised on transfer of goods to
right to defer settlement of the liability for
the customer as this is deemed to be the point
at least 12 months after the reporting date
in time when risks and rewards are transferred
regardless of the classification of the liability
and there is no longer any ownership or
for measurement purposes under AASB 119.
effective control over the goods.
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
2020 ANNUAL REPORT 21
Notes to the Financial Statements
(cont.)
Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Interest Revenue
Receivables and payables are stated inclusive
Interest revenue is recognised using the
of GST. The net amount of GST recoverable
effective interest rate method.
from, or payable to, the ATO is included as part of receivables or payables in the statement of
Rendering of Services
financial position.
Revenue in relation to rendering of services is
Cash flows in the statement of cash flows
recognised depends on whether the outcome of the services can be measured reliably. If this is the case, then the stage of completion of the services is used to determine the appropriate level of revenue to be recognised in the period. If the outcome cannot be measured
are included on a gross basis and the GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the taxation authority are classified as operating cash flows.
reliably measured then revenue is recognised
Comparative Amounts
to the extent of expenses recognised that are
Comparatives are consistent with prior years
recoverable.
unless otherwise stated.
Other Income
Where a change in comparatives has also
Other income is recognised on an accruals basis when the company is entitled to it.
Goods and Services Tax (GST) Revenues, expenses and assets are recognised
affected the opening retained earnings previously presented in a comparative period, an opening statement of financial position at the earliest date of the comparative period has been presented.
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).
2. Trade and Other Receivables Trade Receivables Trade Debtors Research Grant Research Grant Less Expended GST Accrued Expenses GST Refund Owing Total Trade Receivables
Total Trade and Other Receivables
2019/20
19,818
10,000
10,000
(6,713)
(6,713)
600
1,200
-
13,452
458,716
37,757
458,716
37,757
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
22
2018/19
454,829
3. Stock On Hand (Merchandise) Changes to the branding of Society and its’
Therefore the Board has elected to write down
promotional activities is likely to result in the
the value of the Merchandise Stock on Hand at
realisable value of the inventory of merchandise
31 March 2020.
being below the cost.
4. Financial Assets Financial Assets Shares in Listed Company
Total Financial Assets
2019/20
2018/19
12,800
14,302
12,800
14,302
5. Plant and Equipment, Motor Vehicles Plant and Equipment, Motor Vehicles
2019/20
2018/19
Building & Land at Cost
806,547
806,547
Building & Land Less: Accum Amortisation
(77,803)
(71,060)
Motor Vehicle Motor Vehicle Less: Accum Depreciation Office Equipment Office Equipment Less: Accum Depreciation Plant and Equipment Plant and Equipment Less: Accum Depreciation Software Software Less: Accum Depreciation
50,968
50,968
(30,790)
(20,701)
21,772
19,505
(15,358)
(10,359)
88,158
86,663
(78,839)
(77,092)
42,500
42,500
(38,230)
(36,094)
Website Development
25,465
8,055
Website Development Less: Accum Depreciation
(6,756)
(5,963)
787,635
792,968
2019/20
2018/19
Total Plant and Equipment, Motor Vehicles
6. Trade and Other Payables Trade and Other Payables Accrued Expenses
129,705
13,200
Trade Payables
32,485
46,388
GST Collected
15,999
-
Income Received in Advance
13,903
10,820
192,092
70,408
Total Trade and Other Payables
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
2020 ANNUAL REPORT 23
Notes to the Financial Statements
(cont.)
Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
7. Provisions Provisions
2019/20
2018/19
Provision Animal Health
60,000
40,000
Provision Beef Aust Expo
60,000
20,000
-
27,426
22,121
13,820
Provision Future Legal Expenses Provision Holiday Pay Provision Long Service Leave
24,259
23,185
Provision Market Development
67,453
47,453
Provision Sales Development Fund
Total Provisions
13,702
16,494
247,536
188,377
8. Legal Fees Legal fees were incurred in the investigation conducted by Cooper Grace Ward which continued into the financial year ended 31 March 2020.
9. BIN Research Project During the 2020 financial year the Society
subsidised by Meat & Livestock Australia (MLA).
continued its involvement in the BIN Livestock
This year, as part of the project, the Society
Research Project, in conjunction with the
purchased 2 consignments of steers and sold 4
Australian Brahman Breeders’ Association and
consignments of steers.
The accompanying notes form part of these financial statements. These statements should be read in conjunction with the attached compilation report.
24
Auditor’s Report Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Report on the Financial Report I
have
audited
the
with
accompanying
financial
Australian
Auditing
Standards.
These
Auditing Standards require that I comply with
report of Droughtmaster Stud Breeders Society
relevant
Ltd which comprises the statement of financial
ethical
position as at 31 March 2020 and the statement
engagements and plan and perform the audit to
of comprehensive income for the year ended on
obtain reasonable assurance whether the financial
that date, a summary of significant accounting
report is free from material misstatement.
policies,
An audit involves performing procedures to
other
explanatory
notes
and
the
directors’ declaration.
obtain
Directors Responsibility for the Financial Report
requirements
audit
evidence
relating
about
to
the
audit
amounts
and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks
The directors of the company are responsible
of material misstatement of the financial report,
for the preparation and fair presentation of the
whether due to fraud or error. In making those
financial report and
risk assessments, the auditor considers internal
have determined that the accounting policies
control relevant to the entity’s preparation and
described in Note 1 to the financial statements,
fair presentation of the financial report in order
which form part of the financial report, are
to design audit
appropriate to meet the requirements of the
procedures
Corporations Act 2001 and are appropriate to
circumstances, but not for the purpose of
meet the needs of the members.
expressing an opinion on the effectiveness of the
The
directors’
responsibility
designing,implementing
and
that
are
appropriate
in
the
includes
entity’s internal control. An audit also includes
maintaining
evaluating the appropriateness of accounting
internal control relevant to the preparation and
policies used and the reasonableness of
fair presentation of the financial report that
accounting estimates made by the directors, as
is free from material misstatement, whether
well as evaluating the overall presentation of the
due to fraud or error; selecting and applying
financial report.
appropriate accounting policies; and making
The financial report has been prepared for
accounting estimates that are reasonable in the circumstances.
Auditor‘s Responsibility
distribution to members for the purpose of fulfilling the directors’ financial reporting under the
Corporations
Act
2001.
I
disclaim
any
assumption of responsibility for any reliance on
My responsibility is to express an opinion on the
this report or on the financial report to which it
financial report based on my audit. No opinion is
relates to any person other than the members,
expressed as to whether
or for any purpose other than that for which it
the accounting policies used, as described in
was prepared. I believe that the audit evidence
Note 1, are appropriate to meet the needs of the
I have obtained is sufficient and appropriate to
members. I conducted my audit in accordance
provide a basis for my audit opinion. 2020 ANNUAL REPORT 25
Auditor’s Report
(cont.)
Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Independence In conducting my audit, I have complied with the independence requirements of the Corporations Act 2001. I confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of Droughtmaster Stud Breeders Society Ltd would be in the same terms if provided to the directors as at the date of this auditor’s report.
Auditor’s Opinion In my opinion the financial report of Droughtmaster Stud Breeders Society Ltd is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the company’s financial position as at 31 March 2020 and of its performance for the year ended on that date in accordance with the accounting policies described in Note 1; and (b) complying
with
Australian
Accounting
Standards to the extent described in Note 1 and complying with the Corporations Regulations 2001. Auditor’s signature:
26
Name of Auditor:
Ian Mortley
Lead Auditor
(WLW Group Pty Ltd)
Auditor’s address:
40 James Street,
Burleigh Heads QLD 4220
Dated:
02/07/2020
Compilation Report Droughtmaster Stud Breeders’ Society Limited For the year ended 31 March 2020
Compilation report to Droughtmaster Stud Breeders’ Society Limited
Our Responsibility
We have compiled the accompanying special
partners we have compiled the accompanying
purpose financial statements of Droughtmaster
special purpose financial statements
Stud Breeders’ Society Limited, which comprise
accordance with the basis of accounting as
the asset and liabilities statement as at 31 March
described in Note 1 to the financial statements
2020, income and expenditure statement, the
and APES 315 Compilation of Financial Information.
statement of cash flows, a summary of significant
We have applied our expertise in accounting and
accounting policies and other explanatory notes.
financial reporting to compile these financial
The specific purpose for which the special purpose
statements in accordance with the basis of
financial statements have been prepared is set
accounting described in Note 1 to the financial
out in Note 1.
statements. We have complied with the relevant
The Responsibility of the Committee Member’s
On the basis of information provided by the in
ethical requirements of APES 110 Code of Ethics for Professional Accountants.
The committee of Droughtmaster Stud Breeders’ Society Limited are solely responsible for the information contained in the special purpose financial statements, the reliability, accuracy and completeness of the information and for the determination that the basis of accounting used is appropriate to meet their needs and for the
Mr Ian Watson WLW Group Pty Ltd Dated: 02/07/2020
purpose that financial statements were prepared.
2020 ANNUAL REPORT 27
28
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