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Rockdale Tennis Club Limited 52 000 398 934

Financial Statements For the Year Ended 30 June 2012


Rockdale Tennis Club Limited 52 000 398 934

Contents 30 June 2012

Page Financial Statements President's Report Secretary's Report Directors' Report Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements Directors' Declaration Independent Audit Report Compilation Report Profit and Loss Account

1 2 3 6 7 8 9 10 11 25 26 28 28


Rockdale Tennis Club Limited 52 000 398 934

President's Report Dear Members, The 2012 financial year has been and gone and during the year we have seen a dramatic turn around for the Club. It is with great please that I can report to the members that even though the club has sustained a deficit for the third year, the deficit incurred in comparison with the 2011 year, has seen a net turn around in trading of $488,195. This turn around in trading has been as a direct result of actions taken by management with the boards support which has seen an increase revenues to the tune of $215,150 and a reduction in expenses by $341,448. When looking closely at the deficit incurred for the year of $183,827, and then adding back non cash transactions for the year being depreciation and loss on disposal of assets, the club's deficit for the year is $32,156. I believe that this is a result we are all proud of in these hard economic times. I would like to extend my thanks and that of the board to all staff, and to our volunteers Jack,Dianne, Sonia, Dave, and those members who have given their time freely throughout the year. Once again thanks are needed to be said to George, Toula and their staff for another year of great food and service. To my fellow board members, I thank you for another year of dedication and support and look forward to your co-operation, support, interest and help in the forth coming 2012-2013 year.

Nick Mitrevski President

1


Rockdale Tennis Club Limited 52 000 398 934

Secretary's Report Dear Members, It gives me great pleasure to present to you the annual financial report for the Club for the year ended 30 June 2012. Though we have sustained a deficit for the 2012 year of $183,827, this result in comparison with the deficit sustained in the 2011 year of $672,022, is a great result. When looking at specific areas, the board has seen that bar takings have increased by 3% and poker machine takings have also increased by 24% which is a pleasing result. Good results have also been realised with the Club's TAB and Keno operations. With regard to costs incurred in relation to the running of the club, through a concentrated approach we have been able to reduce costs to the tune of $341,000 in comparison with last year. As part of this cost cutting approach the staff of the club assisted by cutting their rosters down, thereby effecting a reduction in wages and on costs incurred by the club, and to them we thank them for their assistance in the cost cutting measures undertaken. We anticipate that if the cost cutting measures that have been taken this year continue, the Club should be back in the black by the 2013-2014 financial year. Once again our restaurant continues to be very successful and we thank George, Toula and their staff for a great job as our restaurant is second to none. I also take this opportunity to thank my fellow directors, our loyal staff, our volunteers Jack, Dianne, Sonia and Dave for their continual support and those other members who throughout the year have given their time freely. May I wish you all a safe and happy Christmas and prosperous 2013. Ralph Jauncey Honorary Secretary

2


Rockdale Tennis Club Limited 52 000 398 934

Directors' Report 30 June 2012

Your directors present their report on Rockdale Tennis Club Limited for the financial year ended 30 June 2012. 1.

General information Information on directors The names of each person who has been a director during the year and to the date of this report are: Nick Mitrevski Qualifications Cabling Contractor/Director Experience Director for 9 Years Special responsibilities President Ralph Douglas Jauncey Qualifications Experience Special responsibilities Paul Francis Roddy Qualifications Experience Norman Rogers Qualifications Experience Jake Tuiara Qualifications Experience David Shoemark Qualifications Experience Steve Howells - Appointed 20 November 2011 Qualifications Experience Kevin Baker - Resigned 20 November 2011 Qualifications Experience

Company Director/ST George TAFE Director for 21 Years Secretary Tennis Coach Director for 12 Years Cable joiner Director for 3 Years Qantas ground staff Director for 3 Years Butcher Director for 1 Year State Sales Manager Director for 1 Year Supervisor Previously a director for 12 Years

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Principal activities The principal activity of Rockdale Tennis Club Limited during the financial year wasthe provision of facilities for the playing of the sport of tennis by members of the club with auxiliary facilities for the entertainment and recreation of the members. No significant changes in the nature of the entity's activity occurred during the financial year.

3


Rockdale Tennis Club Limited 52 000 398 934

Directors' Report 30 June 2012 1.

General information continued Short term objectives

The company's short term objectives are to: •

promote sport in particular, tennis

provide facilities for the entertainment and recreation of members and their family, and

interact with the general community at large in relation to sporting activities provide at the club.

Long term objectives

The company's long term objectives are to: •

establish and maintain realtionships with the various tennis administrative groups and bodies to ensure that tennis as a sport is being promoted correctly witin the tennis community as well as the community at large, and

be sustainable for the continuation of the sport of tennis together with providing a venue whereby members, theior families, guests and the community at large can have a venue for their recreation and entertainment.

Strategy for achieving the objectives To achieve these objectives, the company has adopted the following strategies: •

the club stirves to attract and retain quality staff and volunteers who are committed to promotion of the sport of tennis as well as the club, and this is evidenced by t low turonover of staff. The board and managmenet of the club believe that by attracting and retaining quality trained and committed staff and volunteers, that this will be the key to the club's success in both the short and long term.

the adoption of consisitent standards of best practice thereby providing clear expectations fo the board, management and staff of their professional accountabilities and rersponsibilities to all stakeholders in the club.

How principal activities assisted in achieving the objectives The principal activities assisted the company in achieving its objectives by: •

increasing the number of members,

providing a venue for members to enjoy various entertainment events that have been held during the year, thereby increasing the frequenscy of members attending the club

Performance measures The following measures are used within the company to monitor performance: •

Earnings before income tax, earnings before interest depreciation and impairments, ensuring that nonmembers services are profitable, and ensuring that low debt (that is no debt) ratios are maintained.

4


Rockdale Tennis Club Limited 52 000 398 934

Directors' Report 30 June 2012 1.

General information continued

Members guarantee Rockdale Tennis Club Limited is a company limited by guarantee. In the event of, and for the purpose of winding up of the company, the amount capable of being called up from each members and any person or association who ceased to be a member in the year prior to the winding up, is limited to $ 20 for members, subject to the provisions of the company's constitution. At 30 June 2012 the collective liability of members was $ 20,700 (2011: $ 21,280). Meetings of directors During the financial year, [insert number] meetings of directors (including committees of directors) were held. Attendances by each director during the year were as follows: Directors' Meetings Number eligible to attend Number attended

Nick Mitrevski

12

9

Ralph Douglas Jauncey

12

11

Paul Francis Roddy

12

8

Norman Rogers

12

11

Jake Tuiara

12

12

David Shoemark

12

10

Steve Howells - Appointed 20 November 2011

7

7

Kevin Baker - Resigned 20 November 2011

5

5

Auditor's independence declaration The lead auditor's independence declaration in accordance with section 307C of the Corporations Act 2001, for the year ended 30 June 2012 has been received and can be found on page 6 of the financial report. Signed in accordance with a resolution of the Board of Directors:

Director:

Director: Nick Mitrevski

Ralph Douglas Jauncey

Dated 25 October 2012

5


Rockdale Tennis Club Limited 52 000 398 934

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 To the Board of Directors and Members Rockdale Tennis Club Limited I declare that, to the best of my knowledge and belief, during the year ended 30 June 2012, there have been: (i)

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

(ii)

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

W W Vick & Co

Chartered Accountants

Peter P Vlahopol Partner 25 October 2012


Rockdale Tennis Club Limited 52 000 398 934

Statement of Comprehensive Income For the Year Ended 30 June 2012 2012

2011

$ 1,535,062 84,496 514 (1,754) (350,846) (476,560) (139,338) (101,080) (14,543) (202,052) (19,011) 1,310 (411) (2,730) (484,519) (32)

$ 1,277,811 85,302 25,053 16,756 (2,378) (339,354) (555,976) (153,091) (50,034) (26,242) (210,061) (6,993) (62,500) (2,266) (2,420) (495,327) -

Profit before income tax Income tax expense

(171,494) -

(501,720) -

Profit from continuing operations

(171,494)

(501,720)

Profit for the year

(171,494)

(501,720)

Other comprehensive income: Fair value adjustments Loss on disposal of assets (Loss) / Gain on disposal of non-current assets held for sale Impairments

(12,333) -

43,311 12,759 (226,372)

Other comprehensive income for the year, net of tax

(12,333)

(170,302)

(183,827)

(672,022)

Revenue Other income Dividend income Interest Changes in inventories of finished goods and work in progress Raw materials and consumables used Employee benefits expense Depreciation Poker Machine Trading Expenses Tennis Court Expenses Club and Social Expenses TAB and Gamming Expenses Tennis & Sports Promotion Rental Property Expenses Bar Trading Expenses Other operating expenses Finance costs

Note 13 13

Total comprehensive income for the year

The accompanying notes form part of these financial statements. 7


Rockdale Tennis Club Limited 52 000 398 934

Statement of Financial Position 30 June 2012 2012

2011

$

$

182,111 20,537 31,583 11,958

213,788 18,220 33,337 18,533

246,189

283,878

2,740,446 486,619 -

2,802,355 486,923 123,333

TOTAL NON-CURRENT ASSETS

3,227,065

3,412,611

TOTAL ASSETS

3,473,254

3,696,489

Note ASSETS CURRENT ASSETS Cash and cash equivalents Trade and other receivables Inventories Other assets

2 3 4 5

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property, plant and equipment Investment property Intangible assets

LIABILITIES CURRENT LIABILITIES Trade and other payables Current tax liabilities Employee benefits

7 6 8

9 10

TOTAL CURRENT LIABILITIES

100,212 (3,636) 70,950

140,679 (4,550) 70,805

167,526

206,934

NON-CURRENT LIABILITIES TOTAL LIABILITIES

167,526

206,934

NET ASSETS

3,305,728

3,489,555

EQUITY Retained earnings

3,305,728

3,489,555

3,305,728

3,489,555

3,305,728

3,489,555

TOTAL EQUITY

The accompanying notes form part of these financial statements. 8


Rockdale Tennis Club Limited 52 000 398 934

Statement of Changes in Equity For the Year Ended 30 June 2012 2012

Note Balance at 1 July 2011 (Loss) Profit attributable to members of the entity Total other comprehensive income for the year Sub-total Balance at 30 June 2012

Retained Earnings

Available for Sale Revaluation Reserve

Total

$

$

$

3,489,555 (171,494) (12,333)

-

3,489,555 (171,494) (12,333)

(183,827)

-

(183,827)

3,305,728

-

3,305,728

2011

Retained Earnings Note Balance at 1 July 2010 (Loss) Profit attributable to members of the entity Investment losses recognised directly in equity Total other comprehensive income for the period Sub-total Balance at 30 June 2011

$

Available for Sale Revaluation Reserve $

Total $

4,161,576 (501,720) (170,301)

(21,108) 21,108 -

4,140,468 (501,720) 21,108 (170,301)

(672,021)

21,108

(650,913)

3,489,555

-

3,489,555

The accompanying notes form part of these financial statements. 9


Rockdale Tennis Club Limited 52 000 398 934

Statement of Cash Flows For the Year Ended 30 June 2012

Note CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers Payments to suppliers and employees Interest received Net cash provided by (used in) operating activities

17

2012

2011

$

$

1,621,875

1,525,416

(1,668,709) 514

(1,852,314) 41,816

(46,320)

(285,082)

CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of available-forsale investments Proceeds from sale of held-fortrading investments Purchase of property, plant and equipment

(95,326)

(870,069)

Net cash used by investing activities

(95,326)

212,374

(141,646)

(72,708)

-

566,986

-

515,457

CASH FLOWS FROM FINANCING ACTIVITIES: Net increase (decrease) in cash and cash equivalents held Cash and cash equivalents at beginning of year

2

213,778

286,486

Cash and cash equivalents at end of financial year

2

72,132

213,778

The accompanying notes form part of these financial statements. 10


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

The financial statements are for Rockdale Tennis Club Limited as a not-for-profit individual entity. 1

Summary of Significant Accounting Policies (a)

Basis of preparation The financial statements are a general purpose financial statements that has been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless otherwise stated. The financial statements have been prepared on an accruals basis and are based on historical costs modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities.

(b)

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

(c)

Inventories Inventories are measured at the lower of cost and net realisable value. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

(d)

Property, plant and equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses. Property Land and buildings are measured at cost less accumulated depreciation and impairment losses. Freehold land and buildings that have been contributed at no cost, or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired.

Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. Cost includes expenditure that is directly attributable to the asset. Plant and equipment that have been contributed at no cost, or for nominal cost are valued and recognised at the fair value of the asset at the date it is acquired. 11


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

1

Summary of Significant Accounting Policies continued (d)

Property, plant and equipment continued Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding freehold land, is depreciated on a reducing balance basis over the asset's useful life to the company commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. Land is not depreciated. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Buildings Plant and Equipment Furniture, Fixtures and Fittings Motor Vehicles Poker Machines Court Lighting & Fixtures Tennis Courts

2.5 % 7.5 % to 40 % 5.5 % to 25 % 25 % 30 % to 33.3 % 7.5 5 to 20 % 10 %

The assets' residual values, depreciation methods and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. (e)

Financial instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is the equivalent to the date that the company commits itself to either the purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions costs, except where the instrument is classified 'at fair value through profit or loss' in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at either fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm's length transaction. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted.

12


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

1

Summary of Significant Accounting Policies continued (e)

Financial instruments continued Amortised cost is calculated as: (a)

the amount at which the financial asset or financial liability is measured at initial recognition;

(b)

less principal repayments;

(c)

plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and

(d)

less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. The classification of financial instruments depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and at the end of each reporting period for held-to-maturity assets. The company does not designate any interest as being subject to the requirements of accounting standards specifically applicable to financial instruments. (i)

Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are either held for trading 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 enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss. (ii)

Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the company's intention to hold these investments to maturity. They are subsequently measured at amortised cost. Held-to-maturity investments are included in non-current assets, except for those which are expected to be realised within 12 months after the end of the reporting period, which will be classified as current assets. If during the period the company sold or reclassified more than an insignificant amount of the held-to-maturity investments before maturity, the entire held-to-maturity investments category would be tainted and reclassified as available-for-sale.

13


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

1

Summary of Significant Accounting Policies continued (e)

Financial instruments continued (iii) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. Available-for-sale financial assets are included in non-current assets, except for those which are expected to be sold within 12 months after the end of the reporting period. (iv) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fees payable on the establishment of loan facilities are recognised as transaction costs of the loan. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Fair value Fair value is determined based on current bid 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. Impairment Objective evidence that a financial asset is impaired includes default by a debtor, evidence that the debtor is likely to enter bankruptcy or adverse economic conditions in the stock exchange. At the end of each reporting period, the company assesses whether there is objective evidence that a financial asset has been impaired through the occurrence of a loss event. In the case of available-for-sale financial instruments, a significant or prolonged decline in the value of the instrument is considered to indicate that an impairment has arisen. Where a subsequent event causes the amount of the impairment loss to decrease (e.g. payment received), the reduction in the allowance account (provision for impairment of receivables) is taken through profit and loss. However, any reversal in the value of an impaired available for sale asset is taken through other comprehensive income rather than profit and loss. Impairment losses are recognised through an allowance account for loans and receivables in the statement of comprehensive income. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. 14


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

1

Summary of Significant Accounting Policies continued (e)

Financial instruments continued Derecognition continued When available-for-sale investments are sold, the accumulated fair value adjustments recognised in other comprehensive income are reclassified to profit or loss.

(f)

Impairment of non-financial assets At the end of each reporting year, the company reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is compared to the asset's carrying value. Value in use is either the discounted cash flows relating to the asset or depreciated replacement cost if the criteria in AASB 136 'Impairment of Assets' are met. Any excess of the asset's carrying value over its recoverable amount is expensed to the statement of comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset.

(g)

Cash and cash equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less which are convertible to a known amount of cash and subject to an insignificant risk of change in value, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

(h)

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 year. 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 payable later than one year 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 not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cashflows. Contributions are made by the company to an employee superannuation fund and are charged as expenses when incurred.

(i)

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

15


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

1

Summary of Significant Accounting Policies continued (j)

Income tax No provision for income tax has been raised as the company is exempt from income tax under Div 50 of the Income Tax Assessment Act 1997.

(k)

Revenue and other income The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of Rockdale Tennis Club Limited's activities as discussed below. Revenue is measured at the fair value of the consideration received or receivable after taking into account any trade discounts and volume rebates allowed. Any consideration deferred is treated as the provision of finance and is discounted at a rate of interest that is generally accepted in the market for similar arrangements. The difference between the amount initially recognised and the amount ultimately received is interest revenue. Sale of goods Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Interest revenue Interest revenue is recognised using the effective interest rate method, which for floating rate financial assets is the rate inherent in the instrument. Dividend revenue Dividend revenue is recognised when the right to receive a dividend has been established. Rental income Investment property revenue is recognised on a straight-line basis over a period of the lease term so as to reflect a constant periodic rate of return on the net investment. Subscriptions Revenue from the provision of membership subscriptions is recognised on a straight line basis over the financial year. All revenue is stated net of the amount of goods and services tax (GST).

(l)

Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount 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 the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. 16


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

1

Summary of Significant Accounting Policies continued (m)

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 company.

(n)

Adoption of new and revised accounting standards During the current year, the company adopted all of the new and revised Australian Accounting Standards and Interpretations applicable to its operations which became mandatory. The adoption of these Standards has impacted the recognition, measurement and disclosure of certain transactions. The following is an explanation of the impact the adoption of these Standards and Interpretations has had on the financial statements of Rockdale Tennis Club Limited.

Standard Name

Impact

AASB 1053 Application of Tiers of Australian Accounting Standards and amending standards

The adoption of these standards resulting in the removal of a number of disclosures in the general purpose financial statements in accordance with the Reduced Disclosure Requirements. There was no impact on the reported financial position and performance No significant changes on adoption of this standard.

AASB 124 Related Party Disclosures and amending standard AASB 2009-12 AASB 2009-14 Amendments to Australian Interpretation – Prepayments of a Minimum Funding Requirement AASB 2010-4 / 2010-5 Amendments and further amendments to Australian Accounting Standards arising from the Annual Improvements Project AASB 2010-6 Amendment to Australian Accounting Standards – Disclosures on transfers of financial assets AASB 2010-9 / Amendment to Australian Accounting Standards – Severe hyperinflation and removal of fixed dates for first-time adopters AASB 1054 Additional Australian disclosures / AASB 2011-1 Amendments to Australian Accounting Standards arising from Trans-Tasman convergence AASB 2011 – 5 Amendments to Australian Accounting Standards – Extending Relief from Consolidation, the Equity Method and Proportionate Consolidation [AASB 127, AASB 128 & AASB 131]

No significant changes on adoption of this standard.

No significant changes on adoption of this standard.

No significant changes on adoption of this standard.

No impact since the entity is not a first-time adopter of IFRS. Minimal impact since most of the disclosures required by AASB 1054 are already included within the financial statements. The group does not have any not-for-profit entities and therefore there is no impact from the adoption of this standard.

17


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012 2

Cash and Cash Equivalents 2012 Note

$ 109,924 103,864

182,111

213,788

2,000

2,000

8,597 9,940

16,220

20,537

18,220

31,583

33,337

31,583

33,337

31,583

33,337

11,958

18,533

11,958

18,533

Investment Property Balance at beginning of the period Depreciation

488,431 (1,812)

488,431 (1,508)

Balance at end of the period

486,619

486,923

Cash on hand Cash at bank

3

Trade and Other Receivables CURRENT Mollie Harper Junior Development Fund Other receivables - Monies Owing by ISLT Assoc Sundry and other debtors Total current trade and other receivables

4

2011

$ 105,720 76,391

Inventories CURRENT At cost: Alcohol, Soft Drinks & Bar Sundries

5

Other Assets CURRENT Prepayments

6

18


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012 7

Property, Plant and Equipment

Building At cost Accumulated depreciation Total buildings Total land and buildings

2012

2011

$

$

2,969,549 (488,455)

2,960,458 (417,574)

2,481,094 2,481,094

2,542,884 2,542,884

Plant and equipment At cost Accumulated depreciation

709,397 (632,831)

706,677 (606,562)

Total plant and equipment

76,566

100,115

168,624 (145,096)

167,260 (140,360)

Total furniture, fixture and fittings

23,528

26,900

Motor vehicles At cost Accumulated depreciation

15,745 (7,885)

15,745 (3,947)

7,860

11,798

Furniture, fixture and fittings At cost Accumulated depreciation

Total motor vehicles Poker Machines At cost Accumulated depreciation Total Poker Machines Tennis Courts, Lighting and Fixtures At cost Accumulated depreciation Total tennis courts, lighting and fixtures Total plant and equipment Total property, plant and equipment

849,275 (785,387)

764,875 (749,992)

63,888

14,883

320,085 (232,575)

320,085 (214,310)

87,510 259,352

105,775 259,471

2,740,446

2,802,355

19


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

7

Property, Plant and Equipment continued (a)

Movements in Carrying Amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year: Club Freehold Land Renovations & Buildings 1999

Club Renovations 2001

Club Renovations 2011

Plant and Equipment

Furniture, Fixtures and Fittings

Motor Vehicles

Poker Machines

Court Lighting & Fixtures

Total

$

$

$

$

$

$

$

$

$

$

Balance at 30 June 2012 Balance at the beginning of year

133,873

540,939

Additions

-

-

-

Depreciation expense

-

(19,313)

Balance at 30 June 2012

133,873

521,626

(b)

1,017,400

850,671

100,115

26,899

9,090

2,720

1,364

11,798

(29,918)

(21,649)

(26,269)

(4,735)

(3,938)

(35,396)

(18,265)

987,482

838,112

76,566

23,528

7,860

63,889

87,510

-

14,885

105,775

84,400

-

2,802,355 97,574 (159,483) 2,740,446

Core and Non-Core Property Core Property In accordance with the Registered Clubs Act 1976, under section 41J, the core property of the Club is the defined premises of the Club situated at 71 Chapel Street, Rockdale, NSW, 2216. Non-Core Property In accordance with the Registered Clubs Act 1976, under section 41J, the non-core property of the Club is the defined property located at 58 Chapel Street, Rockdale, NSW, 2216.

20


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012 8

9

Intangible Assets 2012

2011

$

$

Intangible assets - Poker Machine Entitlements Cost Accumulated amortisation and impairment

-

349,705

-

(226,372)

Net carrying value

-

123,333

Total Intangibles

-

123,333

Trade and Other Payables CURRENT Sundry payables and accrued expenses

10

11

Employee Benefits CURRENT Long service leave Provision for employee benefits

100,212

140,680

100,212

140,680

62,800 8,150

70,805 -

70,950

70,805

Financial Risk Management The main risks Rockdale Tennis Club Limited is exposed to through its financial instruments are credit risk and liquidity risk. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Note Financial Assets Cash and cash equivalents - at cost

2

Total financial assets Financial Liabilities Financial liabilities at amortised cost - Trade and other payables Total financial liabilities

9

182,111

213,788

182,111

213,788

100,212

140,680

100,212

140,680

21


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

11

Financial Risk Management continued Net fair values Fair value estimation Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. Fair values derived may be based on information that is estimated or subject to judgment, where changes in assumptions may have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below. Where possible, valuation information used to calculate fair value is extracted from the market, with more reliable information available from markets that are actively traded. In this regard, fair values for listed securities are obtained from quoted market bid prices. Where securities are unlisted and no market quotes are available, fair value is obtained using discounted cash flow analysis and other valuation techniques commonly used by market participants.

12

Members' Guarantee The company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $ 20 each towards meeting any outstandings and obligations of the company. At 30 June 2012 the number of members was 1,035 (2011: 1,064).

13

Revenue and Other Income Revenue from continuing operations

Sales revenue - sale of goods

2012

2011

$

$

591,067

576,664

591,067

576,664

5,793 721,092 170,960

5,168 581,515 80,793

46,150

33,671

943,995

701,147

1,535,062

1,277,811

Other Income Commissions Rental income

58,946 25,550

72,907 12,395

Total Revenue and Other Income

84,496

85,302

Other revenue - member subscriptions - Net Poker Machine Takings - Court Fees - Miscellaneous other revenue - Income from Raffles

Total Revenue

22


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

14

Result for the Year (a)

Expenses 2012

2011

$

$

70,881 4,736 26,269 35,395 18,265 3,938

55,925 5,720 36,267 23,070 27,867 3,936

Total Depreciation and Amortisation

159,484

152,785

Interest expense on financial liabilities not at fair value through profit and loss Employee benefits expense

32 476,560

555,976

Depreciation and Amortisation Club Renovations Furniture and fittings Plant and equipment Poker Machones Courts, lighting and fixtures Courtesy Bus

Rental expense on operating leases 15

Interests of Key Management Personnel The total of honorariums paid to the directors of the company is $3,500 (2011 : $26,750). The total remuneration paid to key management personnel of the company is $ 97,850 (2011: $ 98,059).

16

Contingent Liabilities and Contingent Assets In the opinion of the Directors, the company did not have any contingencies at 30 June 2012 (31 July 2010:None).

17

Cash Flow Information (a)

Reconciliation of cash Note

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the statement of financial position as follows: Cash and cash equivalents

2

182,111

213,788

182,111

213,788

23


Rockdale Tennis Club Limited 52 000 398 934

Notes to the Financial Statements For the Year Ended 30 June 2012

17

Cash Flow Information continued (b)

Reconciliation of result for the year to cashflows from operating activities Reconciliation of net income to net cash provided by operating activities: 2012

Profit for the year Cash flows excluded from profit attributable to operating activities Non-cash flows in profit: - depreciation - impairment of intangibles - loss on disposal of assets - changes to employee provisions - available for sale write-off - profit on sale of shares Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries: - (increase)/decrease in trade and other receivables - (increase)/decrease in other assets - (increase)/decrease in inventories - increase/(decrease) in trade and other payables Cashflow from operations

18

2011

$ (183,827)

$ (672,020)

159,484 12,333 145 -

153,091 226,372 8,229 (43,311) (12,760)

(2,317) 6,575 1,754 (40,467)

24,424 (854) 2,377 29,370

(46,320)

(285,082)

Events after the end of the Reporting Period The financial report was authorised for issue on 25 October 2012 by the Board of Directors. No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations or the state of affairs of the company in future financial years.

19

Company Details The registered office of the company is: Rockdale Tennis Club Limited 71 Chapel Street Rockdale NSW 2216

24


Rockdale Tennis Club Limited 52 000 398 934

Directors' Declaration The directors of the company declare that: 1.

2.

The financial statements and notes, as set out on pages 3 to 24, are in accordance with the Corporations Act 2001 and: a.

comply with Accounting Standards - Reduced Disclosure Requirement; and

b.

give a true and fair view of the financial position as at 30 June 2012 and of the performance for the year ended on that date of the company.

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.

Director

Director Nick Mitrevski

Ralph Douglas Jauncey

Dated 25 October 2012

25


Rockdale Tennis Club Limited 52 000 398 934

Independent Audit Report to the members of Rockdale Tennis Club Limited Report on the Financial Report We have audited the accompanying financial report of Rockdale Tennis Club Limited, which comprises the statement of financial position as at 30 June 2012, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.

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

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Rockdale Tennis Club Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.


Rockdale Tennis Club Limited 52 000 398 934

Independent Audit Report to the members of Rockdale Tennis Club Limited Opinion In our opinion the financial report of Rockdale Tennis Club Limited is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the company’s financial position as at 30 June 2012 and of its performance for the year ended on that date; and (b) complying with Australian Accounting Standards- Reduced Disclosure Requirements and the Corporations Regulations 2001.

W W Vick & Co Chartered Accountants

Peter P Vlahopol Partner

25 October 2012


Rockdale Tennis Club Limited 52 000 398 934

Compilation Report 30 June 2012

COMPILATION REPORT TO ROCKDALE TENNIS CLUB LIMITED We have compiled the accompanying special purpose financial statements of Rockdale Tennis Club Limited, which comprise the statement of financial position as at 30 June 2012, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, a summary of significant accounting policies and other explanatory notes. The specific purpose for which the special purpose financial statements have been prepared is set out in Note 1.

The Responsibility of the Directors The directors are solely responsible for the information contained in the special purpose financial statements and have determined that the basis of accounting used is appropriate to meet their needs and for the purpose that the financial statements were prepared.

Our Responsibility On the basis of the information provided by the directors we have compiled the accompanying special purpose financial statements in accordance with the basis of accounting and APES 315: Compilation of Financial Information. Our procedures use accounting expertise to collect, classify and summarise the financial information, which the directors provided, in compiling the financial statements. Our procedures do not include verification or validation procedures. No audit or review has been performed and accordingly no assurance is expressed. The special purpose financial statements were compiled exclusively for the benefit of the directors. We do not accept responsibility to any other person for the contents of the special purpose financial statements.

Peter P Vlahopol

Partner

25 October 2012


Rockdale Tennis Club Limited 52 000 398 934

For the Year Ended 30 June 2012

Profit and Loss Account

Income Sale of goods Commissions Interest income Dividend income Rental income Member subscriptions Net Poker Machine Takings Court Fees Other revenue Total income Less: Expenses Advertising Auditors remuneration Bank charges Body corporate and management fees Cleaning Computer expenses Consulting and professional fees Directors Honoraria Depreciation Donations Electricity and water Fees and permits Finance costs - external Gas Insurance Impairment Long service leave Postage Printing and stationery Rates and taxes Rebates Repairs and maintenance Salaries Security costs Sports Promotion - Subsidised Court Rentals Subscriptions Sundry expenses Superannuation contributions Telephone and fax Travel - domestic Uniforms Workers compensation insurance Changes in inventories of finished goods and work in progress

2012

2011

$

$

591,067 58,946 514 25,550 5,793 721,092 170,960 46,150

576,664 72,907 16,756 25,053 12,395 5,168 581,515 80,793 33,671

1,620,072

1,404,922

302 35,038 1,182 9,433 63,731 470 3,500 139,338 5,450 64,783 2,028 32 40,178 145 534 4,057 13,378 83,119 50,004 430,885 4,592 87,160 3,109 460 32,378 8,733 2,900 377 13,152 1,754

1,376 54,155 1,206 17,404 63,605 1,980 350 26,750 153,091 3,460 58,536 420 26 48,046 226,372 8,229 809 4,421 14,124 86,088 73,394 459,496 24,682 3,977 70,584 7,639 2,882 17,667 2,378 29


Rockdale Tennis Club Limited 52 000 398 934

For the Year Ended 30 June 2012

Profit and Loss Account 2012 Liquor purchases and members discounts Poker Machine Maintenance & Repairs Poker Machine Duty Court Maintenance Caretaker Expenses Entertainment Costs Travel Costs & Sponsorship Miscellaneous & Sundry Expenses Keno Expenses Tennis & Sports Promotion Non core property expenses Stocktake Expenses Total Expenses

Other items: Loss on disposal of assets Fair value adjustments (Loss) / Gain on disposal of non-current assets held for sale

Profit before income tax

$ 350,846 46,857 54,223 12,483 2,060 160,857 21,466 19,729 19,011 (1,310) 411 2,730 1,791,566

2011 $ 339,354 46,099 3,935 18,297 7,945 179,822 6,479 23,760 6,993 62,500 2,266 2,420 2,133,014

(171,494)

(728,092)

(12,333) -

43,311 12,759

(12,333)

56,070

(183,827)

(672,022)

30


Rockdale Tennis Club Limited Financial Report Year Ended 30 June 2012