WENTWORTHVILLE

Leagues Club Limited Notes To The Financial Statements For The 52 Weeks Ended 27 December 2022

1 Reporting entity

Wentworthville Leagues Club Limited (the Company) is a company limited by guarantee incorporated and domiciled in Australia. The address of the Company's registered office is 50 Smith Street, Wentworthville, NSW, 2145. The financial statements of the Company are as at and for the 52 weeks ended 27 December 2022.

2 Basis of preparation

(a) Statement of compliance

These general purpose financial statements have been prepared in compliance with the requirements of the Corporations Act 2001 and Australian Accounting Standards - Simplified Disclosures. Australian Accounting Standards contain requirements specific to not-for-profit entities, including standards AASB 116 Property, Plant and Equipment, AASB 138 Intangible Assets, AASB 136 Impairment of Assets, AASB 1004 Contributions and AASB 1058 Income for Not-For-Profit Entities.

These financial statements, for the period ended 27 December 2022, are the first financial statements the Club has prepared in accordance with the Australian Accounting Standards - Simplified Disclosures. The adoption of the Australian Accounting Standards - Simplified Disclosures has no significant impact on the financial statements because the Club's previous financial statements were prepared in full compliance with the recognition and measurement requirements of Australian Accounting Standards.

The financial statements were approved by the Board of Directors on 11th of April 2023.

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis, with the exception of some financial instruments which are measured on fair value basis, and component of property, plant and equipment which is measured on revaluation model basis.

The financial report is presented in Australian dollars ($).

(c) Going concern

The financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business operations and realisation of assets and settlement of liabilities in the ordinary course of business.

The Company has generated a net profit after tax of $16,861,627 for the 52 weeks ended 27 December 2022 (2021: $5,865,972) and, as at that date, is in a net current liability position of $4,081,350 (2021: $9,661,755) and in a net asset position of $151,342,843 (2021: $133,910,716). During the period, the Company generated cash inflows of $22,008,088 (2021: $14,434,820) from operating activities. The Company also has access to a financing facility with its bank and, as at balance date $18,000,000 of this is yet to be drawn.

The existing loan facility expires on 13 March 2024, cashflow forecasts indicate that the business will be able to meet all of the covenant and repayment terms to this date, however the ongoing financial viability of the entity is dependent upon the continuing financial support of the Secured Lender renewing the loan facility. Based on the experience and recent communication with the lender, where they have indicated that they see no issues with the request to extend the current termination date on the term debt facilities by an additional year, the Directors are of the view the lender will continue to financially support the operations of the Club.