WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR

The 52 Weeks Ended 27 December 2022

3 Significant accounting policies (continued)

(k) Income tax (continued)

(ii) Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for temporary differences on the initial recognition of assets or liabilities in a transaction and that affects neither accounting nor taxable profit or loss.

The measurement of deferred tax reflects the tax consequences that could follow the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted by the reporting date.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.

A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, clubs are only liable for income tax on income derived from non-members and from outside entities.

(l) Good and services tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to the Australian Taxation Office (ATO) is included as a current asset or liability in the statement of financial position.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

(m) Fair value measurement

When measuring fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, Either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

3 Significant accounting policies (continued)

(m) Fair value measurement (continued)

The fair value assessment of the freehold land and buildings was carried out as at 27 December 2022 by Global Valuations Services Pty Limited (Certified practicing valuer no. 67391). The Company has elected to revalue only the land component associated with the residential properties, and has recognised buildings under residential properties (buildings) category on a cost model, refer to note 2(e) and 3(b).

The following table details the assets which are measured and disclosed at fair value categorised under the three level hierarchy.

(n) Current versus non-current classification

The Company presents assets and liabilities in the statement of financial position based on current/noncurrent classification. An asset is current when it is:

 Expected to be realised or intended to be sold or consumed in the normal operating cycle;

 Held primarily for the purpose of trading;

 Expected to be realised within twelve months after the reporting period, or

 Cash or a cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current

A liability is current when:

 It is expected to be settled in the normal operating cycle;

 It is held primarily for the purpose of trading;

 It is due to be settled within twelve months after the reporting period, or

 There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities

(o) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

Wentworthville Leagues Club Limited

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

7 Tax expense

Numerical reconciliation between tax expense and pre-tax accounting profit

The Income Tax Assessment Act 1997 (amended) provides that under the concept of mutuality, registered clubs are only liable for income tax on income derived from non-members and from outside entities.

The amount set aside for income tax in the statement of profit or loss and other comprehensive income has been calculated as follows:

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

8 Cash and cash equivalents

Cash at bank and at call earns interest at floating rates based on daily bank deposit rates.

9 Trade and other receivables

These are poker machine entitlements and are stated at cost less accumulated impairment losses. Poker machine entitlements have an indefinite useful life given they have no expiry date, and accordingly are not amortised but are to be assessed annually for impairment. 12

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

14 Borrowings

The club has access to the following lines of credit:

The loan matures on 13 March 2024 and is subject to quarterly repayments. The interest rate for the relevant interest period is BBSY plus a margin of 1.08% (2021: BBSY plus a margin of 1.08%). Security consists of:

(i) Registered first mortgage by Wentworthville Leagues Club Limited over club premises situated at Wentworthville Leagues Club, Smith Street, Wentworthville, NSW, 2145.

(ii) A first registered equitable mortgage by Wentworthville Leagues Club Limited over the whole of its assets and undertakings including uncalled capital. Registered first mortgage by Wentworthville Leagues Club Limited over 40 properties situated in Wentworthville.

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

16 Provisions

The movement during the period was follows:

Linked poker machine jackpot

Poker machine link jackpots is the current balance of available jackpots that accumulate from turnover play on poker machines. These jackpots are returned to players by achieving the required combination for the link jackpot on the machine being played.

Member mortality commitment

Members who joined the club between 1970 and 1989 may have been eligible for a mortality payment. No external fund exists and all commitments are met out of current cash flow. The present value of the mortality commitment reflects management’s estimates based upon similar lapse rates and discount rates to prior year Actuarial valuations.

Rewards bonus points

The best estimate of the commitment to members in relation to unredeemed bonus points is $345,741 (2021:$241,645). Earning rates, lapse rates and terms and conditions shall impact on future estimates.

WENTWORTHVILLE LEAGUES CLUB LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

18 Leases

The Company holds an operating lease with Cumberland Council for the use of the Ringrose Oval adjacent to the property.

Future lease payments under the operating lease as at reporting period are as follows:

19 Related party transactions

The directors of the club may from time to time hold a director's role, have membership, life membership or be the patron of the various sport and recreational clubs and football clubs that are governed and controlled by the Leagues Club constitution.

A Director of the Company is the principal of a business that has a contract for the provision of rental management of the residential property portfolio. The contract is on commercial terms. The rental management fees paid in the reporting period were $45,130 (2021: $42,785).

One Director of the Company during the reporting period received honorariums as a Director of the Cricket Club.

From time to time, Directors of the Company may purchase goods and engage in services that are provided by the Company and available to all members. These purchases are on the same terms and conditions as those available to all other members and may be in addition to allowances entitled by the Constitution and approved by the members at the AGM.

Apart from the details disclosed in this note, no Director has entered into any contract with the Company since the end of the previous financial period and there were no contracts involving Directors interests at year end.

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

19 Related party transactions (continued)

Key management personnel compensation

The aggregate compensation made to directors and other members of key management personnel of the company is set out below:

20 Financial reporting period

The Company has always used a 52 week cycle for its reporting. The monthly reporting cycle is grouped by weeks and follows a 5, 4, 4 cycle resulting in uniform days in the relative months across consecutive years. Consequently, the close off day for annual reporting purposes changes every year by a day and two days every leap year. The actual month end date for 2022 is 27 December and the actual close for 2021 was 28 December 2021.

21 Core properties

Pursuant to Section 41J of the Registered Club Amendments Act 2006, the club categorises property as follows:

Core properties held by the Club are:

WENTWORTHVILLE LEAGUES CLUB LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE 52 WEEKS ENDED 27 DECEMBER 2022

21 Core properties (continued)

76 Smith Street, Wentworthville NSW 2145

78 Smith Street, Wentworthville NSW 2145

80 Smith Street, Wentworthville NSW 2145

51 Smith Street, Wentworthville NSW 2145

70 Smith Street, Wentworthville NSW 2145

72 Smith Street, Wentworthville NSW 2145

74 Smith Street, Wentworthville NSW 2145

68 Smith Street, Wentworthville NSW 2145

22 Contingent assets and contingent liabilities

The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.

23 Members guarantee

The Company is limited by guarantee. If the Company is wound up, Rule 23 of the Constitution states that each member at that time, or within one year afterwards is required to contribute a maximum of $1 each towards meeting any outstanding obligations of the company. At 27 December 2022 the number of members were 70,421 (2021: 74,169).

24 Auditor’s remuneration

The auditor of Wentworthville Leagues Club Limited is Ernst & Young (Australia) in 2022 and KPMG (Australia) in 2021.

25 Events subsequent to reporting date

There have been no events subsequent to reporting date which would have a material effect on the Company’s financial statements at 27 December 2022.

Ernst & Young

GPO Box 2646 Sydney NSW 2001

Tel: +61 2 9248 5555

Fax: +61 2 9248 5959 ey.com/au

Independent auditor’s report to the members of Wentworthville Leagues Club Limited

Independent auditor’s report to the members of Wentworthville Leagues Club Limited

Opinion

We have audited the financial report of Wentworthville Leagues Club Limited (the Company), which comprises the statement of financial position as at 27 December 2022 , the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the 52 weeks then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors ’ declaration.

Opinion

We have audited the financial report of Wentworthville Leagues Club Limited (the Company), which comprises the statement of financial position as at 27 December 2022 , the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the 52 weeks then ended, notes to the financial statements, including a summary of significant accounting policies, and the directors ’ declaration.

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001 , including:

In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001 , including: a. G iving a true and fair view of the Company’s financial position as at 27 December 2022 and of its financial performance for the 52 weeks ended on that date; and a. G iving a true and fair view of the Company’s financial position as at 27 December 2022 and of its financial performance for the 52 weeks ended on that date; and b. Complying with Australian Accounting Standards – Simplified Disclosures and the Corporations Regulations 2001 b. Complying with Australian Accounting Standards – Simplified Disclosures and the Corporations Regulations 2001

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

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

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

Information other than the financial report and auditor’s report thereon

The directors are responsible for the other information. The other information is the directors’ report accompanying the financial report.

Information other than the financial report and auditor’s report thereon

The directors are responsible for the other information. The other information is the directors’ report accompanying the financial report.

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

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

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Auditor’s Independence Declaration to the Directors of Wentworthville Leagues Club Limited

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

As lead auditor for the audit of the financial report of Wentworthville Leagues Club Limited for the 52 weeks ended 27 December 2022, I declare to the best of my knowledge and belief, there have been : a) no contraventions of the auditor independence requirements of the Corporations Act 200 1 in relation to the audit; and b) no contraventions of any applicable code of professional conduct in relation to the audit. c) No non-audit services provided that contravene any applicable code of professional conduct in relation to the audit.

11 April 2023