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Notes to the financial statements
Wentworthville Leagues Club Limited Notes to the financial statements
For the year ended 31 December 2020
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 year ended 31 December 2020.
Basis of preparation Statement of compliance
In the opinion of the directors, the Company is not publicly accountable. The financial statements are Tier 2 general purpose financial statements which have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure Requirements adopted by the Australian Accounting Standards Board and the Corporations Act 2001. These financial statements comply with Australian Accounting Standards – Reduced Disclosure Requirements.
The financial statements were approved by the Board of Directors on 22nd of April 2021.
Basis of measurement
The financial statements have been prepared on the historical cost basis, with the exception of some financial instruments which is measured on fair value basis, and component of property, plant and equipment which is measured on revaluation model basis.
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 $5,772,262 for the year ended 31 December 2020 (2019: loss of $1,692,351) and, as at that date, is in a net current liability position of $129,614 (2019: $6,650,780) and in a net asset position of $124,478,244 (2019: $107,587,701).
Based on the above, the Directors consider that the Company will be able to continue to fulfil all obligations as and when they fall due for the foreseeable future, being at least twelve months from the date of approval of these financial statements, and that the Company's financial statements should be prepared on a going concern basis.
Functional and presentation currency
These financial statements are presented in Australian dollars, which is the Company's functional currency.
Wentworthville Leagues Club Limited Notes to the financial statements
For the year ended 31 December 2020
2 (e) Changes in accounting policy
Basis of preparation
The Company has reclassified residential properties that were previously held as Investment Property as Property, Plant and Equipment which is considered more appropraite given the strategic nature of the underlying assets. This change is voluntary and has been done in the earliest accounting period in these set of financial statements and accordingly the financial statements have been restated to show consistent adoption of accounting treatment. Refer to Note 26 for further details.
The Company has elected to measure the residential property (land) asset class held in Property, Plant and Equipment using a revaluation model in the financial year ended 31 December 2020 which represents a change in accounting policy for this asset class previously measured at cost. The Company has elected to adopt this change in accounting policy to provide more reliable and relevant information about the Company's financial position.
All other classes in Property, Plant and Equipment are measured on a cost model and there have been no changes in accounting policies in respect of those asset classes.
As a result of the changes in accounting policy, the residential property land asset class have now been measured at fair value. The increase in an asset class' carrying amount as a result of a revaluation is recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the asset class previously recognised in profit and loss.
The initial application of the accounting policy to revalue assets in accordance with AASB 116 Property, Plant and Equipment is not applied retrospectively in accordance with the requirements of AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors.
Use of estimates and judgements
The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:
• Note 13 Intangible assets • Note 18 Property, plant and equipment - residential property land • Note 25 Contingencies
Notes to the financial statements (continued)
For the year ended 31 December 2020
Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements.
Tradereceivables and debtsecurities issuedare initially recognisedwhenthey are originated. All other financial assetsandfinancial liabilities are initially recognisedwhentheCompanybecomes a partyto the contractual provisions of the instrument.
A financialasset (unless itis a trade receivable without a significant financingcomponent)or financial liabilityis initially measured atfairvalue plus,for an item not atfairvalue throughprofit andlosstransactioncoststhatare directly attributableto its acquisition or issue. A trade receivable without a significant financingcomponent is initially measured at the transaction price.
On initial recognition, a financialasset is classifiedas measured at:amortisedcost;fairvalue through other comprehensiveincome - debtinvestment: fairvalue throughothercomprehensiveincome - equityinvestment:or fair value through profit and loss.
Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its businessmodelformanaging financialassets, in which caseall affected financialassetsarereclassified onthe first day of the first reporting period following the change in the business model.
A financialasset is measured atamortisedcost ifit meetsbothofthefollowingconditions and is notdesignated as at fair value through profit •it is held within a business model whose objective is to hold assets to collect contractual cash flows: and •its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
All financialassets not classifiedas measured atamortisedcost or fairvalue throughothercomprehensiveincome as described aboveare measured atfairvalue throughprofit andloss. Thisincludes allderivativefinancialassets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to bemeasured at amortized cost or at FVOCI asat FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
These assetsare subsequentlymeasured atfairvalue. Netgains andlosses, including any interestordividend income, are recognised in profit or loss.
These assetsare subsequentlymeasured atamortisedcost usingthe effective interestmethod.The amortised cost is reducedbyimpairment losses. Interestincome,foreignexchangegains andlossesand impairment are recognised in profit or loss. Any gain or loss on derecognition is recognised in profit or loss.
Financial instruments
Recognition and initial measurement
Classification and subsequent measurement
Financial assets at amortised cost
Notes to the financial statements (continued)
For the year ended 31 December 2020
Derecognition Financial assets The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.
The Company enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. Financial assets at fair value through profit or loss.
Financial liabilities The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
Property, plant and equipment
Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses, except residential property - land which is measured on revaluation model.
As a result of the changes in accounting policy, the residential property land asset class have now been measured at fair value. The increase in an asset class' carrying amount as a result of a revaluation is recognised in other comprehensive income and accumulated in equity under the heading of revaluation surplus. However, the increase shall be recognised in profit or loss to the extent that it reverses a revaluation decrease of the asset class previously recognised in profit and loss.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.
The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of the property, plant and equipment and is recognised net in profit or loss. A gain arising from revaluation is recognised within other comprehensive income. A loss arising from revaluation is recognised within profit or loss to the extent that it exceeds any existing revaluation surplus for the asset.
Notes to the financial statements (continued)
For the year ended 31 December 2020
Reclassification from investment property to property, plant and equipment Residential properties are held to meet service delivery objectives and strategic purposes rather than to earn rental or capital appreciation. Accordingly the property will not meet the definition of investment property under AASB 140 Investment Property and will be accounted for as Property, Plant and Equipment under AASB 116, Property, Plant and Equipment. Refer to note 26 for the restatement.
Subsequent costs Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Company. Ongoing repairs and maintenance are expensed as incurred.
Depreciation Items of property, plant and equipment are depreciated from the date that they are installed and are ready for use.
Depreciation is calculated to write off the cost of property, plant and equipment less their estimated residual values using the straight-line basis over their estimated useful lives. Depreciation is generally recognised in profit or loss, unless the amount is included in the carrying amount of another asset. Land is not depreciated.
The estimated useful lives for the current and comparative years of significant items of property, plant and equipment are as follows:
•
Leasehold improvements
Plant and equipment
Equipment under finance lease
Furniture, fixtures and fittings
Office machines
Motor vehicles 40 years 11 years 5 - 10 years 3 years 5 - 10 years 3 - 5 years 8 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
Intangible assets
Poker machine entitlements Poker machine entitlements thatare acquiredbytheClub,which have infinite useful lives,are measured atcost less accumulated impairment losses.
Subsequent expenditure Subsequentexpenditure is capitalised onlywhen it increases the future economicbenefitsembodied in the specific asset to which it relates. All other expenditure is recognised in profit or loss as incurred.
Impairment Poker machine entitlements have indefiniteuseful lives as they have noexpirydate.Accordingly, such intangible assets are not amortised but are systematically tested for impairment at each reporting date (see note 3(f)).
Notes to the financial statements (continued)
For the year ended 31 December 2020
Significant accounting policies Non-current assets held for sale
Non-current assets,thatare expected to berecovered primarily through sale rather than throughcontinuinguse, areclassifiedas heldfor sale. Immediatelybefore classificationas heldfor sale, the assetsare remeasured in accordance with theClub'saccounting policies. Thereaftergenerallythe assetsare measured at theloweroftheir carrying amount and fair value less cost to sell.
Impairment losses on initial classificationas heldfor saleand subsequentgainsor losses onremeasurement are recognised in profit or loss. Gains are not recognised in excess of any cumulative impairment loss.
Property, plant and equipment once classified as held for sale are not depreciated.
Inventories
Inventories are measured at thelowerof costand net realisablevalue. The cost ofinventories is calculated on a weighted-average cost basis, and includes expenditure incurred in acquiring the inventories and other costs incurred in bringing them to their existing location and condition.
Net realisablevalue is the estimated selling price in theordinary course ofbusiness, less the estimatedcosts of completion and estimated costs necessary to make the sale.
The Company recognises loss allowances for expected losses on: • financial assets measured at amortised cost; • debt investments measured at fair value through other comprehensive income; and • contract assets.
TheCompanymeasures loss allowances atan amountequal to lifetime expectedcredit losses. Lossallowances for trade receivables andcontractassetsarealways measured atan amountequal to lifetime expectedcredit losses.
Whendeterminingwhetherthecredit risk of a financialassethasincreased significantly since initial recognition and when estimating expectedcredit losses, theCompanyconsidersreasonable and supportableinformation that is relevant andavailable withoutundue cost or effort. Thisincludesboth quantitativeandqualitative information andanalysis,based ontheCompany's historical experience and informedcredit assessmentand includingforwardlooking information.
Impairment
Non-derivative financial assets Financial instruments and contract assets
TheCompany assumesthat thecredit risk on a financialassethasincreased significantlyifitis more than 30 days past due.
The Company considers a financial asset to be in default when: • the borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held): • or the financial asset is more than 90 days past due.
Notes to the financial statements (continued)
For the year ended 31 December 2020
Non-derivative financial assets (continued) 12-monthexpectedcredit lossesare theportionofcredit lossesthat result from defaultevents thatare possible within the12months after thereporting date (or a shorterperiod if theexpected life oftheinstrument is lessthan 12 months). The maximum periodconsideredwhen estimating expectedcredit losses is the maximumcontractual periodover which the Company is exposed to credit risk.
Measurement of expected credit losses Credit lossesare a probability-weighted estimate ofcredit losses. Credit lossesare measured as thepresent value of allcash shortfalls (i.e. thedifferencebetweenthe cash flowsdue to theentity in accordance with the contract and the cash flows that theCompanyexpects to receive).Credit lossesare discounted at the effective interest rate of the financial asset.
Lossallowancesfor financialassets measured atamortisedcostare deducted from thegross carrying amountof the assets. Fordebtsecurities atfairvalue throughothercomprehensiveincome,the lossallowance is charged to profit or loss and is recognised in other comprehensive income.
Thegross carrying amountof a financialasset is written offwhentheCompany has noreasonableexpectationsof recovering a financialasset inits entiretyor a portionthereof.TheCompanyexpectsno significant recovery from the amount written off.
A definedcontribution plan is a post-employmentbenefit plan underwhich an entity paysfixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to definedcontributionplans are recognised asan employeebenefitexpense in profitor loss in the periods during which services are rendered by employees.
TheCompany’snetobligation in respectoflong-termemployeebenefits is theamountof future benefit that employees have earned in return fortheir service in thecurrent and priorperiodsplusrelated on-costs;that benefit is discounted to determine its present value,and the fairvalue of any related assets is deducted.The discount rate is the yield at thereporting date ongovernmentbonds thathave maturity datesapproximatingthe terms of the Company’s obligations.
Presentation of allowance for expected credit losses in the statement of financial position
Write-off
Employee benefits
Defined contribution plans
Other long-term employee benefits
Short-term benefits Short-term employeebenefitobligations are measuredon an undiscounted basisandare expensed as therelated service is provided. A liabilityis recognisedfortheamountexpected to be paid under short-term cash bonusor profit-sharingplans if theCompany has a presentlegalor constructive obligation to pay this amount as a resultof past service provided by the employee and the obligation can be estimated reliably.
Provisions
A provision is recognised if, as a resultof a past event,theCompany has a presentlegalor constructive obligation thatcan be estimated reliably, and itis probable thatan outflowofeconomicbenefits will berequired tosettle the obligation.Provisions are determinedbydiscountingtheexpected future cash flows at a pre-tax rate that reflects current marketassessments ofthe time value ofmoney and the risksspecific to the liability. Theunwindingofthe discount is recognised as finance cost.
Notes to the financial statements (continued)
For the year ended 31 December 2020
Revenue from contracts with customers Revenue is recognised at an amount that reflects the consideration to which the Company is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the Company identifies the contract with a customer, identifies the performance obligations in the contract, determines the transaction price which takes into account estimates of variable consideration and the time value of money, allocates the transaction price to the separate performance obligations on the basis of the relative standalone selling price of each distinct good or service to be delivered, and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.
Goods sold Revenue from the sale of goods is recognised at the point in time the goods are provided and payment is collected.
Rendering of services Revenue from gaming services is the net difference between gaming wins and losses, and is recognised upon the outcome of the game at the close of business.
Rental income Rental income is recognised in profit or loss on a straight-line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.
Dividend and interest revenue Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on a time proportionate basis that takes into account the effective yield on the financial asset.
Leases
At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: the contract involvesthe use of an identified asset – this may bespecified explicitly or implicitly, and shouldbe physicallydistinct orrepresent substantiallyall ofthe capacity of a physicallydistinctasset. If thesupplier has a substantive substitution right, then the asset is not identified; the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and theCompany has theright to directthe use ofthe asset. TheCompany has this rightwhen it has thedecisionmaking rights thataremost relevant to changinghow and forwhatpurposethe asset is used. In rare cases wherethedecisionabouthow and forwhatpurposethe asset is used is predetermined,theCompany has the right to direct the use of the asset if either: •the Company has the right to operate the asset; or •the Company designed the asset in a way that predetermines how and for what purpose it will be used.
At inceptionoron reassessment of a contractthat contains a lease component,theCompany allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.
Notes to the financial statements (continued)
For the year ended 31 December 2020
For contracts entered into before,theCompanydeterminedwhetherthearrangement was orcontained a lease based on the assessment of whether: • fulfilment of the arrangement was dependent on the use of a specific asset or assets; and • thearrangement had conveyed a right to use the asset. An arrangementconveyedtheright to use the asset if one of the following was met: TheCompanyrecognises a right-of-use assetand a lease liability at the lease commencementdate.Theright-ofuseasset isinitially measured atcost, whichcomprisesthe initial amountofthe lease liability adjustedfor any lease payments made at or before the commencement date and plus any initial direct costs incurred. Theright-of-use asset is subsequentlydepreciatedusingthe straight-line method from thecommencement date to the earlier oftheendoftheuseful life oftheright-of-use asset ortheendofthe lease term. The estimated useful lives ofright-of-use assetsare determinedonthe samebasisas thoseofproperty and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any,and adjustedfor certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencementdate,discountedusingtheinterest rate implicitin the lease or, if that rate cannotbe readily determined, and the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.
- thepurchaser had the ability orright to operatethe asset while obtainingorcontrollingmore thanan insignificant amount of the output; - thepurchaser had the ability orright to control physicalaccess to the asset while obtainingorcontrolling more than an insignificant amount of the output; or - factsandcircumstances indicated that it was remote that otherpartieswould take more thanan insignificant amountoftheoutput, and the price perunit was neither fixed perunitofoutputnorequal to thecurrent market price per unit of output.
As a lessee
Lease payments included in the measurement of the lease liability comprise the following: • fixed payments, including in-substance fixed payments; • variablelease payments that dependon an indexor a rate, initially measuredusingtheindexor rate asat the commencement date; and • lease payments in an optionalrenewalperiod if theCompany is reasonably certain to exercisean extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero. The Company presents right-of-use assets and lease liabilities separately in the statement of financial position.
Finance income
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method. Finance cost on loans and borrowings is recognised in profit or loss using the effective interest method.
Notes to the financial statements (continued)
For the year ended 31 December 2020
Tax expensecomprisescurrent and deferred tax. Current taxand deferred tax is recognised in profitor loss except to the extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax is theexpected taxpayable or receivable onthe taxable incomeor loss forthe year, using tax rates enactedor substantively enacted at thereportingdate, andany adjustment to taxpayable in respectofprevious years. Current tax payable also includes any tax liability arising from the declaration of dividends.
Deferred tax is recognised in respectoftemporarydifferencesbetweenthe carrying amountsof assetsand liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognisedfortemporarydifferencesonthe initial recognitionof assets or liabilitiesin a transactionandthat affects neither accounting nor taxable profit or loss.
Themeasurementofdeferred tax reflects the tax consequences that could follow themanner in whichthe Company expects,at theendofthereportingperiod, to recoveror settle the carrying amountof its assetsand liabilities.
Current tax
Deferred tax
Deferred tax is measured at the tax rates thatare expected to beapplied to temporarydifferenceswhenthey reverse, using tax rates enacted or substantively enacted by the reporting date.
Deferred taxassetsand liabilities are offset if there is a legally enforceableright to offsetcurrent tax liabilities and assets,and they relateto income taxes levied bythe sametax authorityonthe sametaxable entity,orondifferent tax entities,buttheyintend tosettle current tax liabilities andassets on a net basis ortheir taxassetsand liabilities will be realised simultaneously.
A deferred taxasset is recognisedforunused taxlosses,tax credits and deductibletemporarydifferences, to the extent that itis probable that future taxable profits will be availableagainst whichthey can be utilised. Deferred tax assetsare reviewed ateach reporting dateandare reduced to theextent that itis nolongerprobable that the related tax benefit will be realised.
TheIncome TaxAssessmentAct 1997(amended)provides that undertheconceptof mutuality, clubs are only liable for income tax on income derived from non-members and from outside entities.
(m) Goods and services tax
Revenue,expenses andassetsare recognisednetoftheamountofgoods andservicestax (GST), exceptwhere theamountof GST incurred is notrecoverable 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 andpayablesarestated with theamountof GST included.Thenetamountof GST recoverable from, or payable to the AustralianTaxation Office (ATO) is included as a current asset or liabilityin thestatementof financial position.
Cash flows are included in thestatementof cash flowson a gross basis. The GST componentsof cash flows arising from investing and financing activities which are recoverable from, or payable to,the ATO areclassifiedas operating cash flows.
Notes to the financial statements (continued)
For the year ended 31 December 2020
Whenmeasuring fairvalue of anasset or liability, theCompanyusesobservable marketdataasfaras possible. Fairvaluesare categories into different levelsin a fairvalue hierarchy based ontheinputsused in the valuation techniques as follows:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities • Level2:inputsother than quotedpricesincluded in Level 1 thatare observableforthe 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)
The fairvalueassessment ofthefreehold landand buildings wascarried out asat 31December2020byGlobal Valuations Services Pty Limited (Certified practicingvaluer no.67391).TheCompany has elected to revalue only the land component associated with theresidentialproperties, andhas recognisedbuildingsunderresidential properties (buildings) category on a cost model, refer to note 2(e) and 3(b).
Thefollowing table details the assets which are measured anddisclosedatfairvalue categorisedunderthethree level hierarchy.
Assets Residential property - Land Measured at fair value Level 1 Level 2 Level 3
31,035,000 31,035,000
Notes to the financial statements (continued)
For the year ended 31 December 2020
Profit from operations
In AUD
Revenue from continuing activities
Revenue from rendering services Revenue from catering and beverage outlet sales Membership subscriptions Commissions Entertainment and promotion Property rentals Other revenue
Total revenue from operations
Loss from disposal and write-off of non current asset
Loss from disposal of property, plant and equipment Write-off of capital work in progress
Other income
JobKeeper income
Personnel expenses
In AUD Wages and salaries Payroll tax Workers compensation Contributions to defined contribution plans Other associated employee expenses
Finance income and finance costs
In AUD Interest income Finance income
Interest expense Change in Financial assets at fair value through profit or loss Finance costs
2020 2019
46,756,549 52,040,586 7,987,443 14,949,051 221,383 214,502 432,312 497,197 178,836 848,102 902,662 998,462 33,931 166,028 56,513,116 69,713,928
(796) (281,428) - (1,021,569) (796) (1,302,997)
3,924,000 3,924,000
2020 2019
13,113,156 16,578,444 587,533 932,088 294,464 514,151 984,905 1,605,236 376,874 674,072 15,356,932 20,303,991
2020 2019
19,118 46,142 19,118 46,142
3,313,606 1,902,259 291,645 1,945,724 3,605,251 3,847,983
Notes to the financial statements (continued)
For the year ended 31 December 2020
7 Tax expense
In AUD
Current tax expense
Movement in deferred tax asset Current tax liability/(asset) Income tax expense/(benefits)
2020 2019
225,547 (114,510) 34,400 (84,229) 259,947 (198,739)
Numerical reconciliation between tax expense and pre-tax accounting profit
TheIncome Tax Assessment Act 1997(amended)providesthatundertheconceptofmutuality,registeredclubs are only liable for income tax on income derived from non-members and from outside entities. Theamount setaside forincome tax inthestatementofprofitorloss and othercomprehensiveincome has been calculated as follows:
In AUD
2020 2019
Profit/(Loss) from operations Income tax expense calculated at 30% Effect of revenue that is exempt from taxation Effect of expenses that are not deductible in determining taxable profit Adjustment relating to non-assessable income and non-deductible expenses Utilisation of prior period losses Under/(over) provided in prior years
Income tax (benefit)/expense recognised in profit or loss
6,032,209 (1,891,090) 1,809,663 (567,327) (14,138,007) (17,466,946) 12,184,955 17,985,325 689,710 (65,562) (150,230) - (136,144) (84,229) 259,947 (198,739)
Cash and cash equivalents
In AUD
Cash at bank Cash at call Cash floats Cash and cash equivalents
Trade and other receivables
In AUD
Trade receivables Other receivable
10 Inventories
In AUD
Finished goods - at cost
11 Investments
In AUD
Shares in listed companies
2020 2019
1,576,567 1,223,078 11,327,477 808,108 4,587,316 4,287,945 17,491,360 6,319,131
2020 2019
85,467 146,682 - 420,430 85,467 567,112
2020 2019
198,066 304,816 198,066 304,816
2020 2019
14,822 19,439 14,822 19,439
Notes to the financial statements (continued)
For the year ended 31 December 2020
12 Other assets
In AUD
Current
Prepayments
13 Intangible assets
In AUD
2020 2019
572,718 698,073 572,718 698,073
2020 2019
Balance at the beginning of the year Balance at the end of the year 1,790,717 1,790,717 1,790,717 1,790,717
Poker machineentitlements are stated atcost lessaccumulatedimpairment losses.Poker machineentitlements havean indefiniteusefullifegiventhey have noexpirydate, and accordingly are notamortisedbut are tobe assessed annually for impairment.
14 Trade and other payables
In AUD
Current
Trade payables GST payable Other payables Accruals Income tax payable Members' subscriptions in advance
Non-Current
Members' subscriptions in advance
15 Employee benefits
In AUD
Current
Liability for annual leave Liability for long service leave
Non-current
Liability for long service leave
16 Borrowings
In AUD
Current
Bills payable Derivative liability Equipment loan
2020 2019
5,144,637 4,566,053 422,497 29,201 715,848 510,920 2,338,469 2,388,028 34,400 160,222 164,217 8,816,073 7,658,419
143,826 160,673 143,826 160,673
2020 2019
1,094,968 1,070,783 652,893 682,884 1,747,861 1,753,667
164,163 174,073 164,163 174,073
2020 2019
5,340,000 2,670,000 1,041,612 861,694 903,740 1,061,585 7,285,352 4,593,279
Notes to the financial statements (continued)
For the year ended 31 December 2020
16 Borrowing (continued)
In AUD
2020 2019
Non-Current
Bills payable Derivative liability Equipment loan 82,862,280 77,898,090 1,908,905 1,797,177 660,032 1,255,232 85,431,217 80,950,499
17 Borrowing Facilities
In AUD
The club has access to the following lines of credit:
Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility
Facilities utilised at balance date
Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility Standby letter of credit or guarantee facility Overdraft facility
Facilities not utilised at balance date
Market rate loan Business cards Financial guarantee Finance lease and equipment Electronic payaway facility
2020 2019
88,203,000 89,298,000 50,000 50,000 700,000 700,000 2,598,000 2,902,000 3,000,000 3,000,000 94,551,000 95,950,000
88,202,280 80,568,090 6,474 5,733 608,938 444,750 1,563,773 2,316,817 - -
- - 90,381,465 83,335,390
720 8,729,910 43,526 44,267 91,062 255,250 1,034,227 613,255 3,000,000 3,000,000 4,169,535 12,642,682
Thebankoverdraftfacility,thebankloans andlease liabilities are securedbyacombinationofaregisteredfirst mortgageovertheclubpremises at SmithStreetWentworthville and specificfreeholdproperty and aregistered first equitable mortgage over the club's entire assets and undertakings including uncalled capital.
Security consists of: Registered first mortgage by Wentworthville Leagues Club Limited over club premises situated at Wentworthville Leagues Club, Smith Street, Wentworthville, NSW, 2145.
AfirstregisteredequitablemortgagebyWentworthvilleLeaguesClubLimitedoverthewholeofits assetsand undertakingsincludinguncalledcapital.RegisteredfirstmortgagebyWentworthvilleLeaguesClubLimitedover 40 properties situated in Wentworthville.
Wentworthville Leagues Club Limited Notes to the financial statements (continued)
For the year ended 31 December 2020
18 Property, plant and equipment
In AUD
Cost
Balance at 1 January 2020 Restated* Additions Disposals Transfers Reversal of previously recognised impairment loss Revaluation Balance at 31 December 2020
Freehold land & buildings (Club premises and residential buildings) Residential properties - land
Leasehold improvements Plant and equipment Furniture, fixtures and fittings
Office machines Motor vehicles Right of use asset Capital work in progress Total
137,322,719 14,605,437 2,572,871 38,689,291 16,354,266 2,051,393 117,652 - 23,707,876 235,421,505
453,708 - - - 1,284,885 48,271 108,647 - 1,253,405 11,076,742 14,225,658 - (1,197,914) (872) - - - (1,198,786)
29,792,913
- - 3,071,163 1,803,872 14,267 - - (34,682,215) - 546,304 - 546,304
- 15,883,259 - - - - - - - 15,883,259 167,569,340 31,035,000 2,572,871 41,847,425 18,205,537 2,174,307 117,652 1,253,405 102,403 264,877,940
Depreciation
Balance at 1 January 2020 Restated* Depreciation for the year Disposals Balance at 31 December 2020
Carrying amounts
At 1 January 2020 At 31 December 2020 14,743,207 - 838,329 18,487,501 6,394,636 1,244,553 37,999 - - 41,746,225
3,432,937 - 138,202 4,551,748 1,130,723 345,676 14,724 12,410
- 9,626,420 - (1,121,303) (46) - - - - (1,121,349)
18,176,144 - 976,531 21,917,946 7,525,313 1,590,229 52,723 12,410 - 50,251,296
122,579,512 14,605,437 1,734,542 20,201,790 9,959,630 806,840 79,653 - 23,707,876 193,675,280 149,393,196 31,035,000 1,596,340 19,929,479 10,680,224 584,078 64,929 1,240,995 102,403 214,626,644
*For details of the restatement, refer to Note 26.
2 O 1 3
Notes to the financial statements (continued)
For the year ended 31 December 2020
19 Provisions
In AUD
Current
Linked poker machine jackpot Provision for mortality commitment Provision for player bonus points
Non-Current
Provision for mortality commitments
2020 2019
263,471 286,641 18,668 12,516 292,472 235,390 574,611 534,547
207,520 212,365 207,520 212,365
Linked poker machine jackpot
Poker machinelinkjackpotsisthecurrent balance of available jackpotsthataccumulatefromturnoverplayon pokermachines.Thesejackpots are returnedtoplayersbyachievingtherequiredcombinationforthelink jackpot on the machine being played.
Members who joinedtheclubbetween1970 and 1989 mayhave beeneligibleforamortalitypayment. No external fund exists and all commitments are met out of current cash flow.
Balance as at 31 December 2020
Amounts recognised in profit or loss
Amount recognised in statement of cash flows
Member mortality commitment
Thepresent value ofthemortalitycommitmentreflectsmanagementsestimates based uponsimilar lapse rates and discount rates to prior year Actuarial valuations.
Rewards bonus points
Thebestestimateofthecommitmenttomembersinrelationtounredeemedbonuspointsis$292,472(2019: $235,390). Earning rates, lapse rates and terms and conditions shall impact on future estimates.
20 Leases
The Company holds a lease with Cumberland Council for the use of the Ringrose Oval adjacent to the property.
(i) Right of use asset
Balance as at 1 January 2020
Additions
Depreciation expense - 1,253,405 (12,410) 1,240,995
(ii)
Depreciation expense Interest expense
(iii)
Total cash outflows
(iv) Lease liability
Current lease liability
Non-current lease liability 12,410 1,015 13,425
63,610
53,328 1,137,483 1,190,811
Notes to the financial statements (continued)
For the year ended 31 December 2020
21 Related party transactions
Thedirectorsoftheclub may fromtimetotimeholdadirector'srole, have membership,lifemembershiporbe thepatronofthevarioussport and recreationalclubs and footballclubsthat are governed and controlledbythe
Leagues Club constitution.
ADirectoroftheCompanyistheprincipalofabusinessthat has acontractfortheprovisionofrentalmanagement oftheresidentialpropertyportfolio.Thecontractisoncommercialterms.Therentalmanagementfeespaidinthe 2020 year were $51,472 (2019: $44,707).
A Director of the Companyis the principal ofa businessappointed fromtime totime toperform contract electrical work. Such appointments are made through a commercial tender process coordinated by Project Management and Building Contractors engaged by the Club.
One Director of the Company during the year 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 year and there were no contracts involving Directors interests at year end.
Key management personnel compensation
The aggregate compensation made to directors and other members of key management personnel of the company is set out below:
In AUD
2020 2019
Short term employee benefits Post employment benefits 1,222,262 1,133,208 100,695 107,655 1,322,957 1,240,863
22 Financial reporting period
TheCompany hasalways useda52week cycle foritsreporting.Themonthlyreporting cycle isgroupedby weeks and followsa5,4,4 cycle resultinginuniforms days intherelativemonths across consecutive years withthe exceptionofDecember.Consequently,the close off day forannualreportingpurposeschangesevery year bya dayandtwodays everyleap year. The actual monthenddatefor2020is29December2020 and the2019 actual close date was 31 December 2019.
Notes to the financial statements (continued)
For the year ended 31 December 2020
23 Core properties
Pursuant to Section 41J of the Registered Club Amendments Act 2006, the club categorises property as follows
2020 2019
Core property
Core properties held by the Club are: 50 Smith Street, Wentworthville NSW 2145 2 Dawes Street, Wentworthville NSW 2145 3 Dawes Street, Wentworthville NSW 2145 4 Dawes Street, Wentworthville NSW 2145 5 Dawes Street, Wentworthville NSW 2145 6 Dawes Street, Wentworthville NSW 2145 7 Dawes Street, Wentworthville NSW 2145 8 Dawes Street, Wentworthville NSW 2145 9 Dawes Street, Wentworthville NSW 2145 10 Dawes Street, Wentworthville NSW 2145 11 Dawes Street, Wentworthville NSW 2145 12 Dawes Street, Wentworthville NSW 2145 13 Dawes Street, Wentworthville NSW 2145 14 Dawes Street, Wentworthville NSW 2145 15 Dawes Street, Wentworthville NSW 2145 16 Dawes Street, Wentworthville NSW 2145 17 Dawes Street, Wentworthville NSW 2145 19 Dawes Street, Wentworthville NSW 2145 432 Great Western Hwy, Wentworthville NSW 2145 430b Great Western Hwy, Wentworthville NSW 2145 3 Jewelsford Street, Wentworthville NSW 2145 5 Jewelsford Street, Wentworthville NSW 2145 7 Jewelsford Street, Wentworthville NSW 2145 9 Jewelsford Street, Wentworthville NSW 2145 11 Jewelsford Street, Wentworthville NSW 2145 13 Jewelsford Street, Wentworthville NSW 2145 15 Jewelsford Street, Wentworthville NSW 2145 17 Jewelsford Street, Wentworthville NSW 2145 19 Jewelsford Street, Wentworthville NSW 2145 21 Jewelsford Street, Wentworthville NSW 2145 27 Jewelsford Street, Wentworthville NSW 2145 31 Jewelsford Street, Wentworthville NSW 2145 51 Smith Street, Wentworthville NSW 2145 68 Smith Street, Wentworthville NSW 2145 70 Smith Street, Wentworthville NSW 2145 72 Smith Street, Wentworthville NSW 2145 74 Smith Street, Wentworthville NSW 2145 76 Smith Street, Wentworthville NSW 2145 78 Smith Street, Wentworthville NSW 2145 80 Smith Street, Wentworthville NSW 2145 185,180,000 167,840,000 185,180,000 167,840,000
Notes to the financial statements (continued)
For the year ended 31 December 2020
24 Commitments
In AUD
Capital works
Capital works contracted for but not yet completed
2020 2019
- 11,167,491 - 11,167,491
25 Contingent assets and contingent liabilities
Thedirectors are oftheopinionthatprovisions are notrequiredinrespectofthesematters, as itisnotprobable that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.
In AUD Guarantees
2020 2019
Bank guarantees
TheCompanyislimitedbyguarantee. If theCompanyiswoundup,Rule23oftheConstitutionstatesthat each member at thattime,orwithinone year afterwardsisrequiredtocontributeamaximumof$1 each towards meeting any outstandingobligationsofthecompany.At31December2020thenumberofmemberswere65,651 (2019: 69,383). 608,938 444,750
26 Restatement
In these financial statements the Company has restated previously reported balances in respect of the period ended 31 December 2019 to give recognition to: - Correction of the classification of residential properties currently recorded in Property, Plant and Equipment which were previously classified under Investment Property
This has resulted in a restatement to the Property, Plant and Equipment and Investment Property balances within the statement of financial position. There was no impact on the statement of profit or loss and other comprehensive income as a result of this restatement. The following summarises the financial statement captions and notes affected by the restatement:
31 December 2019
In AUD
Property, plant and equipment Investment property
Non-current assets
Previously reported 2019 Adjustment 2019 Restated
177,930,823 15,744,458 193,675,281 15,744,458 (15,744,458) -
193,675,281 - 193,675,281
27 Members guarantee
28 Coronavirus Covid-19
ThecoronavirusCovid-19 hashadan impactontheCompany'soperations and activitiesduringthe year, however isnotexpectedtomateriallyaffecttheoperationsoftheCompany. It isnotpossibletoaccuratelydeterminethe natureorextentoftheimpactsorthetimeover which theCompanywillbeimpacted,howeveritispossiblethat itcouldbematerialtotheCompany as theeffects and consequences are outsidetheCompany’scontrol andare far reachinginAustralia and globally. Based onthecurrent available information,theDirectorsbelievethatthe
Company will remain a going concern.
29 Events subsequent to reporting date
There have been no other eventssubsequent to reporting date which would have a material effect on the
Company’s financial statements at 31 December 2020.
Wenty Leagues in Partnership with the Community
Wenty Leagues has a proud record of supporting welfare, charitable and sporting organisations within our community.
The following were the beneficiaries of financial and in-kind support in 2020:
• Youth Off The Streets
• Vision Australia
• The Shepherd Centre for Deaf Children
• Learning Links
• Hilltop Road School Parents & Citizens Association
• The Humour Foundation
• Miracle Babies Foundation Ltd
• Careflight Limited
• Parramatta Mission
• Cumberland Council
• Mitchell District Bowling Association
• Westmead Public School
• Camden Rams Old Boys
• Our Lady of Mt Carmel Primary Association Parents and Friends Association • Ringrose Public School
• Anzac Schools Initiative
• Girraween Public School
• Cassia Community Centre - Pendle Hill
• Blues Wheelchair Basketball Club
• Spinal Muscular Atrophy
• Our Lady Queen of Peace Primary
• Scouts Australia-Greater Western Sydney Region
• Cumberland Council
• Kids Safe NSW
• Parramatta Chamber of Commerce
• Ronald McDonald House Charities,
Greater Western Sydney
