WESTERN AUSTRALIAN RUGBY UNION (INC.)
WESTERN AUSTRALIAN RUGBY UNION (INC.) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR 31 DECEMBER 2014 NOTES TO THE FINANCIAL SENDED TATEMENTS FOR THE YEAR WESTERN AUSTRALIAN RUGBY UNION (INC.)
ENDED 31 DECEMBER 2014
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED i3mpact 1 DECEMBER 2014consolidated financial report with regards to the adoption of the new The Association has considered that there is no material on the
ATEMENT OF SIGNIFICANT ACCOUNTING POLICIES and amended Australian Accounting Standards and AASB Intrepretations.
The Association has considered that there is no material impact on the consolidated financial report with regards to the adoption of the new
Basis f nd Preparation and aoa mended Australian a Applicable ccounting Standards and AASB Intrepretations. New amended Australian Accounting Standards and Interpretations that have recently been issued or onsolidated f inancial report iot s ay get eneral purpose financial raeport, wbhich has been prepared accordance with the financial reporting requirements amended b ut a re n e ffective h ave n ot b een dopted y the or itssued he ian reporting period New and amended applicable Australian Accounting Standards and Interpretations that ahssociation ave recently bfeen onnual r Associations I ncorporation A ct o f W estern A ustralia a nd A ustralian A ccounting S tandards a nd o ther a uthorative pronouncements of the Australian amended but are not yet e2 ffective ave a not adopted by tthe he atssociation for the annual reporting period ended 31 December 014 ahnd re boeen utlined in able below. nting Standards other 2014 authorative pronouncements ended 3a 1 nd December and are outlined in the table below. of the Australian Accounting Standards Board. The financial report has also been prepared storical cThe ost bAasis. The financial is presented in Australian dollars. ssociation has not ryeport et completed its assessment of the standards noted but for new and amended Australian Accounting Standards and The Association has not yet completed its assessment of the standards noted but for new and amended Australian Accounting Standards and
Interpretations effective 1 January 015 it is expected there ill be no significant the Association. impact on the Association. Interpretations effective 1 J2anuary 2015 it is ewxpected there wimpact ill be onn o significant Management sociation has a net current liability position of $2,388,253 (2013: $1,364,598) and a net liability position of $2,584,289 Application (2013: $d1,982,088) as date at for ate Application Reference Titledeficit for the year of standard Association ember 2014 and a net of $602,201 (2013: $1,160,490) Summary AASB 9 Financial 2014) is a new Principal standard which replaces AASB 139. This new Principal version 1-‐Jan-‐18 1-‐Jan-‐18 Reference TitleInstruments AASB 9 (December Summary supersedes AASB 9 issued in December 2009 (as amended) and AASB 9 (issued in December 2010) and nsolidated f inancial r eport h as b een p repared o n a g oing c oncern b asis. I n a rriving a t t his p osition t he d irectors h ave h ad r egard t o t he f act that AASB 9 Financial Instruments (December is a new Principal standard which replaces AASB 139. This new Principal version includes a mAASB odel for 9c lassification and 2 m014) easurement, a single, forward-‐looking ‘expected loss’ impairment model and supersedes substantially-‐reformed a pproach t o h edge a ccounting. sociation has, or in the directors’ opinion will haave access to, s ufficient c ash t o f und a dministrative a nd o ther c ommitted e xpenditure f or period AASB 9 issued in December 2009 (as amended) and AASB 9 (issued in December 2a010) and less than 12 months from the date of this report. includes a model for classification and measurement, a single, forward-‐looking ‘expected loss’ impairment AASB 9 is effective for annual periods beginning on or after 1 January 2018. However, the Standard is and a sTubstantially-‐reformed pproach o isolation hedge waithout ccounting. available for model early application. he own credit changes can be a early applied tin otherwise ming this view the directors have taken changing into consideration the following. the accounting for financial instruments.
AASB 9 is 9e ffective faor annual periods beginning othat n owr ill arfter 1 January 2018. However, the Standard is The frinal version o of f A$ASB introduces new expected-‐loss impairment model equire more imely outlay. Excluding the unearned uded within current liabilities is unearned evenue 3,191,020 $2,765,922) wchich dcoes not require aarly ctash or elosses. arly (aS2013: pplication. he So wn redit hanges be feor applied in isolation without otherwise recognition oavailable f expected cfredit pecifically, the nTew tandard requires entities to caan ccount expected nue in a liquidity analysis as at 31 December 2014, has aafre nfet crecognised urrent aasset osition olf ifetime $802,767; credit losses from twhe hen Afinancial instruments irst nd to rp ecognise full expected changing tssociation he accounting or financial instruments. losses on a more timely basis.
oing discussions have been held with the WA government with a view to renegotiating the terms of the loan for the original stadium development Amendments to AfASB 9 v (December & 2010 ditions )(AASB a2 n 013-‐9) in December 2013 included model that will require more timely The inal ersion o2f 009 AASB 9 ientroduces ew e issued xpected-‐loss impairment rying value of $1,126,327 as at 31 December 014); the new h2edge accounting requirements, including changes to hedge effectiveness testing, treatment of recognition o f e xpected c redit l osses. S pecifically, t he n ew S tandard requires entities to account for expected hedging costs, risk components that can be hedged and disclosures. credit losses from when financial instruments are first recognised and to recognise full lifetime expected eement has been made for an interest free short term loan to underpin the 2015 cashflow; losses on a more imely approach basis. for classification and measurement of financial assets AASB 9 includes requirements for a stimpler compared with the requirements of AASB 139.
ificant uplift in the boardcast revenues The in m 2016; andare described below. ain changes Amendments o A ASB 9 (December 2009 &o 2n 010 editions 2013-‐9) issued in December 2013 include a. Financial assets that are dtebt instruments will be classified based (1) the objective )o(AASB f the entity's business model for managing the a financial assets; r(equirements, 2) the characteristics of the contractual cash flows. the n ew h edge ccounting i ncluding c hanges t o h edge effectiveness testing, treatment of mprehensive review of expenditure has been carried out with improvements in efficiency made for 2015. hedging costs, risk components that can be hedged and disclosures. b. Allows an irrevocable election on initial recognition to present gains and losses on investments in
sociations ability to continue as a going concern and that meet ts hdeld ebts and fiuture ommitments as Daividends nd when they of fall due is dependant on a number equity instruments are niot for trading n other ccomprehensive income. in respect AASB that 9 includes requirements simpler pproach or tchere lassification and measurement of financial assets these investments are a return on investment can for be ra ecognised in a profit or loss afnd is no ors, including; impairment ocompared r recycling on w disposal of trhe instrument. ith the equirements of AASB 139. tinued support of the Australian Rugby Union, mThe embers, ponsors and financiers. main cshanges are described below. c. Financial assets can be designated and measured at fair value through profit or loss at initial s Fo inancial ssets that raeduces re debt instruments will be cinconsistency lassified btased recognition ia. f doing eliminates a or significantly a measurement or recognition hat on (1) the objective of the entity's would arise fbusiness rom measuring assets osr ignificant liabilities, or ruecognising the gw ains and losses on them, on different d the Association not achieve the matters set out above tm here is for ncertainty hether he ssociation will continue as a going ccash oncern odel managing the financial assets; (t2) tA he characteristics of the contractual flows. bases. erefore whether it will realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial d. Where the fair value option is used for financial liabilities the change in fair value is to be accounted for . The consolidated financial report does not include any adjustment relating to the recoverability or classification of recorded asset amounts or to as follows: b. Allows sahould n irrevocable election noot n initial recognition to paresent gains and losses on investments in mounts or classification of liabilities that e n ecessary the Association e oather ble to continue s a( OCI) going concern. ► m ight The cb hange attributable to changes in credit presented bin comprehensive income equity instruments that are rnisk ot are held for trading in other comprehensive income. Dividends in respect of these icnvestments that re aor rloss eturn on investment can be recognised in profit or loss and there is no ► The remaining hange is presented in parofit Statement of Compliance or recycling n dthat isposal of the nstrument. AASB 9 also rimpairment emoves the volatility in profit or o loss caused by cihanges in the credit risk of liabilities nancial report complies with Australian Accounting Standards as issued by the wAas ustralian Accounting Standards Board. elected to be measured at fair value. This change in accounting means that gains caused by the deterioration of an entity’s own credit risk on such liabilities are no longer recognised in profit or loss
nges in accounting policy and disclosures
c. Financial assets can be designated and measured at fair value through profit or loss at initial
Consequential amendments iwf ere also m to other standards as a result of ArASB 9, introduced by AASB recognition doing sade o eliminates or significantly educes a measurement or recognition inconsistency that 2009-‐11 and superseded by AASB 2010-‐7, AASB 2010-‐10 and AASB 2014-‐1 – Part E.
would from measuring assets liabilities, or recognising the gains and losses on them, on different counting policies adopted are consistent with those of arise the p revious financial year oer xcept as follows: AASB 2014-‐7 bases. incorporates the consequential amendments arising from the issuance of AASB 9 in Dec 2014. ation of AASB 10 Consolidated Financial Statements. d. Where the fair value option is used for financial liabilities the change in fair value is to be accounted fo
AASB 2014-‐8 limits the application of the existing versions of AASB 9 (AASB 9 (December 2009) and AASB 9 follows: (December 2as 010)) from 1 February 2015 and applies to annual reporting periods beginning on after 1 January tion the Association has adopted all the new and amended Australian Accounting Standards and AASB Interpretations as of 1 January 2013, 2015.
ng
nce 13
► The change attributable to changes in credit risk are presented in other comprehensive income (OCI)
AASB 2014-‐1 Amendments to AASB 2014-‐1 Part A: This standard sets out amendments to Australian Accounting Standards arising from the 1-‐Jul-‐14 1-‐Jan-‐15 Part A-‐ Australian Accounting issuance by the International Accounting Standards Board (IASB) of International Financial Reporting ► A nnual The Improvements remaining cto hange is presented in Apnnual rofit Improvements or loss to IFRSs Annual Standards -‐ Part A Standards (IFRSs) IFRSs 2010–2012 Cycle and Title Summary Improvemen Annual Improvements 2011–2013 Cycle. AASB 9 a lso r emoves t he v olatility i n p rofit o r l oss that hanges in ltiabilities. he credit Arisk of 1l3 iabilities ts 2V010-‐2012 Fair alue to IFRSs 2010-‐2012 AASB 13 establishes a single source of guidance for determining the wfas air cvaused alue obf y acssets and ASB does no WESTERN USTRALIAN UNION (INC.) Cycle Cycle elected to be Am easured RaUGBY t fair value. This change in accounting means that gains caused by the deterioration
Measurement
2011-‐4 Employee Benefits
required to use fair value, but rather, provides guidance on how to determine fair value when fair value is required or p of an entity’s o2010–2012 wn credit risk on FsOR uch liabilities are no longer recognised in profit or loss Annual Improvements o TIFRSs Cycle addresses tThe O FINANCIAL STATEMENTS HE YEAR items: for the relevant assets. Consequential amendments wer definition may rNOTES esult Titn dHE ifferent fair values being dfollowing etermined ► AASB 2 -‐ Clarifies the definition vesting conditions' ENDED o 3f 1 'D ECEMBER 2014 and 'market condition' and introduces the via AASB 2011-‐8. definition of 'performance condition' and 'service condition'. Consequential amendments wfere also made to other tandards as a result of AASB 9, introduced by AASB AASB Clarifies to he or contingent consideration in as b usiness combination There ► w as no 3 i-‐mpact f calassification dopting rtequirements his standard. by removing 2009-‐11 all references to AsASB 137. and uperseded by AASB 2010-‐7, AASB 2010-‐10 and AASB 2014-‐1 – Part E. The revised standard changes the definition of short-‐term employee benefits. The distinction between short-‐term and benefits is now based on whether the benefits are expected to be settled wholly within 12 months after the reporting d 2014 51 AASB 014-‐7 incorporates the consequential arising ANNUAL from the iREPORT ssuance of AASB 9 in Dec 2014. amendments w ere a2lso made to other standards via AASB aRUGBYWA 2mendments 011-‐0.