2011 Annual Report - Cronulla Golf Club

1 Statement of Significant Accounting Policies
NOTEs TO THE FINANCIAL sTATEMENTs
FOR THE YEAR ENDED 30 JUNE 2011
The financial statements cover Cronulla Golf Club Limited as an individual entity. Cronulla Golf Club Limited is a
company limited by guarantee, incorporated and domiciled in Australia.
Basis of Preparation
These general purpose financial statements have been prepared in accordance with Australian Accounting
Standards – Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting
Standards Board, Australian Accounting Interpretations and the Corporations Act 2001.
In preparing the financial report the company has taken the exemptions available to non profit entities.
Compliance with Australian Accounting Standards – Reduced Disclosure Requirements
The financial statements of the Cronulla Golf Club Limited comply with Australian Accounting Standards –
Reduced Disclosure Requirements as issued by the Australian Accounting Standards Board (AASB).
Historical Cost Convention
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.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year.
Inventories
Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-in first-out
basis.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation.
Property
The carrying amount of property is reviewed annually by directors to ensure it is not in excess of the recoverable
amount from those assets. The recoverable amount is assessed on the basis of expected net cash flows which will
be received from the assets employment and subsequent disposal.
In accordance with AASB 116, land and buildings of the club have been valued at cost.
Change in accounting policy
In previous years, expenditure incurred by the club in relation to the course masterplan upgrade which commenced
in 2008 was capitalised and amortised over 20 years in 2008 & 2009, and changed to 50 years in 2010.
As the masterplan upgrade has now been completed, the current board have decided to write off the unamortised
balance of the work (amounting to $2,022,191) in the current (2011) financial year.
Under accounting standard AASB 116 either the capitalisation and amortisation of the masterplan upgrade over
its useful life (as adopted by the previous board) or the immediate write off of the expenditure is allowable. The
current board believe that the immediate write off of the expenditure is more relevant in relation to the golf club.
Plant and Equipment
Plant and equipment is measured on the cost basis.
The carrying amount of plant and equipment is reviewed annually by the directors to ensure it is not in excess of
the recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected net
cash flows which will be received from the assets’ employment and subsequent disposal. The expected net cash
flows have not been discounted to present values in determining the recoverable amount.
CRONULLA GOLF CLUB LIMITED ABN 41 000 059 478 | 25