Financial Report Yr Ending 3.. - SHARKIES | Cronulla Sutherland ...

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FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CORPORATE INFORMATION These general purpose financial statements of Cronulla-Sutherland Leagues Club Limited for the year ended 31 October 2011 were authorised for issue in accordance with a resolution of the directors on 31st July 2012 and covers Cronulla-Sutherland Leagues Club Limited as an individual entity as well as the consolidated entity (Group) consisting of Cronulla-Sutherland Leagues Club Limited and its controlled entity, Cronulla-Sutherland District Rugby League Football Club Limited, as required by the Corporations Act 2001. The financial report is presented in the Australian currency. Cronulla-Sutherland Leagues Club Limited and its controlled entity Cronulla-Sutherland District Rugby League Football Club Limited are companies limited by guarantee. The address of the registered office and principal place of business is 461 Captain Cook Drive, Woolooware. NSW 2230 The following is a summary of the material accounting policies adopted by the company in the preparation of the financial statements. In preparing the financial statements the consolidated entity have taken the exemptions available to non-profit entity. (a) Basis of Preparation The general purpose financial statements have been prepared in accordance with Australian Accounting Standards - Reduced Disclosure Requirements, other authoritive pronouncements of the Australian Accounting Standards Board and Corporations Act 2001. The Company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (‘AASB’) that are made mandatory for the current reporting period. The Company has early adopted AASB 1053 ‘Application of Tiers of Australian Accounting Standards’ and AASB 2010-02 ‘Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements’. No other new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have been early adopted. Any significant impact on the accounting policies of the company from the adoption of these Accounting Standards and Interpretations are disclosed in the relevant accounting policy. The adoption of these Accounting Standards and Interpretations did not have any impact on the financial performance or position of the company. The following Accounting Standards and Interpretations are most relevant to the company. AASB 1053 Application of Tiers of Australian Accounting Standards The Company has early adopted AASB 1053 from 1 November 2009. This standard establishes a differential financial reporting framework consisting of two Tiers of reporting requirements for preparing general purpose financial statements, being Tier 1 Australian Accounting Standards and Tier 2 Australian Accounting Standards - Reduced Disclosure Requirements. The company being classed as Tier 2 continues to apply the full recognition and measurement requirements of Australian Accounting Standards with substantially reduced disclosure in accordance with AASB 2010-02. AASB 2010-2 Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements The Company has early adopted AASB 2010-2 from 1 November 2009. These amendments make numerous modifications to a range of Australian Accounting Standards and Interpretations, to introduce reduced disclosure requirements to the pronouncements for application by certain types of entity in preparing general purpose financial statements. The adoption of these amendments has significantly reduced the company’s disclosure requirements. The Directors have determined the company is not for profit for the purposes of reporting and these financial standards do not comply with International Financial Reporting Standards as issued by the International Accounting Standards Board. The financial report has been prepared on the historical cost basis. (b) Basis of Consolidation Controlled Entities The consolidated financial statements comprise the financial statements of Cronulla-Sutherland Leagues Club Limited and its controlled entity Cronulla-Sutherland District Rugby League Football Club Limited at 31 October each year (“the Group”). A controlled entity is an entity controlled by the Leagues Club. Control exists where the Leagues Club has the capacity to dominate the decision making in relation to financial and operational policies of the entity so that the entity operates with the Leagues Club to achieve the objectives of the Leagues Club. All intercompany balances and transactions, including unrealised profits arising from intragroup transactions have been eliminated. 10 CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826
FINANCIAL REPORT FOR THE YEAR ENDED 31ST OCTOBER 2011 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2011 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (c) Revenue Recognition Revenue is recognised at the fair value of consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances and duties and taxes paid. The following specific recognition criteria must also be met before revenue is recognised: Sale of Goods Revenue from gaming, entertainment, beverages, sponsorship and football games together with other services to members and their guests is recognised when the significant risks and rewards of ownership have passed to the buyer and can be reliably measured. Risks and rewards are considered passed to the buyer when goods have been delivered to the customer. Rendering of Services Membership and Sponsorship Revenue Revenue from gaming, advertising and football games together with other services to members and other patrons, along with sponsorship income are recognised when services are provided. Interest Revenue Revenue is recognised as interest accrues taking into account the effective yield on the financial asset. Rental Income Rental Income is accounted for on a straight line basis over the term of the lease. (d) Income Tax The income tax expense for the period is the tax payable on the current period’s taxable income based on the notional income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax base of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. The consolidated entity adopts the above detailed policy however, Cronulla-Sutherland District Rugby League Football Club Limited (the “Football Club”) is exempt from income tax pursuant to Section 45-50 of the Income Tax Assessment Act (1997). Deferred tax assets and liabilities are recognised for all temporary differences, between carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases, at the tax rates expected to apply when the assets are recovered or liabilities settled, based on those tax rates which are enacted or substantively enacted for each jurisdiction. Exceptions are made for certain temporary differences arising on initial recognition of an asset or a liability if they arose in a transaction, other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable profit. Deferred tax assets are only recognised for deductible temporary differences and unused tax losses if it is probable that future taxable amounts will be available to utilise those temporary differences and losses. (e) Impairment of Assets At each reporting date the Group assesses whether there is any indication that individual assets are impaired. Where impairment indicators exist, recoverable amount is determined and impairment losses are recognised in the profit or loss where the asset’s carrying value exceeds its recoverable amount. Recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. As the future economic benefits of all of the Leagues Club’s assets (other than poker machines and related equipment) are not primarily dependent upon their ability to operate net cash inflows and if deprived of the asset, the Club would replace the asset’s remaining future economic benefits, “value in use” is determined as the depreciated replacement cost of the asset, rather than by using discounted cashflows. For the purpose of assessing value in use for cash generating assets, the estimated future cashflows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. (f) Cash and Cash Equivalents Cash and cash equivalents includes cash on hand and at bank, deposits held at call with financial institutions, other short term, highly liquid investments with maturities of three months or less, that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value and bank overdrafts. (g) Trade and Other Receivables Trade receivables are recognised at original invoice amounts less an allowance for uncollectible amounts and have repayment terms between 30 and 60 days. Collectability of trade receivables is assessed on an ongoing basis. Debts which are known to be uncollectible are written off. An allowance is made for doubtful debts where there is objective evidence that the Group will not be able to collect all amounts due according to the original terms. Objective evidence of impairment includes financial difficulties of the debtor, default payments or debts greater than 60 days. On confirmation that the trade receivables will not be collectible the gross carrying value of the asset is written off against the associated provision. CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826 11
Page 1 and 2: 2011 ANNUAL REPORT
Page 3 and 4: CHAIRMAN’S REPORT CONTINUED Footb
Page 5 and 6: FINANCIAL STATEMENTS FOR THE YEAR E
Page 7 and 8: FINANCIAL REPORT FOR THE YEAR ENDED
Page 9 and 10: NOTES TO THE FINANCIAL STATEMENTS F
Page 13: FINANCIAL REPORT FOR THE YEAR ENDED
Page 37 and 38: NOTES TO THE FINANCIAL STATEMENTS F
Page 39 and 40: PROPOSED PROPERTY DEVELOPMENT VIEW

Financial Report Yr Ending 3.. - SHARKIES | Cronulla Sutherland ...

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