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

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)
(n) Employee Benefit
Wages and Salaries, Annual Leave and Sick leave
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be
settled within 12 months of reporting date are recognised in respect of services provided by employees to the reporting date and
measured at amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised
when leave is taken and measured at the actual rates paid or payable.
Retirement Benefit Obligations
The group has several defined contribution superannuation funds. Contributions are recognised as expenses as they become
payable. The company has no legal or constructive obligation to fund any deficit.
Long Service Leave
Liabilities for long service leave are recognised as part of the provision for employee benefits and measured as the present value
of expected future payments to be made in respect of services provided by employees to the reporting date. Consideration is given
to expected future salaries and wages levels, experience of employee departures and periods of service. Expected future payments
are discounted using national government bond rates at reporting date with terms to maturity and currency that match, as closely
as possible, the estimated future cash outflows.
(o) Lucky Members Draw and Reward Dollars
Liabilities for lucky members draw and reward dollars are recognised as a provision at the present value. These provisions are
recognised as expenses as they become payable.
(p) GST
Revenues and expenses are recognised net of GST except where GST incurred on a purchase of goods and services is not
recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or payables in the statement of financial position.
Cashflows are included in the statement of cashflows on a gross basis and the GST component of cashflows arising from investing
and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cashflows.
(q) Going Concern
The financial report has been prepared on a going concern basis which assumes continuity of normal business activities and
realisation of assets and settlement of liabilities in the ordinary course of business.
At year end the company’s current liabilities exceeded its current assets by $12,979,352 and the consolidated entity’s current
liabilities exceed its current assets by $14,043,299. During the year ended 31 October 2011 the company incurred an operating
loss of $1,883,851 and the consolidated entity incurred an operating loss of $2,008,051.
The consolidated entity has incurred significant losses over recent years which have been funded by additional bank borrowings and
from working capital sources. As a result of the continuing losses, the consolidated entity since the last report has either drawn
down and/or regularly used the full extent of its agreed bank facilities.
This Club and the Football Club have entered into a Multi-Party Deed and Forbearance Deed with St George regarding the finance
facilities provided to the Clubs. These facilities provide for repayment of the refinanced amounts by the date being 3 months after
the Part 3A approvals have been granted by the Part 3A authorities as detailed below and in Notes 17 and 19. Should a Part 3A
approval not occur before 31 Aug 2012, the full finance facilities would expire on that date and become payable or be subject to
renegotiation.
During the year ended 31 October 2011 the Football Club incurred an loss of $124,200 (2010 $1,293,641 loss). In 2011 the
Leagues Club grant to the Football Club was $1,600,000 (2010 $250,000). At 31 October 2011, the Football Club’s current
liabilities exceeded its current assets by $1,063,947 (2010 $1,374,729).
The Leagues Club has provided the Football Club a letter of support indicating, subject to securing an ongoing Finance Facility
beyond 31 August 2012,that it will continue to provide financial support to the Football Club to enable it to continue as a Going
Concern, for at least twelve months from the date of signing of this Financial Report.
As indicated in Note 19, the Club is awaiting the Planning Assessment Commission’s determination of the development Concept
Plan for the Club’s site at Woolooware following the release in June 2012 of the Department of Planning and Infrastructure’s report
recommending that the Planning Assessment Commission approve the Concept Plan.
CRONULLA-SUTHERLAND LEAGUES CLUB LIMITED & CONTROLLED ENTITY ABN 54 000 202 826
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