ANNUAL REPORT 2010 sub-Branch - Blacktown RSL

ANNUAL REPORT 2010Notes to the Financial StatementsConcise Financial ReportFor the Year Ended 30 June 20101 Basis of Preparation of the Concise Financial ReportThe concise financial report is an extract for the full financial report for the year ended 30 June 2010.The concise financial report has been prepared in accordance with Accounting Standard AASB 1039:Concise Financial Reports and the Corporations Act 2001.The financial statements, specific disclosures and other information included in the concise financialreport are derived from and are consistent with the full financial report of City of Blacktown RSL ClubLimited. The concise financial report cannot be expected to provide as detailed an understanding ofthe financial performance, financial position and financing and investing activities of City of BlacktownRSL Club Limited as the full financial report.The financial report of City of Blacktown RSL Club Limited complies with Australian AccountingStandards - Reduced Disclosure Requirements. The presentation currency used in this concisefinancial report is Australian Dollars.2010 2009$ $2 Retained ProfitsRetained profits at the beginning of the year 13,944,885 12,838,666Net profit attributable to members of the company 1,005,156__________________1,106,219__________________Retained profits at the end of the year 14,950,041 13,944,885____________________________________3 Events Subsequent to Reporting DateThere are no matters or circumstances that have arisen since the end of the financial year that havesignificantly affected or may significantly affect the operations of the company, the results of thoseoperations or the state of affairs of the company in future financial years.4 Mutuality PrincipleThe company calculates its income in accordance with the mutuality principle which excludes fromincome, any amounts of subscriptions and contributions from members, and payments received frommembers for particular services provided by the club or association, eg. poker machines, bar anddining room service in the case of social clubs. The Commissioner of Taxation accepts this method ofcalculating income as appropriate for recognised clubs and associations.Following the Full Federal Court decision in Coleambally Irrigation Mutual Co-operative Limited v FCT[2004] FCAFC 250, Tax Laws Amendment (2005 Measures No. 6) Bill 2005 was tabled in Parliamenton 7 December 2005 to amend the Income Tax Assessment Act 1997 to restore the long standingbenefits of the mutuality principle to those non-profit organisations affected by the Coleamballydecision.These amendments will ensure social clubs continue not to be taxed on receipts from contributionsand payments received from members.Directors’ DeclarationThe directors of City of Blacktown RSL Club Limited (the company) declare that the concise financialreport of the company for the financial year ended 30 June 2010, as set out on pages 18 to 23:(a) complies with Accounting Standard AASB 1039: Concise Financial Reports; and(b) is an extract from the full financial report for the year ended 30 June 2010 and has been derived fromand is consistent with the full financial report of the company.This declaration is made in accordance with a resolution of the Board of Directors.Dated at Blacktown this 13th day of August 2010.B DurbinChairmanBLACKTOWN RSL CLUB LIMITED - where friends love to meet23