NEWCASTLE AND COALFIELDS DISTRICTRUGBY LEAGUE CLUB LIMITEDNOTES To AND FORMING PARTOF THE FINANCIAL STATEMENTSAT 31 OCTOBER 1992I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe financial statements have been prepared in accordance with the historical cost convention. Cost in relation toassets represents the cash amount paid or the fair value of the asset given in exchange.The financial statements have been made out in accordance with the requirements of the Corporations Law whichincludes disclosures required by Schedule 5 and applicable Accounting Standards.The accounting policies adopted are consistent with those of the previous year.(a)(b)(c)(d)(e)(I)(g)ACQUISITION OF ASSETSAssets acqUired are brought to account at either the cash amount paid or the amount of the asset given inexchange.DEPRECIATIONDepreciation is prOVided on a s£raight line basis on all tangible fixed assets ;u rates calculated to allocate theircost or valuation less estimated residual value against revenue over their estimated useful lives. M:ljordepreciation periods are 3 to 15 years.INVENTORIESInventories are valued at the lower of cost and net realisable value.EMPLOYEE IlENEFITSCharges have been made against income for amounts expected to be paid to employees for accrued annual leaveand long service leave. Amounts accrued for long service benefits which have not vested are shown asnon·current liabilities and are calculated on the basis of the unvested rights of employees who have passed theirsixth year of employment.Contributions made to superannuation funds are charged against profits.CASHFor the purposes of the statement of cash flows, cash includes cash on hand and in banks and money marketinvestments readily convertible to cash within 2 working days, net of oUlstanding bank overdrafts.LEASESFinancial leases, which effectively transfer to the entity substantially all of the risks and benefits incidental toownership of the leased item, are C:lpitalised at the present value of the minimum lease payments disclosed asleased fixed assets and amortised over the period the entity is expected to benefit from the use of the leasedassets. Operating lease payments, where the lessors effectively retain substantially all of the risks and benefits ofownership of the leased items, are included in the determination of the operating IOS5 in equal instalments overthe lease term. The cost of improvements to or on leasehold property is capitalised, and amortised over theunexpired period of the lease or the estimated useful lives of the improvements, whichever is the shorter.INCOME TAXThe Company is exempt from income tax under Section 23(g) of the Income Tax Assessment Act.2. OPERATING PROFITThe operating profit from opt:r;Jtions for the year has been arrived at after:Charging as Expenditure:Depreciation of fixed assets....Amortisation - Leasehold Improvements..- Leased assets.Auditors remuneration for- Auditing Accounts.- Other Services .Interest paid and payable ..Rental ~ operating lease. . .Included in the operating profit are lhe follOWing items of revenue:Operating Revenue.Imerest received and receivable - other persons/corporations..Total operating revenue .1992 1991SS50,529 7,928118,043 105,79662,817 96,64813,000 13,0003,500259,397 324,26675,500 73,7074,450,434 3,803,1683144,450,434 3,803,482)3. ItECEIVAIlLES (CURRENT)Trade Debtors.Security Deposits.Olher Debtors.4. INVENTORIES (CURRENT)Finished Goods at Cost.630,730 480,8292,393 2,393142,654 56,228775,777 539,45016,143 40,863
NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AT 31 OCTOBER 1992 (Continued):5. OTHER CURRENT ASSETSPrepaynlcnrs .6, RECEIVAlJLES (NON CURRENT)Loan to International Sports Centre Club ..7. PROPERTY PLANT AND EQUIPMENTLand and building:- At Cost """"""'" """""""""""""""."""""" """""",,"""Plant, EqUipment and Vehicles:- At Cost """",,""""'" "."""""""""""""""""""""".""""""""".""Less: Accumulated Depreciation.. . .Leasehold Improvements:- At cost . .Less: Accumulated Amortisation .Plant, Equipment ,md Motor Vehicles Under Lease:- At Cost. . .Less: Accumulated Amortisation.. . .Total Property and Equipment:-At Cost ",Less: Accumulated Depreciation and Amortisation ..Total \Vrinen Down Amount.8. CREDITORS AND lJORROW1NGS (CURRENT)Trade Creditors.Advance Ticket Sales and Sponsorship .Lease Liability (Note 12) """""'" .Secured Loan (Note 13) ..Unsecured Loans ..Hire Purchase..9. PROVISIONS (CURRENT)Employee Entitlements .10, CREDITORS AND nORROWING (NON·CURRENT)Lease Liability (Note 12) .Unsecured Loans.. . .Secured Loan (Note 13) ..Hire Purchase..11. PROVISIONS (NON·CURRENT)Employee Entitlements12. LEASE COMMITMENTSFinance Leases:Not later than one year.Later than one year and not later than two years ..Latn than two years and not latn than five years.Toral Minimum Lease Payment.Less: Future Finance Charges..1992 1991$ $67,539 69,18692,613 110,612134,444 134,444191,975 159,82483,429 54,738108,546 105,0862,226,881 2,225,411455,657 337,6141,771,224 1,887,797206,305 357,44351,050 278,020155,255 79,4232,759,605 2,877,122590,136 670,3722,169,469 2,206,7501,208,753 1,175,7501,370,575 1,371,03140,906 79,33741,05782,983 70,00025,7272,770,001 2,696,11864,743 48,636126,811 75,359524,915 622,263993,975 1,015,7657,3371,653,038 1,7I 3,31>73,551 3,181>58,692 91>,53258,134 64,08886,976 20,153203,802 11>2,77336,085 21>,077167,717 154,o9(}Currelll Liahility ..Non·Currelll Liahility ..40,906 79,337126,811 75,359167,717 15t1 ,()t)()13. SECURED LOANS(a) An amount of S52(},55() owing to Llll: COllllllonwcllth Dcvl:!opnll:nt Hank is secured by firsl n.:gistned floatingcharge ovn Lhe asseLs and untkrtakings of the Company.(h)(c)An amOUlll of S:'JW~, l;j I owing to the Stale Itlllk or New South \Vales i:-; seclln..:d 11)' second registCfed fixed andf)o:lling charge over Ihe :lssets and undt'rtakings ()l' the..: (:()lllpany.An amount of S110,345 owing to the..: Advance Bank is se..:clIred 11)' a registercd fixed charge..: over land and huildingpllrcl1ase..:d hy the Company.
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