Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 2016 NSW Masonic Club October 2016 16 NSW Masonic Club October 2016 ANNUAL REPORT 2016 ANNUAL REPORT 2016 Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the Club no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability, which is extinguished or transferred to another party, and the fair value of consideration paid, including the transfer of non- cash assets or liabilities assumed, is recognised in profit and loss. (e) Impairment of Assets At the end of each reporting period, the Club assesses whether there is any indication that an asset has been impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profit and loss account. Where it is not possible to estimate the recoverable amount of an individual asset, the Club estimates the recoverable amount of the cash- generating unit to which the asset belongs. (f) Employee Benefits Provision is made for the Club’s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employees may not satisfy vesting requirements. Those cash flows are discounted using market yields on corporate bonds with terms to maturity that match the expected timing of cash flows. (g) Provisions Provisions are recognised when the Club has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at reporting date. (h) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position. (i) Revenue Revenue from the sale of goods is recognised at the point of delivery to customers. Revenue from the rendering of a service is recognised at the point of delivery to customers. Membership income is recognised on a proportional basis over the period to which the membership renewal relates. Interest revenue is recognised using the effective interest rate method. Dividend revenue is recognised when the right to receive a dividend has been established. All revenue is stated net of the amount of goods and services tax (GST). (j) Goods and Services Tax (“GST”) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (k) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. The financial report was authorised for issue on 5 October 2016 by the directors of the Club. 2016 2015 $ $ NOTE 2: REVENUE AND OTHER INCOME Sales of goods and provision of services 3,445,885 2,866,155 Poker machine takings 21,077 34,952 Rent received 186,885 180,095 Members subscriptions 79,856 82,321 Room hire 46,598 52,963 Interest received 57,468 66,245 Dividends received 8,299 9,099 Other 1,456 2,335 Total revenue 3,847,524 3,294,165 Net loss on available-for-sale financial assets at fair value (after tax effect) (20,642) (14,117) Net loss on fair value of financial assets has been determined with reference to the market value of the investments at reporting date. NOTE 3: PROFIT/(LOSS) BEFORE INCOME TAX Depreciation of buildings 182,376 190,000 Depreciation of plant and equipment 233,576 189,232 Bad debts written off – trade and other receivables - - NOTE 4: INCOME TAX EXPENSE The components of tax expense/(benefit) comprise: Current tax (65,606) (67,099) Deferred tax 111,770 22,473 46,164 (44,626) The prima facie tax on profit/(loss) from ordinary activities before income tax is reconciled to the income tax as follows: Prima facie tax payable/(recoverable) 95,591 (85,495) Less tax effect of: Mutuality rate change on timing differences (3,388) (3,319) Franked dividends received 1,059 1,170 Net non-allowable/non-assessable items (3,833) (974) Net mutual income and non allowable items (43,265) 43,992 Income Tax Expense/(Benefit) 46,164 (44,626) The applicable weighted average effective tax rates are: 14.5% 15.7% NOTE 5: CASH AND CASH EQUIVALENTS Cash on hand 32,000 32,000 Cash at bank 383,171 437,552 415,171 469,552 NOTE 6: TRADE AND OTHER RECEIVABLES Current Trade receivables 104,360 58,420 Provision for impairment - - Other receivables 16,659 7,959 121,019 66,379 Lease commitments receivable Future minimum lease payments receivable from non-cancellable operating leases at reporting date: Receivable - Not later than one year 213,369 88,439 Later than one year and not later than five years 576,979 - 790,348 88,439 Lease receivables relate to premises owned and let by the Club. NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016