b'NOTES TO THE FINANCIAL STATEMENTSFOR THE yEAR ENDED 30 JUNE 2019simultaneous realisation and settlement of the respective asset and liabilityon a fair value basis in accordance with a documented risk management or will occur in future periods in which significant amounts of deferred taxinvestment strategy. Such assets are subsequently measured at fair value assets or liabilities are expected to be recovered or settled. with changes in carrying value being included in profit or loss.(b) Inventories (ii) Loans and receivablesInventories are measured at the lower of cost and net realisable value.Loansandreceivablesarenon-derivativefinancialassetswithfixedor (c) Property, Plant and Equipment determinable payments that are not quoted in an active market and are Each class of property, plant and equipment is carried at cost or fair valuesubsequently measured at amortised cost.asindicatedless,whereapplicable,anyaccumulateddepreciationandLoans and receivables are included in current assets, except for those which impairment losses. are not expected to mature within 12 months after reporting date, which will Property be classified as non-current assets.Freehold land and buildings are shown at their fair value (being the amount(iii) Held-to-maturity investmentsfor which an asset could be exchanged between knowledgeable willingHeld-to-maturity investments are non-derivative financial assets that have parties in an arms length transaction), based on periodic valuations byfixed maturities and fixed or determinable payments, and it is the Clubs external independent valuers, less subsequent depreciation for buildings. intentiontoholdtheseinvestmentstomaturity.Theyaresubsequently Increases in the carrying amount arising on revaluation of land and buildingsmeasured at amortised cost.arecreditedtoarevaluationsurplusinothercomprehensiveincome.Held to maturity investments are included in non-current assets, except for Decreases that offset previous increases of the same asset are chargedthose which are expected to mature within 12 months after reporting date, against revaluation surpluses directly in other comprehensive income; allwhich will be classified as current assets.other decreases are charged to the profit and loss account. (iv) Available-for-sale financial assetsAnyaccumulateddepreciationatthedateofrevaluationiseliminatedAvailable-for-sale financial assets are non-derivative financial assets that are against the gross carrying amount of the asset and the net amount iseither not capable of being classified into other categories of financial assets restated to the revalued amount of the asset. due to their nature or they are designated as such by management.They Plant and Equipment comprise investments in the equity of other entities where there is neither a Plant and equipment are measured on the cost basis less accumulatedfixed maturity nor fixed or determinable payments.depreciation and impairment losses. Available-for-sale financial assets are included in non-current assets, except Thecarryingamountofplantandequipmentisreviewedannuallybyfor those which are expected to mature within 12 months after reporting date, directors to ensure it is not in excess of the recoverable amount from thesewhich will be classified as current assets.assets. The recoverable amount is assessed on the basis of the expected(v) Financial LiabilitiesnetcashflowsthatwillbereceivedfromtheassetsemploymentandNon-derivativefinancialliabilities(excludingfinancialguarantees)are subsequent disposal. The expected net cash flows have been discounted tosubsequently measured at amortised cost.their present values in determining recoverable amounts. Fair valueRepairs and maintenance are charged to the profit and loss account duringFair value is determined based on current bid prices for all quoted investments. the financial period in which they are incurred. Valuation techniques are applied to determine the fair value for all unlisted Depreciation securities, including recent arms length transactions, reference to similar The depreciable amount of all fixed assets including buildings and capitalisedinstruments and option pricing models.lease assets, but excluding freehold land, is depreciated on a straight-lineImpairmentbasis over the assets useful life to the Club commencing from the time theAt the end of each reporting period, the Club assesses whether there is asset is held ready for use.Depreciation is recognised in the profit and lossobjective evidence that a financial instrument has been impaired.In the case account. of available-for-sale financial instruments, a significant or prolonged decline in The depreciation rates used for each class of depreciable assets are: the value of the instrument is considered to determine whether an impairment Class of Fixed AssetDepreciation Rate has arisen. Impairment losses are recognised in the profit and loss account.Buildings1.0% - 2.5% DerecognitionPlant & Equipment10.0%33.3% Financial assets are derecognised where the contractual rights to receipt The assets residual values and useful lives are reviewed, and adjusted ifof cash flows expire or the asset is transferred to another party whereby appropriate, at the end of each reporting period. the Club no longer has any significant continuing involvement in the risks An assets carrying amount is written down immediately to its recoverableand benefits associated with the asset. Financial liabilities are derecognised amountiftheassetscarryingamountisgreaterthanitsestimatedwhere the related obligations are either discharged, cancelled or expired. recoverable amount. The difference between the carrying value of the financial liability, which isextinguishedortransferredtoanotherparty,andthefairvalueof Gainsandlossesondisposalsaredeterminedbycomparingproceedsconsideration paid, including the transfer of non-cash assets or liabilities with the carrying amount. These gains and losses are included in the profitassumed, is recognised in profit and loss.and loss account. When revalued assets are sold, amounts included in theFor Current yearrevaluation surplus relating to that asset are transferred to retained earnings. Financial instruments(d) Financial Instruments FinancialinstrumentsarerecognisedinitiallyonthedatethattheClub For Comparative year becomes party to the contractual provisions of the instrument.Initial Recognition and Measurement On initial recognition, all financial instruments are measured at fair value Financial assets and financial liabilities are recognised when the Club becomesplus transaction costs (except for instruments measured at fair value through a party to the contractual provisions to the instrument. For financial assets, thisprofit or loss where transaction costs are expensed as incurred).is equivalent to the date that the Club commits itself to either purchase or sellFinancial assetsthe asset (ie trade date accounting is adopted). Financial instruments (exceptAll recognised financial assets are subsequently measured in their entirety fortradereceivables)areinitiallymeasuredatfairvalueplustransactionsat either amortised cost or fair value, depending on the classification of the costs, except where the instrument is classified at fair value through profit orfinancial assets.loss, in which case transaction costs are expensed to profit and loss account immediately.ClassificationTrade receivables are initially measured at the transaction price if the tradeOn initial recognition, the Club classifies its financial assets into the following receivables do not contain significant financing component. categories, those measured at:(i) Financial assets at fair value through profit and lossamortised costFinancial assets are classified at fair value through profit or loss when fair value through profit or loss - FVTPLthey are either held for trading for the purpose of short term profit taking, fair value through other comprehensive income - equity instrument (FVOCI derivatives not held for hedging purposes, or when they are designated as- equity)such to avoid an accounting mismatch or to enable performance evaluation fair value through other comprehensive income - debt investments (FVOCI where a group of financial assets is managed by key management personnel- debt)18NSW Masonic Club October 2019'