west harbour rugby union football club limited...west harbour rugby union football club limited abn:...

WestHarbourRugbyUnionFootballClubLimited

ABN:11099077497

FinancialReport

FortheYearEnded30September2019

WestHarbourRugbyUnionFootballClubLimited

ABN:11099077497

CONTENTS Page

Directors’Report 1

Auditor’sIndependenceDeclaration 8

StatementofProfitorLossandOtherComprehensive

Income 9

StatementofFinancialPosition 10

StatementofChangesinEquity 11

StatementofCashFlows 12

NotestotheFinancialStatements 13

Directors’Declaration 29

IndependentAuditor’sReport 30

WestHarbourRugbyUnionFootballClubLimitedABN:11099077497

1

DIRECTORS’REPORTFORYEARENDED30SEPTEMBER2019

ThedirectorspresenttheirreportonWestHarbourRugbyFootballClubLimitedfortheyearended30thSeptember

2019.

PrincipalActivities

Theprincipal activityofWestHarbourRugbyFootball Club Limitedduring the yearwas thedevelopmentand

operationofthesportofrugbyunionintheinnerwesternsuburbsofSydney.

Shortandlong-termobjectivesThe company’s short and long-termobjectives are to usemembers’ funds to support the rugby club and the

developmentandoperationofthesportofrugbyintheinnerwesternsuburbsofSydney.

Strategiesforachievingtheobjectives

Toachievetheseobjectives,thecompanyhasadoptedthefollowingstrategies:

i) Theactivepursuitofsponsorshipandfundraisingopportunities;

ii) Involvementinourlocalcommunityandschools;and

iii) Theactivepursuitofgrantfundingfrompublicauthorities

Howprincipalactivitiesassistedinachievingtheobjectives

Theprincipalactivitiesassistedthecompanyinachievingitsobjectivesbyprovidingincentivestopotential

sponsorsandmemberstosupportthecompany.

Thecompanymeasuresitsperformancethroughtheuseofbothquantitativeandqualitativebenchmarks.The

benchmarks areusedby thedirectors to assess the financial sustainability of the company andwhether the

company’sobjectivesarebeingachieved.

Achievementsin2019

As2019ends,welookbackonayearthatwasoftenfraughtwithmanygreatchallengesyetasaClub,wecan

takesolacefromandcelebrateinthemanygreatinitiativeswehaveimplementedandachievementswehave

achieved.WeareexcitedtosaythatwehavesteadiedthePirateshipandhavechartedanewcoursetowards

success.

Withhardwork,perseveranceandtheassistanceofsomeoftheClub’sgreatstalwarts,theClubhasmanaged

to;

• Fieldcompetitiveteamsweekinweekout.

• Win

○ ShuteShieldSpring7sCompetition-OverallChampions

○ WesternSydney7s-BowlChampionsx3

○ Queanbeyan7s-Champions

○ SouthernHighlands7s-Champions

○ NoumeaWomen’s7s-Champions


2


Achievementsin2019(continued)

• Hostthe:

○ 2019CanadaBay7s,

○ 2019NSWJuniorStateChampionships,

○ 2019SuburbanRugbySemiandGrandFinalsand

○ 2019Round3oftheShuteShield’sSpring7s.

• SecuretheoperationalandcoachingservicesofMarkGudmunsonandhisteamfor2020,andoperations

servicesofAmandaBabet.

• Retentionofover80%ofourplayinggroup,aswellastherecruitmentofanumberofexcellentplaying

prospectsforthe2020season.

• Buildingplayerpathwaystosuperrugbyandinternationalrugbyopportunities:

o TianSwanepoelcontractedtotheSharksinSuperRugby.

o TylerFishercontractedtoUtahinMajorLeagueRugbyintheUS.

o 11playersoftheclubrepresentingtheirnationsofbirthattheWorldCupinJapan.

o 3otherplayersrepresentinginternationally.

• StabilisedthefinancialpositionoftheClubbyreducingbudgetexpenditureby30%.

• OperatedastallattheNortonStreetFestivalgivingaway400WestHarbourshowbagsandmerchandise,

increasingtheClub’sbrandexposure.

• ParticipatedbylayingawreathinWestHarbour’snameattheANZACDayDawnserviceinBurwood.

• Hostedan InnerWestRugby forumwith representatives fromNSWRugby, all InnerWest Suburban

RugbyClubsandschools,establishingtheInnerWestRugbyHub.

• Led the development of the InnerWest RugbyHubWorking Committee,which is in the process of

developingandimplementingadistrictwideSchool’sCompetitioncommencingin2020.

• ActivelyrecruitedColtsfor2020.

• Developedaneight-week,WestHarbourJuniorRugbyAcademyProgramwithtwotrialmatchesagainst

therepresentativesquadoftheMaitlandBlacksRugbyClub.

• EmployedHarrisonOrr asWest Harbour’s DevelopmentOfficer. He has commenced school’s-based

developmentprogramsinvariousschoolsinthedistrict.

• HostedafantasticWorldCupRugbyLuncheonwitharangeofguestspeakersincludingWallabyCoach

MichaelCheika,internationalplayersSekopeKepu,StephenHoiles,TonyDalyandDanParks.

• Hostedanumberofsuccessfulclub/playersocialevents.

• Secured the services of Club Ambassadors Emma Tonegato, Scott Sio, Allan Ala’alatoa, Michael

Ala’alatoa,andJackDebreczeni.

• DevelopedmuchneededupdatestotheClub’sPoliciesandProcedures.

• BegandevelopmentofthemostcomprehensiveplayerwelfareprogramintheShuteShield.

• Commenceddraftingaproposalforthedevelopmentofascholarshipprogramthroughamemorandum

ofunderstandingwithamajoruniversity.

• Updatedmanyofoursystemsandprocessesincludinganewmembershipdatabase,PointofSalesystem

andtheClub’stechnologicalinfrastructure.

• Negotiatedwithotherdomesticandinternationalrugbyclubsandfederationstosecurememorandums

ofunderstandingsbetweenusandthemtobuildournetworkcapacity.

• SecuredtheVicePresidencyoftheSydneyRugbyUnionBoard.

• NegotiatedandsignedanewlicenceagreementandDeedofForbearancewithCanadaBayCouncil

until2029.

• Issuedaplayer/membersurveytogainfeedbackonareaswherewecanfocusfurtherimprovement.


3


Achievementsin2019(continued)Westillhaveagreatmanychallengestofaceandtaskstocompletetogetthisclubbackwhereitismeantto

be.Thesurveywillprovideuswithsomehonestfeedbackonwherewefallshortinsomeoperationalareas,but

wealreadyunderstandandhavestartedworkonsomeareasofshortfallin2019.Theseareasinclude:

• Presentation,functionalityandtimelinessofourwebsite

• Adequacyandtimelinessofoursocialmediapages

• Gamedayexperiencesforoursponsors,membersandsupporters

• Timelinessandregularityofcommunicationswithourmembershipbase

• Growthofourpayingmembershipbase.

Members’guarantee

WestHarbourRugbyFootballClubLimitedisacompanylimitedbyguarantee.Intheeventof,andforthepurpose

of winding up the company, the amount capable of being called up from eachmember and any person or

associationwhoceasedtobeamemberintheyearpriortowindingup,islimitedto$20.

At30September2019thenumberofmemberswas462.

MattersorcircumstancesarisingaftertheendoftheyearMr.ThomasGamesandMr.SimonGreallywereappointedascompanydirectorson31December2019.

Noothermattersorcircumstanceshavearisensincetheendofthefinancialyearwhichsignificantlyaffectedor

couldsignificantlyaffecttheoperationsofthecompany,theresultsofthoseoperationsorthestateofaffairsof

thecompanyinfuturefinancialyears.

GoingConcern

Asdisclosedinthefinancialstatementsasat30September2019,thecompanyhasrecordedalossof$125,815

(2018:Lossof$35,880).Thecompanyhasasurplusofnetliabilitiesof$105,366(SurplusNetAssets2018:

$20,452).

Thedirectorsbelievethatthecompanyisagoingconcernbasedonseveralfactorsincluding:

• Theappointmentof ahighlyexperienced individuals topositionsasdirectorsof theClub'sboard to

providestableandcapablelongtermstrategicgovernance;

• Thecontinuedsupportofitsmembersandsponsors,includinganegotiatednewsponsorshipagreement

withourmajorpartner,ClubBurwooduntil2022;

• Theactiveengagementofanewcohortofmembersthrougharevisedmembershippackageplanto

attractandmaximisememberandsupporternumbersfromabroaderdemographicreflectingtheClub's

move to Drummoyne Oval for the next two years including Hunters Hill, Drummoyne, Russell Lea,

Balmain,RoselleandFiveDock;

• AfocusontappingintothechangingandvariedethnicdemographicsoftheInnerWestAreathrough

thedevelopmentofMemorandumsofUnderstandingwiththeKoreanandLebaneseRugbyUnions;

• Activerecruitmentofqualityplayersandexcellentplayernumbersforpreseasontraining;

• NegotiatedanewlicenceagreementandDeedofForbearancewithCanadaBayCounciluntil2029;

• SecuredDrummoyneOvalasourhomegroundforthenexttwoyears;• CreationofanActiveSponsorshipCommitteethatisintheprocessofsecuringnewsponsorshipto

furtherincreaseoursponsorshipincomein2020;

• ExpansionoftheClub'ssupporterbaseandexposurethroughhostingRoundOneof2020seasonin

Bathurst;


4


GoingConcern(continued)

• Implementationanddevelopmentofafullyfundedjuniordevelopmentprograms.

• ThedevelopmentandleadershipoftheInnerWestRugbyHubandanewschool'scompetition,the

WangalCup;

• ReturningtothenewlydevelopedConcordOval,whichwillbethebestrugbyfacilityintheShute

Shield;&

• ThecontinuedgrowthandpopularityofclubrugbyinSydneyandtheShuteShieldcompetition.

The financial statements havebeenpreparedon a going concernbasis,which assumes continuity of normal

businessactivitiesandtherealisationofassetsandthesettlementofliabilitiesinthenormalcourseofbusiness.

Thedirectorsareof theopinion theabove requirementswill be satisfiedandaccordinglyhaveprepared the

financialstatementsonagoingconcernbasis.Thefinancialstatementsdonotincludeanyadjustmentsrelating

to the recoverability or classification of recorded asset amounts or classification of liabilities that might be

necessaryshouldthecompanynotbeabletocontinueasagoingconcern.

GeneralInformation

InformationonDirectors

Thenamesofeachpersonwhohasbeenadirectorduringthefinancialyearare:

TomAndrewsQualificationsandexperience:MBAwith12years’seniormanagementandexecutiveexperienceacrossmultiple

industries.CurrentlyholdstheroleofGroupGeneralManagerforMonarch

Hotels.WHRFCplayer2004-present-over200gamesfortheclubacrossgrade

andColts.A.I.VincentTrophywinner2012.

SpecialResponsibilities:President

PhilipMcCreaQualificationsandexperience:BE,PhDElectricalEngineering.Financialmanagement:19yearsasaCEOoftwoIT

companies.FormerITconsultant.

CurrentlyChiefTechnologyOfficerofanAustralianGovernmentAgency,12years

onBoardofWestJuniorsRugbyClub.

RugbyReferee

BoardMember,EllaCommunityCentre,Haberfield

BoardMember,ParaQuadNSW

SpecialResponsibilities:GovernanceStakeholderManagement


5


InformationonDirectors(Continued)

DanielPaton

Qualificationsandexperience:CurrentlytheChiefFinancialOfficeratWestsAshfieldLeaguesClub.

PreviouslyholdingpositionsastheFinancialControllerfortheStarCasinoand

theHeadofFinanceatTicketek.PriortothatheldseniorpositionsforASXTop

50listedcompaniesincludingAGLandAPNNewsandMedia(nowHT&E)and

USmultinationalcompaniesincludingInternationalGamingTechnology(IGT)

andEnron.AppointedtofellowstatusoftheCPAofAustraliain2016andmore

recentlygraduatedfromtheInstituteofCompanyDirectors.

SpecialResponsibilities:Director

JohnAbi-Saab

Qualificationsandexperience:BachelorArts/Education,BachelorLaws,MastersEducationLeadershipwith15

yearsEducation,LawandSportsManagementexperience.Directorof

AdministrationandInternationalRelationsfortheLebaneseRugbyUnion

FederationandrepresentativeontheEXCOofAsiaRugby.

CurrentlysecretaryofInnerWestRugbyHub,andPresidentofPhoenixRugby

Club,anAustralianLebaneseHeritageTeam.VicePresidentSydneyRU

SpecialResponsibilities: VicePresident

StephenJurd

Qualificationsandexperience:SemiRetiredSmallBusinessPerson.BoardmemberofAustralianBattery

AssociationLtdfor30years.FinanceCommitteememberofBreakfastPoint,the

largestprivatecommunityinAustralia.

SpecialResponsibilities: Director

VincentGeeQualificationsandexperience:BachelorofBusiness(NepeanCAE);

GraduateCertificateinPublicSectorManagement;(GriffithUni)

DiplomaProjectManagement.

JusticeofthePeace

QualifiedAssistantReferee.

Retiredafter40YearsasaNSWPublicServanttoSeniorExecutiveServicelevel

acrossMining,LawEnforcement,Taxation,EducationandTransport,primarily

inthedeliveryofITsystems.

PlayedRugbyinthe1970sforStGeorge,Walgett,WesternPlainsandNSW

Country.CoachedWalgettRamsandStGeorgeColtstograndfinals.Returned

toRugbyin2002asCoachofPirates5th/6

thGrade,eventuallymovingtoteam

managerrole.ProudtohavereceivedClubmanoftheYearin2004andin2016.

SpecialResponsibilities: Director


6


InformationonDirectors(Continued)

ChristopherCharlton

Qualificationsandexperience:ManagingDirectorofCharltonsCharteredAccountants,acitybased

professionalservicesfirm,specialisinginsmallbusinesses,taxationconsulting

andcompliance,auditandintegratedcloudaccounting.ChrisisaChartered

Accountant,RegisteredTaxAgent,RegisteredAuditor,Associateofthe

CorporateGovernanceInstituteofAustralia,CompanySecretary,CharteredTax

Advisor,andJP.

Priorexperienceasanon-executivedirectorandChairmanofanASXlisted

company,andvariousboardlevelroleswithinsportingorganisationstodate,

includingvolunteertoumpire,coach,refereetopresident.

Activegolfer,skierandspectatortomanysportsandunderstandsthebenefits

ofparticipationandapplyingcomplimentaryskills,thatadministrativelysupport

accesstoRugbyanditswidercommunityrole.

SpecialResponsibilities: Treasurer

MeetingofDirectorsDuringthefinancialyear,13meetingsofdirectors(includingcommitteesofdirectors)wereheld,attendances

byeachdirectorduringtheyearwereasfollows:

Directors’Meetings

Numbereligibletoattend Numberattended

TomAndrews 13 11

PhilipMcCrea 13 13

ChrisCharlton 11 9

VincentGee 11 9

StephenJurd 11 9

JohnAbi-Saab 11 11

DanielPaton 11 9

LorenOrr(Resigned18February2019) 2 1

SiobhanSeiuli(Resigned18February2019) 2 1


7


Auditor’sIndependencedeclaration

Theauditor’sindependencedeclarationinaccordancewithsection307CoftheCorporationsAct2001forthe

yearended30September2019hasbeenreceivedandcanbefoundonpage8ofthefinancialreport.

SignedinaccordancewitharesolutionoftheBoardofDirectors.

Director _______________________________________________

Datedthe dayof 2020

19th

January


8

AUDITOR’SINDEPENDENCEDECLARATION


9

STATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOMEFORTHEYEARENDED30SEPTEMBER2019

Note 2019 2018

$ $

Revenue 2 562,343 1,061,778

EXPENSES

Canteen 33,083 30,422

Merchandise 12,457 33,584

NSWRugbyUnionFee 7,678 2,741

Medical&Physiotherapy 50,474 78,264

SponsorshipExpenses 5,670 19,662

Functions&Events 40,052 32,358

Depreciation&Amortisation 6,965 32,125

PlayerCosts 156,088 163,588

CoachingCosts 51,648 106,547

InsuranceExpense 14,527 18,211

MatchExpenses 63,129 97,898

BankCharges 3,330 9,277

MotorExpenses 42,584 5,048

Printing&Postage 1,446 4,821

ITExpenses 3,283 19,617

StrengthandConditioningCoaching 37,412 38,177

ConsultancyExpenses 20,120 39,556

ClothingExpenses 35,676 82,882

BarPurchases 13,283 25,498

StLuke’sContribution–CityofCanadaBay - 36,364

CorporateMarqueeHire 47 47,594

GymEquipmentHire 22,370 20,410

AccountancyFees 10,000 7,932

Auditor’sRemuneration 15,000 5,000

Subscriptions 4,053 4,653

ImpairmentofGymEquipmentandHigh-PerformanceCentre - 103,007

OtherExpenses 37,783 32,422

TotalExpenses 688,158 1,097,658

(Loss)beforeIncomeTax (125,815) (35,880)

IncomeTaxExpense - -

(Loss)fortheYear (125,815) (35,880)

OthercomprehensiveIncomefortheyear - -

TotalComprehensive(Loss)fortheyear (125,815) (35,880)

Theaccompanyingnotesformpartofthesefinancialstatements.


10

STATEMENTOFFINANCIALPOSITIONASAT30SEPTEMBER2019

Note 2019 2018

$ $

ASSETS

CURRENTASSETS

Cashandcashequivalents 3 10,904 180,710

Tradeandotherreceivables 4 46,695 34,367

Inventories 43,178 28,170

TOTALCURRENTASSETS 100,777 243,247

NON-CURRENTASSETS

FinancialAssets - 2

Property,plantandequipment 7 35,852 37,817

OtherAssets 6 6,236 3,200

TOTALNON-CURRENTASSETS 42,088 41,019

TOTALASSETS 142,865 284,266

LIABILITIES

CURRENTLIABILITIES

TradeandOtherPayables5 149,996 255,268

TOTALCURRENTLIABILITIES 149,996 255,268

NON-CURRENTLIABILITIES

Tradeandotherpayables 5 98,235 8,549

TOTALNON-CURRENTLIABILITIES 98,235 8,549

TOTALLIABILITIES 248,231 263,817

NET(LIABILITIES)/ASSETS (105,366) 20,449

EQUITY

Reserves 58,561 58,561

Retainedearnings (163,927) (38,112)

TOTALEQUITY (105,366) 20,449

Theaccompanyingnotesformpartofthesefinancialstatements.


11

STATEMENTOFCHANGESINEQUITYFORYEARENDED30SEPTEMBER2019

RetainedEarnings

Reserves Total

$ $ $

Balanceat1October2018 (38,112) 58,561 20,449

(Loss)attributabletomembers (125,815) - (125,815)

OthercomprehensiveIncomefortheyear - - -

TotalcomprehensiveIncome/(Loss)fortheyear (125,815) - (125,815)

Balanceat30September2019 (163,927) 58,561 (105,366)

RetainedEarnings

Reserves Total

$ $ $

Balanceat1October2017 (2,232) 58,561 56,329

(Loss)attributabletomembersoftheentity (35,880) - (35,880)

OtherComprehensiveIncomefortheyear - - -

TotalcomprehensiveIncome/(Loss)fortheyear (35,880) - (35,880)

Balanceat30September2018 (38,112) 58,561 20,449

Theaccompanyingnotesfrompartofthesefinancialstatements.


12

STATEMENTOFCASHFLOWSFORTHEYEARENDED30SEPTEMBER2019

Note 2019 2018

$ $

CASHFLOWSFROMOPERATINGACTIVITIES

ReceiptsfromCustomers 511,099 1,033,470

GrantIncome 27,930 127,346

Paymentstosuppliersandemployees (710,613) (898,239)

InterestPaid - (4,135)

InterestReceived 1,778 139

NetCash(usedin)/providedbyoperatingactivities (169,806) 258,581

CASHFLOWSFROMINVESTINGACTIVITIES

(Purchase)/Proceedsofproperty,plantandequipment - (96,497)

Netcash(usedin)investingactivities - (96,497)

Netincrease/(decrease)incashandcashequivalentsheld (169,806) 162,084

Cashandcashequivalentsatbeginningoftheyear 180,710 18,626

Cashandcashequivalentsatendoffinancialyear 10,904 180,710

Theaccompanyingnotesfrompartofthesefinancialstatements.


13

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED30SEPTEMBER2019

ThefinancialstatementsareforWestHarbourRugbyFootballClubLimitedasanindividualentity, incorporated

anddomiciledinAustralia.WestHarbourRugbyFootballClubLimitedisacompanylimitedbyguarantee.

NOTE1:SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

BasisofPreparation

The financial statementsaregeneralpurpose financial statements thathavebeenprepared inaccordancewith

AustralianAccountingStandards–ReducedDisclosureRequirementsoftheAustralianAccountingStandardsBoard

and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under

AustralianAccountingStandards.

AustralianAccountingStandardssetoutaccountingpoliciesthattheAASBhasconcludedwouldresultinfinancial

statements containing relevant and reliable information about transactions, events and conditions. Material

accountingpoliciesadoptedinthepreparationofthesefinancialstatementsarepresentedbelowandhavebeen

consistentlyappliedunlessotherwisestated.

Thefinancialstatementshavebeenpreparedonanaccrualsbasisandarebasedonhistoricalcosts,modified,where

applicable,bythemeasurementatfairvalueofselectednon-currentassets,financialassetsandfinancialliabilities.

Theamountspresentedinthefinancialstatementshavebeenroundedtothenearestdollar.

AccountingPolicies

a. Revenue

Revenueismeasuredatthefairvalueoftheconsiderationreceivedorreceivableaftertakingintoaccount

anytradediscounts.Anyconsiderationdeferredistreatedastheprovisionoffinanceandisdiscounted

ata rateof interest that isgenerallyaccepted in themarket for similararrangements. Thedifference

betweentheamountinitiallyrecognisedandtheamountultimatelyreceivedisinterestrevenue.

Governmentandothergrantsarerecognisedwhenthereisareasonableassurancethatthegrantwillbe

received,andallattachedconditionswillbecompliedwith.Whenthegrantrelatestoanexpenseitem,it

is recognised on a systematic basis over the period that the related costs, forwhich it is intended to

compensate,areexpensed.Whenthegrantrelatestoanasset,itisrecognisedasincomeinequalamounts

overtheexpectedusefullifeoftherelatedasset.Specifically,governmentgrantswhoseprimarycondition

isthatthecompanyshouldpurchase,constructorotherwiseacquirenon-currentassetsarerecognisedas

deferredrevenueinthestatementoffinancialpositionandtransferredtoprofitorlossonasystematic

andrationalbasisovertheusefullivesoftherelatedassets.

Whenthecompanyreceivesgrantsofnon-monetaryassets,theassetandgrantarerecordedatnominal

amountsandreleasedtotheprofitorlossovertheexpectedusefullifeoftheasset,basedonthepattern

ofconsumptionofthebenefitsoftheunderlyingassetbyequalannualinstalments.

Donationsandbequestsarerecognisedasrevenuewhenreceived.

Interestrevenueisrecognisedusingtheeffectiveinterestratemethod,whichforfloatingratefinancial

assetsistherateinherentintheinstrument.Dividendrevenueisrecognisedwhentherighttoreceivea

dividendhasbeenestablished.

Revenuefromtherenderingofaserviceisrecogniseduponthedeliveryoftheservicetothecustomers.

Allrevenueisstatednetoftheamountofgoodsandservicestax(GST).


14


NOTE1:SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONT’D)

b. Property,PlantandEquipment

Each class of property, plant and equipment is carried at cost or fair value as indicated, less, where

applicable,accumulateddepreciationandimpairmentlosses.

Plantandequipment

Plantandequipmentaremeasuredonthecostbasislessdepreciationandimpairmentlosses.

Thecarryingamountofplantandequipmentisreviewedannuallybydirectorstoensureitisnotinexcess

of the recoverableamount fromtheseassets.The recoverableamount isassessedon thebasisof the

expectednetcashflowsthatwillbereceivedfromtheasset’semploymentandsubsequentdisposal.The

expected net cash flows have been discounted to their present values in determining recoverable

amounts.

Plantandequipmentthathavebeencontributedatnocost,orfornominalcost,arevaluedandrecognised

atthefairvalueoftheassetatthedateitisacquired.

Depreciation

Thedepreciableamountofallfixedassets,includingbuildingsandcapitalisedleaseassets,butexcluding

freeholdland,isdepreciatedonastraight-linebasisovertheasset’susefullifetotheentitycommencing

fromthetimetheassetisheldreadyforuse.Leaseholdimprovementsaredepreciatedovertheshorter

ofeithertheunexpiredperiodoftheleaseortheestimatedusefullivesoftheimprovements.

Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,attheendofeach

reportingperiod.

Eachassetclass’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheclass’s

carryingamountisgreaterthanitsestimatedrecoverableamount.

Gainsand lossesondisposalsaredeterminedbycomparingproceedswiththecarryingamount.These

gainsorlossesareincludedinthestatementofcomprehensiveincome.Whenrevaluedassetsaresold,

amountsincludedintherevaluationsurplusrelatingtothatassetaretransferredtoretainedearnings.

c. Leases

Leasesoffixedassets,wheresubstantiallyalltherisksandbenefitsincidentaltotheownershipoftheasset

butnotthelegalownershiparetransferredtotheentity,areclassifiedasfinanceleases.

Financeleasesarecapitalised,recordinganassetandaliabilityequaltothepresentvalueoftheminimum

leasepayments,includinganyguaranteedresidualvalues.

Leasedassetsaredepreciatedonareducingbalancebasisovertheirestimatedusefulliveswhereitislikely

thattheentitywillobtainownershipoftheasset.Leasepaymentsareallocatedbetweenthereductionof

theleaseliabilityandtheleaseinterestexpensefortheperiod.

Leasepaymentsforoperatingleases,wheresubstantiallyalltherisksandbenefitsremainwiththelessor,

arechargedasexpensesonareducingbalancebasisovertheleaseterm.

Leaseincentivesunderoperatingleasesarerecognisedasaliabilityandamortisedonareducingbalance

basisoverthelifeoftheleaseterm.


15



d. FinancialInstrumentsCurrentYearInitialrecognitionandmeasurementFinancialassetsandfinancialliabilitiesarerecognisedwhentheentitybecomesapartytothecontractual

provisionstotheinstrument.Forfinancialassets,thisisthedatethattheentitycommitsitselftoeitherthe

purchaseorsaleoftheasset(i.e.tradedateaccountingisadopted).

Financialinstruments(exceptfortradereceivables)areinitiallymeasuredatfairvalueplustransactioncosts,

exceptwheretheinstrumentisclassifiedas“atfairvaluethroughprofitorloss”,inwhichcasetransaction

costsareexpensedtoprofitorlossimmediately.Whereavailable,quotedpricesinanactivemarketareused

todeterminefairvalue.Inothercircumstances,valuationtechniquesareadopted.

Trade receivables are initiallymeasured at the transaction price if the trade receivables do not contain

significantfinancingcomponentorifthepracticalexpedientwasappliedasspecifiedinAASB15:RevenuefromContractswithCustomers.ClassificationandsubsequentmeasurementFinancialliabilitiesFinancialliabilitiesaresubsequentlymeasuredat:

–amortisedcost;or–fairvaluethroughprofitorloss. Afinancialliabilityismeasuredatfairvaluethroughprofitorlossifthefinancialliabilityis: – a contingent consideration of an acquirer in a business combination to which AASB 3: BusinessCombinationsapplies;–heldfortrading;or

–initiallydesignatedasatfairvaluethroughprofitorloss.Allotherfinancialliabilitiesaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterest

method.

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofadebtinstrumentandof

allocatinginterestexpenseoverinprofitorlossovertherelevantperiod. Theeffectiveinterestrateistheinternalrateofreturnofthefinancialassetorliability.Thatis,itistherate

thatexactlydiscountstheestimatedfuturecashflowsthroughtheexpectedlifeoftheinstrumenttothenet

carryingamountatinitialrecognition.

Afinancialliabilityisheldfortradingifitis:

–incurredforthepurposeofrepurchasingorrepayinginthenearterm;

–partofaportfoliowherethereisanactualpatternofshort-termprofit-taking;or

–a derivative financial instrument (except for a derivative that is in a financial guarantee contract or a

derivativethatisineffectivehedgingrelationships).

Anygainsorlossesarisingonchangesinfairvaluearerecognisedinprofitorlosstotheextentthattheyare

notpartofadesignatedhedgingrelationship.

Thechangeinfairvalueofthefinancialliabilityattributabletochangesintheissuer’screditriskistakento

othercomprehensiveincomeandisnotsubsequentlyreclassifiedtoprofitorloss.Instead,itistransferred

toretainedearningsuponderecognitionofthefinancialliability.

If taking the change in credit risk in other comprehensive income enlarges or creates an accounting

mismatch, then thesegainsor losses shouldbe taken toprofitor loss rather thanother comprehensive

income.

Afinancialliabilitycannotbereclassified.


16

NOTESTOTHEFINANCIALSTATEMENTSFORTHEYEARENDED30SEPTEMBER2019NOTE1:SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES(CONT’D)

FinancialassetsFinancialassetsaresubsequentlymeasuredat:

–amortisedcost;

–fairvaluethroughothercomprehensiveincome;or

–fairvaluethroughprofitorloss.

Measurementisonthebasisoftwoprimarycriteria:

–thecontractualcashflowcharacteristicsofthefinancialasset;and

–thebusinessmodelformanagingthefinancialassets.

Afinancialassetthatmeetsthefollowingconditionsissubsequentlymeasuredatamortisedcost:

–thefinancialassetismanagedsolelytocollectcontractualcashflows;and

–thecontractualtermswithinthefinancialassetgiverisetocashflowsthataresolelypaymentsofprincipal

andinterestontheprincipalamountoutstandingonspecifieddates.

A financial asset thatmeets the following conditions is subsequentlymeasured fair value throughother

comprehensiveincome:

–thecontractualtermswithinthefinancialassetgiverisetocashflowsthataresolelypaymentsofprincipal

andinterestontheprincipalamountoutstandingonspecifieddates;and

–thebusinessmodelformanagingthefinancialassetcomprisesbothcontractualcashflowscollectionand

thesellingofthefinancialasset. Bydefault,allotherfinancialassetsthatdonotmeetthemeasurementconditionsofamortisedcostandfair

valuethroughothercomprehensiveincomearesubsequentlymeasuredatfairvaluethroughprofitorloss.

Theentityinitiallydesignatesafinancialinstrumentasmeasuredatfairvaluethroughprofitorlossif:

–iteliminatesorsignificantlyreducesameasurementorrecognitioninconsistency(oftenreferredtoasan

“accountingmismatch”)thatwouldotherwisearisefrommeasuringassetsorliabilitiesorrecognisingthe

gainsandlossesonthemondifferentbases;

–itisinaccordancewiththedocumentedriskmanagementorinvestmentstrategyandinformationabout

thegroupings isdocumentedappropriately, so theperformanceof the financial liability that ispartofa

groupoffinancial liabilitiesorfinancialassetscanbemanagedandevaluatedconsistentlyonafairvalue

basis;and

– it is a hybrid contract that contains anembeddedderivative that significantlymodifies the cash flows

otherwiserequiredbythecontract.

Theinitialdesignationoffinancialinstrumentstomeasureatfairvaluethroughprofitorlossisaone-time

optiononinitialclassificationandisirrevocableuntilthefinancialassetisderecognised. EquityinstrumentsAt initial recognition, as long as the equity instrument is not held for trading or is not a contingent

considerationrecognisedbyanacquirerinabusinesscombinationtowhichAASB3applies,theentitymade

anirrevocableelectiontomeasureanysubsequentchangesinfairvalueoftheequityinstrumentsinother

comprehensiveincome,whilethedividendrevenuereceivedonunderlyingequityinstrumentsinvestment

willstillberecognisedinprofitorloss.

Regularwaypurchasesandsalesoffinancialassetsarerecognisedandderecognisedatsettlementdatein

accordancewiththeentity’saccountingpolicy.

DerecognitionDerecognitionreferstotheremovalofapreviouslyrecognisedfinancialassetorfinancialliabilityfromthe

statementoffinancialposition.


17



DerecognitionoffinancialliabilitiesA liability isderecognisedwhen it isextinguished (i.e.when theobligation in thecontract isdischarged,

cancelledorexpires).Anexchangeofanexistingfinancialliabilityforanewonewithsubstantiallymodified

terms,orasubstantialmodificationtothetermsofafinancialliability,istreatedasanextinguishmentof

theexistingliabilityandrecognitionofanewfinancialliability.

Thedifferencebetweenthecarryingamountofthefinancial liabilityderecognisedandtheconsideration

paidandpayable,includinganynon-cashassetstransferredorliabilitiesassumed,isrecognisedinprofitor

loss.

DerecognitionoffinancialassetsAfinancialassetisderecognisedwhentheholder’scontractualrightstoitscashflowsexpires,ortheasset

istransferredinsuchawaythatalltherisksandrewardsofownershiparesubstantiallytransferred.

Allthefollowingcriterianeedtobesatisfiedforthederecognitionofafinancialasset:

–therighttoreceivecashflowsfromtheassethasexpiredorbeentransferred;

–allriskandrewardsofownershipoftheassethavebeensubstantiallytransferred;and

–theentitynolongercontrolstheasset(i.e.hasnopracticalabilitytomakeunilateraldecisiontosellthe

assettoathirdparty).

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s

carryingamountandthesumoftheconsiderationreceivedandreceivableisrecognisedinprofitorloss.

Onderecognitionofadebt instrumentclassifiedas fairvalue throughothercomprehensive income, the

cumulativegainorlosspreviouslyaccumulatedintheinvestmentrevaluationreserveisreclassifiedtoprofit

orloss.

Onderecognitionofaninvestmentinequitywhichtheentityelectedtoclassifyunderfairvaluethrough

other comprehensive income, the cumulative gain or loss previously accumulated in the investments

revaluationreserveisnotreclassifiedtoprofitorloss,butistransferredtoretainedearnings.

Theentityrecognisedalossallowanceforexpectedcreditlosseson:

–financialassetsthataremeasuredatamortisedcostorfairvaluethroughothercomprehensiveincome;

–leasereceivables;

–contractassets(e.g.amountduefromcustomersunderconstructioncontracts);

–loancommitmentsthatarenotmeasuredatfairvaluethroughprofitorloss;and

–financialguaranteecontractsthatarenotmeasuredatfairvaluethroughprofitorloss.

Lossallowanceisnotrecognisedfor:

–financialassetsmeasuredatfairvaluethroughprofitorloss;or

–equityinstrumentsmeasuredatfairvaluethroughothercomprehensiveincome.

Expected credit losses are theprobability-weightedestimateof credit lossesover the expected life of a

financialinstrument.Acreditlossisthedifferencebetweenallcontractualcashflowsthataredueandall

cash flows expected to be received, all discounted at the original effective interest rate of the financial

instrument.

Theentityusedthefollowingapproachestoimpairment,asapplicableunderAASB9:

–thegeneralapproach;

–thesimplifiedapproach;

–thepurchasedororiginatedcredit-impairedapproach;and

–lowcreditriskoperationalsimplification.


18



GeneralapproachUnderthegeneralapproach,ateachreportingperiod,theentityassesseswhetherthefinancialinstruments

arecredit-impaired,and:

–ifthecreditriskofthefinancialinstrumenthasincreasedsignificantlysinceinitialrecognition,theentity

measuresthelossallowanceofthefinancialinstrumentsatanamountequaltothelifetimeexpectedcredit

losses;and

– if there is no significant increase in credit risk since initial recognition, the entity measures the loss

allowanceforthatfinancialinstrumentatanamountequalto12-monthexpectedcreditlosses.

SimplifiedapproachThesimplifiedapproachdoesnotrequiretrackingofchangesincreditriskateveryreportingperiod,but

insteadrequirestherecognitionoflifetimeexpectedcreditlossatalltimes.

Thisapproachisapplicableto:

–tradereceivables;and

–leasereceivables.

In measuring the expected credit loss, a provision matrix for trade receivables was used taking into

considerationvariousdatatogettoanexpectedcreditloss(i.e.diversityofitscustomerbase,appropriate

groupingsofitshistoricallossexperience,etc).

Purchasedororiginatedcredit-impairedapproachForfinancialassetsthatareconsideredtobecredit-impaired(notonacquisitionororiginations),theentity

measuredanychangeinitslifetimeexpectedcreditlossasthedifferencebetweentheasset’sgrosscarrying

amountand thepresentvalueofestimated futurecash flowsdiscountedat the financialasset’soriginal

effectiveinterestrate.Anyadjustmentisrecognisedinprofitorlossasanimpairmentgainorloss.

Evidenceofcreditimpairmentincludes:

–significantfinancialdifficultyoftheissuerorborrower;

–abreachofcontract(e.g.defaultorpastdueevent);

–a lenderhasgranted to theborrowera concession,due to theborrower’s financialdifficulty, that the

lenderwouldnototherwiseconsider;

–thelikelihoodthattheborrowerwillenterbankruptcyorotherfinancialreorganisation;and

–thedisappearanceofanactivemarketforthefinancialassetbecauseoffinancialdifficulties.

LowcreditriskoperationalsimplificationapproachIfafinancialassetisdeterminedtohavelowcreditriskattheinitialreportingdate,theentityassumedthat

the credit risk has not increased significantly since initial recognition and, accordingly, can continue to

recognisealossallowanceof12-monthexpectedcreditloss.

Inorder tomake suchadetermination that the financial assethas lowcredit risk, theentity applied its

internalcreditriskratingsorothermethodologiesusingagloballycomparabledefinitionoflowcreditrisk.

Afinancialassetisconsideredtohavelowcreditriskif:

–thereisalowriskofdefaultbytheborrower;

–theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsinthenearterm;and

–adversechangesineconomicandbusinessconditionsinthelongerterm,may,butnotnecessarily,reduce

theabilityoftheborrowertofulfilitscontractualcashflowobligations.

Afinancialassetisnotconsideredtocarrylowcreditriskmerelyduetoexistenceofcollateral,orbecausea

borrowerhasalowerriskofdefaultthantheriskinherentinthefinancialassets,orrelativetothecreditrisk

ofthejurisdictioninwhichitoperates.


19



RecognitionofexpectedcreditlossesinfinancialstatementsAteachreportingdate,theentityrecognisesthemovementinthelossallowanceasanimpairmentgainor

lossinthestatementofprofitandlossandothercomprehensiveincome.

Thecarryingamountoffinancialassetsmeasuredatamortisedcostincludesthelossallowancerelatingto

thatasset.

Assetsmeasuredatfairvaluethroughothercomprehensiveincomearerecognisedatfairvaluewithchanges

infairvaluerecognisedinothercomprehensiveincome.Theamountinrelationtochangeincreditriskis

transferredfromothercomprehensiveincometoprofitorlossateveryreportingperiod.

Forfinancialassetsthatareunrecognised(e.g.loancommitmentsyettobedrawn,financialguarantees),a

provisionforlossallowanceiscreatedinthestatementoffinancialpositiontorecognisethelossallowance.

FinancialInstrumentsComparativeYearInitialrecognitionandmeasurementFinancialassetsandfinancialliabilitiesarerecognisedwhentheentitybecomesapartytothecontractual

provisionstotheinstrument.Forfinancialassets,thisisequivalenttothedatethatthecompanycommits

itselftoeitherpurchaseorselltheasset(i.e.tradedateaccountingisadopted).Financialinstrumentsare

initiallymeasuredatfairvalueplustransactioncostsexceptwheretheinstrumentisclassified“atfairvalue

throughprofitorloss”inwhichcasetransactioncostsareexpensedtoprofitorlossimmediately.

Classificationandsubsequentmeasurement

Financialinstrumentsaresubsequentlymeasuredatfairvalue,amortisedcostusingtheeffectiveinterest

ratemethodorcost.Fairvaluerepresentstheamountforwhichanassetcouldbeexchanged,oraliability

settled,betweenknowledgeable,willingparties.Whereavailable,quotedpricesinanactivemarketare

usedtodeterminefairvalue.Inothercircumstances,valuationtechniquesareadopted.

Amortisedcostiscalculatedas:

(i) theamountatwhichthefinancialassetorfinancialliabilityismeasuredatinitialrecognition;

(ii) lessprincipalrepayments;

(iii) plusorminusthecumulativeamortisationofthedifference,ifany,betweentheamountinitially

recognisedandthematurityamountcalculatedusingtheeffectiveinterestmethod;and

(iv) lessanyreductionforimpairment.

Theeffective interestmethod isusedtoallocate interest incomeor interestexpenseover therelevant

periodand isequivalent to therate thatexactlydiscountsestimated futurecashpaymentsor receipts

(includingfees,transactioncostsandotherpremiumsordiscounts)throughtheexpectedlife(orwhen

this cannotbe reliablypredicted, the contractual term)of the financial instrument to thenet carrying

amount of the financial asset or financial liability. Revisions to expected future net cash flows will

necessitateanadjustmenttothecarryingvaluewithaconsequentialrecognitionofanincomeorexpense

inprofitorloss.

(i) Financialassetsatfairvaluethroughprofitorloss

Financialassetsareclassifiedat“fairvaluethroughprofitorloss”whentheyareheldfortrading

forthepurposeofshort-termprofit taking,orwheretheyarederivativesnotheldforhedging

purposes,orwhen theyaredesignatedas such toavoidanaccountingmismatchor toenable

performance evaluation where a group of financial assets is managed by key management

personnelonafairvaluebasisinaccordancewithadocumentedriskmanagementorinvestment

strategy.Suchassetsaresubsequentlymeasuredatfairvaluewithchangesincarryingvaluebeing

includedinprofitorloss.


20



(ii) Loansandreceivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthat

arenotquotedinanactivemarketandaresubsequentlymeasuredatamortisedcost.Loansand

receivablesareincludedincurrentassets,exceptforthosewhicharenotexpectedtomaturewithin

12monthsaftertheendofthereportingperiod.(Allotherloansandreceivablesareclassifiedas

non-currentassets.)

(iii) Held-to-maturityinvestments

Held-to-maturity investmentsarenon-derivative financialassets thathave fixedmaturitiesand

fixed or determinable payments, and it is the entity’s intention to hold these investments to

maturity.Theyaresubsequentlymeasuredatamortisedcost.

Held-to-maturity investments are included in non-current assets, except for those which are

expectedtomaturewithin12monthsaftertheendofthereportingperiod.(Allotherinvestments

areclassifiedascurrentassets.)

Ifduringtheperiodthecompanysoldorreclassifiedmorethanan insignificantamountof the

held-to-maturityinvestmentsbeforematurity,theentireheld-to-maturityinvestmentscategory

wouldbetaintedandreclassifiedasavailable-for-sale.

(iv) Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativefinancialassetsthatareeithernotcapableof

beingclassifiedintoothercategoriesoffinancialassetsduetotheirnature,ortheyaredesignated

assuchbymanagement.Theycompriseinvestmentsintheequityofotherentitieswherethereis

neither a fixed maturity nor fixed or determinable payments. Such assets are subsequently

measuredatfairvalue.

Available-for-salefinancialassetsareincludedinnon-currentassets,exceptforthosewhichare

expectedtobedisposedofwithin12monthsaftertheendoftheendofthereportingperiod.(All

otherfinancialassetsareclassifiedascurrentassets.)

(v) Financialliabilities

Non-derivativefinancialliabilities(excludingfinancialguarantees)aresubsequentlymeasuredat

amortisedcost.

Fairvalue

Fairvalueisdeterminedbasedoncurrentbidpricesforallquotedinvestments.Valuationtechniquesare

appliedtodeterminethefairvalueforallunlistedsecurities,includingrecentarm’slengthtransactions,

referencetosimilarinstrumentsandoptionpricingmodels.

Impairment

Attheendofeachreportingperiod,theentityassesseswhetherthereisobjectiveevidencethatafinancial

instrumenthasbeenimpaired.Inthecaseofavailable-for-salefinancialinstruments,aprolongeddecline

in thevalueof the instrument isconsideredtodeterminewhether impairmenthasarisen. Impairment

lossesarerecognisedinthestatementofcomprehensiveincome.

Derecognition

Financialassetsarederecognisedwherethecontractualrightstoreceiptofcashflowsexpireortheasset

istransferredtoanotherpartywherebytheentitynolongerhasanysignificantcontinuinginvolvementin

therisksandbenefitsassociatedwiththeasset.Financial liabilitiesarederecognisedwheretherelated

obligationsaredischarged,cancelledorexpired.Thedifferencebetweenthecarryingvalueofthefinancial

liability,whichisextinguishedortransferredtoanotherparty,andthefairvalueofconsiderationpaid,

includingthetransferofnon-cashassetsorliabilitiesassumed,isrecognisedinprofitorloss.


21



e. ImpairmentofAssets

Attheendofeachreportingperiod,theentityreviewsthecarryingvaluesofitstangibleandintangible

assets to determinewhether there is any indication that those assets have been impaired. If such an

indicationexists,therecoverableamountoftheasset,beingthehigheroftheasset’sfairvaluelesscosts

tosellandvalueinuse,iscomparedtotheasset’scarryingvalue.Anyexcessoftheasset’scarryingvalue

overitsrecoverableamountisexpensedtothestatementofcomprehensiveincome.

Wherethefutureeconomicbenefitsoftheassetarenotprimarilydependentupontheasset’sabilityto

generatenetcashinflowsandwhentheentitywould,ifdeprivedoftheasset,replaceitsremainingfuture

economicbenefits,valueinuseisdeterminedasthedepreciatedreplacementcostofanasset.

Whereitisnotpossibletoestimatetherecoverableamountofaclassofassets,theentityestimatesthe

recoverableamountofthecash-generatingunittowhichtheclassofassetsbelong.

Whereanimpairmentlossonarevaluedassetisidentified,thisisdebitedagainsttherevaluationsurplus

inrespectofthesameclassofassettotheextentthattheimpairmentlossdoesnotexceedtheamount

intherevaluationsurplusforthatsameclassofasset.

f. EmployeeBenefits

Provision ismade for the company’s liability for employee benefits arising from services rendered by

employeestotheendofthereportingperiod.Employeebenefitsthatareexpectedtobesettledwithin

oneyearhavebeenmeasuredattheamountsexpectedtobepaidwhentheliabilityissettled.Employee

benefitspayablelaterthanoneyearhavebeenmeasuredatthepresentvalueoftheestimatedfuture

cash outflows to be made for those benefits. In determining the liability, consideration is given to

employeewage increasesandtheprobabilitythattheemployeemaynotsatisfyvestingrequirements.

Those cashoutflows are discountedusingmarket yields onnational government bondswith terms to

maturitythatmatchtheexpectedtimingofcashflows.

Contributionsaremadebytheentitytoanemployeesuperannuationfundandarechargedasexpenses

whenincurred.

g. CashandCashEquivalents

Cashandcashequivalentsincludecashonhand,depositsheldatcallwithbanks,othershort-termhighly

liquidinvestmentswithoriginalmaturitiesofthreemonthsorless,andbankoverdrafts.Bankoverdrafts

areshownwithinshort-termborrowingsincurrentliabilitiesonthestatementoffinancialposition.


22



h. IncomeTax

NoprovisionforincometaxhasbeenraisedastheInstituteisexemptfromincometaxunderDiv50ofthe

IncomeTaxAssessmentAct1997.

i. Provisions

Provisionsarerecognisedwhentheentityhasalegalorconstructiveobligation,asaresultofpastevents,

forwhichitisprobablethatanoutflowofeconomicbenefitswillresult,andthatoutflowcanbereliably

measured. Provisions recognised represent the best estimate of the amounts required to settle the

obligationattheendofthereportingperiod.

j. ComparativeFigures

Where required by Accounting Standards, comparative figures have been adjusted to conform with

changesinpresentationforthecurrentfinancialyear.

When an entity applies an accounting policy retrospectively, makes a retrospective restatement or

reclassifiesitemsinitsfinancialstatements,astatementoffinancialpositionasatthebeginningofthe

earliestcomparativeperiodmustbedisclosed.

k. TradeandOtherPayables

Tradeandotherpayablesrepresenttheliabilityoutstandingattheendofthereportingperiodforgoods

andservicesreceivedbythecompanyduringthereportingperiodwhichremainunpaid.Thebalanceis

recognised as a current liabilitywith the amounts normally paidwithin 30 days of recognition of the

liability.


23



l. GoingConcern

Asdisclosedinthefinancialstatementsasat30September2019,thecompanyhasrecordedalossof

$125,815(2018:Lossof$35,880).Thecompanyhasasurplusofnetliabilitiesof$105,366(SurplusNet

Assets2018:$20,452).

Thedirectorsbelievethatthecompanyisagoingconcernbasedonseveralfactorsincluding:

• Theappointmentofahighlyexperienced individuals topositionsasdirectorsof theClub's

boardtoprovidestableandcapablelongtermstrategicgovernance;

• Thecontinuedsupportofitsmembersandsponsors,includinganegotiatednewsponsorship

agreementwithourmajorpartner,ClubBurwooduntil2022;

• Theactiveengagementofanewcohortofmembersthrougharevisedmembershippackage

plantoattractandmaximisememberandsupporternumbersfromabroaderdemographic

reflectingtheClub'smovetoDrummoyneOvalforthenexttwoyearsincludingHuntersHill,

Drummoyne,RussellLea,Balmain,RoselleandFiveDock;

• AfocusontappingintothechangingandvariedethnicdemographicsoftheInnerWestArea

throughthedevelopmentofMemorandumsofUnderstandingwiththeKoreanand

LebaneseRugbyUnions;

• Activerecruitmentofqualityplayersandexcellentplayernumbersforpreseasontraining;

• NegotiatedanewlicenceagreementandDeedofForbearancewithCanadaBayCounciluntil

2029;

• SecuredDrummoyneOvalasourhomegroundforthenexttwoyears;• ActiveSponsorshipCommitteethatisintheprocessofsecuringnewsponsorshiptofurther

increaseoursponsorshipincomein2020;

• Expansionof theClub's supporterbaseandexposure throughhostingRoundOneof2020

seasoninBathurst;

• Implementationanddevelopmentoffullyfundedjuniordevelopmentprograms.

• The development and leadership of the Inner West Rugby Hub and a new school's

competition,theWangalCup;

• ReturningtothenewlydevelopedConcordOval,whichwillbethebestrugbyfacilityinthe

ShuteShield;&

• The continued growth and popularity of club rugby in Sydney and the Shute Shield

competition.

Thefinancialstatementshavebeenpreparedonagoingconcernbasis,whichassumescontinuityof

normalbusinessactivitiesandtherealisationofassetsandthesettlementofliabilitiesinthenormal

courseofbusiness.

The directors are of the opinion the above requirements will be satisfied and accordingly have

preparedthefinancialstatementsonagoingconcernbasis.Thefinancialstatementsdonotinclude

any adjustments relating to the recoverability or classification of recorded asset amounts or

classificationofliabilitiesthatmightbenecessaryshouldthecompanynotbeabletocontinueasa

goingconcern.


24


NOTE2:REVENUEANDOTHERINCOME

2019 2018

$ $

Revenue

FinanceIncome

InterestandDividendreceived 1,776 139

OtherRevenue

Sponsorship 255,476 478,013

GrantIncome 30,526 116,201

TradingIncome 47,849 15,366

MembershipFees 2,912 25,810

GateTakings 7,325 26,926

BarIncome 51,644 98,486

In-kindsponsorshipandbenefits 53,672 126,017

Gradesubscriptions 9,956 30,856

FunctionsandEvents 31,933 64,645

SundryIncome 69,274 79,319

Totalrevenue 562,343 1,061,778

NOTE3:CASHANDCASHEQUIVALENTS

2019 2018

$ $

Cashatbank 10,904 180,710

10,904 180,710

ReconciliationofCashatBank

Cashattheendofthefinancialyearasshowninthestatementofcash

flows is reconciled to items in the statement of financial position as

follows:

BalanceperStatementofFinancialPosition 10,904 180,710

BalanceperStatementofCashflows 10,904 180,710

Difference - -


25


NOTE4:TRADEANDOTHERRECEIVABLES

2019 2018

$ $

CURRENT

Tradereceivables 42,678 34,367

Otherreceivables 4,017 -

46,695 34,367

NOTE5:TRADEANDOTHERPAYABLES

2019 2018

$ $

CURRENT

Tradeandotherpayables 147,400 207,415

IncomeinAdvance - 45,257

DeferredGrantIncome 2,596 2,596

149,996 255,268

NON-CURRENT

Tradeandotherpayables 92,282 -

DeferredGrantIncome 5,953 8,549

98,235 8,549

NOTE6:OTHERASSETS

2019 2018

$ $

CURRENT

RentalBond 6,236 3,200

6,236 3,200


26


MovementsinCarryingamountsofproperty,plantandequipment

NOTE7:PROPERTY,PLANTANDEQUIPMENT

2019 2018

$ $PLANTANDEQUIPMENT

Plant&equipmentatcost 33,460 124,894

AccumulatedDepreciation (9,752) (100,159)

23,708 24,735

FootballGearatcost 44,302 44,302


6,520 6,520

WestHarborGymEquipment&High-PerformanceCentreAtcost 130,761 130,761

Impairment (103,007) (103,007)


- -

MotorVehicleatcost 7,500 7,500

AccumulatedDepreciation (1,876) (938)

5,624 6,562

Totalproperty,plantandequipment 35,852 37,817

Plant&Equipment

FootballGear

MotorVehicles Total

$ $ $ $30September2018

Balanceatthebeginningoftheyear 24,735 6,520 6,562 37,817

Additions 5,000 - - 5,000

DepreciationExpense (6,027) - (938) (6,965)

Balanceattheendoftheyear 23,708 6,520 5,624 35,852


27


NOTE10:MEMEBERS’GUARANTEE

ThecompanyisincorporatedundertheCorporationAct2001andisacompanylimitedbyguarantee.Ifthecompanyis

woundup,theconstitutionstatesthateachmemberisrequiredtocontributeamaximumof$20towardsmeetingany

outstandingobligationsofthecompany.At30September2019,thenumberofmemberswas462.

NOTE11:KEYMANGEMENTPERSONNELDISCLOSURES

Thetotalremunerationpaidtokeymanagementpersonnelofthecompanyfortheyearended30September2019was$nil

(2018:$nil).

OtherKeymanagementpersonneltransactionsFordetailsofothertransactionswithkeymanagementpersonnel,refertoNote13:RelatedPartyTransactions

NOTE12:CONTINGENCIES

Intheopinionofthedirectors,thecompanydidnothaveanycontingenciesat30September2019(30September2018:

None).

NOTE9:GRANTS

Note 2019 2018

$ $At1October 11,145 -

Receivedduringtheyear 27,930 127,346

ReleasedtoStatementofProfitorLoss (30,526) (116,201)

At30September 8,549 11,145

Current 5 2,596 2,596

Non-Current 5 5,953 8,549

8,549 11,145


28


NOTE13:RELATEDPARTIES

(a) Thecompany’smainrelatedpartiesareasfollows:

KeyManagementpersonnelAnyperson(s)havingauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheentity,

directly or indirectly, including any director (whether executive or otherwise) of that entity are considered key

managementpersonnel.

Fordetailsofremunerationdisclosuresrelatingtokeymanagementpersonnel,refertoNote11:KeyManagement

PersonnelDisclosures.

OthertransactionswithKMPandtheirrelatedentitiesareshownbelow.

(b) Transactionswithrelatedparties

Therewerenotransactionswithrelatedpartiesduringtheyearended30September2019,otherthanasfollows:

(2018:none).

Mr.ChrisCharlton (DirectorandTreasurer)providedaccountancy services to thecompany,amounting to$10,000 in the

financialyear.Theseserviceswereprovidedunderasponsorshipinkindagreement,withnopaymentsbeingmadebythe

company.

NOTE14:EVENTSOCCURRINGAFTERTHEREPORTINGDATE

Mr.ThomasGamesandMr.SimonGreallywereappointedascompanydirectorson31December2019.

No othermatters or circumstances have arisen since the end of the financial year which significantly affected or could

significantlyaffecttheoperationsofthecompany,theresultsofthoseoperationsorthestateofaffairsofthecompanyin

futurefinancialyears.

NOTE15:COMPANYDETAILS

Theregisteredofficeofthecompanyis:

Level8

261GeorgeSt,

SydneyNSW2000

Theprincipalplaceofbusinessofthecompanyis:

'ConcordOval',

1LoftusStreet,

Concord,2137,NSW


29

DIRECTORS’DECLARATION

Thedirectorsoftheentitydeclarethat:

1. ThefinancialstatementsandnotesareinaccordancewithCorporationsAct2001:

a. complywithAustralianAccountingStandards-ReducedDisclosureRequirements;and

b. giveatrueandfairviewofthefinancialpositionasat30September2019andoftheperformanceforthe

yearendedonthatdateoftheentity.

2. Inthedirectors’opinion,therearereasonablegroundstobelievethattheentitywillbeabletopayitsdebtsasand

whentheybecomedueandpayable.

ThisdeclarationissignedinaccordancewitharesolutionoftheBoardofDirectors.

Director

Datedthisdayof2020

19th

January


30

west harbour rugby union football club limited...west harbour rugby union football club limited abn:...

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