a.b.n. 27 000 436 886 140 rookwood road president: 57th ... · directors’ report 2 president’s...

PRESIDENT: M Phillips

GREYHOUND SOCIAL CLUB LTD T/AS ARENA SPORTS CLUB

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2019

A.B.N. 27 000 436 886

140 Rookwood Road

Yagoona

57TH ANNUAL REPORT

&

CONTENTS:

Directors’ Report 2

President’s Report 5

Chief Executive Officer’s Report 7

Notice of Election of Directors 8

AGM Notice 9

Auditor’s Independence Declaration 10

Independent Audit Report 11

Statement of Profit or Loss and Other Comprehensive Income 13

Statement of Financial Position 14

Statement of Changes in Equity 15

Statement of Cash Flows 16

Notes to the Financial Statements 17

Directors’ Declaration 42

Compilation Report on Additional Financial Information 43

Detailed Profit and Loss Statement 44

Detailed Balance Sheet 47

Other Information 49

1

GREYHOUND SOCIAL CLUB LTD T/AS ARENA SPORTS CLUBA.B.N. 27 000 436 886

ANNUAL REPORT


Directors

Director Experience

Michael Phillips President

Noel Hayward Vice President

Domenic Tesoriero Director

Ronald Marsden Director

Ronnie Allonzo Director

Review of Operations

Principal activities

Short-term objectives

The Company's short-term objectives are to:

1

2

3

4


DIRECTORS’ REPORT

To be presented to the members at the Annual General Meeting of the corporation to be held at the Club, 140 Rookwood

Road, Yagoona at 8:00pm on 31 October 2019.

The Directors of Greyhound Social Club Ltd T/As Arena Sports Club present their report together with the financial

statements for the year ended 30 June 2019.

The following persons were Directors of Greyhound Social Club Ltd T/As Arena Sports Club during or since the end of

the financial year.

The principal activities of the Company in the course of its last financial year were to carry on and develop the activities

and objects of the Club. There have been no significant changes in the nature of these activities during the year.

2

Initiate a sale of three (3) poker machine licences to generate $350,000 - $400,000 in additional cash inflows to

the Club;

Consider all available options to improve the financial viability of the Club to ensure its immediate future;

Implement a freeze on new spending, ensuring no capital outlay and limiting repairs and maintenance to

ensuring occupational health and safety standards continue to be met;

The Club has agreed to grant Arden Group an exclusive dealing period with the aim to present the concept

scheme and proposal to the Club's members. The concept schedule and proposal must be approved by the

members to help secure the Club's future.

The Club incurred a loss for the financial year of $602,592 (2018: $1,398,741 loss) after depreciation of $145,367 (2018:

$130,501) and an extraordinary expense of $68,292 (2018: $0). The 2018 loss also included a net decrease in fair value

of the Provident Capital investment of $680,322.

Long-term objectives

Strategy for achieving short and long-term objectives

To achieve these objectives, the Company had adopted the following strategies:

1 Continually review and reduce costs of the Club for the future.

2 Implement new, profitable revenue streams for the Club where available.

3 Put in place six monthly, rolling budgets that are controlled across all facets of the Club.

4 Consider all opportunities from GRNSW for increasing the number of races held during the year.

Directors' meetings

Attended

President

M Phillips 8 8

Vice President

N Hayward 8 8

Directors

D Tesoriero 8 8

R Marsden 8 8

R Allonzo 8 -

A.B.N. 27 000 436 886


The Company's long-term objectives are to turn around the significant losses incurred over the last five years, with the

aim of continuing to provide greyhound racing to the members. Should the opportunity arise, the Board is aiming to be

in a position to host TAB racing in the future.

DIRECTORS’ REPORT

The number of meetings of Directors (including meetings of Committees of Directors held during the year and the number

of meetings attended by each Director) is as follows:

Eligible to

attend

3

Significant Matters

Auditor’s Independence Declaration

Signed in accordance with a resolution of the Directors.

Michael Phillips Domenic Tesoriero

President Director

10th day of October 2019

4


DIRECTORS’ REPORT

No significant matters have arisen since the end of the financial year that significantly affected or may significantly affect

the Company's operations.

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the Company

is wound up, the constitution states that each member is required to contribute a maximum of $20 each towards meeting

any outstanding obligations of the entity. At 30 June 2019, the total amount the members of the company are liable to

contribute if the Company is wound up is $23,360.

A copy of the Auditor’s Independence Declaration as required under s307C of the Corporations Act 2001 is included in

page 10 of the financial report and form part of the Director's Report.

Dear Members,

Fixed assets purchases:

Account ReasonImpact on 2019

profit ($)

Food and Beverage Significant improvement in bar

sales due to increased sales during

the period when the Night Club was

being operated

214,340

Keno and TAB Improved profit overall from 2018 to

2019

13,019

Raffles Reduction in overall costs incurred,

whilst still running at a loss to the

club

(5,791)

Bingo Reduction in costs incurred, in

particular to Heart Research

Institute resulted in an improvement

in results

18,404

Vending Machines First full year with commission from

the Tomra Recycling Reverse

Vending Machine.

14,588

5


You will see in the Financial Statements that the Club has suffered another large financial loss. I wanted to take you

through some factors which explain to you where the overall loss was born and importantly, what steps we have taken to

reduce the likelihood going forward.

Finances:

I have listed these for you in a table so you can review what we were presented with, and the overall benefits and losses

faced during 2018-2019:

We incurred $13,500 in kitchen renovations in April 2019.

PRESIDENT’S REPORT


A.B.N. 27 000 436 886

I present this Annual Report for 2018-2019 to you as a member of Arena Sports Club. It has been another difficult year for

our Club with continued losses being incurred.

We, as a board, have continued to face some significant issues at this Club, that we would like to discuss with you further.

Functions and Room Hire Reduced number of functions held

during the year and internal

caterers received majority of the

income

(131,412)

Interest Income from interest received on

Club funds increased

12,217

Poker Machines Performance remained relatively

consistent to last year

(1,899)

Security Significant costs involved in running

the Night Club

(97,174)

Depreciation - purchase of

new assets

Additional expenditure resulted in

increase in write off of these assets

from 2018 to 2019.

14,856

Mr Michael Phillips JP, MBA

President

6

As always, I am happy to speak with any member about any issues with the Club, please call the Club on 9709 3859 to

contact me.


I look forward to seeing you at the Annual General Meeting (AGM) at 8pm on the 31st of October 2019 at the Club.

We are continually trying to implement new ideas into the Club to help improve our performance. Unfortunately not all

income streams have been successful however we are continually on the look out for new opportunities.


PRESIDENT’S REPORT

Mr Michael Ekert

Chief Executive Officer

7


CHIEF EXECUTIVE OFFICER'S REPORT


We have secured additional income from the Return and Earn Scheme and Thursday Night Poker.

Dear Members,

Thank you for being a member of Arena Sports Club.

In closing, I’m looking forward towards the next 2 years of our Club and would like to thank the Board of Directors and my

employees for their ongoing support.

In NSW between 2011 and 2015, 65 Clubs closed and many more were amalgamated. Our Club has continued to look at

ways to ensure a better position, going forward.

We have new Caterers (SHUANG SHUANG) that provide Chinese and western meals.

Members receive a discount lunchtime menu $9 week days, and weekend specials $10 with an additional special deal for

members, T-Bone steak $11 with chips and sauce, lunch time only 6 days a week.

Weekly night specials deal which includes one of the following (tap beer schooner, post mix Smidi, 600ml bottle of water ,

glass of house red/white or cappuccino), Tuesday $13 chicken wings & chips or grilled fish fillet chips & salad.

Wednesday $15.50 New York steak chips & salad, Thursday $13 chicken schnitzel, chips & salad.

On Saturday & Sunday kids eat free with each main meal purchased from menu.

SHUANG SHUANG also offers Buffet packages from $29.90 per person with a Special deal for Melbourne Cup Day

buffet, $25 per person.

7 Ordinary Directors to be elected

Returning Officer

Mr Brad Farr

Australian Election Company

ABN: 58 635 903 913

www.austelect.com

Phone: 1800 224 420

Fax: (07) 5428 1355

Email: [email protected]

Mobile: 0412 718 244

Nominations for the Directors Election will open on the 15th of October 2019 at 10:00am.

Nominations for Directors Election will close on the 19th of October 2019 at 6pm.

A ballot for the order of nominations will take place after nominations close.

A ballot will take (if required) on the 31st of October at:

140 Rookwood Road, Yagoona NSW from 12 noon until 8:00pm.

Michael Ekert



NOTICE OF 57TH ANNUAL GENERAL MEETING

8

All members will be required to bring their membership card and photo identification (a current Licence or a passport).

A nomination form to stand as an Ordinary Director can be obtained through the Returning Officer or through the Club’s

reception during trading hours.

The Directors are appointed for a 2 (two) year term commencing at the conclusion of the Annual General Meeting on the

31st of October 2019.

Business

1. Confirmation of the Minutes of the last Annual General Meeting and Extraordinary meeting.

2. To receive and consider the Annual Report and Financial Statements for adoption.

3. Notices of Motion.

That pursuant to the Registered Clubs Act 1976 (NSW) :

(a)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(b)

4. Election of Directors and results of the Ballot.

Michael Ekert


The Members are requested to provide any questions in relation to the financial report to the Chief Executive Officer

within seven days of the Annual General Meeting.

9

Please note BALLOT FOR DIRECTORS BETWEEN THE HOURS OF 12PM AND 8PM on Thursday 31st of October

2019.

The reasonable cost of Directors attending Meetings of other Associations of which the Club is

a member.

The reasonable cost of Directors attending Seminars, Lectures, Trade Displays, Organised

Study Tours, Fact-finding Tours and other similar events as may be determined by the Board

from time to time.

The reasonable cost of Directors attending other Clubs for the purpose of observing their

facilities and methods of operation.

Attendance at functions with spouses where appropriate and required, to represent the Club.

Appointment of Legal representative.

The Members acknowledge that the benefits in paragraph (a) above are not available to Members

generally, but only for those who are Directors of the Club.

The reasonable cost of Directors attending at the Registered Clubs Association Annual General

Meeting.


NOTICE OF ELECTION OF DIRECTORS

Notice is hereby given that the fifty-seventh Annual General Meeting of the Greyhound Social Club Limited T/As Arena

Sports Club will be held on Thursday, 31st of October 2019 at 8:00pm.

The Members hereby approve expenditure by the Club in a sum not exceeding $10,000 for the

professional development and education of the Directors over the following twelve (12) months,

including:

-

- No contraventions of any applicable code of professional conduct in relation to the audit.

Flegg Kehlet Wagner

Rodney Wagner

Registered Company Auditor Number: 433830

Campbelltown

10 October 2019

No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

10

AUDITOR’S INDEPENDENCE DECLARATION

TO THE DIRECTORS OF GREYHOUND SOCIAL CLUB LTD T/AS ARENA SPORTS CLUB

In accordance with the requirements of section 307C of the Corporations Act 2001 , as auditor for the audit of Greyhound Social Club Ltd

T/As Arena Sports Club for the year ended 30 June 2019, I declare that, to the best of my knowledge and belief, there have been:

Scope

Basis for Opinion

Qualification - Inherent Uncertainty regarding Going Concern

Other Information - Additional Financial Information

INDEPENDENT AUDIT REPORT


We have audited the accompanying financial report, being a general purpose financial report of the Greyhound Social Club Ltd T/As Arena Sports

Club comprising the Director’s Declaration, Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity,

Statement of Cash Flows and Notes to the Financial Statements for the financial year ended 30 June 2019.

In our opinion, the accompanying financial report of the Company is prepared, in all material respects, in accordance with the accounting policies

described in Note 1 to the financial report, however, because of the effects of the matter discussed in the qualification paragraph, the financial report

does not present fairly in accordance with applicable Accounting Standards and other mandatory professional reporting requirements in Australia.

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the

Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the

ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the

Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other responsibilities in accordance with the Code.

We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company would

be in the same terms if given to the directors as at the time of this auditor’s report.

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion

thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other

information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that

fact. We have nothing to report in this regard.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Those charged with governance are responsible for the other information – additional financial information. The other information comprises the

information included in the Company’s financial statements for the year ended 30 June 2019, but does not include the financial report and our

auditor’s report thereon.

We draw attention to Note 1(p) of the financial report which discloses the review of going concern by the board. Our opinion is modified in respect of

this matter due to the lack of available liquidity to meet future costs of the Company and continued losses being incurred up to the date of this report.

11

Auditor's Responsibilities for the Audit of the Financial Report

-

-

-

-

Flegg Kehlet Wagner

Rodney Wagner

Registered Company Auditor Number: 433830

Campbelltown

10 October 2019

12

INDEPENDENT AUDIT REPORT


Responsibilities of Directors and Those Charged with Governance for the Financial Report

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

In preparing the financial report, the directors are responsible for assessing the registered entity’s ability to continue as a going concern, disclosing,

as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the

registered entity or to cease operations, or have no realistic alternative but to do so.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant

audit findings, including any significant deficiencies in internal control that we identify during our audit.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism

throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit

procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve

collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures

made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence

obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability

to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s

report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions

are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the

Company to cease to continue as a going concern.

The directors of the company are responsible for the preparation and fair presentation of the financial report in accordance with Australian

Accounting Standards (including Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes establishing and

maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement whether

due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the

circumstances.

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to

fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements

can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of the financial report.

Notes 2019 2018

$ $

Revenue and Other Income 2 1,083,353 955,310

Cost of sales 3 (219,967) (262,001)

Employee benefits expense (575,925) (688,902)

Depreciation expense 3 (145,367) (130,501)

Other expense (676,393) (592,325)

Surplus / (Deficit) before income tax (534,300) (718,419)

Income tax expense - -

Surplus / (Deficit) for the year (534,300) (718,419)

Other comprehensive income:

Extraordinary loss for the year (68,292) -

9 - (680,322)

(68,292) (680,322)

(602,592) (1,398,741)


Items that will not be reclassified subsequently to profit or

loss:

Items that will be reclassified subsequently to profit or loss:

Net changes in fair value of financial assets, net of income tax

A.B.N. 27 000 436 886

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

13

This statement should be read in conjunction with the notes to the financial statements.

Total comprehensive income / (loss) for the period


Other comprehensive income / (loss) for the period, net of

income tax

Notes 2019 2018

$ $

Assets

Current

Cash and cash equivalents 4 532,588 534,644

Trade and other receivables 5 46,198 38,506

Inventories 7 20,001 21,110

Other assets 8 3,007 1,483

Current assets 601,794 595,743

Non-current

Other financial assets 9 - 694,678

Property, plant & equipment 10 7,645,483 7,777,000

7,645,483 8,471,678

Total assets 8,247,277 9,067,421

Liabilities

Current

Trade creditors & other payables 11 266,813 338,348

Borrowings 12 21 3,302

Provision for employee benefits 13 28,656 38,596

Current liabilities 295,490 380,245

Non-current

Borrowings 12 166,080 289,776

Provision for employee benefits 13 67,904 77,005

Non-current liabilities 233,984 366,781

Total liabilities 529,474 747,026

Net assets 7,717,803 8,320,395

Equity

Reserves 14 3,680,672 3,680,672

Retained earnings 4,037,131 4,639,723

Total equity 7,717,803 8,320,395


14

STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2019

Non-current assets

A.B.N. 27 000 436 886


Retained Total

Notes Reserves earnings equity

$ $ $

Balance at 1 July 2017 3,680,672 6,038,464 9,719,136

Profit / (Loss) for the year - (718,419) (718,419)

- (680,322) (680,322)

-

Balance at 1 July 2018 3,680,672 4,639,723 8,320,395

Profit / (Loss) for the year - (534,300) (534,300)

- (68,292) (68,292)

Balance at 30 June 2019 3,680,672 4,037,131 7,717,803


15

Total comprehensive income / (loss) for

the year


A.B.N. 27 000 436 886

STATEMENT OF CHANGES IN EQUITY


Total comprehensive income / (loss) for

the year

Notes 2019 2018

$ $

Operating services

Receipts from customers & members 992,749 1,218,602

Payments to suppliers and employees (1,563,276) (1,590,968)

Interest received 14,620 2,403

Interest paid - (16,256)

Net cash provided by / (used in) operating activities 15 (555,907) (386,219)

Investing activities

Purchase of property, plant & equipment (13,850) (441,322)

Proceeds from sale of property, plant & equipment - 603,111

Net cash provided by / (used in) investing activities (13,850) 161,789

Financing activities

Proceeds from borrowings 694,678 372,240

Repayments of borrowings (123,696) (82,464)

Transfer out - Provident Capital Limited - Debentures - 325,000

Net cash provided by / (used in) financing activities 570,982 614,776

Net change in cash and cash equivalents 1,225 390,346

Cash and cash equivalents, beginning of year 531,342 140,996

Cash and cash equivalents, end of year 4(a) 532,567 531,342



16

A.B.N. 27 000 436 886

STATEMENT OF CASH FLOWS


Nature of operations

General information and statement of compliance

Standards adopted by the Company which do not have a material impact on the financial statements

AASB 9 Financial Instruments

AASB 9 Financial Instruments replaces AASB 139 Financial Instruments: Recognition and Measurement.

Summary of accounting policies


A.B.N. 27 000 436 886

NOTES TO THE FINANCIAL STATEMENTS


Greyhound Social Club Ltd T/As Arena Sport Club's ("the Club") principal activities were to carry on and develop the

activities and objectives of the Club. Such activities included greyhound racing at Potts Park and recreation activities to

support the members of the Club.

These financial statements are general purpose financial statements that have been prepared in accordance with

Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001 . Greyhound Social

Club Ltd T/As Arena Sport Club is a non-for-profit entity for the purpose of preparing the financial statements.

The financial statements for the year ended 30 June 2019 were approved and authorised for issue by the Board of

Directors on 10 October 2019.

The significant accounting policies that have been used in the preparation of these financial statements are summarised

below.

The financial statements have been prepared using the measurement bases specified by Australian Accounting Standards

for each type of asset, liability, income and expense. The measurement bases are more fully described in the accounting

policies below.

17

(a) Revenue

Sale of goods and services

Government Grants

Interest and dividend income

(b) Operating expenses

Revenue is recognised when the amount of revenue can be measured reliably, collection is probable, the costs

incurred or to be incurred can be measured reliably, and when the criteria for each of the Company’s different

activities have been met. Details of the activity-specific recognition criteria are described below.

Revenue comprises revenue from the sale of goods, government grants, fundraising activities and client

contributions. Revenue from major products and services is shown in Note 2.

Revenue is measured by reference to the fair value of consideration received or receivable by the Company for

goods supplied and services provided, excluding sales taxes, rebates, and trade discounts.


A.B.N. 27 000 436 886



Revenue from the sale of goods and services comprises revenue earned from the sale of goods purchased for resale

and services provided by the Company to members and customers. Sales revenue is recognised when the control of

goods passes to the customer or the service is provided.

Interest income is recognised on an accrual basis using the effective interest method. Dividend income is recognised

at the time the right to receive payment is established.

Operating expenses are recognised in profit or loss upon utilisation of the service or at the date of their origin.

18

The Company receives an annual goods and services tax (GST) grant from the NSW state government as a rebate

for levies imposed on poker machine revenue.

Revenue from a non-reciprocal grant that is not subject to conditions is recognised when the Company obtains

control of the funds, economic benefits are probable and the amount can be measured reliably. Where a grant may

be required to be repaid if certain conditions are not satisfied, a liability is recognised at year end to the extent that

conditions remain unsatisfied.

(c) Property, Plant and Equipment

Land

Buildings, plant and other equipment

- Buildings: 25 - 50 years

- Plant and equipment: 5 - 20 years

- Leasehold improvements: 25 - 50 years

- Computer hardware: 5 - 20 years

- Office equipment: 5 - 20 years

Land held for use in production or administration is stated at revalued amounts. Revalued amounts are fair market

values based on appraisals prepared by external professional valuers once every two (2) years or more frequently if

market factors indicate a material change in fair value. Valuations were carried out in September 2016 to revalue to

the fair value. No valuations had been obtained since 2016.

Any revaluation surplus arising upon appraisal of land is recognised in other comprehensive income and credited to

the asset revaluation reserve in equity. To the extent that any revaluation decrease or impairment loss has previously

been recognised in profit or loss, a revaluation increase is credited to profit or loss with the remaining part of the

increase recognised in other comprehensive income. Downward revaluations of land are recognised upon appraisal

or impairment testing, with the decrease being charged to other comprehensive income to the extent of any

revaluation surplus in equity relating to this asset and any remaining decrease recognised in profit or loss. Any

revaluation surplus remaining in equity on disposal of the asset is transferred to retained earnings.

19

As no finite useful life for land can be determined, related carrying amounts are not depreciated.

Buildings, plant and other equipment (comprising fittings and furniture) are initially recognised at acquisition cost or

manufacturing cost, including any costs directly attributable to bringing the assets to the location and condition

necessary for it to be capable of operating in the manner intended by the Company’s management.

Buildings, plant and other equipment are subsequently measured using the cost model, cost less subsequent

depreciation and impairment losses.



Depreciation is recognised on a straight-line basis to write down the cost less estimated residual value of buildings,

plant and other equipment. The following useful lives are applied:


A.B.N. 27 000 436 886

(c) Property, Plant and Equipment (continued)

(d) Leases

Operating Leases

(e) Impairment testing of property, plant and equipment

Impairment loss is charged pro rata to the assets in the cash-generating unit. All assets are subsequently

reassessed for indications that an impairment loss previously recognised may no longer exist. An impairment charge

is reversed if the cash-generating unit’s recoverable amount exceeds its carrying amount.

20



All assets or cash-generating units are tested for impairment whenever events or changes in circumstances indicate

that the carrying amount may not be recoverable.


A.B.N. 27 000 436 886

Gains or losses arising on the disposal of property, plant and equipment are determined as the difference between

the disposal proceeds and the carrying amount of the assets and are recognised in profit or loss within other income

or other expenses.

Where the Company is a lessee, payments on operating lease agreements are recognised as an expense on a

straight-line basis over the lease term. Associated costs, such as maintenance and insurance, are expensed as

incurred.

For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely

independent cash inflows. As a result, some assets are tested individually for impairment and some are tested at

cash-generating unit level.

Material residual value estimates and estimates of useful life are updated as required, but at least annually.

An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount

exceeds its recoverable amount, which is the higher of fair value less costs to sell and value-in-use.

Where the future economic benefits of an asset are not primarily dependent on the asset’s ability to generate net

cash inflows and where the entity would, if deprived of the asset, replace its remaining future economic benefits,

value in use is determined as the depreciated replacement cost of the asset.

(f) Financial Instruments

Recognition, initial measurement and derecognition

Classification and subsequent measurement of financial assets

- Loans and receivables

- Financial assets at Fair Value Through Profit or Loss (FVTPL)

- Held-To-Maturity (HTM) investments

- Available-For-Sale (AFS) financial assets

Loans and receivables

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual

provisions of the financial instrument, and are measured initially at fair value adjusted by transactions costs, except

for those carried at fair value through profit or loss, which are measured initially at fair value. Subsequent

measurement of financial assets and financial liabilities are described below.

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or

when the financial asset and all substantial risks and rewards are transferred. A financial liability is derecognised

when it is extinguished, discharged, cancelled or expires.

All financial assets except for those at FVTPL are subject to review for impairment at least at each reporting date to

identify whether there is any objective evidence that a financial asset or a group of financial assets is impaired.

Different criteria to determine impairment are applied for each category of financial assets, which are described

below.

All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance

costs or finance income, except for impairment of trade receivables which is presented within other expenses.


A.B.N. 27 000 436 886



For the purpose of subsequent measurement, financial assets other than those designated and effective as hedging

instruments are classified into the following categories upon initial recognition:

21

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in

an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss

through the amortisation process and when the financial asset is derecognised.

(f) Financial Instruments (continued)

Loans and receivables (continued)

HTM investments

AFS financial assets

Individually significant receivables are considered for impairment when they are past due or when other objective

evidence is received that a specific counterparty will default. Receivables that are not considered to be individually

impaired are reviewed for impairment in groups, which are determined by reference to the industry and region of a

counterparty and other shared credit risk characteristics. The impairment loss estimate is then based on recent

historical counterparty default rates for each identified group.

Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of

financial assets in this category are determined by reference to active market transactions or using a valuation

technique where no active market exists.

22

HTM investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments,

and it is the company’s intention to hold these investments to maturity. They are subsequently measured at

amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the

financial asset is derecognised.

AFS financial assets are non-derivative financial assets that are either designated to this category or do not qualify

for inclusion in any of the other categories of financial assets. The Company’s AFS financial assets include listed

securities.

All AFS financial assets are measured at fair value. Gains and losses are recognised in other comprehensive income

and reported within the AFS reserve within equity, except for impairment losses and foreign exchange differences on

monetary assets, which are recognised in profit or loss. When the asset is disposed of or is determined to be

impaired the cumulative gain or loss recognised in other comprehensive income is reclassified from the equity

reserve to profit or loss and presented as a reclassification adjustment within other comprehensive income. Interest

calculated using the effective interest method and dividends are recognised in profit or loss within ‘revenue’ (see

Note 1(a)).

Reversals of impairment losses for AFS debt securities are recognised in profit or loss if the reversal can be

objectively related to an event occurring after the impairment loss was recognised. For AFS equity investments

impairment reversals are not recognised in profit or loss and any subsequent increase in fair value is recognised in

other comprehensive income.


Financial assets at FVTPL include financial assets that are either classified as held for trading or that meet certain

conditions and are designated at FVTPL upon initial recognition.

A.B.N. 27 000 436 886



Financial assets at FVTPL

(f) Financial Instruments (continued)

Classification and subsequent measurement of financial liabilities

The Company’s financial liabilities include borrowings and trade and other payable.

(g) Inventories

(h) Income Tax

(i)

(j) Reserves

Retained earnings include all current and prior period retained profits.

(k) Employee benefits

Short-term employee provisions

No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the

Income Tax Assessment Act 1997 .

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly

liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant

risk of changes in value.

Other components of equity include the revaluation reserve - comprises gains and losses from revaluation of land

(see Note 1(c)).

23


Inventories are measured at the lower of cost and current replacement cost.

Inventories acquired at no cost or for nominal consideration are measured at the current replacement cost as at the

date of acquisition.

A.B.N. 27 000 436 886



Financial liabilities are measured subsequently at amortised cost using the effective interest method, except for

financial liabilities held for trading or designated at FVTPL, that are carried subsequently at fair value with gains or

losses recognised in profit or loss.

All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss

are included within finance costs or finance income.

Short-term employee benefits are benefits, other than termination benefits, that are expected to be settled wholly

within twelve (12) months after the end of the period in which the employees render the related service. Examples of

such benefits include wages and salaries, non-monetary benefits and accumulating sick leave. Short-term employee

benefits are measured at the undiscounted amounts expected to be paid when the liabilities are settled.

(k) Employee benefits (continued)

Other long-term employee provisions

(l) Provisions, contingent liabilities and contingent assets

(m) Deferred income

The Company’s liabilities for annual leave and long service leave are included in other long-term benefits as they are

not expected to be settled wholly within twelve (12) months after the end of the period in which the employees render

the related service. They are measured at the present value of the expected future payments to be made to

employees. Any re-measurements arising from experience adjustments and changes in assumptions are recognised

in profit or loss in the periods in which the changes occur.


A.B.N. 27 000 436 886



24

The Company presents employee benefit obligations as current liabilities in the statement of financial position if the

Company does not have an unconditional right to defer settlement for at least twelve (12) months after the reporting

period, irrespective of when the actual settlement is expected to take place.

Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most

reliable evidence available at the reporting date, including the risks and uncertainties associated with the present

obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in

settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their

present values, where the time value of money is material.

Any reimbursement that the Company can be virtually certain to collect from a third party with respect to the

obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related

provision.

No liability is recognised if an outflow of economic resources as a result of present obligation is not probable. Such

situations are disclosed as contingent liabilities, unless the outflow of resources is remote in which case no liability is

recognised.

The liability for deferred income is the unutilised amounts of grants received on the condition that specified services

are delivered or conditions are fulfilled. The services are usually provided or the conditions usually fulfilled within

twelve (12) months of receipt of the grant. Where the amount received is in respect of services to be provided over a

period that exceeds twelve (12) months after the reporting date or the conditions will only be satisfied more than

twelve (12) months after the reporting date, the liability is discounted and presented as non-current.

(n) Goods and Services Tax (GST)

(o) Significant management judgement in applying accounting policies

Estimation uncertainty

Impairment

Useful lives of depreciable assets

Inventories

Long service leave

25

Information about estimates and assumptions that have the most significant effect on recognition and measurement

of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.

In assessing impairment, management estimates the recoverable amount of each asset or cash-generating units,

based on expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to

assumptions about future operating results and the determination of a suitable discount rate.

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the

expected utility of the assets. Uncertainties in these estimates relate to technical obsolescence that may change the

utility of certain software and IT equipment.

Management estimates the net realisable values of inventories, taking into account the most reliable evidence

available at each reporting date. The future realisation of these inventories may be affected by future technology or

other market-driven changes that may reduce future selling prices.

The liability for long service leave is recognised and measured at accrued value based on each employee's years of

service at the reporting date.


A.B.N. 27 000 436 886



Cash flows are presented in the statement of cash flows on a gross basis, except for the GST components of

investing and financing activities, which are disclosed as operating cash flows.

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.

When preparing the financial statements, management undertakes a number of judgements, estimates and

assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(p) Going concern

Increase in cash available

Cost management

Industry challenges

26

Management has determined the company will continue as a going concern as at 30 June 2019. This has been

reviewed and addressed by management, with focus on the following key challenges:


A.B.N. 27 000 436 886



Management has implemented a strict cost cutting and reduction strategy. All aspects of the Club have been

reviewed and strategies put in place to ensure the Club remains viable in the short-to-medium term.

The Club is in the process of selling three (3) poker machine licences, which is expected to generate another

$350,000 to $400,000 in cash flow.

This, along with the existing credit facility with Unity Bank of $388,000, will ensure there are sufficient funds to

continue operating the Club for the next twelve to eighteen months.

There were a number of changes to the funding and number of races held during the year. The overall number of

races are not sufficient for the racing to be financially viable and the change by GRNSW to pay the prize money

directly has impacted on the Club's patronage and profitability.

Should the Club be able to host TAB racing in the future, which the Board is actively pursuing, this will have a

significant benefit in terms of dogs raced, spectators, overall Club patronage and sponsorship revenue.

2019 2018

$ $

2. Revenue

Revenue

Sale of goods 520,997 348,691

Potts Park income 111,752 129,558

Profit/(Loss) from Poker Machines 386,188 388,087

Profit/(Loss) from Keno 39,160 26,395

Profit/(Loss) from TAB 7,897 7,643

Profit/(Loss) from Raffles (22,815) (17,024)

Profit/(Loss) from Bingo (100,130) (118,534)

Profit/(Loss) from Vending machines 16,666 2,078

Profit/(Loss) from Functions (29,972) 79,925

Other income 138,990 106,088


Total revenue 1,083,353 955,310


A.B.N. 27 000 436 886



27

The Company’s revenue may be analysed as follows for each major product

and service category:

2019 2018

$ $

3. Profit from ordinary activities

(a) Expenses

Depreciation of non-current assets

- Buildings 31,424 16,558

- Plant & equipment 113,943 113,943

Total depreciation of non-current assets 145,367 130,501

Auditors’ remuneration

- Auditing the financial report 10,000 10,000

- Other services 2,833 2,443

Total auditors’ remuneration 12,833 12,443

(b) Cost of sales

Opening inventory 26,110 34,976

Purchases - bar 213,858 253,135

Less: Closing inventory (20,001) (26,110)

Total cost of sales 219,967 262,001


A.B.N. 27 000 436 886



Profit from ordinary activities before income tax includes the following specific

net gains and expenses:

Amounts received, or due and receivable, by the auditors for:

28

2019 2018

$ $

4. Cash and cash equivalents

Cash on hand 22,950 70,410

Cash at bank

Cheque account - current 37,273 5,077

Cheque account - Potts Park Racing - 690

Bank account - Keno - 401

Bank account - TAB - 20

NAB Business Cash Maximiser - 1

Unity Bank - Running 2,365 3,046

Short term deposits

NAB - investment 5,000 5,000

Unity Bank - Term Deposit - 450,000

Unity Bank - Term Deposit No. 2 465,000 -

Cash and cash equivalents 532,588 534,644

4 (a) Reconciliation of cash

Cash and cash equivalents 532,588 534,644

Bank overdrafts 12 (21) (3,302)

532,567 531,342

5. Trade and other receivables

Trade debtors 41,577 38,506

Sundry receivables 4,621 -

46,198 38,506


All of the Company’s trade and other receivables have been reviewed for indicators of impairment. No trade

receivables were found to be impaired as at 30 June 2019.

The carrying amount of receivables whose terms have been renegotiated, that would otherwise be past due or

impaired is $Nil (2018: $Nil).

29

A.B.N. 27 000 436 886



All amounts are short-term, except for a portion of the receivable from related entities. The net carrying value of

trade receivables is considered a reasonable approximation of fair value.

Cash at the end of the financial year as shown in the statement of cash

flows is reconciled as follows:

Notes 2019 2018

$ $

6. Financial assets and liabilities

Financial assets


AFS financial assets 9 - 694,678

Loans and receivables

- Trade and other receivables 5 46,198 38,506

578,786 1,267,828

Financial liabilities

Financial liabilities measured at amortised cost:

- Trade and other payables 11 266,813 338,348

- Borrowings 12 21 3,302

266,834 341,649

Other long-term financial assets and securities

Other long-term financial assets include the following investments at the following carrying value:

AFS financial assets:

Provident Capital Limited - debentures - 694,678

Other long-term financial assets - 694,678

30




A.B.N. 27 000 436 886

See Note 1(f) for a description of the accounting policies for each category of financial instruments. Information

relating to fair values are presented in the related notes. A description of the Company’s financial instrument risk,

including risk management objectives and policies is given in Note 18.

The carrying amounts presented in the statement of financial

position relate to the following categories of assets and liabilities:

These assets are stated at fair value based on the likelihood that a settlement will be determined within the next

twelve (12) to eighteen (18) months. This is considered a reasonable figure based on information on hand at the

date of this report.

2019 2018

$ $

7. Inventories

Inventories consist of the following:

At cost inventory 20,001 21,110

20,001 21,110

8. Other assets

Prepayments 3,007 1,483

3,007 1,483

9. Other financial assets

Provident Capital Limited - debentures

Opening balance 694,678 1,700,000

Less: Distributions received (694,678) (325,000)

Less: Net change in fair value of financial asset - (680,322)

Closing balance - 694,678

31


A.B.N. 27 000 436 886



Settlement was approved on 23 October 2018 by Justice Ball for the amount of $694,678. This amount was

received in December 2018.

10. Property, plant and equipment

Details of the Company's property, plant and equipment and their carrying amount are as follows:

Land &

buildings

Plant &

equipment Total

$ $ $

Gross carrying amount

Balance 1 July 2018 7,778,111 926,008 8,704,119

Additions - 13,850 13,850

Disposals - - -

Transfer - - -

Balance 30 June 2019 7,778,111 939,858 8,717,969

Depreciation and impairment

Balance 1 July 2018 (596,140) (330,979) (927,119)

Disposals - - -

Depreciation (16,533) (128,834) (145,367)

Balance 30 June 2019 (612,673) (459,813) (1,072,486)

Carrying amount 30 June 2019 7,165,438 480,045 7,645,483

Core Property

- 140 Rookwood Road, Yagoona NSW

- 6 Boardman Street, Yagoona NSW

Poker Machine Entitlements

The following properties of the club are considered core property under section 41J(2) of the Registered Clubs Act

1976 (NSW):

Land and buildings have been shown at fair value based on external valuations received in September 2016.

The Club currently holds 32 poker machine licences which the Directors believe to have a fair market value of

$4,266,666. As the licences have a cost of $0, the poker machine licences cannot be recorded at market value in

line with the Accounting Standards.

All depreciation and impairment charges (or reversals if any) are included within 'depreciation and amortisation' and

'extraordinary expense'.


A.B.N. 27 000 436 886



32

2019 2018

$ $

11. Trade and other payables

Trade and other payables recognised consist of the following:

Current:

Trade creditors 242,870 298,360

Other creditors and accruals 7,049 10,656

Superannuation payable 16,894 29,332

266,813 338,348

12. Borrowings

Current:

Bank overdraft - Potts Park Racing - -

Unity Bank - Running 21 3,302

21 3,302

Non Current:

Loan - Aristocrat 166,080 289,776

166,080 289,776

166,101 293,078

33


A.B.N. 27 000 436 886



All above liabilities are short-term. The carrying values are considered to be a reasonable approximation of fair

value.

2019 2018

$ $

13. Provision for employee benefits

Current:

Provision for annual leave 22,124 21,708

Provision for long service leave 6,532 16,888

28,656 38,596

Non Current:

Provision for annual leave 44,256 34,180


67,904 77,005

96,560 115,601

14. Reserves

The details of reserves are as follows:

Balance at 1 July 2018 3,680,672 3,680,672

Other comprehensive income for the year:

Revaluation of land and buildings - -

Balance at 30 June 2019 3,680,672 3,680,672


A.B.N. 27 000 436 886



34

The liabilities recognised for employee benefits consist of the following

amounts:

2019 2018

$ $

15. Reconciliation of cash flows from operating activities

Operating profit/(loss) (602,592) (1,398,741)

Adjustments for:

Depreciation 145,367 130,501

Loss on disposal of fixed assets - 8,274

Revaluation of other financial assets - 680,322

(457,225) (579,644)

Changes in assets & liabilities:

Decrease/(Increase) in trade and other receivables (7,692) 18,056

Decrease/(Increase) in other current assets (1,524) 2,950

Decrease/(Increase) in inventories 1,109 13,334

Increase/(Decrease) in trade payables (55,490) 182,362

Increase/(Decrease) in other current liabilities (16,045) (26,045)

Increase/(Decrease) in provision for employee benefits (19,041) 2,768

Increase/(Decrease) in other non-current liabilities - -

Cash flow from operating activities (555,907) (386,219)

16. Related party transactions

Transactions with related entities

Transactions with key management personnel

Short-term employee benefits 107,338 108,046

Post-employment employee benefits 10,197 10,197

Long-term employee benefits - -

Total remuneration 117,535 118,243

35

The Company's related parties include its key management personnel and related entities as described below.

Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees

were given or received. Outstanding balances are usually settled in cash.

Key management of the Company are the board of directors and chief executive officer of Greyhound Social Club

Ltd T/As Arena Sports Club. Key Management Personnel remuneration includes the following expenses:


A.B.N. 27 000 436 886



There were no transactions with related parties during the year.

17. Contingent liabilities

18. Financial instrument risk

Note 2019 2018

$ $

Financial assets


Accounts receivable and other debtors 5 46,198 38,506

Total financial assets 578,786 573,150


Accounts payable and other payables 11 266,813 338,348

Total financial liabilities 266,813 338,348

Financial Risk Management Policies

Specific Financial Risk Exposures and Management

There have been no substantive changes in the types of risks the co-operative is exposed to, how these risks

arise, or the board’s objectives, policies and processes for managing or measuring the risks from the previous

period.

The co-operative’s financial instruments consist mainly of deposits with banks, local money market instruments,

receivables and payables, and lease liabilities.

The carrying amounts for each category of financial instruments, measured in accordance with AASB 139 as

detailed in the accounting policies to these financial statements, are as follows:


A.B.N. 27 000 436 886



There are no contingent liabilities that have been incurred by the Company in relation to 2019 or 2018.

The board is responsible for monitoring and managing the co-operative’s compliance with its risk management

strategy. The board’s overall risk management strategy is to assist the co-operative in meeting its financial targets

while minimising potential adverse effects on financial performance. Risk management policies are approved and

reviewed by the board on a regular basis. These include credit risk policies and future cash flow requirements.

The main risks the co-operative is exposed to through its financial instruments are credit risk, liquidity risk and

market risk relating to interest rate risk and other price risk.

36

18. Financial instrument risk (continued)

a. Credit risk

Credit risk exposures

b. Liquidity risk

-

- maintaining a reputable credit profile;

- managing credit risk related to financial assets;

- only investing surplus cash with major financial institutions; and

-

37

The co-operative has no significant concentrations of credit risk exposure to any single counterparty or group of

counterparties. Details with respect to credit risk of accounts receivable and other debtors are provided in Note 6.

Credit risk related to balances with banks is managed by the board. Board policy requires that surplus funds are

only invested with Australian major financial institutions.

Accounts receivable and other debtors that are neither past due nor impaired are considered to be of high credit

quality. Aggregates of such amounts are detailed at Note 6.



The co-operative does not have any material credit risk exposures as its major source of revenue is the receipt of

poker machine and bar revenue.

The maximum exposure to credit risk by class of recognised financial assets at the end of the reporting period is

equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in

the statement of financial position.

Liquidity risk arises from the possibility that the co-operative might encounter difficulty in settling its debts or

otherwise meeting its obligations in relation to financial liabilities. The co-operative manages this risk through the

following mechanisms:

preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities;

comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

The table below reflects an undiscounted contractual maturity analysis for non-derivative financial liabilities. The

co-operative does not hold directly any derivative financial liabilities.

Cash flows realised from financial assets reflect management’s expectation as to the timing of realisation. Actual

timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle financial

liabilities reflects the earliest contractual settlement dates.

Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of

contract obligations that could lead to a financial loss for the co-operative.


A.B.N. 27 000 436 886


Financial liability and financial asset maturity analysis

2019 2018 2019 2018 2019 2018 2019 2018

$ $ $ $ $ $ $ $

242,870 298,360 - - - - 242,870 298,360

Interest bearing liabilities 21 3,302 166,080 289,776 - - 166,101 293,078

Total expected outflows 242,891 301,662 166,080 289,776 - - 408,971 591,438

Cash on hand 532,588 534,644 - - - - 532,588 534,644

46,198 38,506 - - - - 46,198 38,506

Other financial assets - 694,678 - - - - - 694,678

Total anticipated inflows 578,786 1,267,828 - - - - 578,786 1,267,828

335,895 966,166 (166,080) (289,776) - - 169,815 676,390

c. Market risk

(i) Interest rate risk

(ii) Other price risk

38

Exposure to interest rate risk arises on financial assets and financial liabilities recognised at the end of the reporting

period whereby a future change in interest rates will affect future cash flows or the fair value of fixed rate financial

instruments. The co-operative is also exposed to earnings volatility on floating rate instruments.

The financial instruments that expose the co-operative to interest rate risk are limited to lease liabilities, government

and fixed interest securities, and cash on hand.

The co-operative also manages interest rate risk by ensuring that, whenever possible, payables are paid within any

pre-agreed credit terms.

Other price risk relates to the risk that the fair value or future cash flows of a financial instrument will fluctuate

because of changes in market prices (other than those arising from interest rate risk or currency risk) of securities

held.

Accounts receivable and

other debtors

Net (outflow)/inflow on

financial instruments

Financial assets – cash

flows realisable

Within 1 Year 1 to 5 Years


A.B.N. 27 000 436 886



Accounts payable and other

payables

Financial liabilities due for

payment

Over 5 Years Total


Fair Values

Fair value estimation

Note Carrying

Amount Fair Value

Carrying

Amount Fair Value

$ $ $ $

Financial assets

Cash on hand (i) 60,223 60,223 76,599 76,599

Accounts receivable and other debtors (i) 46,198 46,198 38,506 38,506

Available-for-sale financial assets:

- at fair value: - - - -

- at fair value: - - 694,678 694,678

Held-to-maturity financial assets:

- government and fixed interest securities (iii) 5,000 5,000 5,000 5,000

Total financial assets 111,421 111,421 814,783 814,783


Accounts payable and other payables (i) 242,870 242,870 298,360 298,360

Interest bearing liabilities (iv) 21 21 3,302 3,302

Total financial liabilities 242,891 242,891 301,662 301,662

Financial assets at fair value through profit or loss:

39

The fair values of financial assets and financial liabilities are presented in the following table and can be compared to their

carrying amounts as presented in the statement of financial position. Fair value is the amount at which an asset could be

exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Fair value may be based on information that is estimated or subject to judgment, where changes in assumptions may

have a material impact on the amounts estimated. Areas of judgment and the assumptions have been detailed below.

Where possible, valuation information used to calculate fair values is extracted from the market, with more reliable

information available from markets that are actively traded.

Differences between fair values and carrying amounts of financial instruments with fixed interest rates are due to the

change in discount rates being applied by the market since their initial recognition by the co-operative. Most of these

instruments, which are carried at amortised cost (i.e. accounts receivables, loan liabilities), are to be held until maturity

and therefore the fair value figures calculated bear little relevance to the co-operative.


A.B.N. 27 000 436 886



20182019


The fair values disclosed in the above table have been determined based on the following

methodologies:

(i)

(ii)

(iii)

The entity’s capital consists of financial liabilities, supported by financial assets.

19. Post-reporting date events

Fair values of held-to-maturity investments are based on quoted market prices at the end of the reporting

period.

There have been no changes to the strategy adopted by management to control the capital of the entity since the

previous year.

Fair values are determined using a discounted cash flow model incorporating current commercial borrowing

rates. The fair values of fixed rate debt will differ to the carrying amounts.

Board and management control the capital of the entity to ensure that adequate cash flows are generated to fund its

operations and that returns from investments are maximised within tolerable risk parameters. The board ensures that the

overall risk management strategy is in line with this objective.

Risk management policies are approved and reviewed by the board on a regular basis. These include credit risk policies

and future cash flow requirements.

The Board and management effectively manage the entity’s capital by assessing the entity’s financial risks and

responding to changes in these risks and in the market. These responses may include the consideration of debt levels.

40

The Club received $75,000 from Arden Group in exchange for entering into an exclusivity agreement to investigate the

options available to the Club to redevelop the existing site at 140 Rookwood Road YAGOONA NSW 2199.


A.B.N. 27 000 436 886



Cash on hand, accounts receivable and other debtors, and accounts payable and other payables are short-

term instruments in nature whose carrying amount is equivalent to fair value. Trade and other payables

exclude amounts provided for annual leave, which is outside the scope of AASB 139.

20. Entity details

The registered office of the entity is:

Greyhound Social Club Ltd T/As Arena Sports Club

140 Rookwood Road

YAGOONA NSW 2199

The principal place of business is:

Greyhound Social Club Ltd T/As Arena Sports Club

140 Rookwood Road

YAGOONA NSW 2199

21. Member's guarantee

41


A.B.N. 27 000 436 886



The Club is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If the club is wound

up, the constitution states that each member is required to be refunded a maximum of $20 each. At 30 June 2019, the

number of members was 1,168 (2018: 2,014).

The directors of the company declare that:

1.

(a)

(b)

2.

Michael Phillips Domenic Tesoriero

President Director

Dated the 10th day of October 2019

DIRECTORS’ DECLARATION

The financial statements and notes, as set out on pages 13 to 41 are in accordance with the

Corporations Act 2001 :

comply with Accounting Standards as detailed in Note 1 to the financial statements and

the Corporations Act 2001 ; and

give a true and fair view of the Company’s financial position as at 30 June 2019 and of its

performance for the year ended on that date.

In the directors’ opinion there are reasonable grounds to believe that the Company will be able to pay

its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf of

the directors by:

A.B.N. 27 000 436 886

42


Scope

Flegg Kehlet Wagner

Rodney Wagner

Campbelltown

10 October 2019

43


COMPILATION REPORT ON ADDITIONAL FINANCIAL INFORMATION

To the extent permitted by law, we do not accept liability for any loss or damage which any person, other than the

Client, may suffer arising from any negligence on our part. No person should rely on the special purpose financial

report without having an audit or review conducted.

The special purpose financial report was prepared for the benefit of the Client for the purpose identified above. We

do not accept responsibility to any other person for the contents of the special purpose financial report.

On the basis of information provided by the Client, we have compiled in accordance with APS 9 "Statement on

Compilation of Financial Reports" the special purpose financial report of the Client for the year ended 30 June 2019

as set out on pages 46 to 50.

A.B.N. 27 000 436 886

The directors are solely responsible for the information contained in the special purpose financial report.

Our procedures use accounting expertise to collect, classify and summarise the financial information, which the

Client provided, into a financial report. Our procedures do not include verification or validation procedures. No audit

or review has been performed and accordingly no assurance is expressed.

2019 2018

$ $

CLUB

Sales 520,997 348,691

LESS: COST OF GOODS SOLD

Opening stock 26,110 34,976

Purchases 213,858 253,135

Closing stock (20,001) (26,110)

219,967 262,001

GROSS PROFIT FROM TRADING 301,030 86,690

OTHER INCOME


Member subscriptions 10,182 492

Profit/(Loss) from keno 39,160 26,395

Profit/(Loss) from TAB 7,897 7,643

Profit/(Loss) from raffles (22,815) (17,024)

Profit/(Loss) from bingo (100,130) (118,534)

Profit/(Loss) from vending & recycling machines 16,666 2,078

Profit/(Loss) from functions (29,972) 79,925

Profit/(Loss) from card games (19,100) -

Car park 15,509 11,786

Rent received 20,310 16,327

Net income - Burleigh Beach Unit - (2,794)

Hire of rooms 50,769 72,284

Poker machines 386,188 388,087

Sign advertising 48,455 -

Insurance claims received 5,000 -

Sundry income 7,865 7,993

450,604 477,061

751,634 563,751


A.B.N. 27 000 436 886

DETAILED PROFIT AND LOSS STATEMENT


These statements are to be read in conjunction with the attached compilation report.

44

2019 2018

$ $

EXPENSES

Accountancy fees - internal 31,188 23,445 Advertising & promotion 10,214 14,311 Agent's fees - Boardman Street 4,157 4,881 Allocation to in-house clubs 500 - Annual meeting expenses 672 11,450 Audit fees 12,833 12,443 Bank charges 5,116 3,563 Borrowing costs - loan interest & costs 233 3,784 Cleaning & laundry 62,887 57,003 Computer expenses 7,958 7,122 Depreciation 125,865 111,009 Electricity & gas 97,839 96,445 Fines & penalties - (36,173)Hire of equipment 942 222 Insurance 42,035 50,264 Interest 18,972 12,472 Legal fees 1,539 1,499 Licence fees 9,360 13,317 Loss on disposal of fixed assets - 8,274

(11,177) 15,876 40,785 30,530

Member expenses 11,000 8,500 Musicians & entertainment 18,389 17,350 Potts Park 13,210 27,800 Repairs & maintenance 68,404 86,435 Printing & stationery 8,500 8,057 Directors expense 1,061 1,342 Rates 48,421 32,575 Revaluation of Provident Capital - 680,322 Security 104,149 6,975 Staff amenities 4,948 2,818 Superannuation 48,256 55,213 Stocktaking expenses - 1,018 Subscriptions 32,416 32,849 Sundry expenses 3,260 - Telephone 4,913 4,463 Valuation fees 6,400 865 Wages 445,076 543,117

1,280,321 1,951,435 NET LOSS (528,687) (1,387,684)

Provision for holiday payProvision for long service leave



A.B.N. 27 000 436 886



45

2019 2018

$ $

POTTS PARK

INCOME

Admissions 3,520 8,710

GRNSW Administration Allowance 52,715 52,000

Advertising income 32,727 30,869

Attendance incentive 13,210 27,800

Trials 1,521 2,328

Racebook sales 598 749

Race day raffles 2,230 2,750

Race sponsorship 900 2,442

Sweepstakes 840 -

GRNSW grants 2,127 303

Bookmakers stand fees 1,364 1,607

111,752 129,558

EXPENSES

Bottled water 4,608 850

Depreciation 19,502 19,492

Insurance 75 -

Licences - 48

Kennel staff meals 2,145 1,097

Photofinish 1,232 1,133

Printing & stationery - 1,187

Prizemoney (353) 8,470

Racebook costs 911 800

Raffle costs - 45

Rental costs - Council 381 499

Repairs & maintenance 9,176 14,028

Video 6,364 7,591

Veterinary costs 4,201 9,294

Track cleaning - 100

Travel expenses 1,045 2,785

Telephone 561 1,205

Trophies 82 219

Wages 82,593 90,572

Prop maintenance (17,299) (20,738)

Sundry expenses 2,141 1,938

117,365 140,615 NET PROFIT (LOSS) (5,613) (11,057)


A.B.N. 27 000 436 886


46



2019 2018

$ $

SHARE CAPITAL AND RESERVES

Retained earnings 4,037,131 4,639,723

Asset revaluation reserve 3,680,672 3,680,672

TOTAL SHARE CAPITAL AND RESERVES 7,717,803 8,320,395

Represented by:

ASSETS

CURRENT ASSETS

Cash on hand 22,950 70,410

Bank account - Keno - 401

Cheque account - current 37,273 5,077

Bank account - TAB - 20

Cheque account - PP Racing - 690

NAB - TAB Security Deposit 5,000 5,000

NAB Business Cash Maximiser - 1

Unity Bank - Running 2,365 3,046

Unity Term Deposit - 450,000

Unity Term Deposit No. 2 465,000 -

Trade debtors 41,577 38,506

Stock on hand 20,001 21,110

Prepayments 3,007 1,483

Sundry receivables 4,621 -

TOTAL CURRENT ASSETS 601,794 595,743

NON CURRENT ASSETS

Provident Capital Limited - debentures - 694,678

Fixed Assets

Freehold land & buildings - core property 6,643,274 6,643,274

Renovations - at cost 390,152 390,152

Less: accumulated depreciation (90,188) (81,391)

Potts Park - construction & labour 744,685 744,685


7,165,438 7,181,971

47


A.B.N. 27 000 436 886

DETAILED BALANCE SHEET



2019 2018

$ $

Plant & equipment - at cost 917,937 926,008


480,045 595,029

Total Fixed Assets 7,645,483 7,777,000

Poker machine licences - -

TOTAL NON CURRENT ASSETS 7,645,483 8,471,678

TOTAL ASSETS 8,247,277 9,067,421

LIABILITIES

CURRENT LIABILITIES

Unity Bank - Redraw Facility 21 3,302

Trade creditors 242,870 298,360

Other creditors 7,049 1,088

Accrued audit expense - 9,568


Provision for holiday pay 22,124 21,708

Superannuation payable 16,894 29,332

TOTAL CURRENT LIABILITIES 295,490 380,245

NON CURRENT LIABILITIES

Loan - Arisocrat 166,080 289,776


Provision for holiday pay 44,256 34,180

TOTAL NON CURRENT LIABILITIES 233,984 366,781

TOTAL LIABILITIES 529,474 747,026 NET ASSETS 7,717,803 8,320,395

48


A.B.N. 27 000 436 886

DETAILED BALANCE SHEET



a.b.n. 27 000 436 886 140 rookwood road president: 57th ... · directors’ report 2 president’s...

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