city recital hall ltd - .net framework... · 2021. 4. 20. · city recital hall ltd abn: 43 606 955...

City Recital Hall LtdABN: 43 606 955 293

Financial Report

For the Year Ended 30 June 2020

City Recital Hall Ltd

ABN: 43 606 955 293

ContentsFor the Year Ended 30 June 2020

Page

Financial StatementsDirectors' Report 1Statement of Profit or Loss and Other Comprehensive Income 4Statement of Financial Position 5Statement of Changes in Equity 6Statement of Cash Flows 7Notes to the Financial Statements 8Directors' Declaration 20Independent Audit Report 21


ABN: 43 606 955 293

Directors' Report30 June 2020

The directors present their report on City Recital Hall Ltd for the financial year ended 30 June 2020.

(a). General information

Information on directors

The names of each person who has been a director during the year and to the date of this report are:

Renata Kaldor AO ( Chair)

Timothy Cox AO (Deputy Chair)

David Albert

Helen Bauer (resigned 30 June 2020)

The Hon Justice Elizabeth Fullerton (resigned 15 August 2019)

Rachel Launders (appointed 1 December 2019)

Marcus McArdle

Carol Mills

Jennie Sager

Maria Sykes (retired 8 October 2019)

Louise Walsh

Paul Mason (appointed 1 December 2019)

Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.

Principal activities

The principal activity of City Recital Hall Ltd during the financial year was operating an international standard concertvenue in Sydney.

No significant changes in the nature of the Company's activity occurred during the financial year.

Members' guarantee

City Recital Hall Ltd is a company limited by guarantee. In the event of, and for the purpose of winding up of thecompany, the amount capable of being called up from each member and any person or association who ceased to bea member in the year prior to the winding up, is limited to $10 for members that are corporations and $10 for all othermembers, subject to the provisions of the company's constitution.

At 30 June 2020 the collective liability of members was $ 50 (2019: $ 50).

1


ABN: 43 606 955 293

Directors' Report30 June 2020(b). Other items

Events after the reporting date

1. The Australian economy has been severely impacted by the effects of COVID 19 since March 2020. As a place ofpublic gathering, City Recital Hall entered temporary closure on Monday 16 March 2020 following an AustralianFederal Government public health order. At the date of this report and following the easing of restrictions, City RecitalHall has implemented a soft opening strategy commencing Saturday 5 September 2020 with the view to steadilyincrease business operations and patron attendance as and when it is safe to do so.

The Directors have prepared projected cash flow information for the twelve months from the date of approval of thesefinancial statements taking into consideration the estimation of the continued business impacts of COVID-19. Inresponse to the uncertainty arising from this, the Directors have considered severe but plausible downside forecastscenarios.

These forecasts indicate that, taking account of reasonably possible downsides, the Company is expected to continueto operate, with headroom, within available cash levels. Key to the forecasts are relevant assumptions regarding thebusiness, business model, legal and regulatory restrictions regarding recommencing operations and Principal Sponsorsupport.

The Directors remain focused on the Company's liquidity and expect to mange business operations in the forecastperiod whilst maintaining adequate liquidity.

Based on these forecasts, the Directors believe that it remains appropriate to prepare the financial statements on agoing concern basis.

2.Subsequent to year end, Create NSW has provided cash flow support for the 2020-2021 financial year to assist thecompany while COVID 19 impacts on the capacity for the company to generate income.

Except for the above, no other matters or circumstances have arisen since the end of the financial year whichsignificantly affected or could significantly affect the operations of the Company, the results of those operations or thestate of affairs of the Company in future financial years.

Meetings of directors

During the financial year, 9 meetings of directors were held. Attendances by each director during the year were asfollows:

Directors' Meetings

Number eligibleto attend Number attended

Renata Kaldor AO ( Chair) 9 9

Timothy Cox AO (Deputy Chair) 9 9

David Albert 9 9

Helen Bauer (resigned 30 June 2020) 9 7

The Hon Justice Elizabeth Fullerton (resigned 15 August 2019) 1 1

Rachel Launders 5 5

Marcus McArdle 9 9

Carol Mills 9 6

Jennie Sager 9 8

Maria Sykes (retired 8 October 2019) 3 1

Louise Walsh 9 7

Paul Mason (appointed 1 December 2019) 5 5

2


ABN: 43 606 955 293

Directors' Report30 June 2020

Signed in accordance with a resolution of the Board of Directors:

Director: ...............................................................


Director: ................................................................


Dated this .............................. day of .............................. 2020

3

20th October


ABN: 43 606 955 293

Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 30 June 2020

Note

2020

$

2019

$

Venue services revenue 5 2,510,239 2,961,200

Sales revenue 5 577,222 707,656

Programming revenue 5 682,781 1,164,933

Total Sales Revenue 5 3,770,242 4,833,789

Other income 5 1,483,153 914,909

Cost of sales (221,343) (290,081)

Box office expenses (131,586) (168,613)

Administration expenses (809,425) (871,677)

Employee expenses 6 (2,743,024) (2,712,211)

Front of House expenses (8,654) (16,476)

Promotion and marketing expenses (278,819) (478,453)

Technical programming (675,872) (1,051,756)

Other expenses (6,264) (1,126)

Depreciation (93,845) (69,655)

Total Expenses (4,968,832) (5,660,048)

Surplus before income tax 284,563 88,650

Income tax expense - -

Total comprehensive income for theyear 284,563 88,650

The accompanying notes form part of these financial statements.4


ABN: 43 606 955 293

Statement of Financial PositionAs At 30 June 2020

Note

2020

$

2019

$

ASSETS

CURRENT ASSETS

Cash and cash equivalents 7 787,509 1,743,386

Trade and other receivables 8 194,768 159,966

Inventories 9 20,344 20,216

Other financial assets 10 422,000 22,000

Other assets 12 55,465 50,533

TOTAL CURRENT ASSETS 1,480,086 1,996,101

NON-CURRENT ASSETS

Property, plant and equipment 11 1,216,512 1,273,629

TOTAL NON-CURRENT ASSETS 1,216,512 1,273,629

TOTAL ASSETS 2,696,598 3,269,730

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 13 244,059 531,298

Short-term provisions 14 113,338 113,757

Other liabilities 15 311,768 911,397

TOTAL CURRENT LIABILITIES 669,165 1,556,452

NON-CURRENT LIABILITIES

Long-term provisions 14 29,592 -

TOTAL NON-CURRENT LIABILITIES 29,592 -

TOTAL LIABILITIES 698,757 1,556,452

NET ASSETS 1,997,841 1,713,278

EQUITY

Accumulated surplus 1,997,841 1,713,278

1,997,841 1,713,278

TOTAL EQUITY 1,997,841 1,713,278



ABN: 43 606 955 293

Statement of Changes in EquityFor the Year Ended 30 June 2020

2020

AccumulatedSurplus

$

Total

$

Balance at 1 July 2019 1,713,278 1,713,278

Surplus for the year 284,563 284,563

Balance at 30 June 2020 1,997,841 1,997,841

2019

AccumulatedSurplus

$

Total

$

Balance at 1 July 2018 1,624,628 1,624,628


Balance at 30 June 2019 1,713,278 1,713,278



ABN: 43 606 955 293

Statement of Cash FlowsFor the Year Ended 30 June 2020

Note

2020

$

2019

$

CASH FLOWS FROM OPERATING ACTIVITIES:

Receipts from customers 4,493,159 6,198,467

Payments to suppliers and employees (5,459,348) (6,023,965)

Interest received 8,168 -

Finance costs (1,378) (1,005)

Receipt from grants - Jobkeeper and Cashflow Boost 440,250 -

Net cash provided by/(used in) operating activities 18 (519,149) 173,497

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment (36,728) (87,325)

Purchase of financial assets - funds moved to term deposits (400,000) -

Net cash provided by/(used in) investing activities (436,728) (87,325)

Net increase/(decrease) in cash and cash equivalents held (955,877) 86,172

Cash and cash equivalents at beginning of year 1,743,386 1,657,214

Cash and cash equivalents at end of financial year 7 787,509 1,743,386



ABN: 43 606 955 293

Notes to the Financial StatementsFor the Year Ended 30 June 2020

The financial report covers City Recital Hall Ltd as an individual entity. City Recital Hall Ltd is a not-for-profit Companylimited by guarantee, incorporated and domiciled in Australia.

The functional and presentation currency of City Recital Hall Ltd is Australian dollars.

Comparatives are consistent with prior years, unless otherwise stated.

1 Basis of Preparation

In the Directors opinion, the Company is not a reporting entity since there are unlikely to exist users of the financialstatements who are not able to command the preparation of reports tailored so as to satisfy specifically all of theirinformation needs. This special purpose financial report has been prepared to meet the reporting requirements of theAustralian Charities and Not-for-profits Commission Act 2012.

The financial statements have been prepared in accordance with the recognition and measurement requirements ofthe Australian Accounting Standards and Accounting Interpretations, and the disclosure requirements of AASB 101Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changesin Accounting Estimates and Errors and AASB 1054 Australian Additional Disclosures.

2 Change in Accounting Policy

Revenue from Contracts with Customers - Adoption of AASB 15

The Company has adopted AASB 15 Revenue from Contracts with Customers and AASB 1058 Income of Not-for-Profit Entities for the first time in the current year with a date of initial application of 1 July 2019.

The Company has applied AASB 15 and AASB 1058 using the cumulative effect method which means thecomparative information has not been restated and continues to be reported under AASB 111, AASB 118, AASB 1004and related interpretations. All adjustments on adoption of AASB 15 and AASB 1058 have been taken to retainedearnings at 1 July 2019.

The adoption of AASB 15 and AASB 1058 has not had any impact on the financial statements for the Company for theyear ended 30 June 2020.

Leases - Adoption of AASB 16

The Company has adopted AASB 16 Leases using the modified retrospective (cumulative catch-up) method from 1July 2019 and therefore the comparative information for the year ended 30 June 2019 has not been restated and hasbeen prepared in accordance with AASB 117 Leases and associated Accounting Interpretations.

Due to the property lease being renewed as of 1 July 2020 there have not been any amendments necessary for theyear ended 30 June 2020 in respect of AASB 16.

3 Summary of Significant Accounting Policies

The accounting policies adopted by the Company are stated in order to assist in a general understanding of thefinancial statements. These policies have been consistently applied except as otherwise indicated.

(a) Income Tax

The Company is exempt from income tax under Division 50 of the Income Tax Assessment Act 1997.

8


ABN: 43 606 955 293



(b) Revenue and other income

Revenue is recognised when the amount of the revenue can be measured reliably, it is probable that economicbenefits associated with the transaction will flow to the Company and specific criteria relating to the type ofrevenue as noted below, has been satisfied.

Revenue is measured at the fair value of the consideration received or receivable and is presented net ofreturns, discounts and rebates.

All revenue is stated net of the amount of goods and services tax (GST).

Rendering of services

Prior year

Revenue in relation to rendering of services is recognised depending on whether the outcome of the servicescan be estimated reliably. If the outcome can be estimated reliably then the stage of completion of the servicesis used to determine the appropriate level of revenue to be recognised in the period.

If the outcome cannot be reliably estimated then revenue is recognised to the extent of expenses recognisedthat are recoverable.

Revenue from contracts with customers

For current year

The core principle of AASB 15 is that revenue is recognised on a basis that reflects the transfer of promisedgoods or services to customers at an amount that reflects the consideration the Company expects to receive inexchange for those goods or services. Revenue is recognised by applying a five-step model as follows:

1. Identify the contract with the customer

2. Identify the performance obligations

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations

5. Recognise revenue as and when control of the performance obligations is transferred

Generally the timing of the payment for sale of goods and rendering of services corresponds closely to thetiming of satisfaction of the performance obligations, however where there is a difference, it will result in therecognition of a receivable, contract asset or contract liability.

None of the revenue streams of the Company have any significant financing terms as there is less than 12months between receipt of funds and satisfaction of performance obligations.

9


ABN: 43 606 955 293



(b) Revenue and other income

Other income

Other income is recognised on an accruals basis when the Company is entitled to it.

(c) Goods and services tax (GST)

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), exceptwhere the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payable are stated inclusive of GST.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flowsarising from investing and financing activities which is recoverable from, or payable to, the taxation authority isclassified as operating cash flows.

(d) Inventories

Inventories are measured at the lower of cost and net realisable value. Cost of inventory is determined usingthe first-in-first-out basis and is net of any rebates and discounts received. Net realisable value is estimatedusing the most reliable evidence available at the reporting date and inventory is written down through anobsolescence provision if necessary.

(e) Property, plant and equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, anyaccumulated depreciation and impairment.

Items of property, plant and equipment acquired for nil or nominal consideration have been recorded at theacquisition date fair value.

Where the cost model is used, the asset is carried at its cost less any accumulated depreciation and anyimpairment losses. Costs include purchase price, other directly attributable costs and the initial estimate of thecosts of dismantling and restoring the asset, where applicable.

Plant and equipment

Plant and equipment, excluding artwork, are measured using the cost model. Artwork is initially recognisedbased on an independent valuation at the date of donation.

When measuring fair value, the valuation technique used maximises the use of relevant observable inputs andminimises the use of unobservable inputs. Under AASB 13 Fair Value Measurement, the company categorisedthe valuation technique for artwork as Level 3, being inputs that are not based on observable market data(unobservable inputs).The Company revalues artworks at least every five years or with sufficient regularity to ensure that the carryingamount does not differ materially from its fair value at reporting date.

10


ABN: 43 606 955 293



(e) Property, plant and equipment

Depreciation

Property, plant and equipment, excluding freehold land and artwork, are depreciated on a straight-line basisover the assets useful life to the Company, commencing when the asset is ready for use.

The depreciation rates used for each class of depreciable asset are shown below:

Fixed asset class Depreciation rate

Technical equipment 10%

Plant and equipment - Furniture 10%

Plant and equipment - IT 20%

Capital Improvements 4%

Website 50%

At the end of each annual reporting period, the depreciation method, useful life and residual value of each assetis reviewed. Any revisions are accounted for prospectively as a change in estimate.

No depreciation is provided on artwork as they do not have a finite useful life.

(f) Financial instruments

Financial instruments are recognised initially on the date that the Company becomes party to the contractualprovisions of the instrument.

On initial recognition, all financial instruments are measured at fair value plus transaction costs (except forinstruments measured at fair value through profit or loss where transaction costs are expensed as incurred).

Financial assets

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,depending on the classification of the financial assets.

Classification

On initial recognition, the Company classifies its financial assets into the following categories, those measuredat:

amortised cost

fair value through profit or loss - FVTPL

Financial assets are not reclassified subsequent to their initial recognition unless the Company changes itsbusiness model for managing financial assets.

11


ABN: 43 606 955 293



Financial assets Amortised cost

Assets measured at amortised cost are financial assets where:

the business model is to hold assets to collect contractual cash flows; and

the contractual terms give rise on specified dates to cash flows that are solely payments of principal and

interest on the principal amount outstanding.

The Company's financial assets measured at amortised cost comprise trade and other receivables and cashand cash equivalents in the statement of financial position.

Subsequent to initial recognition, these assets are carried at amortised cost using the effective interest ratemethod less provision for impairment.

Interest income, foreign exchange gains or losses and impairment are recognised in profit or loss. Gain or losson derecognition is recognised in profit or loss.

Trade receivables

Impairment of trade receivables has been determined using the simplified approach in AASB 9 which uses anestimation of lifetime expected credit losses. The Company has determined the probability of non-payment ofthe receivable and multiplied this by the amount of the expected loss arising from default.

The amount of the impairment is recorded in a separate allowance account with the loss being recognised infinance expense. Once the receivable is determined to be uncollectable then the gross carrying amount iswritten off against the associated allowance.

Where the Company renegotiates the terms of trade receivables due from certain customers, the new expectedcash flows are discounted at the original effective interest rate and any resulting difference to the carrying valueis recognised in profit or loss.

Financial liabilities

The Company measures all financial liabilities initially at fair value less transaction costs, subsequently financialliabilities are measured at amortised cost using the effective interest rate method. The financial liabilities of theCompany comprise trade payables only.

(g) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investments which arereadily convertible to known amounts of cash and which are subject to an insignificant risk of change in value.

(h) Leases

For comparative year

Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor,are charged as expenses on a straight-line basis over the life of the lease term.

12


ABN: 43 606 955 293



(h) Leases

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis overthe life of the lease term.

For current year

Right-of-use asset

At the lease commencement, the Company recognises a right-of-use asset and associated lease liability for thelease term. The lease term includes extension periods where the Company believes it is reasonably certainthat the option will be exercised.

The right-of-use asset is measured using the cost model where cost on initial recognition comprises of thelease liability, initial direct costs, prepaid lease payments, estimated cost of removal and restoration less anylease incentives received.

The right-of-use asset is depreciated over the lease term on a straight line basis and assessed for impairmentin accordance with the impairment of assets accounting policy.

Lease liability

The lease liability is initially measured at the present value of the remaining lease payments at thecommencement of the lease. The discount rate is the rate implicit in the lease, however where this cannot bereadily determined then the Company's incremental borrowing rate is used.

Subsequent to initial recognition, the lease liability is measured at amortised cost using the effective interestrate method. The lease liability is remeasured whether there is a lease modification, change in estimate of thelease term or index upon which the lease payments are based (e.g. CPI) or a change in the Company'sassessment of lease term.

Where the lease liability is remeasured, the right-of-use asset is adjusted to reflect the remeasurement or isrecorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

(i) Employee benefits

Provision is made for the Company's liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits that are expected to be wholly settled withinone year have been measured at the amounts expected to be paid when the liability is settled.

Employee benefits expected to be settled more than one year after the end of the reporting period have beenmeasured at the present value of the estimated future cash outflows to be made for those benefits. Indetermining the liability, consideration is given to employee wage increases and the probability that theemployee may satisfy vesting requirements. Changes in the measurement of the liability are recognised in profitor loss.

(j) Provisions

Provisions are recognised when the Company has a legal or constructive obligation, as a result of past events,for which it is probable that an outflow of economic benefits will result and that outflow can be reliablymeasured.

13


ABN: 43 606 955 293



(j) Provisions

Provisions are measured at the present value of management's best estimate of the outflow required to settlethe obligation at the end of the reporting period. The discount rate used is a pre-tax rate that reflects currentmarket assessments of the time value of money and the risks specific to the liability. The increase in theprovision due to the unwinding of the discount is taken to finance costs in the statement of profit or loss andother comprehensive income.

(k) Adoption of new and revised accounting standards

The Company has adopted AASB 15, AASB 1058 and AASB 16 for the first time for the financial year ended30 June 2020. The adoption of these standards has not caused any material adjustments to the reportedfinancial position, performance or cash flow of the Company.

(l) New Accounting Standards and Interpretations

The AASB has issued a number of new and amended Accounting Standards and Interpretations that havemandatory application dates for future reporting periods, some of which are relevant to the Company. TheDirectors have decided not to early adopt any of these Standards.

4 Critical Accounting Estimates and Judgements

The directors make estimates and judgements during the preparation of these financial statements regardingassumptions about current and future events affecting transactions and balances.

These estimates and judgements are based on the best information available at the time of preparing the financialstatements, however as additional information is known then the actual results may differ from the estimates.

The significant estimates and judgements made have been described below.

Key estimates - impairment of property, plant and equipment

The Company assesses impairment at the end of each reporting period by evaluating conditions specific to theCompany that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed usingvalue-in-use calculations which incorporate various key assumptions.

Key estimates - provisions

As described in the accounting policies, provisions are measured at management’s best estimate of the expenditurerequired to settle the obligation at the end of the reporting period. These estimates are made taking into account arange of possible outcomes and will vary as further information is obtained.

Key estimates - receivables

The receivables at reporting date have been reviewed to determine whether there is any objective evidence that any ofthe receivables are impaired. An impairment provision is included for any receivable where the entire balance is notconsidered collectible. The impairment provision is based on the best information at the reporting date.

14


ABN: 43 606 955 293


5 Revenue and Other Income

Revenue from continuing operations

2020

$

2019

$

Sales revenue

- Sale of goods 577,222 707,656

- Venue services revenue 2,510,239 2,961,200

- Programming revenue 682,781 1,164,933

Total Sales Revenue 3,770,242 4,833,789

Other income

- Jobkeeper and Cashflow Boost 440,250 -

- Other income 36,181 70,980

- Donations - cash 184,838 170,284

- City of Sydney sponsorship 700,000 400,000

- Other sponsorships and grants 121,884 273,645

Total Other Income 1,483,153 914,909

6 Result for the Year

The result for the year includes the following specific expenses:

Other expenses

Employee expenses 2,743,024 2,712,211

Depreciation expenses 93,845 69,655

7 Cash and Cash Equivalents

Cash at bank and on hand 787,509 1,343,386

Short-term deposits < 3 months - 400,000

787,509 1,743,386

8 Trade and Other Receivables

CURRENT

Trade receivables 182,142 159,966

GST receivable 12,626 -

Total current trade and otherreceivables 194,768 159,966

9 Inventories

CURRENT

Food stock - at cost 995 2,960

Beverage stock - at cost 19,349 17,256

20,344 20,216

15


ABN: 43 606 955 293


10 Other Financial Assets

2020

$

2019

$

Held-to-maturity investments

CURRENT

Term Deposits (> 3 months) 422,000 22,000

422,000 22,000

11 Property, plant and equipment

PLANT AND EQUIPMENT

Capital works in progress

At cost - 1,994

Plant and equipment

At cost 131,953 127,287

Accumulated depreciation (75,230) (51,955)

Total plant and equipment 56,723 75,332

Website

At cost 69,825 69,825


Total Website 15,579 50,492

Technical equipment

At cost 40,201 6,145


Total Technical equipment 30,837 4,513

Capital works

At cost 698,127 698,127


Total Capital works 613,373 641,298

Artworks

At fair value 500,000 500,000

Total Artworks 500,000 500,000

Total property, plant andequipment 1,216,512 1,273,629

16


ABN: 43 606 955 293


12 Other Assets

2020

$

2019

$

CURRENT

Prepayments 55,465 50,533

55,465 50,533

13 Trade and Other Payables

Current

Trade payables 56,815 269,968

GST payable - 38,272

Accrued expense 187,244 223,058

244,059 531,298

14 Provisions

CURRENT

Annual leave 72,876 80,039

Long service leave 40,462 33,718

113,338 113,757

NON CURRENT

Long service leave 29,592 -

29,592 -

15 Other Liabilities

CURRENT

Deposits held in trust 311,768 911,397

311,768 911,397

16 Members' Guarantee

The Company is incorporated under the Corporations Act 2001 and is a Company limited by guarantee. If theCompany is wound up, the constitution states that each member is required to contribute a maximum of $ 10 eachtowards meeting any outstandings and obligations of the Company. At 30 June 2020 the number of members was 5(2019: 5).

17 Contingencies

In the opinion of the Directors, the Company did not have any contingencies at 30 June 2020 (30 June 2019: None).

17


ABN: 43 606 955 293


18 Cash Flow Information

(a) Reconciliation of result for the year to cashflows from operating activities

Reconciliation of net income to net cash provided by operating activities:

2020

$

2019

$


Cash flows excluded from surplus attributable tooperating activities

Non-cash flows in surplus:

- depreciation 93,845 69,655

- impairment of receivables 4,689 -

Changes in assets and liabilities:

- (increase)/decrease in trade and other receivables (39,491) 92,914

- (increase)/decrease in other assets (4,932) (2,775)

- (increase)/decrease in inventories (128) 9,276

- increase/(decrease) in trade and other payables (886,868) (61,551)

- increase/(decrease) in provisions 29,173 (22,672)

Cashflows from operations (519,149) 173,497

19 Events after the end of the Reporting Period

The financial report was authorised for issue on 20 October 2020 by the Board of Directors.

1. The Australian economy has been severely impacted by the effects of COVID 19 since March 2020. As a place ofmass gathering, City Recital Hall entered temporary closure on Monday 16 March 2020 following an Australian FederalGovernment public health order. At the date of this report and following the easing of restrictions, City Recital Hall hasimplemented a soft opening strategy commencing Saturday 5 September 2020 with the view to steadily increasebusiness operations and patron attendance as and when it is safe to do so.

The Directors have prepared projected cash flow information for the twelve months from the date of approval of thesefinancial statements taking into consideration the estimation of the continued business impacts of COVID-19. Inresponse to the uncertainty arising from this, the Directors have considered severe but plausible downside forecastscenarios.

These forecasts indicate that, taking account of reasonably possible downsides, the Company is expected to continueto operate, with headroom, within available cash levels. Key to the forecasts are relevant assumptions regarding thebusiness, business model, legal and regulatory restrictions regarding recommencing operations and Principal Sponsorsupport.

The Directors remain focused on the Company's liquidity and expect to mange business operations in the forecastperiod whilst maintaining adequate liquidity.

Based on these forecasts, the Directors believe that it remains appropriate to prepare the financial statements on agoing concern basis.

2.Subsequent to year end, Create NSW has provided cash flow support for the 2020-2021 financial year to assist thecompany while COVID 19 impacts on the capacity for the company to generate income.

18


ABN: 43 606 955 293

Notes to the Financial Statements For the Year Ended 30 June 2020

19 Events after the end of the Reporting Period

19

Except for the above, no other matters or circumstances have arisen since the end of the financial year which significantly affected or could significantly affect the operations of the Company, the results of those operations or the state of affairs of the Company in future financial years.

20 Statutory Information

The registered office and principal place of business of the company is:

2 Angel Place

Sydney, NSW 2000


ABN: 43 606 955 293

Directors' Declaration

The directors have determined that the Company is not a reporting entity and that these special purpose financialstatements should be prepared in accordance with the accounting policies described in Note 3 of the financial statements.

The directors of the Company declare that:

1. The financial statements and notes, as set out on pages 4 to 19, are in accordance with the requirements of theAustralian Charities and Not-for-profits Commission Act 2012 and:

(a) comply with Australian Accounting Standards as stated in Note 1; and

(b) give a true and fair view of the financial position as at 30 June 2020 and of the performance for the year ended onthat date and is in accordance with the accounting policy described in Note 3 of the financial statements.

2. In the directors' opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as andwhen they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors and with subsection 60.15(2) of theAustralian Charities and Not-for-profit Commission Regulation 2013.

Director ..................................................................


Director ..................................................................


Dated

20

20th October 2020

city recital hall ltd - .net framework... · 2021. 4. 20. · city recital hall ltd abn: 43 606 955...

Documents