manly warringah gymnastics club limited abn 49 155 260 343 … · 2019. 7. 5. · page 3 of 27...

Manly Warringah Gymnastics Club Limited

ABN 49 155 260 343

Financial Reports

For the year ended 31 December 2018

Manly Warringah Gymnastics Club Limited ABN 49 155 260 343

Contents Directors’ Report .................................................................................................................................................... 3

Auditor’s Independence Declaration...................................................................................................................... 6

Statement of Profit or Loss and Other Comprehensive Income ............................................................................ 7

Statement of Financial Position .............................................................................................................................. 8

Statement of Changes in Equity ............................................................................................................................. 9

Statement of Cash Flows ...................................................................................................................................... 10

Notes to the financial statements ........................................................................................................................ 11

Directors’ declaration ........................................................................................................................................... 26

Independent Audit Report ................................................................................................................................... 27

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ABN 49 155 260 343

Directors’ Report The Directors of Manly Warringah Gymnastics Club Limited present their Report together with the financial

statements of the company for the year ended 31 December 2018.

Director details

Melinda Jane McCue Stewart

(Non‐Executive Director and Chairperson)

• Fellow of Australian Human Resources

Institute

• Member, Women in Banking & Finance Inc.

• Human Resources, payroll, HR systems,

operations, people management experience

• Significant large‐scale corporate senior

leadership experience

• Global Head of HR Shared Services, ASX100

listed company in the construction industry

• Parent of WAG national levels and elite

international level gymnasts

Ian Neville Hardy

(Executive Director, CEO)

MWGC CEO (or past President) for 12 years

35 years’ experience in facility management ‐ building design and construction

Member of AICD (Australian Institute of Company Directors)

Director Vision Gymsports Pty Ltd Level one Coach AWWA Member Gymnastics Australia/ Gymnastics

NSW working party ‐ recreational programs

Enrico Massi

(Non‐Executive Director)

Strong business and finance acumen from tenure in corporate and investment banking

Actively engaged in multiple local sporting organisations

Director / Affiliate with CrossFit Athletics Bachelor of Commerce (B.Com.), Griffith

University, Brisbane


Parent of past and current MWGC gymnasts

Martin Samuel Shields Executive Director, General Manager & Men’s Gymnastics Head Coach

FIG Level 3 Men’s Coach 2007, 2009, 2010, 2011 and 2012 Men’s

NSW Development Coach of the Year 2001, 2002, 2003 Australia Men’s Levels

Coach of the Year. Current Australian Team coach Member of board of advisors for

gymnastics in both NSW and Australia Holds a degree in business management

Donalda Lee Brown

(Non‐Executive Director and Company Secretary)

Gymnastics Australia Accredited Gymnastics Judge.

State Team/Club Chaperone Retired WAG Gymnast Retired MWGC Coach

Søren Breth

(Non‐Executive Director and Treasurer)

Senior sales director with Oracle Corporation

15+ years in general management and sales executive positions

Strategic planning, sales and business development experience

B.Sc Business Administration & IT, Aarhus University, Denmark


Parent of MAG and WAG national level and international level gymnasts

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ABN 49 155 260 343

Principal Activities

The principal activity of the company is to coach in the sport of gymnastics.

Directors’ meetings

Director Meeting entitled to attend Meeting attended

Melinda Jane McCue Stewart 7 6

Soren Breth 7 7

Ian Neville Hardy 7 7

Martin Samuel Shields 7 7

Donalda Lee Brown 7 6

Enrico Massi 7 5

Tamzin Brown 1 1

Paul Hewett 3 3

Message from Chairperson MWGC continues to go from strength to strength, and in 2018 the club was once again recognised as the largest club in NSW with 2500+ members. This is an outstanding result and highlights the community reach the club has in a range of gym sports, including some of our newer programs in the Gymnastics For All (GFA) category. I am proud of the community spirit and success displayed by MWGC gymnasts and staff in 2018. Member participation in our grassroots programs of under 5’s and recreational gymnastics provide solid feeder pools for the competitive programs in line with the club’s objective “to give every member the opportunity to reach the highest level that they are capable of achieving”. MWGC has big plans for 2019, and the Board of Directors hopes to secure land for new premises to cater for the growing membership and gym sport program interest. On behalf of the MWGC Board of Directors, I thank and congratulate the staff and gymnasts for their commitment, spirit and comradery that make MWGC such a great community club.

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ABN 49 155 260 343

Future Developments

The company will continue to pursue its principal activities as stated. The directors do not anticipate any

changes in the operations of the company which will affect the results in subsequent years.

Post Balance Date Events

There were no matters or circumstances that have arisen since the end of the financial year which have or

may significantly affect the operations of the company future financial years.

Contribution in winding up

The company is incorporated under the Corporation 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 $1

each towards meeting any outstanding obligations of the entity. At 31 December 2018, the total amount that

members of the company are liable to contribute if the company wound up is $2,599.

Indemnifying Officers

During the financial year, the company has paid premiums to insure the current directors against liabilities for

cost and expenses incurred by them in defending legal proceedings arising from their conduct while acting in

the capacity of directors of the company.

Auditor’s Independence Declaration

The auditor’s independent declaration for the year ended 31 December 2018 has been received and can be

found on page 6.

Signed in accordance with a resolution of the directors.

Director

Director

Date:

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Auditor’s Independence Declaration

To the directors of Manly Warringah Gymnastics Club Limited

In accordance with the requirements of section 307C of the Corporations Act 2001, as auditor of the Manly

Warringah Gymnastics Club Limited for the year ended 31 December 2018. I declare that, to the best of my

knowledge and belief, there have been:

i. No contraventions of the auditor independence requirements of the Corporations Act 2001 in

relation to the audit and

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

Leslie Pines, Chartered Accountant

Date:

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

Statement of Profit or Loss and Other Comprehensive Income For the year ended 31 December 2018

Notes 2018 2017

$ $

Revenue 4 3,325,040 3,237,631

Other revenue 4 131,372 166,269

Total revenue and other income 3,456,412 3,403,900

Changes in inventories

Cost of goods sold (224,406) (231,572)

Depreciation and amortisation expenses (185,916) (179,173)

Employee benefits expenses (1,929,882) (1,847,782)

Loss on sale of property, plant and equipment (3,179) 0

Other expenses (976,478) (987,433)

Surplus before income tax 136,551 157,940

Finance costs (276) (840)

Surplus after tax 136,276 157,100

Other comprehensive income

Revaluation of shares (329) 1,071

Total comprehensive income 135,947 158,171

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Statement of Financial Position As at 31 December 2018

Notes 2018 2017

$ $

Current assets

Cash and cash equivalents 5 1,023,314 909,857

Trade and other receivables 6 9,107 29,604

Inventories 7 24,938 23,655

Other assets 8 26,137 8,124

Total current assets 1,083,497 971,241

Non‐current assets

Property, plant and equipments 9 633,049 689,263

Other assets 8 137,031 134,829

Intangible assets 10 40,003 53,338

Financial assets at fair value 11 5,876 6,205

Total non‐current assets 815,959 883,635

Total assets 1,899,456 1,854,875

Current liabilities

Trade and other payables 12 111,666 128,605

Borrowings 15 935 40

Other liabilities 13 201,067 256,866

Employee benefits obligations 14 76,570 69,700

Total current liabilities 390,238 455,210

Non‐current liabilities

Borrowings 15 0 5,367

Employee benefits obligations 14 47,190 68,214

Total non‐current liabilities 47,190 73,582

Total liabilities 437,427 528,792

Net assets 1,462,028 1,326,084

Members' funds

Reserves 16 383,617 383,946

Retained earnings 1,078,411 942,138

Total members' funds 1,462,028 1,326,084

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Statement of Changes in Equity For the year ended 31 December 2018

Notes Reserves

Retained

earnings Total equity

$ $ $

Balance at 1 January 2017 382,874 785,038 1,167,912

Other comprehensive income 1,071 1,071

Surplus for the year 157,100 157,100

Balance at 31 December 2017 383,945 942,138 1,326,083

Balance at 1 January 2018 383,945 942,138 1,326,083

Other comprehensive income 16 (329) (329)

Surplus for the year 136,276 136,276

Balance at 31 December 2018 383,616 1,078,414 1,462,029

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Statement of Cash Flows For the year ended 31 December 2018

Notes 2018 2017

$ $

Operating services

Receipts from:

Sale of goods and services 3,555,775 3,291,910

Fundraising 6,774 15,865

Sponsorships & grants 40,644 57,000

Investment income 17,353 7,376

Other revenue 129,170 166,269

Payments to clients, suppliers and employees (3,511,067) (3,155,490)

Net cash inflow from operating activities 5 238,648 382,930

Cash Flows from investing activities

Purchase for property, plant and equipment (119,547) (118,970)

Net cash inflow / (outflow) from investing activities (119,547) (118,970)

Cash Flows from financing activities

Proceeds from bank loans ‐

Repayment of bank loans (5,643) ‐

Net cash inflow / (outflow) from financing activities (5,643) ‐

Net increase / (decrease) in cash held 113,457 263,960

Cash at the beginning of the financial year 909,857 645,897

Cash at the end of the financial year 5 1,023,314 909,857

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Notes to the financial statements

1 General information and statement of compliance

These general purpose financial statements have been prepared in accordance with the requirements of the

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

Manly Warringah Gymnastics Club Limited is a non‐for‐profit public company limited by guarantee incorporated and domiciled in Australia. The address of its registered office and its principal place of business is 22 Middleton Road, Cromer NSW 2099.

The financial statements for the year ended 31 December 2018 were approved and authorised for issue by

the Board of Directors on 2nd May 2019.

2 Summary of accounting policies

Overall considerations

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

summarised below.

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

Accounting Standards for each type of asset, liability, income and expense. The measurement bases are more

fully described in the accounting policies below.

2.1 Revenue

Revenue comprises revenue from fundraising, grants, donations, insurance recovery, school programmes and

member’s contributions.

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

goods supplied and services provided, excluding GST.

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.

Sale of goods

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

resale. Sales revenue is recognised when the control of goods passes to the customer.

Member contributions Fees charged for services provided to clients are recognised when the service is provided.

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Donations Donations collected, including cash and goods for resale, are recognised as revenue when the company gains control, economic benefits are probable, and the amount of the donation can be measured reliably.

Interest and dividend income

Interest and dividend income are recognised at the time the right to receive payment is established.

2.2 Property, Plant and Equipment

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

accumulated depreciation and impairment losses.

Property

Freehold land and buildings are shown at their fair value (being the amount for which an asset could be

exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, but

at least triennial, valuations by external independent value, less subsequent depreciation for buildings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of

the asset and the net amount is restated to the revalue amount of the asset.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually to ensure it is not in excess of the

recoverable amount from those assets. The recoverable amount is assessed on the basis of the expected

net cash flows that will be received from the asset’s employment and subsequent disposal. The expected

net cash flows have not been discounted to present values in determining the recoverable amounts.

The cost of fixed assets constructed within Manly Warringah Gymnastics Club Limited includes the cost of

materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount recognised as a separate asset, as

appropriate, only when it is probable that the future economic benefits associated with the item will flow

to the company and the cost of the item can be measured reliably. All other repairs and maintenance are

charged to the income statement during the financial period in which they are incurred.

Increases in the carrying amount arising on revaluation of land and buildings are credited to a revaluation

reserve in shareholders' equity. Decreases that offset previous increases of the same asset are charged

against fair value reserves directly in equity; all other decreases are charged to the income statement. Each

year the difference between depreciation based on the revalue carrying amount of the asset charged to

the income statement and depreciation based on the assets original cost is transferred from the

revaluation reserve to retained earnings.

Depreciation

The depreciable amount of all fixed assets including buildings and capitalised leased assets, but excluding

freehold land, is depreciated on a straight‐line basis over their useful lives to Manly Warringah Gymnastics

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Club Limited commencing from the time the asset is held ready for use. Leasehold improvements are

depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of

the improvements.

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

Class of Asset Depreciation Rate %

Buildings 2.5%

Plant and equipment 13 – 23%

Other furniture and equipment 10 – 40%

Motor vehicles 18%

Other 20%

The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet

date.

An asset carrying amount is written down immediately to its recoverable amount if the asset's carrying

amount is greater than its estimated recoverable amount.

Gains and losses on disposal are determined by comparing proceeds with the carrying amount. These gains

or losses are included in the income statement. When revalue assets are sold, amounts included in the

revaluation reserve relating to that asset are transferred to retained earnings.

2.3 Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset,

but not legal ownership, are transferred to Manly Warringah Gymnastics Club Limited are classified as finance

leases.

Finance leases are capitalised recording an asset and a liability equal to the present value of the minimum

lease payments, including any guaranteed residual value. Lease payments are allocated between the

reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight‐line basis over their estimated useful lives where it is likely that

Manly Warringah Gymnastics Club Limited will obtain ownership of the asset or over the term of the lease.

Lease payments under operating leases, where substantially all the risks and benefits remain with the leaser,

are charged as expenses in the periods in which they are incurred.

Lease incentives under operating leases are recognised as a liability and amortised on a straight ‐ line basis

over the life of the lease term.

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2.4 Impairment testing of intangible assets and property, plant and equipment

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

independent cash inflows (cash‐generating units). As a result, some assets are tested individually for

impairment and some are tested at cash‐generating unit level.

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. To

determine the value‐in‐use, management estimates expected future cash flows from each cash‐generating

unit and determines a suitable interest rate in order to calculate the present value of those cash flows. The

data used for impairment testing procedures are directly linked to the Group’s latest approved budget,

adjusted as necessary to exclude the effects of future reorganisations and asset enhancements. Discount

factors are determined individually for each cash‐generating unit and reflect management’s assessment of

respective risk profiles, such as market and asset‐specific risks factors.

Impairment losses for cash‐generating units reduce first the carrying amount of any goodwill allocated to that

cash‐generating unit. Any remaining impairment loss is charged pro rata to the other assets in the cash‐

generating unit. With the exception of goodwill, 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.

2.5 Financial Instruments

Recognition, initial measurement and derecognition

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.

Classification and subsequent measurement of financial assets

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:

loans and receivables

financial assets at fair value through profit or loss (FVTPL)

Held‐to‐maturity (HTM) investments

Available‐for‐sale (AFS) financial assets

All financial assets except for those at fair value through profit or loss (FVTPL) are subject to review for

impairment at least at each reporting date to identify whether there is any objective evidence that a

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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.

Loans and receivables

Loans and receivables are non‐derivative financial assets with fixed or determinable payments that are

not quoted in an active market. After initial recognition, these are measured at amortised cost using the

effective interest method, less provision for impairment. Discounting is omitted where the effect of

discounting is immaterial. The company’s trade and most other receivables fall into this category of

financial instruments.

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.

Financial assets at fair value through profit or loss (FVTPL)

Financial assets at fair value through profit or loss (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.

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.

Held‐to‐maturity (HTM) investments

Held‐to‐maturity (HTM) investments are non‐derivative financial assets with fixed or determinable

payments and fixed maturity other than loans and receivables. Investments are classified as HTM if the

company has the intention and ability to hold them until maturity. The company currently holds long term

deposits designated into this category.

Held‐to‐maturity (HTM) investments are measured subsequently at amortised cost using the effective interest

method. If there is objective evidence that the investment is impaired, determined by reference to external

credit ratings, the financial asset is measured at the present value of estimated future cash flows. Any changes

to the carrying amount of the investment, including impairment losses, are recognised in profit or loss.

Available‐for‐sale (AFS) financial assets

Available‐for‐sale (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.

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All available‐for‐sale (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’.

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 loss and any subsequent increase in fair value is

recognised in other comprehensive income.

Classification and subsequent measurement of financial liabilities

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

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

for financial liabilities held for trading or designated at fair value through profit or loss (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.

2.6 Inventories

Goods for resale

Inventories of goods for resale are valued at the lower of cost and net realisable value. No value is ascribed to

goods for resale that have been donated to the company where fair value cannot be reliably determined. Net

realisable value is the estimated selling price in the ordinary course of business, less any applicable selling

expenses.

2.7 Income Tax

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

the Income Tax Assessment Act 1997. All other receipts and payments are classified in accordance with

taxation legislation.

The company is liable for other taxes, including payroll and fringe benefits tax.

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2.8 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.

2.9 Reserves

Other components of equity include the following:

• revaluation reserve – comprises gains and losses from the revaluation of land

• AFS financial assets reserves – comprises gains and losses relating to these types of financial

instruments.

Retained earnings include all current and prior period retained profits.

2.10 Employee benefits

Short‐term employee benefits

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

wholly within 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.

Other long‐term employee benefits

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 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. The expected future payments incorporate anticipated future wage and

salary levels, experience of employee departures and periods of service, and are discounted at rates

determined by reference to market yields at the end of the reporting period on high quality corporate bonds

that have maturity dates that approximate the timing of the estimated future cash outflows. 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.

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 12 months after the

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

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2.11 Provisions, contingent liabilities and contingent assets

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.

2.12 Deferred income

The liability for deferred income is the unutilised amounts of income 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 income.

2.13 Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST

incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised

as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in

the statement of financial position are shown inclusive of GST.

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

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

2.14 Significant management judgements in applying accounting policies

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.

Estimation uncertainty

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.

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Impairment

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

Useful lives of depreciable assets

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.

Inventories

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.

Long service leave

The liability for long service leave is recognised and measured at the present value of the estimated cash flows

to be made in respect of all employees at the reporting date. In determining the present value of the liability,

estimates of attrition rates and pay increases through promotion and inflation have been taken into account.

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2018 2017

$ $

Note 4 Revenue

Sale of goods and services 3,260,270 3,157,390

Fundraising 6,774 15,865

Sponsorships & grants 40,644 57,000

Investment income 17,353 7,376

3,325,040 3,237,631

Other revenue

Other revenue 11,939 7,725

Rent 108,166 147,820

Employee contribution 11,267 10,724

131,372 166,269

Note 5 Cash and cash equivalents

Current

Cash at bank 1,022,232 909,357

Cash on hand 1,082 500

1,023,314 909,857

Reconciliation to Statement of Cash Flows

For the purpose of the Statement of Cash Flows, cash is comprised of the following:

CBA Cheque accounts 101,051 66,898

CBA Online account 113 113

CBA Savers account 921,068 842,346

Cash on hand 1,082 500

1,023,314 909,857

Reconciliation of net surpluses after tax to net cashflows from operations

Operating surplus 136,276 157,100

Adjustment:

Amortisation 13,334 13,334

Depreciation 175,576 165,839

Bad and doubtful debts 1,088 560

Interest charged 276 840

Interest income (16,846)

Loss on disposal 3,179

Revaluation 324 1,071

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2018 2017

$ $

Changes in working capital:

(Increase)/decrease in receivables 20,497 1,156

(Increase)/decrease in inventories (1,283) 15,254

(Increase)/decrease in other assets (20,214) 2,627

(Increase)/decrease in intangible assets 13,334

Increase/(decrease) in payables (16,939) 23,606

Increase/(decrease) in other liabilities (55,799) (6,157)

Increase/(decrease) in Employee benefits obligations (14,154) 7,702

Net cash flows from operating activities 238,648 382,930

Note 6 Trade and other receivables

Current

Trade receivables 9,107 25,855

Other receivables 0 3,749

9,107 29,604

Note 7 Inventories

Current

Inventories 24,938 23,655

24,938 23,655

Note 8 Other assets

Current

Prepayments 12,052 8,124

Others 14,085 0

26,137 8,124

Non Current

Bonds 137,031 134,829

137,031 134,829

Note 9 Property, plant and equipment

Plant and equipment 685,950 588,260

Less: Accumulated Depreciation (478,360) (401,341)

207,590 186,919

Leasehold Improvements 986,005 985,091

Less: Accumulated Depreciation (574,304) (482,747)

411,701 502,344

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Motor Vehicles 15,493 0

Less: Accumulated Depreciation (1,735) 0

13,758 0

Total 633,049 689,263

Reconciliations of the carrying amounts

Plant and equipment

Opening balance 186,919 145,586

Additions 97,690 107,212

Depreciation (77,019) (65,879)

207,590 186,919

Leasehold Improvements

Opening balance 502,344 590,545

Additions 914 11,759

Depreciation (91,557) (99,960)

411,701 502,344

Motor Vehicles

Opening balance 0 0

Additions 15,493 0

Depreciation (1,735) 0

13,758 0

Carrying amount 633,049 689,263

Note 10 Intangible assets

Preliminary expenses 40,003 53,338

40,003 53,338

Recovery of the carry amount for Preliminary expense is dependent on the successful

completion of the project.

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Note 11 Financial assets and liabilities

The carrying amounts presented in the statement of financial position relate to the

following categories of assets

Financial assets

Cash and cash equivalents 1,023,314 909,857

Avaliable for sale financial assets

‐ securities 5,876 6,205

Loans and receivables

current

‐ trade and other receivables 9,107 29,604

1,038,297 945,666

Financial liabilities

measured at amortised cost

current

‐ trade and other payables 111,666 128,605

‐ borrowings 935 40

non current

‐ borrowings 0 5,367

112,601 134,012

Note 12 Trade and other payables

Current

Trade creditors 13,758 10,622

Other creditors and accruals 97,908 117,983

111,666 128,605

Note 13 Other liabilities

Current

Deferred revenue 201,067 256,866

201,067 256,866

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Note 14 Employee benefits obligations

Employee benefits expenses

Wages and salaries on cost 1,767,641 1,677,902

Workers compensation insurance 24,460 21,659

Superannuation paid 151,934 140,519

Employee benefits (14,154) 7,702

1,929,882 1,847,782

Current

Annual leave 73,107 65,924

Long service leave 3,463 3,776

76,570 69,700

Non Current

Long service leave 47,190 68,214

There were 44 employees at the end of the year

Note 15 Borrowings

Current

Unsecured

Credit cards 935 40

935 40

Non Current

Secured

Asset finance 0 5,367

0 5,367

Note 16 Reserves

Movements in reserves:

Balance at beginning of financial year 383,946 382,875

Revaluation ‐ listed shares (329) 1,071

Balance at end of financial year 383,617 383,946

Note 17 Leases

Operating leases payable

Within one year 380,635 366,050

After one year but not later than five years 392,784 380,635

773,419 746,684

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Note 19 Capital commitments

There is no capital commitment made for 2019 financial year.

Note 20 Contingent Liabilities

There are no contingent liabilities that the board members are aware of that will have material effects to the

financial reports.

Note 21 Events Subsequent to Reporting Date

There are no events subsequent to reporting date that the board members are aware of that will have

material effects to the financial reports.

The lease is not non‐canellable operating lease, it has a renewal option and it has a fixed

review increase of 3.5% per annum.

The company has sub‐leased part of the avaliable space to 2 tenants which has a

lease terms the main lease, the lease receivables are

Operating lease receivables

Within one year 67,768 127,099

After one year but not later than five years 68,967 67,768

136,735 194,867

Note 17 Related parties transactions

Total key management personnel remuneration 350,030 343,875

Note 18 Fair value measurement

Fair value of financial instruments

Listed securities 5,876 6,205

Net fair value 5,876 6,205

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Directors’ declaration

In the opinion of the directors of Manly Warringah Gymnastics Club Limited:

1. the financial statements and notes of Manly Warringah Gymnastics Club Limited are in accordance

with the Corporations Act 2001 including

a. giving a true and fair view of its financial position as at 31 December 2018 and of its

performance for the financial year ended on that date and

b. complying with Australian Accounting Standards (including the Australian Accounting

Interpretations) and the Corporations Regulations 2001 and

2. there are reasonable grounds to believe that Manly Warringah Gymnastics Club Limited will be able

to pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors:

Director

Director

Date:

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Independent Audit Report

manly warringah gymnastics club limited abn 49 155 260 343 … · 2019. 7. 5. · page 3 of 27...

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