Post on 30-Jun-2020
LAKE EILDON COUNTRY CLUB LIMITEDABN 66 005 642 937
FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2010
FINANCIAL REPORT
CONTENTS Page
Directors' Report 1
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 5
Statement of Comprehensive Income 6
Statement of Financial Position 7
Statement of Changes in Equity 8
Statement of Cash Flows 9
Notes to the Financial Statements 10
Directors' Declaration 25
Independent Auditor's Report 26
FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
Directors
Kerry O'Connor Derek Covill
Mike Guilmartin Robyn Cary
Barry Crittle
Ramy Filo
(alternate for R Filo)
Principal Activities
The principal activity of the company during the financial year was that of a timeshare resort operator.
Operating Results
No significant changes in the company’s state of affairs occurred during the financial year.
Dividends Paid or Recommended
Significant Changes in State of Affairs
Environmental Issues
Information on Directors
Appointed director in 1996. President since 2005. Mr O’Connor was a professional serviceman and is a veteran of the
Vietnam War. He qualified as a tradesman with the Army and after discharge was engaged in his own plumbing and
gas fitting business. He closed his business after being disabled in a tractor accident but continues to work in a full time
but honorary role assisting returned service claimants with their service pension. He is also a Director of the Returned
Services League and serves on their committee as Treasurer.
Carole Smith
Noel Phingsthorne
Mike Guilmartin
Director since 1996. Mr Guilmartin commenced in the insurance industry in 1958 and joined Alcoa of Australia in 1969
where he was Risk Manager and for a time Assistant Company Secretary. He qualified as a Fellow of the Australian
Insurance Institute. He was on the steering committee that formed the Victorian Chapter of what is now the Risk
Management Institution of Australasia and served on its National Executive for several years. He was the Association’s
president in 1981/82. He was Chief Executive Officer of the Victorian Managed Insurance Authority from 1997 until
2006.
No dividends have been paid or declared since the start of the financial year (2009: $nil).
No matters or circumstances have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the company, the results of those operations, or the state of affairs of the company
in future financial years.
Kerry O'Connor
The company's operations are not regulated by any significant environmental regulation under a law of the
Commonwealth or of a state or territory.
Qualified Tradesman.
The directors have reviewed operations for the year ended 30 June 2010 and report that operations have been
consistent with the 2010 operating budget, long term building maintenance and refurbishment requirements.
No significant change in the nature of these activities occurred during the year.
The result from operations was a profit/(loss) after tax for the year ended 30 June 2010 of $9,301
(30 June 2009: $68,971).
LAKE EILDON COUNTRY CLUB LIMITED
Directors' Report
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
30 June 2010
The names of the directors in office at any time during or since the end of the year are:
The directors present their report on the company for the financial year ended 30 June 2010.
Alan Morris
1
LAKE EILDON COUNTRY CLUB LIMITED
Directors' Report
30 June 2010
Information on Directors (cont)
Key Management Personnel Remuneration Policy
Diploma in Hospitality Management & Tourism Operations Management, FAICD.
Director since 1996. Mr Morris has held several middle to senior management positions with various companies
engaged in fire protection services. In 1985 he started, in partnership with other shareholders, a company specialising in
fire protection systems and has overseen the company’s growth to an annual turnover in excess of $25 million with
contracts in New Zealand, the Philippines and Australia. He was Managing Director of that company, ‘Entire Fire
Protection Pty Ltd’, from 1985 until he retired in 2001.
Alan Morris
The company's policy for determining the nature and amount of remuneration of key management is as follows:
Director since 2009. Over 20 years experience in the timeshare and tourism industry. Managing Director of Classic
Leisure Pty Ltd trading as Classic Holidays with responsibility for managing the day-to-day operations of 15 resorts/clubs
within the group. Director of Australian Timeshare and Holiday Ownership Council (National Timeshare Body) and
Hotel, Motel and Accommodation Association of Australia. Justice of the Peace.
Carole Smith
Diploma of Applied Science (Home Economics), RMIT, Post-graduate Diploma of Technology Education, University of
Melbourne and a Home Economics Post-Primary Teachers Certificate (NZ). Serves on Building Committee.
Robyn Cary
Director since 1999. Mr Covill has held both line and corporate management roles with P&L responsibility for over 40
years. He is a past Associate of the Institute of Management, the Marketing Institute and the Company Directors
Institute (NSW Chapter). He has been a Company Secretary/Director of various companies since 1976, including
positions as a Director Hanimex Australia Pty Ltd, CEO Color Services Pty Ltd, Managing Director Rabbit Photo
Holdings Ltd and Managing Director Photo Express Pty Ltd.
Director since 2000. Ms Cary is a retired teacher who has spent most of her career teaching in New Zealand, Canada
and Australia until 1993 during which time she served on curriculum committees involved in the development of the
Victorian Certificate of Education. She is currently engaged in the hospitality industry with her own accommodation
provider business.
Details of key management personnel remuneration is shown in Note 5 to the accounts.
Ramy Filo
Diploma of Business Administration. Company Secretary.
The remuneration structure for key management personnel is based on a number of factors, including length of service,
particular experience of the individual concerned, and overall performance of the company. The contracts for service
between the company and key management personnel are on a continuing basis, the terms of which are not expected to
change in the immediate future.
Director since 1998. Treasurer since 2008. Mr Crittle has spent most of his business career in administrative roles and
has held various management positions in asset financing. He was State Manager (Vic), Property Finance and later
State Manager, Group Credit for the ANZ subsidiary Esanda for a period of 13 years. Barry elected for early retirement
in 1997.
Barry Crittle
Serves on Building Committee.
Qualified Draftsman & Engineer.
2
LAKE EILDON COUNTRY CLUB LIMITED
Directors' Report
30 June 2010
Meetings of Directors
Name
9 9
Derek Covill 9 8
9 8
9 9
9 7
9 7
9 3
9 7
9 8
Likely Developments
Options
Indemnifying Officers or Auditor
Proceedings on Behalf of the Company
Number of meetings
attended
No options over issued shares or interests in the company were granted during or since the end of the financial year and
there were no options outstanding at the date of this report.
The company was not a party to any such proceedings during the year.
No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any
person who is or has been an auditor of the company.
No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings
to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of
those proceedings.
The company has agreements with each of the directors and officers of the company in office at the date of this report
indemnifying them against liabilities to any person other than the company that may arise from their acting as directors
or officers of the company. The indemnity applies, notwithstanding that they may have ceased to hold office, other than
where such liabilities arise out of conduct involving a wilful breach of duty, the improper use by the directors or officers of
their position or of information to gain an advantage for themselves or someone else or to cause detriment to the
company.
Alan Morris
Barry Crittle
Ramy Filo
Noel Phingsthorne
The directors have not included details of the nature of the liabilities covered or the amount of the premium paid in
respect of the directors' and officers' liability, as such disclosures are prohibited under the terms of the contract.
Kerry O'Connor
Number of meetings held
while a Director
Carole Smith
Mike Guilmartin
Robyn Cary
Likely developments in the operations of the company and the expected results of those operations in future financial
years have not been included in this report as the inclusion of such information is likely to result in unreasonable
prejudice to the company.
During the financial year, 9 meetings of directors were held. Attendances by each director during the year were as
follows:
3
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2010
Restated
NOTE 2010 2009
$ $
Revenue 2 1,014,165 1,013,954
Auditors' remuneration (9,775) (11,950)
Bad and doubtful debts - 17,792
Depreciation and amortisation expense (80,104) (65,958)
Employee benefits expenses (407,576) (398,676)
Operating expenses (290,719) (295,217)
Occupancy expenses (104,711) (100,736)
Office expenses (40,233) (38,942)
Other expenses (59,771) (51,296)
Profit/(Loss) before income tax 3 9,301 68,971
Income tax (expense)/revenue 4 - -
PROFIT/(LOSS) FOR THE PERIOD 9,301 68,971
OTHER COMPREHENSIVE INCOME FOR THE PERIOD - -
9,301 68,971
LAKE EILDON COUNTRY CLUB LIMITED
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD ATTRIBUTABLE TO
MEMBERS
The accompanying notes form part of these financial statements. 6
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2010
Restated Restated
NOTE 2010 2009 1 July 2008
$ $ $
CURRENT ASSETS
Cash and cash equivalents 7 1,416,056 912,758 1,006,576
Trade and other receivables 8 404,920 342,155 218,702
Inventory 9 3,337 3,544 3,239
Other current assets 10 4,985 3,873 4,446
TOTAL CURRENT ASSETS 1,829,298 1,262,330 1,232,963
NON-CURRENT ASSETS
Trade and other receivables 8 12,226 100,309 164,628
Property, plant and equipment 11 456,533 429,478 310,185
TOTAL NON-CURRENT ASSETS 468,759 529,787 474,813
TOTAL ASSETS 2,298,057 1,792,117 1,707,776
CURRENT LIABILITIES
Trade and other payables 12 903,479 419,113 389,507
Short-term provisions 13 19,873 18,351 19,884
TOTAL CURRENT LIABILITIES 923,352 437,464 409,391
NON-CURRENT LIABILITIES
Long-term provisions 13 12,367 1,616 14,319
TOTAL NON-CURRENT LIABILITIES 12,367 1,616 14,319
TOTAL LIABILITIES 935,719 439,080 423,710
NET ASSETS 1,362,338 1,353,037 1,284,066
EQUITY
Retained earnings 1,362,338 1,353,037 1,284,066
TOTAL EQUITY 1,362,338 1,353,037 1,284,066
LAKE EILDON COUNTRY CLUB LIMITED
The accompanying notes form part of these financial statements. 7
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2010
Note
Retained
Earnings Total
$ $
Balance at 1 July 2008 1,345,351 1,345,351
Correction of error 6 (61,285) (61,285)
Re-stated total equity at the beginning of the financial year 1,284,066 1,284,066
Profit/(loss) for the period 96,895 96,895
Other comprehensive income - -
Correction of error 6 (27,924) (27,924)
68,971 68,971
Transactions with owners in their capacity as owners: - -
Balance at 30 June 2009 1,353,037 1,353,037
Balance at 1 July 2009 1,353,037 1,353,037
Total comprehensive income:Profit/(loss) for the period 9,301 9,301
Other comprehensive income - -
Total comprehensive income 9,301 9,301
Transactions with owners in their capacity as owners: - -
Balance at 30 June 2010 1,362,338 1,362,338
LAKE EILDON COUNTRY CLUB LIMITED
Total comprehensive income for the year as reported in the
2009 financial statements:
Restated total comprehensive income for the year
The accompanying notes form part of these financial statements. 8
CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2010
NOTE 2010 2009
Inflows Inflows
(Outflows) (Outflows)
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 1,386,952 932,271
Payments to suppliers and employees (770,378) (875,741)
Interest received 49,661 66,549
GST recovered/(paid) (55,779) (31,647)
NET CASH FROM/(USED IN) OPERATING ACTIVITIES 14 610,456 91,432
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (107,159) (185,250)
NET CASH FROM/(USED IN) INVESTING ACTIVITIES (107,159) (185,250)
NET CASH FROM/(USED IN) FINANCING ACTIVITIES - -
Net increase/(decrease) in cash held 503,297 (93,818)
Cash at the beginning of the year 912,758 1,006,576
CASH AT THE END OF THE YEAR 7 1,416,055 912,758
CHECK
(1)
LAKE EILDON COUNTRY CLUB LIMITED
The accompanying notes form part of these financial statements. 9
LAKE EILDON COUNTRY CLUB LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
●
●
●
● Key Estimates — Impairment
Statement of Compliance
of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. International Financial Reporting
Standards form the basis of Australian Accounting Standards adopted by the AASB.
The Company has adopted the following amended Australian Accounting Standards as of 1 July 2009:
The financial report of Lake Eildon Country Club Limited complies with International Financial Reporting Standards
(IFRS) in their entirety.
AASB 101 Presentation of Financial Statements (revised 2007) effective 1 January 2009. The revised standard
separates owner and non-owner changes in equity. As there have been no non-owner changes in equity, the
adoption of the revised standard has had no impact on the reporting of the company, other than to change the name
of the primary statements. The company has elected to present all items of recognised income and expense in a
single Statement of Comprehensive Income.
The financial report was authorised for issue by the board of directors on 3 September 2010.
AASB 8 Operating Segments effective 1 January 2009. AASB 8 replaced AASB 114 Segment Reporting upon its
effective date. The company concluded that its operating segment determined in accordance with AASB 8 is the
same as the business segments previously identified under AASB 114.
The company has not adopted any amended accounting standards early and the future impact of amended accounting
standards currently released is not expected to be material to the company.
Reporting Entity
Basis of Preparation
Lake Eildon Country Club Limited ('the company') is an unlisted public company limited by guarantee incorporated and
domiciled in Australia. The financial report covers Lake Eildon Country Club Limited as an individual entity.
The company is primarily involved in the operation of a timeshare resort in Australia.
The financial report of Lake Eildon Country Club Limited is a general purpose financial report prepared in accordance
with Australian Accounting Standards including Australian Accounting Interpretations and other pronouncements
The following is a summary of the material accounting policies adopted by the company in the preparation of the
financial report. The accounting policies have been consistently applied, unless otherwise stated.
Reporting Basis and Conventions
The financial report is presented in Australian dollars.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision effects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods. There were no key adjustments during
the year which required accounting estimates and judgements.
The financial report has been prepared on an accruals basis and is based on historical costs modified by the revaluation
of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has
been applied.
The company assesses impairment at each reporting date by evaluating conditions specific to the company that
may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is
determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key
estimates.
The estimates and judgments incorporated into the financial report are based on historical experiences and the best
available current information on current trends and economic data, obtained both externally and within the group.
The estimates and judgements made assume a reasonable expectation of future events but actual results may
differ from these estimates.
Critical Accounting Estimates and Judgments
The preparation of a financial report in conformity with Australian Accounting Standards requires management to make
judgements, estimates and assumptions that effect the application of policies and the reported amounts of assets,
liabilities, revenue and expenses.
10
LAKE EILDON COUNTRY CLUB LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
(a) Income Tax
(b) Inventories
(c) Property, Plant and Equipment
Property
Plant and equipment
Depreciation
Class of Fixed Asset
Motor vehicles
Plant and equipment
Buildings and Improvements 2.5%
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on accounting or taxable profit or loss.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that
no adverse change will occur in income taxation legislation and the anticipation that the company will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised.
Depreciation rate
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance date.
Inventories are measured at the lower of cost and net realisable value.
The depreciation rates used for each class of depreciable assets are:
20%
20%
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that 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.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash
flows which will be received from the assets employment and subsequent disposal. The expected net cash flows
have not been discounted to their present values in determining recoverable amounts.
The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight line basis
over their useful lives to the company 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.
Because of the principle of mutuality, only income arising from non-member activities is subject to income tax. The
company is able to identify all non-member income.
Plant and equipment are measured on the cost basis less depreciation and impairment losses.
The value of the land on which the resort has been constructed, being Lots 1, 2 and 3 and the buildings constructed
thereon are owned by the members as proprietors of their prescribed part interest in the land and therefore is not
reflected in the statement of financial position of the Club.
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated
depreciation and impairment losses.
The charge for current income tax expenses is based on the profit for the year adjusted for any non-assessable or
disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance
date.
11
LAKE EILDON COUNTRY CLUB LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
(c) Property, Plant and Equipment (cont)
(d) Leases
(e) Financial Instruments
Recognition
Financial assets at fair value through profit and loss
Loans and receivables
Held-to-maturity investments
Available-for-sale financial assets
Financial liabilities
Fair value
Impairment
Lease payments for operating leases, where substantially all risks and benefits remain with the lessor, are charged
as expenses in the periods in which they are incurred as this represent the pattern of benefits derived from the
leased assets. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line
basis over the life of the lease term.
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 the entity 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. Leased assets are amortised on a straight-line basis over their estimated useful lives.
Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the
period.
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or
losses are included in the income statement.
An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.
A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term or if so
designated by management and within the requirements of AASB 139: Recognition and Measurement of Financial
Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these assets are
included in the income statement in the period in which they arise.
Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related
contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out
below.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to
determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar
instruments and option pricing models.
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments
and amortisation.
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-
sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are
taken directly to equity.
These investments have fixed maturities, and it is the company’s intention to hold these investments to maturity. Any
held-to-maturity investments held by the company are stated at amortised cost using the effective interest rate
method.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in
an active market and are stated at amortised cost using the effective interest rate method.
At each reporting date, the company assesses whether there is objective evidence that a financial instrument has
been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the
instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the
income statement.
12
LAKE EILDON COUNTRY CLUB LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
(f) Impairment of Assets
(g) Employee Entitlements
(h) Provisions
(i) Cash and Cash Equivalents
(j) Revenue
(k) Finance Costs
(l) Goods and Services Tax (GST)
(m) Comparative Figures
All revenue is stated net of the amount of goods and services tax (GST).
Revenue from the sale of goods is recognised upon the delivery of goods to the customer.
Levy penalties are recognised as received.
Revenue from rental pool participation is recognised when the right to receive the payment is established.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
Finance costs directly attributable to the acquisition, construction or production of assets that necessarily take a
substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such
time as the assets are substantially ready for their intended use of sale.
Provision is made for the company's liability for employee entitlements arising from services rendered by employees
to balance date. Employee entitlements expected to be settled within one year together with entitlements arising
from wages and salaries, and annual leave which will be settled after one year, have been measured at their
nominal amount. Other employee entitlements payable later than one year have been measured at the present
value of the estimated future cash outflows to be made for those entitlements.
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in
presentation for the current financial year.
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 Tax 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 component of
investing and financing activities, which are disclosed as operating cash flows.
All other finance costs are recognised in income in the period in which they are incurred.
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within
short-term borrowings in current liabilities on the statement of financial position.
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 reliably measured.
Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
At each reporting date, the company reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable
amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the
asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the
income statement.
Revenue is measured at the fair value of considered received or receivable, net of discounts. Revenue is
recognised to the extent that it is probable that economic benefits will flow to the company, and revenue can be
realiably measured.
Levy revenue is recognised on a straightline basis over the financial year to which it relates.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
13
LAKE EILDON COUNTRY CLUB LIMITEDNOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONT)
(n) Receivables
(o) Trade Creditors and Accruals
(p) Statement of Cash Flows
(q) Membership Fees
The Club holds a high number of relinquished titles. The accounts therefore only reflect membership fees for
"active" shares at collectable levels.
For the purposes of the statement of cash flows, cash includes cash on hand and in banks and investments in
money market instruments, net of any outstanding bank overdrafts.
A liability is recorded for goods and services received prior to balance date, whether invoiced or not. Trade creditors
are settled in accordance with supplier payment terms.
Levies are included in “Levies receivable” and are recorded at the balance date. Receivable amounts are due within
30 days of invoice. Levies are billed in June each year for the coming July to June period.
14
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
2010 2009
NOTE 2 - REVENUE $ $
Levy income 870,350 850,105
Levy penalties 2,784 9,963
Interest received 60,860 88,797
Rental income 48,758 22,230
Gain on sale of fixed assets - 1,091
Other income 31,413 41,768
1,014,165 1,013,954
NOTE 3 - PROFIT/(LOSS) BEFORE INCOME TAX
Expenses
Auditors' remuneration
- Auditing or reviewing the financial report 7,205 9,995
- Assistance with financial report preparation 2,570 1,955
Bad and doubtful debts
- Trade receivables - (17,792)
Superannuation expense 30,902 31,000
2,790 20,691
- Amounts excluded under Principle of Mutuality (7,657) 1,654
- Other taxable/(non-taxable) amounts (3,032) (24,963)
- Deferred tax assets not brought to account 7,899 2,618
Income tax attributable to operating profit - -
- Losses 89,373 81,762
- Timing differences 3 5,644
89,376 87,406
Prima facie tax payable on profit/(loss) before income tax at 30% (2009: 30%)
Deferred tax assets, the benefits of which will only be realised if the conditions for
deductibility of tax losses set out in Note 1 occur based on corporate tax rate of 30%
(2009: 30%)
LAKE EILDON COUNTRY CLUB LIMITED
Profit/(Loss) before income tax expense has been determined after:
Increase/(decrease) in income tax expense due to:
The prima facie tax payable on profit/(loss) before income tax is reconciled to the
income tax expense as follows:
NOTE 4 - INCOME TAX
15
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 5 - KEY MANAGEMENT PERSONNEL REMUNERATION
Directors
Kerry O'Connor Derek Covill
Mike Guilmartin Robyn Cary
Alan Morris Barry Crittle
Ramy Filo Noel Phingsthorne
Carole Smith (alternate for R Filo)
Post-employ.
Benefits Total
Fees Super Other
Non-cash
Benefits
Long Service
Leave
$ $ $ $ $ $
30 June 2010
Kerry O'Connor 1,420 - - - - 1,420
Derek Covill 2,170 - - - - 2,170
Mike Guilmartin 670 - - - - 670
Robyn Cary 670 - - - - 670
Alan Morris 670 - - - - 670
Barry Crittle 670 - - - - 670
Ramy Filo 670 - - - - 670
Noel Phingsthorne 1,420 - - - - 1,420
Carole Smith - - - - - -
Total compensation 8,360 - - - - 8,360
NOTE 6 - PRIOR PERIOD ERROR
The directors' remuneration paid during the year was as follows:
The directors of the company are directly accountable and responsible for the strategic direction and operational
management of the company. During the year there were no executives of the company.
The directors acted in an honorary capacity and did not receive any remuneration during the 2009 year.
Short-term Benefits
During the year the ATO issued four (4) Interpretive Decisions (ATOID 2010/18, 19, 20 and 23) in respect of the
application of the GST legislation by the timeshare industry. As a result of applying the Interpretive Decisions and other
GST legislation the company has identified that GST was incorrectly charged to members on various supplies and the
company has over claimed a portion of Input Tax Credits on various purchases. Consequently expenditure recorded in
the Statement of Comprehensive Income and expenditure on non-current assets recorded in the Statement of Financial
Position, has been under stated.
In accordance with the GST legislation the company is required to define the over claimed Input Tax Credits and re-state
BAS returns submitted to the ATO for a period of four (4) years. Over claimed Input Tax Credits must then be repaid to
the ATO. The company has also undertaken to seek a GST Refund from the ATO on behalf of members for amounts
previously remitted to the ATO in relation to GST paid on levies for the past four (4) years. The company will be required
refund the relevant members by way of credit to their account and then recover the GST refunded amount from the
ATO. A portion of the GST refund may need to be recovered from each member by way of a special levy to facilitate the
repayment of over claimed Input Tax Credits to the ATO.
16
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 6 - PRIOR PERIOD ERROR (CONT)
2009
Restatement - 30 June 2009 2009 Adjustment Restated
$ $ $
Trade and other receivables 162,995 179,160 342,155
TOTAL CURRENT ASSETS 1,083,170 179,160 1,262,330
Property, plant and equipment 396,944 32,534 429,478
TOTAL NON-CURRENT ASSETS 497,253 32,534 529,787
TOTAL ASSETS 1,580,423 211,694 1,792,117
Trade and other payables 118,212 300,901 419,113
TOTAL CURRENT LIABILITIES 136,563 300,901 437,464
TOTAL LIABILITIES 138,179 300,901 439,080
Retained earnings 1,442,244 (89,207) 1,353,037
TOTAL EQUITY 1,442,244 (89,207) 1,353,037
Depreciation and amortisation expense (61,810) (4,148) (65,958)
Other expenses (27,520) (23,776) (51,296)
PROFIT/(LOSS) FOR THE PERIOD 96,895 (27,924) 68,971
1 July 2008
Restatement - 1 July 2008 1 July 2008 Adjustment Restated
$ $ $
Trade and other receivables 115,243 103,459 218,702
TOTAL CURRENT ASSETS 1,129,504 103,459 1,232,963
Property, plant and equipment 292,206 17,979 310,185
TOTAL NON-CURRENT ASSETS 456,834 17,979 474,813
TOTAL ASSETS 1,586,338 121,438 1,707,776
Trade and other payables 206,784 182,723 389,507
TOTAL CURRENT LIABILITIES 226,668 182,723 409,391
TOTAL LIABILITIES 240,987 182,723 423,710
Retained earnings 1,345,351 (61,285) 1,284,066
TOTAL EQUITY 1,345,351 (61,285) 1,284,066
2010 2009
NOTE 7 - CASH AND CASH EQUIVALENTS $ $
Cash on hand 450 450
Cash at bank 915,606 412,308
Short-term deposits 500,000 500,000 1,416,056 912,758
1,416,056 912,758
Balance as per statement of cash flows 1,416,056 912,758
Reconciliation of cash
Cash and cash equivalents
The error has been corrected by restating each of the affected financial statement line items in the statement of
comprehensive income and statement of financial position for previous periods as follows:
Cash at bank is invested with Westpac Banking Corporation and Rabo Bank and earns
interest at the current variable rates. Cash on short-term deposit is currently invested
with Macquarie Bank and earns interest at 6%.
Cash at the end of the financial year as shown in the statement of cash flows is
reconciled to items in the statement of financial position as follows:
17
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
CHECK NOTE 8 - TRADE AND OTHER RECEIVABLES 2010 2009
$ $
Current
Levies receivable 28,116 37,095
Other receivables 279,092 209,321
Deferred compensation 97,712 95,739
404,920 342,155
Non-current
Deferred compensation 12,226 100,309
417,146 442,464
NOTE 9 - INVENTORY
Goods held for resale, at lower of cost and net realisable value 3,337 3,544
NOTE 10 - OTHER ASSETS
CurrentPrepayments and deposits 4,985 3,873
NOTE 11 - PROPERTY, PLANT AND EQUIPMENT
Buildings and improvements, at cost 215,838 215,838
Less accumulated depreciation (8,930) (4,061)
206,908 211,777
Plant and equipment, at cost 1,768,053 1,660,894
Less accumulated depreciation (1,525,035) (1,455,982)
243,018 204,912
Motor vehicles, at cost 42,265 42,265
Less accumulated depreciation (35,658) (29,476)
6,607 12,789
Total property, plant and equipment 456,533 429,478
Movements in Carrying Amounts
Buildings &
Improvements
Motor
Vehicles
Plant &
Equipment Total
30 June 2010 $ $ $ $
211,777 12,789 204,912 429,478
- - 107,159 107,159
- (6,182) (69,053) (80,104)
206,908 6,607 243,018 456,533
30 June 2009
138,784 24,843 148,779 312,406
77,054 - 108,196 185,250
(3,148) (5,583) (53,079) (61,810) 212,690 19,260 203,896 435,846
Movements in the carrying amounts for each class of property, plant and equipment between the beginning and the end
of the current financial year:
Written down value at the beginning of the year
Written down value at the end of the year
Depreciation Expense
Written down value at the beginning of the year
Additions
Depreciation Expense
Additions
Deferred compensation represents the amount outstanding in terms of the
Management Rights Payment Agreement which has been discounted to net present
value.
Written down value at the end of the year
18
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
2010 2009
NOTE 12 - TRADE AND OTHER PAYABLES $ $
Current
Trade creditors 28,364 22,325
Sundry creditors and accruals 173,351 149,324
Income received in advance 701,764 247,464
903,479 419,113
NOTE 13 - PROVISIONS
Current
Employee entitlements 19,873 18,351
Non-Current
Employee entitlements 12,367 1,616
32,240 19,967
Provision for Long-term Employee Entitlements
2010 2009
NOTE 14 - CASH FLOW INFORMATION $ $
Net profit/(loss) after income tax 9,301 68,971
Adjustment for non cash items
Depreciation 80,104 65,958
(Interest received)/paid - Management Rights Payment Agreement (9,629) (24,734)
Management fee credited to Management Rights Payment Agreement 95,739 91,791
Adjustment for changes in assets and liabilities
Decrease/(increase) in:
Levy debtors 8,979 59,304
Other debtors (53,286) (13,395)
Inventories 207 (305)
Other current assets (1,112) 573
Increase/(decrease) in:
Trade & other creditors 13,580 4,798
Unearned revenue 454,300 (50,894)
Provision for employee entitlements 12,273 (14,236)
Provision for impairment of receivables - (96,399)
Net cash from/(used in) operating activities 610,456 91,432
In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave
being taken is based upon historical data. The measurement and recognition criteria for employee entitlements has
been included in Note 1.
A provision has been recognised for non-current employee entitlements relating to long service leave for employees.
Reconciliation of net cash from operating activities to net profit/(loss) after income tax:
19
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 15 - RELATED PARTY TRANSACTIONS
(a) Directors' Names
Kerry O'Connor 4 Derek Covill 1
Mike Guilmartin 4 Robyn Cary 1
Alan Morris 12 Barry Crittle 4
Ramy Filo# 1 Noel Phingsthorne 2
# Held as nominee for Classic Property Management Pty Ltd
(b) Shares and Share Options
2010 2009
No options have been issued by the company.
Shares 115 105
(c) Transactions with directors and director related entities:
(i)
(ii)
(iii)
(iv)
(v)
(vi)
2010 2009
NOTE 16 - OPERATING LEASE COMMITMENTS $ $
Minimum lease payments payable:
- not later than 12 months 13,014 13,014
- between 12 months and 5 years 29,146 42,160
- after 5 years - -
42,160 55,174
42,160 55,174
Carole Smith (alternate for Ramy
Filo) # 1
Fees for other services totalling $95 (2009: $nil) were paid in the ordinary course of business to Classic
Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
Telephone equipment
The names of directors who have held office during the financial year and their interest in timeshares are:
The direct, indirect, and beneficial holdings of directors and their director-related entities in holiday shares of the
company as at 30 June 2010 are shown below.
Reservations, Bookkeeping and IT fees of $68,419 (2009: $66,541) were paid in the ordinary course of
business to Classic Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
Debt Collection Fees totalling $nil (2009: $1,896) were paid in the ordinary course of business to Classic
Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
Management fees totalling $87,035 (2009: $84,619) were paid in the ordinary course of business to Classic
Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
Fees for IT Support services totalling $45 (2009: $450) were paid in the ordinary course of business to
Classic Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
Rental and advertising commissions totalling $75 (2009: $258) were paid in the ordinary course of business
to Classic Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
Non-cancellable operating leases contracted for but not capitalised in the financial
statements
20
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 17 - FINANCIAL INSTRUMENTS
Financial Risk Management
i. Treasury Risk Management
ii. Financial Risks
Interest rate risk
Cash flow sensitivity analysis for variable rate instruments
The company does not have any derivative instruments at 30 June 2010.
There has been no change to the company's exposure to interest rate risk or the manner in which it manages and
measures the risk from the previous year.
The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity risk and
credit risk.
Risk management policies are approved and reviewed by the Board of Directors on a regular basis. These include the
credit risk policies and future cash flow requirements. The main purpose of non-derivative financial instruments is to
manage cash flow for operations.
The directors’ overall risk management strategy seeks to assist the company in meeting its financial targets, whilst
minimising potential adverse effects on financial performance.
The company’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable
and accounts payable.
At 30 June 2010, if the interest rates had changed by 1% from the period-end rates with all other variables held constant,
post-tax profit for the year for the company would have been $8,984 lower/higher mainly as a result of lower/higher
interest income on cash and cash equivalents.
The directors of the company meet on a regular basis to review interest rates and to evaluate treasury
management strategies in the context of the most recent economic conditions and forecasts.
The sensitivity analysis has been determined based on the exposure of the company to interest rates for non-derivative
financial instruments at the reporting date and the stipulated change taking place at the beginning of the financial year
and held constant throughout the reporting period. A 1% increase or decrease is used when reporting interest rates
internally to key management personnel and represents management’s assessment of the possible change in interest
rates.
Interest rate risk is managed by with a mixture of fixed and floating rate bank accounts and deposits.
21
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 17 - FINANCIAL INSTRUMENTS (CONT)
Weighted
Average
Interest
RateFloating
Interest Rate
Fixed Interest
rate maturing
within 1 to 5
years
Non-Interest
Bearing Total
% $ $ $ $
Financial Assets
Cash and Cash Equivalents 4.68% 915,606 500,000 450 1,416,056
Trade and other receivables - 109,938 307,208 417,146 Total Financial Assets 915,606 609,938 307,658 1,833,202
Financial Liabilities
Trade and other payables - - 201,715 201,715 Total Financial Liabilities - - 201,715 201,715
Financial Assets
Cash and Cash Equivalents 3.31% 912,308 500,000 450 1,412,758
Trade and other receivables - 196,048 246,416 442,464 Total Financial Assets 912,308 696,048 246,866 1,855,222
Financial Liabilities
Trade and other payables - - 171,649 171,649 Total Financial Liabilities - - 171,649 171,649
Foreign currency risk
The company is not exposed to fluctuations in foreign currencies.
Liquidity risk
30 June 2010
$ $ $ $ $
Trade and other payables 201,715 201,715 201,715 - -
30 June 2009
$ $ $ $ $
Trade and other payables 171,649 171,649 171,649 - -
Less than one
year 1-5 years
Trade payables are short term in nature. The company is not exposed to any significant liquidity risk. The following are
contractual maturities of financial liabilities:
The company manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash reserves are
maintained.
Contractual cash
flows over 5 years
Contractual cash
flows
Less than one
year 1-5 years
2009
2010
over 5 years
Carrying
amount
Carrying
amount
The company’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result
of changes in market interest rates, is as follows:
22
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 17 - FINANCIAL INSTRUMENTS (CONT)
Credit risk
Gross Impairment Gross Impairment
$ $ $ $
Not Past due (current) 417,146 - 436,549 -
Past due 0-30 days ( 30 day ageing) - - 5,915 -
Past due 31-60 days ( 60 day ageing) - - - -
Past due more than 60 days ( +90 day ageing) - - - - 417,146 - 442,464 -
None of the receivables at 30 June 2010 were impaired.
Price risk
The company is not exposed to any material commodity price risk.
Capital risk management
Net Fair Values
NOTE 18 - CONTINGENT LIABILITIES
The company has no contingent liabilities at the date of this report.
NOTE 19 - EVENTS AFTER THE REPORTING DATE
No material events occurred after balance date and to the date of this report requiring disclosure.
NOTE 20 - OPERATING SEGMENT
NOTE 21 - MEMBER'S GUARANTEE
2010
The company is limited by guarantee. If the company is wound up, the articles of association state that each member is
required to contribute a maximum of $50 each towards meeting any outstanding obligations of the company. At 30 June
2010, the number of members was 985 owning 1,974 shares (30 June 2009: 987 members owning 1,974 shares).
The company operates in one operating segment being a timeshare resort operator in Australia.
2009
The carrying amount of financial assets recorded in the financial statements, net of any allowances for losses,
represents the company's maximum exposure to credit risk without taking account of the value of any collateral
obtained.
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
company. The company does not have any significant credit risk exposure to any single counterparty or any group of
counterparties having similar characteristics.
The directors manage the capital to ensure that the company is able to continue as a going concern to be able to satisfy
future capital needs of the resort, through the optimisation of debt and equity balances.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in the
statement of financial position and in the notes to the financial statements.
Capital risk management policies remain unchanged from the prior year.
The board reviews this structure and the associated risks with each class of capital on a regular basis.
The net fair values of financial assets and liabilities approximate their carrying value. No financial assets and financial
liabilities are readily traded on organised markets in standardised form.
The capital structure of the company consists of cash and cash equivalents and equity comprising of share capital,
reserves and retained earnings.
The ageing of the company's trade and other receivables at the reporting date was:
23
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2010
LAKE EILDON COUNTRY CLUB LIMITED
NOTE 22 - COMPANY DETAILS
T/as MANSFIELD COUNTRY RESORT
Banumum Road
MANSFIELD VIC 3722
Lake Eildon Country Club Limited
The registered office and principle place of business is:
24
INDEPENDENT AUDITOR'S REPORT
Report on the Financial Report
Auditor's Responsibility
Independence
Total Financial Solutions
To the members of Lake Eildon Country Club Limited
We have audited the accompanying financial report of Lake Eildon Country Club Limited (the company) which
comprises the balance sheet as at 30 June 2010, and the income statement, statement of changes in equity and cash flow
statement for the year then ended, a summary of significant accounting policies and other explanatory notes, and the
directors' declaration.
The directors of the company are responsible for the preparation and fair presentation of the financial report in
accordance with Australian Accounting Standards (including the 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.
In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial
Statements , that compliance with the Australian equivalents to International Financial Reporting Standards ensures
that the financial report, comprising the financial statements and notes, complies with International Financial Reporting
Standards.
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in
accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical
requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the
financial report is free from material misstatement.
The Responsibility of The Directors for The Financial Report
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material
misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial report 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Member Crowe Horwath International
WHK Horwath Brisbane
Level 16, WHK Horwath Centre 120 Edward Street
Brisbane Queensland 4000 Australia
GPO Box 736 Brisbane Queensland 4001 Australia
Telephone +61 7 3233 3555 Facsimile +61 7 323 3567
Email info.bri@whkhorwath.com.au
www.whkhorwath.com.au
A WHK Group firm
WHK Pty Ltd trading as WHK Horwath Brisbane is a member of Crowe Horwath International
Association, a Swiss verein. Each member firm of Crowe Horwath is a separate and independent legal
entity.
26