40 COLLINGWOOD FOOTBALL CLUB Limited · Deloitte refers to one or more of Deloitte Touche Tohmatsu...

4 0 C O L L I N G W O O D F O O T B A L L C L U B L i m i t e d

C O L L I N G W O O D F O O T B A L L C L U B L i m i t e d 3

Collingwood Football Club Limited Directors’ report 2

Lead auditor’s independence declaration under section 307C of the Corporations Act 2001 6

Consolidated Statement of Comprehensive Income 7

Consolidated Statement of Changes in Equity 8

Consolidated Statement of Financial Position 9

Consolidated Statement of Cash Flows 10

Notes to the Consolidated Financial Statements 11

Directors’ declaration 33

Auditor’s report 34

C o n t e n t s

C o l l i n g w o o d F o o t b a l l C l u b L i m i t e d

A N N U A L F I N A N C I A L R E P O R T

( a c o m p a n y l i m i t e d b y g u a r a n t e e ) A C N 0 0 6 2 1 1 1 9 6

3 1 O C T O B E R 2 0 1 9

CollingwoodFootballClubLimitedDirectors’report

TotheMembersoftheCollingwoodFootballClubLimited(the“Company”).

Thedirectorspresenttheirreport,togetherwiththefinancialreportoftheGroup,beingtheCompanyandits

controlledentities,fortheyearended31October2019andtheauditor’sreportthereon.

Directors

ThedirectorsoftheGroupatanytimeduringorsincetheendofthefinancialyearwere:

MrEMcGuireAM President–Appointed29October1998

Qualifications–DoctorateofCommunicationsHonorisCasua(RMIT)

Experience – Director of McGuire Media Pty Ltd; Director of Twenty3 Sport and

Entertainment; President of Melbourne Stars; Board & Committee member for

numerouscharities

MrAWaislitz VicePresident/Director–Appointed29October1998

Qualifications – B.Ec., LL.B (Monash University Melbourne). Graduate Harvard

BusinessSchoolOPMProgram(BostonUSA)

Experience–ExecutiveChairmanThorneyInvestmentGroup,aprivatediversified

investment company and Chairman of Thorney Opportunities and Thorney

Technologies,bothpubliclylistedinvestmentcompanies

MrMKorda VicePresident/Director–Appointed15May2007

Qualifications–DoctorofBusiness(Hon);RegisteredCompanyAuditor,Liquidator

andOfficialLiquidator

Experience–FounderandPrincipaloftheKordaMenthaGroup;Directorofmany

variouscompanies

MsCHolgate Director–Appointed29January2016

Qualifications – Masters of Business Administration (University Westminster,

London),GraduateDiploma–Marketing,GraduateDiploma–Purchasing&Supply,

GraduateDiploma–Management

Experience–ChiefExecutiveOfficer&ManagingDirectorofAustraliaPost;Chair

AustraliaASEANcouncil;PatronofPrincesTrust

MrPLicuria Director–Appointed16February2018

Qualifications–MastersofBusinessAdministration–VictoriaUniversity;Graduate

Diploma–BusinessManagement–SwinburneUniversity

Experience–ChiefExecutiveOfficerofAlffie;formerAFLplayer

MsJSizer Director–Appointed16February2018

Qualifications–BachelorofCommerce–UniversityofBallarat;CertifiedPracticing

Accountant

Experience – Co-CEO and Co-owner, PwC’s Indigenous Consulting; Chairperson

AustralianInstituteforAboriginalandTorresStraitIslanderStudies;Boardmember

WathaurongGlass

MrPMurphy Director–Appointed13February2019

Qualifications–B.BusAcc,GradDipMkt,G.A.I.C.D.

Experience – Founder and Director PAN Group Australia; Global Chair of Global

Citizen;TrusteeandChairofCollingwoodFootballClubFoundation

MrPLeeds Director–Appointed13November2007

Resigned28November2018

Directorsmeetings

Thenumberofdirectors’meetingsheldandthenumberofmeetingsattendedbyeachofthedirectorsduringthe

financialyearwasasfollows:

DirectorsMeetings1 Finance&RiskCommitteeMeetings1

Directors

No.ofMeetings

attended

No.ofMeetings

eligibletoattend

No.ofMeetings

attended

No.ofMeetings

eligibletoattend

EdwardMcGuire 10 10 - -

AlexWaislitz 8 10 - -

MarkKorda 9 10 9 9

ChristineHolgate 9 10 - -

PaulLicuria 10 10 - -

JodieSizer

PeterMurphy

PaulLeeds2

10

9

1

10

9

1

7

8

-

9

8

-

Principalactivities

TheprincipalactivitiesoftheGroupduringthecourseofthefinancialyearweretoconducttheoperationsofthe

CollingwoodFootballClub,tomanageitsaffairs,provideteamsofathletesbearingthenameoftheCollingwood

FootballClubandMagpiesNetballandconductvariouscommunityactivities.

TheGroupalsoownsandoperatesatravelagency,aswellastheGlasshouseeventsbusinesslocatedattheHolden

Centre.

Stateofaffairs

TheGroupfinalisedandsettledthecontractofsalewithMelbourneRacingClub(MRC)toselltheleaseholdfor

“The Coach & Horses” in Ringwood and “The Club” in Caroline Springs on 6th

December 2018. More detail is

containedinnote8tothefinancialstatements.

1 Shows the number of meetings held and attended by each director during the period the director was a member of the Board or Committee. Note: E. McGuire, A. Waislitz, P.Licuria and C. Holgate attend Finance & Risk Committee meetings from time to time. 2 P. Leeds was replaced by P. Murphy at the AGM in Feb 2019.

C O L L I N G W O O D F O O T B A L L C L U B L i m i t e d 54 C O L L I N G W O O D F O O T B A L L C L U B L i m i t e d

ReviewandResultsofOperations

CollingwoodFootballClubreportedaprofitfromcontinuingoperationsof$3.87mfortheyearended31October

2019.Thesignificantimprovementin2019waslargelydrivenbythecontinuedsupportoftheCollingwoodfans

withmembershipandmatchdayrevenuesimprovingby$7.1m–amembershiprecordof85,226whichwasan

improvementof9,490membersandanaveragehomegameattendanceof58,975,animprovementof9,077.It

waspleasingthatfollowingtheexitfromthegamingindustrytheGroupimproveditsfinancialperformanceand

muchofthisimprovementisattributabletothesupportoftheCollingwoodfaithful.

On 6 December 2018, the sale of the gaming venues was completed. The profit on disposal (included as

discontinuedoperations)contributedtoatotalprofitof$12.03m.Followingthesaleofthegamingvenues,the

Grouprepaidthe$1.6mloanandinvested$16mfromtheproceedsintotheCFCFutureFund.Theinvestments

aremanagedbyanInvestmentCommitteeandcompriseinternationalequities,hybrids,fixedinterests,property

andalternativesandcash.Asat31October2019,themarketvalueoftheCFCFutureFundis$16.8masaresult

ofincomereceivedof$506kandamovementinmarketvalueof$352k.

Asat31October2019,thenetassetsoftheGroupwere$44.72mcomparedto$32.69min2018,anincreaseof

$12.03mduetotheprofitonsaleoftheClub’sgaminginterestsandthestrong2019profitresult.

TheGroup’scashpositionasat31October2019was$17.71m(2018:$9.16m)duetothesaleofgamingvenues

andcashfromoperatingactivitiesof$6.0m.$5.2mofthecashbalanceisattributabletotheCFCFutureFund,

largelyoncallwaitingonmarkettimingtoexecuteinaccordancewiththeassetallocationguidelinesapprovedby

theInvestmentCommittee.

Asummaryofthekeyfinancialinformationisasfollows:

2019

$

2018

$

Earningsbeforeinterest,taxes,depreciationandamortisation(EBITDA)3

6,671,151 1,246,106

Profit/(Loss)fromcontinuingoperationsafterinterest,taxes,depreciationand

amortisation

3,875,111 (1,764,171)

TotalcomprehensiveincomeattributabletomembersofCollingwoodFootballClub 12,033,113 112,052

Netcashflowsfromoperatingactivities 5,988,277 4,248,663

Theclubhascashandcashequivalentsof 17,713,403 9,162,317

Clubhasdebtof - 1,600,000

Clubhasnetassetsof 44,723,579 32,690,470

TheArticlesofAssociationspecificallyprohibitthepaymentofdividendstomembers.Nosuchdividendswere

declaredorpaid.

Eventssubsequenttobalancedate

Therehasnotarisenintheintervalbetweentheendofthefinancialyearandthedateofthisreportanyitem,

transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectorsoftheCompany,to

affectsignificantlytheoperationsoftheGroup,theresultsofthoseoperations,orthestateofaffairsoftheGroup,

infuturefinancialyears.

2 EBITDA is calculated as net profit plus adding back interest, depreciation and amortisation expense.


ConsolidatedStatementofComprehensiveIncome

Fortheyearended31October2019

Note2019

$

2018$

ContinuingOperations

Revenue 72,558,512 66,260,720

Financialincome 860,586 17,752

Totalrevenueandotherincome 3 73,419,098 66,278,472

Commercialactivities,membershipandmatchdaysexpenses (22,313,255) (21,475,336)

Teamsexpenses (30,863,891) (30,592,495)

Functioncentres (5,368,128) (5,118,291)

Otherexpenses (6,581,583) (6,253,475)

Operatingleaserentalexpenses (1,621,090) (1,592,769)

Depreciationandamortisationexpense 10&11 (2,781,927) (2,916,820)

Financialexpenses 4 (14,113) (93,457)

Profit/(Loss)fromContinuingOperationsbeforeincometax 3,875,111 (1,764,171)

Incometaxexpense 2 - -

Profit/(Loss)fromContinuingOperationsafterincometax 3,875,111 (1,764,171)

DiscontinuedOperations

ProfitfromDiscontinuedOperations 9 8,158,002 1,876,223

Profitfortheyear 12,033,113 112,052

Totalcomprehensiveincomeattributableto:

MembersofCollingwoodFootballClub 12,033,113 112,052

Thenotesonpages11to32areanintegralpartoftheseconsolidatedfinancialstatements.


Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms and their affiliated entities are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

26 November 2019 The Board of Directors Collingwood Football Club PO Box 165 ABBOTSFORD VIC 3067 Dear Board Members

Auditor’s Independence Declaration to Collingwood Football Club Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the Board of Directors of Collingwood Football Club Limited. As lead audit partner for the audit of the financial report of Collingwood Football Club Limited for the year ended 31 October 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the

audit; and

(ii) any applicable code of professional conduct in relation to the audit. Yours sincerely

DELOITTE TOUCHE TOHMATSU

Anneke Du Toit Partner Chartered Accountants Melbourne

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms and their affiliated entities are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 www.deloitte.com.au

26 November 2019 The Board of Directors Collingwood Football Club PO Box 165 ABBOTSFORD VIC 3067 Dear Board Members

Auditor’s Independence Declaration to Collingwood Football Club Limited

In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration of independence to the Board of Directors of Collingwood Football Club Limited. As lead audit partner for the audit of the financial report of Collingwood Football Club Limited for the year ended 31 October 2019, I declare that to the best of my knowledge and belief, there have been no contraventions of: (i) the auditor independence requirements of the Corporations Act 2001 in relation to the

audit; and

(ii) any applicable code of professional conduct in relation to the audit. Yours sincerely

DELOITTE TOUCHE TOHMATSU

Anneke Du Toit Partner Chartered Accountants Melbourne

ConsolidatedStatementofChangesinEquity


SettledSum RetainedEarnings TotalEquity

Balanceat1stNovember2017 10 32,578,408 32,578,408

Totalcomprehensiveincomefortheperiod

Profit/(Loss) - 112,052 112,052

Balanceat31stOctober2018 10 32,690,460 32,690,460

Balanceat1stNovember2018 10 32,690,460 32,690,470

Totalcomprehensiveincomefortheperiod

Profit/(Loss)

- 12,033,113 12,033,113

Balanceat31stOctober2019 10 44,723,573 44,723,583


ConsolidatedStatementofFinancialPosition

Asat31October2019

Note2019

$

2018$

Assets

Cashandcashequivalents 5 17,713,403 9,162,317

Tradeandotherreceivables 6 1,953,059 2,801,774

Inventories 8 37,852 136,359

Prepayments 1,605,746 1,114,967

Assetsclassifiedasheldforsale - 8,193,974

Totalcurrentassets 21,310,060 21,409,391

FinancialAssets 7 11,660,373 -

Property,plantandequipment 10 26,438,692 28,392,296

Intangibleassets 11 303,886 89,983

Totalnon-currentassets 38,402,951 28,482,279

Totalassets 59,713,011 49,891,670

Liabilities

Tradeandotherpayables 12 4,246,299 6,497,111

Loansandborrowings 13 - 1,600,000

Employeebenefits 14 2,462,389 2,671,744

Unearnedincome 7,726,528 5,718,883

Totalcurrentliabilities 14,435,216 16,487,738

Employeebenefits 14 385,362 348,005

Unearnedincome 168,850 365,457

Totalnon-currentliabilities 554,212 713,462

Totalliabilities 14,989,428 17,201,200

Netassets 44,723,583 32,690,470

Equity

Settledsum 10 10

Retainedearnings 44,723,573 32,690,460

Totalequity 44,723,583 32,690,470


C O L L I N G W O O D F O O T B A L L C L U B L i m i t e d 1 11 0 C O L L I N G W O O D F O O T B A L L C L U B L i m i t e d

ConsolidatedStatementofCashFlows


Note2019

$

2018$

Cashflowsfromoperatingactivities

Cashreceiptsinthecourseofoperations 78,819,589 91,122,326

Cashpaidinthecourseofoperations (72,831,312) (86,873,663)

Netcashfromoperatingactivities 5,988,277 4,248,663

Cashflowsfrominvestingactivities

Acquisitionofproperty,plantandequipment (764,299) (4,997,739)

Acquisitionofsoftware (277,927) (179,644)

Acquisitionofinvestments (11,318,159) -

Cashreceivedfrominvestments 506,061 -

Paymentsmadeonsaleofdiscontinuedoperations (1,320,462) -

Cashreceivedfromsaleofinvestments 17,339,401 -

Netcashfrom/(usedin)investingactivities 4,164,615 (5,177,383)

Cashflowsfromfinancingactivities

Repaymentofborrowings (1,600,000) -

Interestreceived 12,307 26,476

Interestpaid (14,113) (93,457)

Netcashfrom/(usedin)financingactivities (1,601,806) (66,981)

Netincrease/(decrease)incashandcashequivalents 8,551,086 (995,701)

Cashandcashequivalentsat1November 9,162,317 10,158,018

Cashandcashequivalentsat31October 5 17,713,403 9,162,317


NotestotheConsolidatedFinancialStatements


1. CollingwoodFootballClubLimited

Collingwood Football Club Limited (the “Company”), a not-for-profit entity, is a company limited by

guaranteewherestatutorymembersguaranteeitsliabilitiestotheextentof$10.Theregisteredofficeof

the Company is The Holden Centre, Olympic Park, Melbourne, Victoria. The consolidated financial

statementsoftheCompanyasatandfortheyearended31October2019compriseoftheCompanyand

itssubsidiaries(togetherreferredtoasthe“Group”andindividuallyas“Groupentities”)andtheGroup’s

interestinassociatesandjointlycontrolledentities.

Theprincipalaccountingpoliciesadoptedinthepreparationofthefinancialreportaresetoutbelow.These

policies have been consistently applied to all the years presented, unless otherwise stated. Certain

comparativeamountshavebeenreclassifiedtoconformwiththecurrentyear’spresentation.

2. Statementofsignificantaccountingpolicies

Thesignificantpolicieswhichhavebeenadoptedinthepreparationofthisfinancialreportare:

Statementofcompliance

TheconsolidatedfinancialstatementsoftheGroupareTier2generalpurposefinancialstatementswhich

have been prepared in accordance with Australian Accounting Standards – Reduced Disclosure

Requirements(AASBs)adoptedbytheAustralianAccountingStandardsBoard(AASB)andtheCorporations

Act2001.

Theconsolidatedfinancialstatementswereauthorisedforissuebythedirectorson26thNovember2019.

Thedirectorshavethepowertoamendandreissuethefinancialstatements.

Basisofpreparation

TheconsolidatedfinancialstatementsarepresentedinAustraliandollars,whichistheGroup’sfunctional

currency.Theconsolidated financial statementshavebeenpreparedon thehistorical costbasis,unless

otherwisestated.

ThepreparationofconsolidatedfinancialstatementsinconformitywithAASBsrequiresmanagementto

make judgements,estimatesandassumptions thataffect theapplicationofaccountingpoliciesandthe

reportedamountsofassets,liabilities,incomeandexpenses.Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccountingestimates

arerecognisedintheperiodinwhichtheestimateisrevisedandinanyfutureperiodsaffected.

Informationaboutcriticaljudgementsinapplyingaccountingpoliciesthathavethemostsignificanteffect

ontheamountsrecognisedintheconsolidatedfinancialstatementsisincludedinthefollowingnotes:

Note6&7–FinancialInstruments

FinancialassetsandfinancialliabilitiesarerecognisedwhentheGroupbecomesapartytothecontractual

provisionsof the instrument.Financialassetsand financial liabilitiesare initiallymeasuredat fairvalue.


Transactioncoststhataredirectlyattributabletotheacquisitionorissueoffinancialassetsandfinancial

liabilities(otherthanfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss)areadded

toordeductedfromthefairvalueofthefinancialassetsorfinancial liabilities,asappropriate,on initial

recognition.Transactioncostsdirectlyattributabletotheacquisitionoffinancialassetsorfinancialliabilities

atfairvaluethroughprofitorlossarerecognisedimmediatelyinprofitorloss.

Financialassets

Financial assets are measured subsequently in their entirety at either amortised cost or fair value,

dependingontheclassificationofthefinancialassets

ClassificationofFinancialassets

Financialinstrumentsthatmeetthefollowingconditionsaremeasuredsubsequentlyatamortisedcost:

• Thefinancialasset isheldwithinabusinessmodelwhoseobjective istoholdfinancialassets in

ordertocollectcontractualcashflows

• Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolely

paymentsofprincipalandinterestontheprincipalamountoutstanding.

Financialinstrumentsthatmeetthefollowingconditionsaremeasuredsubsequentlyatfairvaluethrough

othercomprehensiveincome(FVTOCI):

• Thefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollecting

contractualcashflowsandsellingthefinancialassets

• Thecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolely

paymentsofprincipalandinterestontheprincipalamountoutstanding.

Bydefault,allotherfinancialassetsaremeasuredsubsequentlyatfairvaluethroughprofitorloss(FVTPL).

Despite the foregoing, the Group may make the following irrevocable election / designation at initial

recognitionofafinancialasset:

• The Group may irrevocably elect to present subsequent changes in fair value of an equity

investmentinothercomprehensiveincomeifcertaincriteriaaremet;and

• TheGroupmayirrevocablydesignateadebtinvestmentthatmeetstheamortisedcostorFVTOCI

criteria as measured at FVTPL if doing so eliminates or significantly reduces an accounting

mismatch.

Initialmeasurementoffinancialassets

Financialassetsareclassifiedaccordingtotheirbusinessmodelandthecharacteristicsoftheir

contractualcashflows.Exceptforthosetradereceivablesthatdonotcontainasignificantfinancing

componentandaremeasuredatthetransactionpriceinaccordancewithAASB15,allfinancialassetsare

initiallymeasuredatfairvalueadjustedfortransactioncosts.

Subsequentmeasurementoffinancialassets

Forthepurposeofsubsequentmeasurement,financialassetsareclassifiedintothefollowingcategories:

• Financialassetsatamortisedcost

• EquityinstrumentsatFVTOCI

• FinancialassetsatFVTPL

(i) Amortisedcostandeffectiveinterestmethod

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofadebtinstrumentandof

allocatinginterestincomeovertherelevantperiod.

(ii) Equityinstrumentsatfairvaluethroughothercomprehensiveincome(EquityFVTOCI)

Investments in equity instruments at FVTOCI are initially measured at fair value plus transaction costs.

Subsequently, they are measured at fair value with gains and losses arising from changes in fair value

recognisedinothercomprehensiveincomeandaccumulatedintheinvestmentsrevaluationreserve.The

cumulative gain or loss is not to be reclassified to profit or loss on disposal of the equity investments,

instead,itistransferredtoretainedearnings.

(iii) Financialassetsatfairvaluethroughprofitorloss(FVTPL)

FinancialassetsatFVTPLaremeasuredatfairvalueattheendofeachreportingperiod,withanyfairvalue

gainsor lossesrecognised inprofitor loss.Thenetgainor lossrecognised inprofitor loss includesany

dividendorinterestearnedonthefinancialassetandisincludedinthe“Netgain/(loss)arisingonfinancial

assetsmeasuredatFVTPL”line.

Impairmentoffinancialassets

TheGrouprecognisesalossallowanceforexpectedcreditlossesoninvestmentsindebtinstrumentsthat

aremeasuredatamortisedcostoratFVTOCI,andtradereceivables.Theamountofexpectedcreditlosses

isupdatedateachreportingdatetoreflectchangesincreditrisksinceinitialrecognitionoftherespective

financialinstrument.

Tradeandotherreceivablesandcontractassets

TheGroupmakesuseofasimplifiedapproachinaccountingfortradeandotherreceivablesandrecords

thelossallowanceattheamountequaltotheexpectedlifetimecreditlosses.Inusingthispractical

expedient,theGroupusesitshistoricalexperience,externalindicatorsandforward-lookinginformation

tocalculatetheexpectedcreditlossesusingaprovisionmatrix.


FinancialliabilitiesandEquity

Classificationasdebtorequity

Debtandequityinstrumentsareclassifiedaseitherfinancialliabilitiesorasequityinaccordancewiththe

substance of the contractual arrangements and the definitions of a financial liability and an equity

instrument.

Financialliabilities

FinancialliabilitiesatFVTPL

FinancialliabilitiesatFVTPLaremeasuredatfairvalue,withanygainsorlossesarisingonchangesinfair

valuerecognisedinprofitorloss.

Financialliabilitiesmeasuredsubsequentlyatamortisedcost

Theeffectiveinterestmethodisamethodofcalculatingtheamortisedcostofafinancial liabilityandof

allocating interest expense over the relevant period. The effective interest rate is the rate that exactly

discounts estimated future cash payments (including all fees and points paid or received that form an

integralpartoftheeffectiveinterestrate,transactioncostsandotherpremiumsordiscounts)throughthe

expectedlifeofthefinancialliability,or(whereappropriate)ashorterperiod,totheamortisedcostofa

financialliability.

Note11–Intangibleassets

TheGrouptestsannuallywhetherintangiblessufferedanyimpairmentinaccordancewiththeaccounting

policyfor intangibleassets.Forthepurposesofassessing impairment,assetsaregroupedatthe lowest

levelsforwhichthereareseparatelyidentifiablecashinflowswhicharelargelyindependentofthecash

inflows fromotherassetsorgroupsofassets (cashgeneratingunits).The recoverableamountsof cash

generatingunitshavebeendeterminedbyvalueinusecalculations.

Newandamendedstandardsadoptedbythegroup

TheGrouphasadoptedallthenewandrevisedStandardsandInterpretationsissuedbytheAustralian

AccountingStandardsBoard(theAASB)thataremandatoryandeffectiveforanaccountingperiodthat

beginsonorafter1November2018.Inaddition,theGrouphasvoluntarilyadoptedAASB15Revenue

fromContractswithCustomersandAASB1058IncomeofNot-for-ProfitEntities.

NewandrevisedstandardsandamendmentsthereofandInterpretationseffectiveforthecurrentyear

thatarerelevantinclude:

• AASB9FinancialInstrumentsandrelatedamendingStandards

• AASB15RevenuefromContractswithCustomersandAASB1058IncomeofNot-for-ProfitEntities

AASB9FinancialInstrumentsandrelatedamendingStandards

In the current year, the Group has applied AASB 9 Financial Instruments (as amended) and the related

consequential amendments to other Accounting Standards that are effective for an annual period that

beginsonorafter1November2018.

AASB9introducednewrequirementsfor:

• Theclassificationandmeasurementoffinancialassetsandfinancialliabilities,and

• Impairmentoffinancialassets

TheGrouphasthefollowingfinancialinstruments:

• Tradeandotherreceivables

• Tradeandotherpayables

• Investmentsinlistedsecuritiesandmanagedinvestmentschemes

TherewerenochangestotheclassificationofanyoftheGroup’sfinancialinstrumentssincetheprioryear.

Classificationandmeasurementoffinancialassets

Thedateofinitialapplication(i.e.thedateonwhichtheGrouphasassesseditsexistingfinancialassetsand

financialliabilitiesintermsoftherequirementsofAASB9)is1November2018.Accordingly,theGrouphas

appliedtherequirementsofAASB9toinstrumentsthatcontinuetoberecognisedasat1November2018

andhasnotappliedtherequirementstoinstrumentsthathavealreadybeenderecognisedasat1July2018.

The group has made an irrevocable election to present subsequent changes in fair value of an equity

investmentthatisnotheldfortradinginthestatementofprofitandloss.

Impairmentoffinancialassets

Inrelationtotheimpairmentoffinancialassets,AASB9requiresanexpectedcreditlossmodelasopposed

toanincurredcreditlossmodelunderIAS39.TheexpectedcreditlossmodelrequirestheGrouptoaccount

forexpectedcredit lossesandchanges in thoseexpectedcredit lossesateach reportingdate to reflect

changesincreditrisksinceinitialrecognitionofthefinancialassets.Inotherwords,itisnolongernecessary

foracrediteventtohaveoccurredbeforecreditlossesarerecognised.

The Group’s financial assets do not have a significant financing component. Therefore the Group has

adopted the simplified approach for measuring expected credit losses at an amount equal to lifetime

expectedlossallowanceforitsfinancialassets.

Noneofthereclassificationsorassessmentofimpairmentoffinancialassetshavehadamaterialimpact

ontheGroup’sfinancialposition,profitorloss,othercomprehensiveincomeortotalcomprehensive

incomeineitheryear.


AASB15RevenuefromContractswithCustomersandAASB1058IncomeofNot-for-ProfitEntities

Inthecurrentyear,theGrouphasappliedAASB15RevenuefromContractswithCustomers(asamended

inApril2016).AASB15introduceda5-stepapproachtorevenuerecognition:

• Step1:Identifythecontract(s)withacustomer.

• Step2:Identifytheperformanceobligationsinthecontract.

• Step3:Determinethetransactionprice.

• Step4:Allocatethetransactionpricetotheperformanceobligationsinthecontract.

• Step5:Recogniserevenuewhen(oras)theGroupsatisfiesaperformanceobligation.

AASB1058clarifiesandsimplifiestheincomerecognitionrequirementsthatapplytonot-for-profit(NFP)

entities,inconjunctionwithAASB15.TheseStandardssupersedetheNFPincomerecognitionrequirements

previouslyinAASB1004Contributions(withtheexceptionofcertainmattersrelatingtopublicsectorNFP

entities) as well as current revenue recognition guidance including AASB 118 Revenue, AASB 111

Construction Contracts and the related Interpretations when it becomes effective.

Thetimingofincomerecognitiondependsonwhethersuchatransactiongivesrisetoaliabilityorother

performanceobligation(apromisetotransferagoodorservice),oracontributionbyowners,relatedtoan

asset(suchascashoranotherasset)receivedbyaGroup.

TheadoptionofAASB15and1058didnothaveasignificantimpactonthefinancialperformanceorposition

fortheGroupforpriorperiods,howeverearlyadoptionhasresultedintherecognitionofadeferredincome

balance as at 31 October 2019 for unspent grant funds received by the Group during the year.

Newstandardsandinterpretationsnotyetadopted

Atthedateofauthorisationofthefinancialstatements,theGrouphasnotappliedthefollowingnewand

revisedAustralianAccountingStandards,Interpretationsandamendmentsthathavebeenissuedbutare

notyeteffective:

Standards/amendment

Effectiveforannual

reportingperiodsbeginning

onorafter

AASB16Leases 1November2019

AASB2018-1AmendmentstoAustralianAccountingStandards

–AnnualImprovements2015-2017Cycle

1November2019

Inaddition,atthedateofauthorizationofthefinancialstatementsthefollowingIASBStandardsandIFRIC

Interpretations were on issue but not yet effective, but for which Australian equivalent Standards and

Interpretationshavenotyetbeenissued.

Standards/amendment

Effectiveforannual

reportingperiodsbeginning

onorafter

Amendments toReferences to theConceptualFramework in

IFRSStandards

1November2020

AASB 16 Leases is effective for years commencing on or after 1 July 2019. AASB 16 eliminates the

classification of leases as either operating leases or finance leases for lessees as required by AASB 117

Leasesandinstead,introducesasinglelesseeaccountingmodel.

OninitialapplicationofAASB16,forallleases(exceptasnotedbelow),theGroupwill:

a) Recognise right-of-use assets and lease liabilities in the statement of financial position, initially

measuredatthepresentvalueofthefutureleasepayments;

b) Recognisedepreciationofright-of-useassetsandinterestonleaseliabilitiesinthestatementof

profitorloss;

c) Separate the total amount of cash paid into a principal portion (presented within financing

activities)andinterest(presentedwithinoperatingactivities)inthecashflowstatement.

Forshort-termleases(leasetermof12monthsorless)andleasesof low-valueassets(suchaspersonal

computersandofficefurniture),theGroupwillopttorecognisealeaseexpenseonastraight-linebasisas

permittedbyAASB16.

UnderAASB16,theGroupwillrecognisearightofuseassetandacorrespondingleaseliabilityinrelation

tothenon-cancellableoperatingleasesofproperty,plantandequipment.Uponadoption,aright-of-use

assetwillberecognisedatanamountequaltothecorrespondingleaseliability.


ComparativeFinancialinformation

Unlessotherwisestated,theaccountingpoliciesadoptedareconsistentwiththoseofthepreviousyear.

Comparative information is reclassified where appropriate to enhance comparability and provide more

appropriateinformationtousers.

Basisofconsolidation

Controlisthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfrom

itsactivities.Inassessingcontrol,theGrouptakesintoconsiderationpotentialvotingrightsthatcurrently

areexercisable.Theacquisitiondateisthedateonwhichcontrolistransferredtotheacquirer.Judgement

isapplied indetermining theacquisitiondateanddeterminingwhethercontrol is transferred fromone

partytoanother.

SubsidiariesareentitiescontrolledbytheGroup.Thefinancialstatementsofsubsidiariesareincludedin

theconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntil thedatethatcontrol

ceases. The accounting policies of subsidiaries have been changed when necessary to align them with

policiesadoptedbytheGroup.

Intra-groupbalancesandtransactions,andanyunrealisedincomeandexpensesarisingfromintra-group

transactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.

Revenuerecognition

SalesRevenue

Revenuesarerecognisedintheconsolidatedstatementofcomprehensiveincomewhenthesignificantrisks

andrewardsofownershiphavebeentransferredtothebuyer.Salesrevenuecomprisesrevenueearned

(netofreturnsanddiscounts)fromcommercialactivities,functioncentresandgaming,AFLdistributions,

membership,matchdayactivitiesandthesaleofproductsorservicestoentitiesoutsidetheGroup

TravelRevenue

Commissionrevenuefromthesaleofairlineticketsandtravelpackagesisrecognisedonthefollowingbasis:

• Whendepositsarereceivedcommissionrevenueisrecognisedbasedonthecancellationfee;or

• When full payment has been received from the consumer and airline tickets or redeemable value

vouchershavebeenissuedorwhentheairlineortravelpackageproviderhasbeenpaid.

• Commissionrevenueisrecognisedonanetbasis.

AFLdistributions

AFLdistributionsarerecognisedastheyarereceived.

Commercialactivities,membershipandmatchday

Commercial activities income is recognisedwhenamountsaredueandpayable inaccordancewith the

termsandconditionsofthetransactions.

MembershipincomeisrecognisedthroughoutthedurationoftheAFLhomeandawayseason.

MatchdaygrossincomeisrecognisedattheconclusionofeachAFLhomegame.

Functioncentrerevenue

Salescompriserevenueearned(netofreturns,discountsandallowances)fromtheprovisionoffoodand

beverageandfunctionrevenueisrecognisedasitisearned.

Members’paymentsinadvance

AsignificantamountofmembershiprevenueisreceivedinupfrontpaymentsinSeptemberandOctober

eachyear.Thisrevenueisincludedinunearnedrevenue,asitrelatestothefollowingyear.Therearealso

contributionsrelatingtonon-refundable5and10yearmembershipplansthatwerefirstintroducedin2010

andhavecontinuedtobeofferedeachyear.Appropriateamountsofthesecontributionsareincludedas

revenueintheyearstowhichtheyrelate.

Grantincome

Grantincome,includingcontributionsofassets,isrecognisedwhentheGroupcontrolsthecontributionor

righttoreceivethecontribution,anditisprobablethattheeconomicbenefitscomprisingthecontributions

willflowtotheGroup,andtheamountofthecontributioncanbemeasuredreliably.

Expenses

Operatingleasepayments

Paymentsmadeunderoperatingleasesarerecognisedintheprofitorlossonastraight-linebasisoverthe

termofthelease.Leaseincentivesreceivedarerecognisedasanintegralpartofthetotalleaseexpense,

overthetermofthelease.

Financeincomeandcosts

Financeincomecomprisesinterestincomeonfundsinvested.Interestincomeisrecognisedasitisreceived

intheprofitandloss,usingtheeffectiveinterestmethod.

Financecostscomprisetransactionalcostsassociatedwiththefuturefundinvestmentportfolio.

Goodsandservicestax

Revenue,expensesandassetsarerecognisednetoftheamountofgoodsandservicestax(GST),except

wheretheamountofGSTincurredisnotrecoverablefromthetaxationauthority.Inthesecircumstances,

theGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpense.

ReceivablesandpayablesarestatedwiththeamountofGSTincluded.ThenetamountofGSTrecoverable

from,orpayableto, theATO is includedasacurrentassetor liabilityontheconsolidatedstatementof

financialposition.

Cashflowsareincludedintheconsolidatedstatementofcashflowsonagrossbasis.TheGSTcomponents

ofcashflowsarisingfrominvestingandfinancingactivitieswhicharerecoverablefrom,orpayableto,the

ATOareclassifiedasoperatingcashflows.

Incometax

TheGroupisexemptfromincometaxunderSection50-45oftheIncomeTaxAssessmentAct1997.


Property,plantandequipment

Ownedassets

Items of property, plant and equipment are measured at cost less accumulated depreciation (see

accountingpolicy“Depreciation”)and impairment losses(seeaccountingpolicy“Impairment–Financial

assets”).

Costincludesexpendituresthataredirectlyattributabletotheacquisitionoftheasset.Whenpartsofan

itemofproperty,plantandequipmenthavedifferentusefullives,theyareaccountedforasseparateitems

ofproperty,plantandequipment.

Thegainsandlossesondisposalofanitemofproperty,plantandequipmentaredeterminedbycomparing

theproceedsfromdisposalwiththecarryingamountofproperty,plantandequipmentandarerecognised

netwithinotherincome/otherexpensesintheprofitorloss.

Leasedassets

Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are

classifiedasfinanceleases.Uponinitialrecognitiontheleasedassetismeasuredatanamountequaltothe

lower of its fair value and the present value of the minimum lease payments. Subsequent to initial

recognition,theassetisaccountedforinaccordancewiththeaccountingpolicyapplicabletothatasset.

Other leases are classified as operating leases and the leased assets are not recognised in the Group’s

consolidatedstatementoffinancialposition.

Subsequentcosts

Thecostofreplacingacomponentofanitemofproperty,plantandequipmentisrecognisedinthecarrying

amountoftheitemifitisprobablethatthefutureeconomicbenefitsembodiedwithinthecomponentwill

flowtotheGroupanditscostcanbemeasuredreliably.Thecarryingamountofthereplacedcomponent

isderecognised.Thecostsoftheday-to-dayservicingofproperty,plantandequipmentarerecognisedin

profitorlossasincurred.

Memorabilia

Purchased

Itemsofmemorabiliapurchasedarerecordedatthecostofacquisitionandmemorabiliaisreviewedona

periodicbasisforimpairment.

Memorabilia collections are kept under special conditions to limit physical deterioration and they are

anticipated to have a very long and indeterminate useful life. No amount of depreciation has been

recognised in respect of purchased memorabilia collections as their service potential has not, in any

materialsense,beenconsumedduringtheperiod.

Collected

OvertheyearstheGrouphasalsocollectedconsiderablememorabilia.Thismemorabiliaisnotrecordedin

thefinancialstatements,buthasbeenindependentlyvaluedandwillbereviewedonaperiodicbasis.

Depreciation

Depreciation is based on the cost of an asset less its residual value for items of property, plant and

equipment, includingbuildingextensionsand leaseholdpropertybutexcludingmemorabilia. Significant

componentsofindividualassetsareassessedandifacomponenthasausefullifethatisdifferentfromthe

remainderoftheasset,thatcomponentisdepreciatedseparately.

Depreciationisrecognisedintheprofitorlossonastraight-linebasisovertheestimatedusefullivesofeach

componentofanitemofproperty,plantandequipment.Leasedassetsaredepreciatedovertheshorterof

theleasetermandtheirusefullivesunlessitisreasonablycertainthattheGroupwillobtainownershipby

theendoftheleaseterm.Landisnotdepreciated.

Thedepreciationratesforthecurrentandcomparativeyearareasfollows:

2019 2018

BuildingExtensions 5% 5%

LeaseholdImprovements 5-6% 5-6%

FurnitureandFittings 20% 20%

PlantandEquipment 20% 20%

MotorVehicles 25% 25%

Memorabilia 0% 0%

ComputerHardware/Equipment 33% 33%

Depreciationmethods,usefullivesandresidualvaluesarereviewedateachfinancialyear-endandadjusted

ifappropriate.

IntangibleAssets

Softwarethat isacquiredbytheGroupandhasa finiteuseful life ismeasuredatcost lessaccumulated

amortisationandaccumulatedimpairmentloss.

Subsequentexpenditure

Subsequentexpenditureiscapitalisedonlywhenitincreasesthefutureeconomicbenefitsembodiedinthe

specific asset to which it relates. All other expenditure, including expenditure on internally generated

goodwillandbrands,isrecognisedinprofitandlossasincurred.

Amortisation

Intangibleassetsareamortisedonastraight-linebasisinprofitorlossovertheirestimatedusefullives,

fromthedatetheyareavailableforuse.Theestimatedusefullivesforthecurrentandcomparativeyear

areasfollows:

2019 2018

Gamingentitlements - 10years

Gaminglicences - 16years

Software 5years 5years

Amortisationmethods,usefullivesandresidualvaluesarereviewedateachfinancialyear-endandadjusted

ifappropriate.


Non-derivativefinancialassets

TheGroupinitiallyrecognisesloans,receivablesanddepositsonthedatethattheyareoriginated.Allother

financialassets(includingassetsdesignatedatfairvaluethroughprofitorloss)arerecognisedinitiallyon

thetradedateatwhichtheGroupbecomesapartytothecontractualprovisionsoftheinstrument.

The Group derecognises a financial asset when the contractual rights to the cash flows from the asset

expire,orittransferstherightstoreceivethecontractualcashflowsonthefinancialassetinatransaction

in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any

interestintransferredfinancialassetsthatiscreatedorretainedbytheGroupisrecognisedasaseparate

assetorliability.

Financialassetsandliabilitiesareoffsetandthenetamountpresentedintheconsolidatedstatementof

financialpositionwhen,andonlywhen,theGrouphasalegalrighttooffsettheamountsandintendseither

tosettleonanetbasisortorealisetheassetandsettletheliabilitysimultaneously.

TheGrouphasthefollowingnon-derivativefinancialassets.

Loansandreceivables

Loansandreceivablesarefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinan

active market. Such assets are recognised initially at fair value plus any direct attributable transactions

costs.Subsequent to initial recognition loansandreceivablesaremeasuredatamortisedcostusing the

effectiveinterestmethod,lessanyimpairmentlosses.

Loansandreceivablescomprisecashandcashequivalentsand,tradeandotherreceivables.

Inventories

Inventoriesaremeasuredatthelowerofcostandnetrealisablevalue.Thecostofinventoriesisbasedon

thefirst-infirst-outprinciple,andincludesexpenditureincurredinacquiringtheinventoriesandothercosts

incurredinbringingthemtotheirexistinglocationandcondition.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcosts

ofcompletionandsellingexpenses.

Cashandcashequivalents

Cashandcashequivalentscomprisecashbalances,short-termbills,calldepositsanddevelopmentfunding

yettobespent.

Non-derivativefinancialliabilities

TheGroupinitiallyrecognisesfinancialliabilities(includingliabilitiesdesignatedatfairvaluethroughprofit

or loss) on the trade date at which the Group becomes a party to the contractual provisions of the

instrument.TheGroupderecognisesafinancialliabilitywhenitscontractualobligationsaredischargedor

cancelled or expire. Financial assets and liabilities are offset and the net amount presented in the

consolidatedstatementoffinancialpositionwhen,andonlywhen,theGrouphasalegalrighttooffsetthe

amounts and intends either to settle on a net basis or to realise the asset and settle the liability

simultaneously.

The Group classified non-derivative financial liabilities into the other financial liabilities category. Such

financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition these financial liabilities are measured at amortised cost using the

effectiveinterestratemethod.Financialliabilitiescomprisetradeandotherpayables.

Impairment–Financialassets(includingreceivables)

A financial asset not carried at fair value through profit or loss is assessed at each reporting date to

determinewhetherthereisobjectiveevidencethatitisimpaired.Afinancialassetisimpairedifobjective

evidenceindicatesthatalosseventhasoccurredaftertheinitialrecognitionoftheasset,andthattheloss

eventhadanegativeeffectontheestimatedfuturecashflowsofthatassetthatcanbeestimatedreliably.

Objectiveevidence that financialassets (includingequity securities)are impairedcan includedefaultor

delinquencybyadebtor,restructuringofanamountduetotheGroupontermsthattheGroupwouldnot

considerotherwise,indicationsthatadebtororissuerwillenterbankruptcy,thedisappearanceofanactive

marketforasecurity.Inaddition,foraninvestmentinanequitysecurity,asignificantorprolongeddecline

initsfairvaluebelowitscostisobjectiveevidenceofimpairment.

Loansandreceivables

TheGroupconsidersevidenceofimpairmentforreceivablesatbothaspecificassetandcollectivelevel.All

individually significant receivables and held-to-maturity investment securities are assessed for specific

impairment.Allindividuallysignificantreceivablesandheld-to-maturityinvestmentsecuritiesfoundnotto

bespecificallyimpairedarethencollectivelyassessedforanyimpairmentthathasbeenincurredbutnot

yetidentified.Receivablesandheld-to-maturityinvestmentsecuritiesthatarenotindividuallysignificant

arecollectivelyassessedforimpairmentbygroupingtogetherreceivablesandheld-to-maturityinvestment

securitieswithsimilarriskcharacteristics.

InassessingcollectiveimpairmenttheGroupuseshistoricaltrendsoftheprobabilityofdefault,timingof

recoveriesandtheamountoflossincurred,adjustedformanagement’sjudgementastowhethercurrent

economicandcreditconditionsaresuchthattheactuallossesarelikelytobegreaterorlessthansuggested

byhistoricaltrends.

Animpairmentlossinrespectofafinancialassetmeasuredatamortisedcostiscalculatedasthedifference

betweenitscarryingamountandthepresentvalueoftheestimatedfuturecashflowsdiscountedatthe

asset’soriginaleffectiveinterestrate.Lossesarerecognisedinprofitorlossandreflectedinanallowance

accountagainstreceivables.Whenasubsequenteventcausestheamountofimpairmentlosstodecrease,

thedecreaseinimpairmentlossisreversedthroughprofitorloss.

Employeebenefits

Liabilities for employee benefits for wages, salaries, annual leave and sick leave represent present

obligationsresultingfromemployees’servicesprovidedtoreportingdate,aremeasuredonundiscounted

amountsbasedonremunerationwageandsalaryratesthattheGroupexpectstopayasatreportingdate

includingrelatedon-costs,suchasworkerscompensationinsuranceandpayrolltaxandareexpensedas

therelatedserviceisprovided.Non-accumulatingnon-monetarybenefits,suchasmedicalcare,housing,

carsandfreeorsubsidisedgoodsandservices,areexpensedbasedonthenetmarginalcosttotheGroup

asthebenefitsaretakenbytheemployees.

Otherlong-termemployeebenefits

TheGroup’snetobligationinrespectoflong-termemployeebenefitsistheamountoffuturebenefitthat

employeeshaveearnedinreturnfortheirserviceinthecurrentandpriorperiodsplusrelatedon-costs.


Thebenefitisdiscountedtodetermineitspresentvalue,andthefairvalueofanyrelatedassetsisdeducted.

The discount rate is the yield at the reporting date on AA credit-rated or government bonds that have

maturitydatesapproximatingthetermsoftheGroup’sobligations.Thecalculationisperformedusingthe

projectedunitcreditmethod.

Superannuationplan

A defined contribution plan is a post-employment benefit plan under which an entity pays fixed

contributionsintoaseparateentityandwillhavenolegalorconstructiveobligationtopayfurtheramounts.

Obligationsforcontributionstodefinedcontributionplansarerecognisedasanemployeebenefitexpense

inprofitorlossintheperiodsduringwhichservicesarerenderedbyemployees.Prepaidcontributionsare

recognised as an asset to the extent that a cash refund or a reduction in future payments is available.

Contributionstoadefinedcontributionplanthatareduemorethan12monthsaftertheendoftheperiod

inwhichtheemployeesrendertheservicearediscountedtotheirpresentvalue.

Provisions

A provision is recognised if, as a result of a past event, the Group has a present legal or constructive

obligationthatcanbeestimatedreliably,anditisprobablethatanoutflowofeconomicbenefitswillbe

requiredtosettletheobligation.Provisionsaredeterminedbydiscountingtheexpectedfuturecashflows

atapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecific

totheliability.Theunwindingofthediscountisrecognisedasfinancecost.

Parententityfinancialinformation

Thefinancialinformationfortheparententity,CollingwoodFootballClubLimited,disclosedinnote16

hasbeenpreparedonthesamebasisastheconsolidatedfinancialstatements.

2019$

2018$

3. Revenueandotherincome

AFLdistribution 11,534,172 11,229,087

Commercialactivities 20,233,386 21,865,974

Functioncentres 7,690,124 7,110,606

Membershipandmatchday 30,985,842 23,871,536

Other 2,114,988 2,183,517

Revenue 72,558,512 66,260,720

Interestincomefromoperations 12,307 17,752

Interestanddividendincomefrominvestments 506,061 -

NetgainarisingoffinancialassetsmeasuredatFVTPL 342,218 -

TotalRevenueandOtherIncome 73,419,098 66,278,472

4. Financialexpense

Interestexpense (8,921) (93,457)

Investmentexpense (5,192) -

(14,113) (93,457)

5. Cashandcashequivalents

Cashonhand 8,355 363,138

Clienttrustaccount4 82,912 106,391

Cashatbank

Grantfundsunspent

11,283,081

1,156,343

8,692,788

-

Termdeposits–shortterm 1,000,000 -

Investmentholdingaccounts 4,182,712 -

17,713,403 9,162,317

6. Tradeandotherreceivables

Current

Tradereceivables 1,922,865 2,700,543

Less:Provisionforimpairment (135,212) (118,155)

1,787,653 2,582,388

Otherreceivables 165,406 219,386

1,953,059 2,801,774

4 The cash shown as client trust account is held on behalf of customers until suppliers are paid on behalf of these customers.

2019$

2018$

3. Revenueandotherincome

AFLdistribution 11,534,172 11,229,087

Commercialactivities 20,233,386 21,865,974

Functioncentres 7,690,124 7,110,606

Membershipandmatchday 30,985,842 23,871,536

Other 2,114,988 2,183,517

Revenue 72,558,512 66,260,720

Interestincomefromoperations 12,307 17,752

Interestanddividendincomefrominvestments 506,061 -

NetgainarisingoffinancialassetsmeasuredatFVTPL 342,218 -

TotalRevenueandOtherIncome 73,419,098 66,278,472

4. Financialexpense

Interestexpense (8,921) (93,457)

Investmentexpense (5,192) -

(14,113) (93,457)

5. Cashandcashequivalents

Cashonhand 8,355 363,138

Clienttrustaccount4 82,912 106,391

Cashatbank

Grantfundsunspent

11,283,081

1,156,343

8,692,788

-

Termdeposits–shortterm 1,000,000 -

Investmentholdingaccounts 4,182,712 -

17,713,403 9,162,317

6. Tradeandotherreceivables

Current

Tradereceivables 1,922,865 2,700,543

Less:Provisionforimpairment (135,212) (118,155)

1,787,653 2,582,388

Otherreceivables 165,406 219,386

1,953,059 2,801,774

4 The cash shown as client trust account is held on behalf of customers until suppliers are paid on behalf of these customers.


2019$

2018$

7. FinancialAssets

NonCurrent

Globalequities 1,062,244 -

Hybrids 4,030,150 -

Fixedinterestsecurities 3,327,972 -

Property/Alternatives 3,240,007 -

11,660,373 -

TheCFCFutureFundinvestmentportfolioisvaluedat$16,843,085includingthetermdeposit($1,000,000)

andtheinvestmentholdingaccounts($4,182,712)shownundernote5.

8. Inventories

Merchandise,liquor,food,souvenirsandfootballequipment 37,852 136,359

9. DiscontinuedOperations

On10July2018,thegroupenteredintoasaleagreementtodisposeofTheClubCarolineSpringsandthe

Coach&Horses,whichcarriedoutalloftheGroup’sgamingoperations.Thedisposalwascompletedon6

December2018,onwhichdatecontrolofTheClubCarolineSpringsandtheCoach&Horsespassedontothe

acquirer.

The results of the discontinued operations, which have been included in the profit for the year, were as

follows:

Revenue 1,876,024 15,795,539

Expenses (1,790,009) (13,919,316)

Profitfromdiscontinuedoperations 86,015 1,876,223

Proceedsfromsale 17,339,401 -

Bookvalueofassetssoldandexpenses (9,267,414) -

Profitondisposalofdiscontinuedoperations 8,071,987 -

8,158,002 1,876,223 10.

Prop

erty,plantand

equ

ipment

Collectedm

emorab

ilia

Inadditiontopurchasedmemorabilia,theCompanyhasasignificantcollectionofmemorabiliawhichhasbeenacquiredovertheyearsatnocost.Anindependent

valuationwasperformedbyMrR.Milne,certifiedwiththeDepartmentofCommunications,inthe2017financialyearfor$12,559,474.

Furnitu

reand

fittin

gs

Leasehold

improvem

ents

Planta

nd

equipm

ent

Purchased

mem

orabilia

Under

Constructio

nTotal

Cost

Balanceasat1November2018

1,450,911

35,561,870

4,807,171

412,022

-42,231,974

Acquisitions

110,444

13,000

593,206

- 47,649

764,299

TransferstoAssetsclassifiedasheldforsale

--

--

--

Assetretirements

--

--

--

Balanceasat31October2019

1,561,355

35,574,870

5,400,377

412,022

47,649

42,996,273

Depreciatio

n


1,148,716

8,953,135

3,737,827

--

13,839,678

Depreciationchargefortheyear

147,204

1,974,909

595,790

- -

2,717,903


--

--

--

Assetretirements

--

--

--


1,295,920

10,928,044

4,333,617

--

16,557,581

Carryingamou

nts

Asat1November2018

302,195

26,608,735

1,069,344

412,022

-28,392,296

Asat31October2019

265,435

24,646,826

1,066,760

412,022

47,649

26,438,692


11.

IntangibleAssets

Software

GamingEntitlements

GamingLicence

Total

Cost


845,504

--

845,504

Acquisitions

277,927

--

277,927


--

--

Assetretirements

--

--


1,123,431

--

1,123,431

Amortisation


755,521

--

755,521

Amortisationfortheyear

64,024

--

64,024


--

--

Assetretirements

--

--


819,545

--

819,545

Carryingamou

nts

Asat1November2018

89,983

--

89,983

Asat31October2019

303,886

--

303,886

2019$

2018$

12. Tradeandotherpayables

Current

Tradepayables 3,120,627 3,900,078

Otherpayablesandaccruals 1,125,672 2,447,033

Gaminglicence - 150,000

4,246,299 6,497,111

13. Loansandborrowings

BankFacilities

LoanFacility - 4,200,000

Bankoverdraft 250,000 250,000

LoanFacilityutilisedatreportingdate - 1,600,000

The overdraft facility is secured by general security agreements over the whole of the Group’s assetsincludingallpropertiesandmembers’paymentsinadvance.Interestonanybankoverdraftischargedatprevailingmarketrates.Thisfacilitywasnotusedduringtheyear.

14. Employeebenefits

Current

Employeebenefits 2,462,389 2,671,744

NonCurrent

Employeebenefits 385,362 348,005

TheGrouphaspaidcontributionsfromcontinuingoperationsof$2,068,821todefinedcontributionplansonbehalfofemployeesfortheyearended31October2019(2018:$1,957,936).


2019$

2018$

15. Commitments

LeasesOperatingleasesandplantandequipmentcontractedbutnotprovidedforaspayable:

Withinoneyear 1,778,936 1,754,217

Oneyearornolaterthanfiveyears 7,276,576 7,062,482

Laterthanfiveyears 17,251,257 19,077,560

26,306,769 27,894,259

TheGroupleasesproperty,plantandequipmentunderoperatingleasesexpiringfromonetofifteenyears,typicallywithanoptiontorenewtheleasesaftertheyexpire.Incalculatingtheabovecommitments,theGrouphasassumedaCPIof2%,whereaCPIincreaseisstipulatedinthecontract,andtheexerciseofcertainoptions to renew. If theseassumptionswereexcluded from thecalculation, the total commitments forminimumleasepaymentsinrelationtooperatingleaseswouldbe$24,671,518(2018:$23,657,529).

Othercommitments

PlayerPayments

Duetothecontracttermsvaryingconsiderablyamongstplayers,itisnotpracticaltoreliablymeasurethefuturecommitmentsunderplayercontracts.

CapitalCommitments

Capitalexpenditurecontractedforatthereportingdatebutnotrecognisedasliabilitiesisasfollows:

Withinoneyear - 696,409

Laterthanoneyear,butnotlaterthanfiveyears - -

- 696,409

Guarantees

ThenatureandtheamountsoftheguaranteesissuedbytheGrouparedetailedbelow:

Guaranteesissuedforleaseagreements 600,000 600,000

GuaranteesissuedforPieintheSkyTrust 35,000 43,000

Guaranteesissuedforvenue/gamingoperations - 353,590

635,000 996,590

2019$

2018$

16. Parent

Resultsoftheparententity

Profit/(Loss)fortheperiod 12,043,389 (1,169)

Othercomprehensiveincome - -

Totalcomprehensiveincome 12,043,389 (1,169)

Financialpositionofparententityatyearend

CurrentAssets 21,138,697 21,160,580

TotalAssets 59,541,648 49,642,859

CurrentLiabilities 14,127,235 16,148,162

TotalLiabilities 14,666,138 16,810,738

TotalEquityoftheparententitycomprisingof:

Settledsum 10 10

RetainedEarnings 44,875,500 32,832,111

TotalEquity 44,875,510 32,832,121

Parentcompanycontingencies

Guarantees

ThenatureandtheamountsoftheguaranteesissuedbytheCompanyaredetailedbelow:

Guaranteesissuedforleaseagreements 600,000 600,000

GuaranteesissuedforPieintheSkyTrust 35,000 43,000

Guaranteesissuedforvenue/gamingoperations - 353,590

635,000 996,590

17. KeyManagementPersonneldisclosures

Thekeymanagementpersonnel(KMP)compensationwas$2,723,569fortheyearended31October2019(2018:$1,978,130).ThisincreaseislargelyduetoanincreaseinKMPin2019.

DirectorsarenotremuneratedbytheGroupfortheirservices.


Otherkeymanagementpersonneldisclosures

AnumberofKMPoftheGroup,ortheirrelatedparties,holdpositionsinotherentitiesthatresultinthemhavingcontrolorsignificantinfluenceoverthefinancialoroperatingpoliciesofthoseentities.

During the year a number of KMP purchased club membership packages, match day tickets, clubmerchandise,attendedclubfunctions,madedonationsandcontributedtowardsfundraisingauctions.ThetermsandconditionsofthetransactionswithKMPandtheirKMPrelatedentitieswerenomorefavourablethanthoseavailable,orwhichmightreasonablybeexpectedtobeavailable,onsimilartransactionswithnon-KMPrelatedentitiesonanarm’slengthbasis.

Theaggregateamountsofsignificanttransactionsrecognisedduringtheyearrelatingtokeymanagementpersonnelandotherrelatedparties,fortheCompanyandGroupamountedto:

2019$

2018

$

TransactionswithKMP

SalestoKMP 44,489 124,113

PurchasesfromKMP (207,962) (215,222)

ReceivablesfromKMPasat31October - -

PayablestoKMPasat31October - -

18. Groupentities

Name GroupInterest(%)

ParentEntity

CollingwoodFootballClubLimited

Subsidiaries

PieintheSkyTravelPtyLtd 100 100

PieintheSkyTrust 100 100

19. Eventssubsequenttobalancedate

Therehavebeennomattersorcircumstancesthathavearisensince31October2019thatwillsignificantlyaffect,ormaysignificantlyaffecttheoperationsoftheGroup,theresultsoftheoperations,orthestateofaffairsoftheGroupinsubsequentyears.


Liability limited by a scheme approved under Professional Standards Legislation. Member of Deloitte Asia Pacific Limited and the Deloitte Network

Independent Auditor’s Report to the members

of Collingwood Football Club

Opinion We have audited the financial report of Collingwood Football Club (the “Company”) and its subsidiaries (the “Group”) which comprises the consolidated statement of financial position as at 31 October 2019, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and the Directors’ declaration. In our opinion, the accompanying financial report of the Collingwood Football Club is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Group’s financial position as at 31 October 2019 and

of their financial performance for the year then ended; and

(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the Directors of the Company, would be in the same terms if given to the Directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Other Information The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 31 October 2019, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia Tel: +61 (0) 3 9671 7000 Fax: +61 (0)3 9671 7001 www.deloitte.com.au

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Directors for the Financial Report The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards – Reduced Disclosure Regime and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due

to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the Directors. • Conclude on the appropriateness of the Directors’ use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group’s to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial report, including

the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.


T | +61 3 8412 0000 E | [email protected] M | 1300 MAGPIE (1300 62 47 43)

coll ingwoodfc .com.au

C O L L I N G W O O D F O O T B A L L C L U B L I M I T E D Holden Centre Cnr Olympic Blvd & Batman Ave, Olympic Park, Melbourne VIC 3000 PO Box 165 Abbotsford VIC 3067 | ABN 89 006 211 196

40 COLLINGWOOD FOOTBALL CLUB Limited · Deloitte refers to one or more of Deloitte Touche Tohmatsu...

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