RAMSGATE RSL MEMORIAL CLUB LTD ABN: 15 000 …...RAMSGATE RSL MEMORIAL CLUB LTD ABN: 15 000 967 340...

RAMSGATE RSL MEMORIAL CLUB LTDABN: 15 000 967 340

FINANCIAL REPORTFOR THE YEAR ENDED

31 DECEMBER 2019


CONTENTSDirectors' Report 1

Auditor's Independence Declaration 5

Statement of Profit or Loss and Other 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 31

Independent Auditor's Report 32


DIRECTORS' REPORT

Your directors present their report on Ramsgate RSL Memorial Club Ltd (the company) for the financial yearended 31 December 2019.

Directors

The directors of the company at any time during or since the end of the financial year are as follows:

Name of Director Position Term Qualifications, Experience &Responsibilities

Sallianne Faulkner Director / President Director 2012; 2015 - CurrentPresident 2015 - CurrentClub Member since 2001

- Occupation - Self-Employed Engraver- Graduate of the Australian Institute of CompanyDirectors- ClubsNSW Board Director- Club Keno Holdings Director- ClubBIZ Director- ClubsNSW Southern Metro RegionSecretary/Treasurer- St George Children with Disabilities Fund BoardMember- Rotarian - Rotary Club of Rockdale- Bayside City Council 5th Ward Progress andRatepayer Association Secretary- Ramsgate RSL Cricket Club Patron- Ramsgate RSL Netball Club Patron- ClubsNSW Club Directors Institute Member

Terence Healey Director / Vice President Director 2015 - CurrentVice President 2015 - CurrentClub Member since 2005

- Occupation - Self-Employed AccountingConsultant- Diploma in Accounting- Member of the National Institute of Accountants- Member of the Australian Law PracticeManagers Association (ALPMA)- Chairperson of the Ramsgate RSL FinanceCommittee- ClubsNSW Club Directors Institute Member- Responsible Service of Alcohol- Responsible Conduct of Gambling

Gaspare Sciberras Director Director 2015 - CurrentClub Member since 2011

- Occupation - Retired Business GeneralManager/Accountant- Member of Certified Practicing AccountantsAustralia- Registered Tax Agent- Ramsgate RSL Finance Committee- ClubsNSW Club Directors Institute Member- Responsible Service of Alcohol- Responsible Conduct of Gambling

Harry Clegg Director Director 2015 - CurrentClub Member since 1983

- Occupation - Retired Licenced Electrician- Former Committee Member of Mens Golf Club- Former Committee Member of Flyaway Bowlersand Golfers Club- Ramsgate RSL Finance Committee- Chairperson of the Ramsgate RSL FacilitiesCommittee- ClubsNSW Club Directors Institute Member- Responsible Service of Alcohol- Responsible Conduct of Gambling

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DIRECTORS' REPORT

Name of Director Position Term Qualifications, Experience &Responsibilities

Keith Wills Director Director 2015 - CurrentClub Member since 2004

- Occupation - Retired Sales and MarketingManager- Ramsgate RSL Membership Committee- ClubsNSW Club Directors Institute Member- Responsible Service of Alcohol- Responsible Conduct of Gambling

Ken Hughes Director Director 2015 - CurrentClub Member since 1988

- Occupation - Investigations Consultant- Occupation - Retired Commander of the NSWPolice Force- Commercial and Private Inquiry Agency Licence- Bachelor of Education (Honours) Graduate- Graduate Certificate in Management- Graduate Diploma in Management- Chairperson of the Ramsgate RSL DisciplinaryCommittee- Ramsgate RSL AFL Patron- ClubsNSW Club Directors Institute Member- Responsible Service of Alcohol- Responsible Conduct of Gambling

Geniene Cahill Director Director 2016 - 2019Resigned 30/10/2019Club Member since 2008

- Occupation - Customer Service- ClubsNSW Club Directors Institute Member- Responsible Service of Alcohol- Responsible Conduct of Gambling

Director meeting attendances

The number of Board meetings held and attended by each director were as follows:

Name of Director Number of Board meetings held Number of Board meetings attendedSallianne Faulkner 12 12Terence Healey 12 9Gaspare Sciberras 12 11Harry Clegg 12 11Keith Wills 12 12Ken Hughes 12 11Geniene Cahill (Resigned 30/10/2019) 10 6

Members' limited liabilityIn accordance with the Constitution of the company, every member of the company undertakes to contributean amount limited to $5.00 per member in the event of the winding up of the company during the time thathe/she is a member or within one year thereafter. Based on the number of members at 31 December 2019,the total members' liability would be $84,730.

Operating resultsThe profit of the company for the financial year after providing for income tax amounted to $2,528,878.

Short-term objectivesThe short-term objectives are to understand and deliver the needs of the members of the company and thecommunity in a competitive marketplace.

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DIRECTORS' REPORT

Long-term objectivesThe long-term objectives are to provide infrastructure to achieve the short-term objectives and to providefinancial profitability and sustainability of the company.

Strategy for achieving the objectivesIn order to achieve the short and long term objectives, the company will:- respect the company's origins and practices;- ensure legal compliance and appropriate governance including manage potential risk form legislativechanges;- improve revenue, profitability and membership numbers;- provide members with improved facilities; and- be an employer of choice.

Principal activitiesThe principal activities of the company during the course of the financial year consisted of the conduct andpromotion of a licensed social club for its members. There have been no significant changes in the natureof these activities during the year.

Performance measurementThe company will continue to evaluate and assess the effectiveness of its commercial operation, assess anddevelop its financial performance, evaluate competition via environmental scanning and continue to make avaluable contribution to the community. In doing so, the company will seek to secure its financial viability.

Indemnification and insurance of directors and officersDuring or since the financial year, the company has paid premiums in respect of a contract insuring all thedirectors of the club against legal costs incurred in defending proceedings for conduct involving:

(a) a wilful breach of duty; or(b) a contravention of sections 182 or 183 of the Corporations Act 2001, as permitted by section 199B of theCorporations Act 2001.

Indemnification of auditorsTo the extent permitted by law, the company has agreed to indemnify its auditors, Maher PartnersAssurance Pty Limited, as part of the terms of its audit engagement agreement against claims by thirdparties arising from the audit (for an unspecified amount). No payment has been made to indemnify MaherPartners Assurance Pty Limited during or since the financial year.

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DIRECTORS' REPORT

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act2001 is set out on page 5.

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

Director: _________________________________________________________Sallianne Robyn Faulkner

Dated this 19th day of February 2020

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AUDITOR'S INDEPENDENCE DECLARATIONUNDER SECTION 307C OF THE CORPORATIONS ACT 2001

TO THE DIRECTORS OFRAMSGATE RSL MEMORIAL CLUB LTD

I declare that, to the best of my knowledge and belief, during the year ended 31 December 2019 there havebeen:

(i) no contraventions of the auditor independence requirements of the Corporations Act 2001 inrelation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

Maher Partners Assurance Pty Limited

_____________________________________________Jason Maher

Taren Point


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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOMEFOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018Note $ $

Revenue 2 19,368,783 18,146,005

Cost of sales and consumables (965,086) (876,954)Advertising, entertainment, marketing, promotion expenses (1,823,823) (1,781,796)Employee benefits expenses (4,700,461) (4,620,130)Gaming compliance and overheads (4,486,302) (4,095,714)Property, insurance and occupancy expenses (1,654,331) (1,535,327)Other expenses (1,012,360) (1,140,135)Profit before interest, tax, depreciation andamortisation 3 4,726,420 4,095,949

Depreciation and amortisation expenses 3 (2,306,731) (2,171,765)Profit from operating activities 3 2,419,689 1,924,184

Finance income 2 188,281 152,407Finance costs 3 (79,092) (5,706)Net finance income 3 109,189 146,701

Profit before income tax 3 2,528,878 2,070,885Income tax expense 4 - (208,261)Profit for the year 2,528,878 1,862,624

Other comprehensive income - -Total comprehensive income for the year 2,528,878 1,862,624

The accompanying notes form part of these financial statements.Page 6


STATEMENT OF FINANCIAL POSITIONAS AT 31 DECEMBER 2019

2019 2018Note $ $

ASSETSCURRENT ASSETSCash and cash equivalents 5 9,819,638 9,560,355Trade and other receivables 6 50,715 43,948Inventories 7 68,126 59,836Other current assets 8 214,297 264,605TOTAL CURRENT ASSETS 10,152,776 9,928,744

NON-CURRENT ASSETSProperty, plant and equipment 9 12,416,025 10,212,002Intangible assets 10 1,901,004 1,373,004TOTAL NON-CURRENT ASSETS 14,317,029 11,585,006TOTAL ASSETS 24,469,805 21,513,750

LIABILITIESCURRENT LIABILITIESTrade and other payables 11 1,153,148 1,390,812Borrowings 12 - 7,743Lease liabilities 13 96,488 -Employee benefits 14 353,659 334,699Provisions 15 52,625 45,693Tax liabilities (75,282) 193,216Other current liabilities 16 208,527 210,148TOTAL CURRENT LIABILITIES 1,789,165 2,182,311

NON-CURRENT LIABILITIESTrade and other payables 11 - 55,836Lease liabilities 13 1,170,939 -Employee benefits 14 47,556 54,038Other non-current liabilities 16 40,469 35,456TOTAL NON-CURRENT LIABILITIES 1,258,964 145,330TOTAL LIABILITIES 3,048,129 2,327,641NET ASSETS 21,421,676 19,186,109

EQUITYRetained earnings 17 21,421,676 19,186,109TOTAL EQUITY 21,421,676 19,186,109



STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 31 DECEMBER 2019

NoteRetainedEarnings Total

$ $

Balance at 1 January 2018 17,323,485 17,323,485Profit (Loss) attributable to members 1,862,624 1,862,624Balance at 31 December 2018 19,186,109 19,186,109Profit (Loss) attributable to members 2,528,878 2,528,878Retrospective adjustments (293,311) (293,311)Balance at 31 December 2019 21,421,676 21,421,676



STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 DECEMBER 2019

2019 2018$ $

CASH FLOWS FROM OPERATING ACTIVITIESReceipts from customers 19,334,349 18,132,878Payments to suppliers and employees (15,139,540) (13,841,757)Interest received 188,238 147,737Finance costs paid (6,325) (385)Net cash provided by operating activities 23 4,376,722 4,438,473

CASH FLOWS FROM INVESTING ACTIVITIESProceeds from sale of property, plant and equipment 132,673 180,094Payments for property, plant and equipment (3,556,256) (1,885,036)Payments for intangibles (528,000) (910,000)Net cash used in investing activities (3,951,583) (2,614,942)

CASH FLOWS FROM FINANCING ACTIVITIESRepayment of borrowings (7,774) (208,874)Repayment of lease liabilities (158,082) -Net cash used in financing activities (165,856) (208,874)

Net increase in cash held 259,283 1,614,657Cash at beginning of financial year 9,560,355 7,945,698Cash at end of financial year 23 9,819,638 9,560,355



NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2019

1 Summary of Significant Accounting Policies

The financial statements cover Ramsgate RSL Memorial Club Ltd (the company) as an individualentity. Ramsgate RSL Memorial Club Ltd is a company limited by guarantee, incorporated anddomiciled in Australia.

Basis of PreparationThe financial statements are general purpose financial statements that have been prepared inaccordance with Australian Accounting Standards - Reduced Disclosure Requirements andInterpretations issued by the Australian Accounting Standards Board (AASB) and the CorporationsAct 2001. The company is a not-for-profit entity for financial reporting purposes under AustralianAccounting Standards.

The financial statements, except for the cash flow information, have been prepared on an accrualsbasis and are based on historical costs, modified, where applicable, by the measurement at fairvalue of selected non-current assets, financial assets and financial liabilities.

The financial statements are presented in Australian dollars, which is the company's functionalcurrency, and have been rounded to the nearest dollar.

Material accounting policies adopted in the preparation of these financial statements are presentedbelow and have been consistently applied unless otherwise stated.

The financial statements were authorised for issue on 19 February 2020 by the directors of thecompany.

Accounting Policies

Adoption of New and Revised Accounting Standards

During the current year, the following relevant standards became mandatory and have beenadopted retrospectively by the company.

The accounting policies have been updated to reflect changes in the recognition and measurementof assets, liabilities, income and expenses and the impact of adoption of these Standards isdiscussed below.

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AASB 16: Leases

In the current year, the company has applied AASB 16 Leases which came into effect on 1 January2019. AASB 16 replaces AASB 17 'Leases', IFRIC 4 'Determining whether an Arrangementcontains a Lease', SIC-15 'Operating Leases Incentives' and SIC-27 'Evaluating the Substance ofTransactions Involving the Legal Form of a Lease'. It has the objective to provide users of thefinancial statements with a basis to assess the effect that leases have on the financial position,financial performance and cash flows of an entity.

AASB 16 sets out the principles for the recognition, measurement, presentation and disclosure ofleases and requires lessees to account for leases, excluding those that are classified as short-termleases or leases for low value assets, under a single on-balance sheet model similar to theaccounting for finance leases under AASB 117. Lessor accounting under AASB 16 is substantiallyunchanged from previous accounting under AASB 117 and has no material impact to the company.

From a lessee perspective, at the commencement date of a lease, a lessee will recognise a liabilityto make lease payments ('lease liability') and an asset representing the right to use the underlyingasset during the lease term ('right-of-use asset'). Lessees will be required to separately recognisethe interest expense on the lease liability and the depreciation expense on the right-of-use asset.Lessees will also be required to remeasure the lease liability upon the occurrence of certain events(such as a change in the lease term or lease payments). The amount of the re-measurement of thelease liability is recognised as an adjustment to the right-of-use asset.

Significant judgement and estimates are applied when assessing the full impact of AASB 16 on thecompany. Management review each lease, on an individual basis, and determine whether thestandard's criteria for a right of use asset or lease liability are met. Additional factors, such as thelease costs and lease terms, are taken into consideration when identifying the cost base of theright-of-use assets and lease liabilities, as well as the company's presentation obligations.

In making these judgements, the company applied the practical expedient in AASB 16 Appendixparagraph C3 that enables the company to grandfather assessments made under previousassessments, such that only leases that are leases on date of transition on 1 January 2019 arerequired to be assessed as a lease under AASB 16.

The company has applied AASB 16 using the modified retrospective approach which allows thecumulative effect of initially applying AASB 16 to be recognised at the date of initial application andtherefore, the comparative figures have not been restated. Instead, the lessee shall recognise thecumulative effect of initially applying AASB 16 as an adjustment to the opening balance of retainedearnings.

The company has also applied the recognition exemptions in AASB 16 paragraph 5 that enables thecompany not to make any adjustments on transition for either short-term leases or leases for whichthe underlying asset is of low value. The company shall continue to recognise the lease paymentsassociated with those leases as an expense on a straight-line basis over the lease term.

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Cash and Cash Equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term investmentswhich are readily convertible to known amounts of cash and which are subject to an insignificantrisk of change in value.

Trade and Other Receivables

Trade receivables are recognised initially at the transaction price (i.e. cost) and are subsequentlymeasured at cost less provision for doubtful debts. Receivables expected to be collected within 12months of the end of the reporting period are classified as current assets. All other receivables areclassified as non-current assets.

At the end of each reporting period, the carrying amount of trade and other receivables is reviewedand an allowance for doubtful debts is recognised when there is objective evidence that individualreceivables are not recoverable.

Inventories

Inventories are measured at the lower of cost and net realisable value. Costs are assigned on aweighted-average basis.

Net realisable value is the estimated selling price in the ordinary course of business, less theestimated costs of completion and the costs necessary to make the sale. Net realisable value isestimated using the most reliable evidence available at the reporting date and inventory is writtendown through an obsolescence provision if necessary.

Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less any accumulated depreciationand impairment losses.

Property

Buildings and Leashold improvements are measured on the cost basis less depreciation.

Plant and equipment

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

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The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not inexcess of the recoverable amount from these assets. The recoverable amount is assessed on thebasis of the expected net cash flows that will be received from the assets' employment andsubsequent disposal. The expected net cash flows have been discounted to their present values indetermining recoverable amounts.

Depreciation

The depreciable amount of all fixed assets including building and capitalised lease assets isdepreciated on a straight line basis over their useful lives to the company commencing from thetime the asset is held ready for use. Leasehold improvements are depreciated over the shorter ofeither the unexpired period of the lease or the estimated useful lives of the improvements.

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

Class of Fixed Asset Depreciation RateBuildings & Leasehold Improvements 2.5 - 24.0%Plant & Equipment 5.0 - 20.0%

The estimated useful life for each class of depreciable assets are:

Class of Fixed Asset Useful LifeBuildings & Leasehold Improvements 4 - 40 YearsPlant & Equipment 5 - 20 Years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at eachbalance sheet date.

An asset's carrying amount is written down immediately to its recoverable amount if the asset'scarrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount.These gains or losses are included in the statement of profit or loss and other comprehensiveincome.

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Leases

The company as a lessee

The company assesses whether a contract is or contains a lease, at inception of a contract. Acontract is, or contains, a lease if the contract conveys the right to control the use of an identifiedasset for a period of time in exchange for consideration. In such instances, the company recognisesa right-of-use asset and a corresponding lease liability with respect to all lease agreements, exceptfor short term leases, cancellable leases that if cancelled by the lessee the losses associated withthe cancellation are borne by the lessor and low value leased assets. For these leases, thecompany recognises the lease payments as an operating expense on a straight-line basis over theterm of the lease unless another systematic basis is more representative of the time pattern inwhich economic benefits from the leased assets are consumed.

Measurement and presentation of lease liability

The lease liability is initially measured at the present value of the lease payments that are not paidat the commencement date, discounted by using the rate implicit in the lease. If this rate cannot bereadily determined, the company uses its incremental borrowing rate.

The following items are also included in the measurement of the lease liability:

Fixed lease payments offset by any lease incentives;

Variable lease payments, for lease liabilities which are tied to a floating index;

The amounts expected to be payable to the lessor under residual value guarantees;

The exercise price of purchase options (if it is reasonably certain that the option will beexercised); and

Payments of penalties for terminating leases, if the lease term reflects the lease terminatingearly.

The lease liability is separately disclosed on the statement of financial position. The liabilities whichwill be repaid within twelve months are recognised as current and the liabilities which will be repaidin excess of twelve months are recognised as non-current.

The lease liability is subsequently measured by reducing the balance to reflect the principal leaserepayments made and increasing the carrying amount by the interest on the lease liability.

The company is required to remeasure the lease liability and make an adjustment to the right of useasset in the following instances:

The term of the lease has been modified or there has been a change in the company assessmentof the purchase option being exercised, in which case the lease liability is remeasured bydiscounting the revised lease payments using a revised discount rate;

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A lease contract is modified and the lease modification is not accounted for as a separate lease,in which case the lease liability is remeasured by discounting the revised lease payments using arevised discount rate; and

The lease payments are adjusted due to changes in the index or a change in expected paymentunder a guaranteed residual value, in which cases the lease liability is remeasured bydiscounting the revised lease payments using the initial discount rate. However, if a change inlease payments is due to a change in a floating interest rate, a revised discount rate is used.

Measurement and presentation of right-of-use asset

The right-of-use assets recognised by the company comprise the initial measurement of the relatedlease liability, any lease payments made at or before the commencement of the contract, less anylease incentives received and any direct costs. Costs incurred by the company to dismantle theasset, restore the site or restore the asset are included in the cost of the right-of-use asset.

It is subsequently measured under the cost model with any accumulated depreciation andimpairment losses applied against the right-of-use asset. If the cost of the right-of-use asset reflectsthat the company will exercise a purchase option, the right-of-use asset is depreciated from thecommencement date to the end of the useful life of the underlying asset. Otherwise, the companydepreciates the asset over the shorter period of either the useful life of the asset or the lease term.The depreciation starts at the commencement date of the lease and the carrying value of the assetis adjusted to reflect the accumulated depreciation balance.

Any remeasurement of the lease liability is also applied against the right-of-use asset value.

The right-of-use assets are presented within Property, Plant and Equipment in the statement offinancial position.

Impairment of Non-Financial Assets

Non-financial assets are reviewed for impairment whenever events or changes in circumstancesindicate that the carrying amount may not be recoverable.

Where assets do not operate independently of other assets, the recoverable amount of the relevantcash-generating unit (CGU) is estimated.

The recoverable amount is the higher of the fair value less costs of disposal and the value in use.Value in use is the present value of the future cash flows expected to be derived from an asset orcash-generating unit.

Where the recoverable amount is less than the carrying amount, an impairment loss is recognisedin the statement of profit or loss and other comprehensive income.

Reversal indicators are considered in subsequent periods for all assets which have suffered animpairment loss.

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Intangibles

Poker machine entitlements

Poker machine entitlements are carried at cost less accumulated impairment losses. Poker machineentitlements are not amortised as they are deemed to have an indefinite useful life. Poker machineentitlements are tested for impairment annually.

Trade and Other Payables

Trade and other payables represent the liabilities at the end of the reporting period for goods andservices received by the company that remain unpaid.

Trade payables are recognised at their transaction price. The carrying values are considered to be areasonable approximation of the fair values. Trade payables are obligations on the basis of normalcredit terms.

Employee Benefits

Provision is made for the company's liability for employee benefits arising from services rendered byemployees to balance date. Employee benefits that are expected to be settled within one year havebeen measured at the amounts expected to be paid when the liability is settled. Employee benefitspayable later than one year have been measured at the present value of the estimated future cashoutflows to be made for those benefits.

Contributions are made by the company to an employee superannuation fund and are charged asexpenses when incurred.

Provisions

Provisions are recognised when the company has a legal or constructive obligation, as a result ofpast events, for which it is probable that an outflow of economic benefits will result and that outflowcan be reliably measured. Provisions are measured at the present value of management's bestestimate of the outflow required to settle the obligation at the end of the reporting year.

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Revenue and Other IncomeRevenue is recognised when the amount of the revenue can be measured reliably, it is probablethat economic benefits associated with the transaction will flow to the company and specific criteriarelating to the type of revenue as noted below, has been satisfied.

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

Revenue is measured at the fair value of the consideration received or receivable and is presentednet of returns, discounts and rebates.

Sale of goods

Revenue from the sale of goods comprises revenue earned from the provision of food, beverageand other goods to members and other patrons and is recognised at the point the goods areprovided as this corresponds to the transfer of significant risks and rewards of ownership of thegoods.

Interest revenue

Interest revenue is recognised using the effective interest rate method.

Membership subscriptions

Membership subscriptions paid in advance are initially recognised as a liability. Revenue isrecognised on a straight line basis over the membership period, based on the membership categoryfor which subscriptions have been received.

Sale of property, plant and equipment

The gain or loss on disposal of property, plant and equipment is calculated as the differencebetween the carrying amount of the asset at the time of disposal and the net proceeds on disposal(including incidental costs) and is recognised as other income or other expenses at the date controlof the asset passes to the buyer.

Other income

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

Borrowing Costs

All borrowing costs are recognised as an expense in the period in which they are incurred.

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Income Tax

The income tax expense for the year is the tax payable on the current year's taxable income. Thetax rates and tax laws used to compute the amount are those that are enacted or substantivelyenacted by the reporting date.

Deferred income tax is provided on all temporary differences at the reporting date between the taxbases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax assets and liabilities are recognised at the tax rates expected to apply when the assetsare recovered or the liabilities are settled. Current and deferred tax is recognised as an expense inthe income statement except when it relates to items credited or debited directly to equity, in whichcase the deferred tax is also recognised directly in equity.

Deferred tax assets are recognised to the extent that it is probable that sufficient taxable profits willbe available, against which deductible temporary differences can be utilised.

The amount of benefits brought to account or which may be realised in the future is based on theassumption that no adverse change will occur in income taxation legislation, and the anticipationthat the company will derive sufficient future assessable income to enable the benefit to be realisedand comply with the conditions of deductibility imposed by the law.

Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where theamount 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 theexpense. Trade debtors and trade creditors in the Statement of Financial Position are showninclusive of GST.

Change in Accounting Policy

The accounting policies and methods of computation applied by the company in this financialreport are the same as those applied by the company in the financial report for the year ended31 December 2018, except for the amended policies resulting from the adoption of the newaccounting standard, AASB 16: Leases, effective 1 January 2019. The company has adoptedthe modified retrospective method and therefore the comparative figures have not been restated.Instead, the lessee shall recognise the cumulative effect of initially applying AASB 16 as anadjustment to the opening balance of retained earnings.

Comparatives

Comparative figures have been adjusted to conform to changes in presentation for the currentfinancial year.

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Critical Accounting Estimates and Judgments

The preparation of the financial statements requires management to make estimates andjudgements regarding assumptions about current and future events affecting transactions andbalances.

These estimates and judgements are based on the best information available at the time ofpreparing the financial statements, however as additional information is known then the actualresults may differ from the estimates.

The significant estimates and judgements made have been described below.

Key estimates - Estimation of useful lives of assets

The estimated useful lives and related depreciation charges for property, plant and equipment aredetermined by management. The useful lives could change significantly to those estimated.

Key judgments - Deferred tax assets

Deferred tax assets are recognised for unused tax losses to the extent that it is probable thattaxable profit will be available against which the losses can be utilised. Significant managementjudgement is required to determine the amount of deferred tax assets that can be recognised,based upon the likely timing and the level of future taxable profits, together with future tax planningstrategies.

Key judgments - Long service leave provision

The liability for long service leave is recognised and measured at the present value of the estimatedfuture cash flows to be made in respect of all employees at reporting date. In determing the presentvalue of the liability, attrition rates, salary growth rates and an appropriate discount factor have beenconsidered.

Key judgments - Intangible assets

Poker machine entitlements are tested for impairment annually. Management judgement is requiredin determining the factors relevant for calculating the recoverable amount of poker machineentitlements to assess whether any impairment exists.

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2019 2018$ $

2 Revenue

Operating activitiesSale of goods 2,464,339 2,233,454Rendering of services 16,308,142 15,468,056Membership subscriptions 82,496 56,502Rent received 194,132 134,159Commissions and rebates received 231,392 179,616Other revenue 88,282 74,218

19,368,783 18,146,005Non-operating activitiesInterest received 188,281 152,407

188,281 152,407

Total revenue 19,557,064 18,298,412

3 Profit

ExpensesCost of sales 965,086 876,954

Finance costsBank interest 6,325 385Leasing charges 72,767 5,321

79,092 5,706

Depreciation of property, plant and equipmentDepreciation - buildings 1,058,832 885,171Depreciation - plant & equipment 1,247,899 1,286,594

2,306,731 2,171,765

DisposalsLoss on sale of assets (27,710) 30,426

(27,710) 30,426

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2019 2018$ $

4 Income Tax Expense

Statement of profit or loss and other comprehensive income

Current income taxCurrent income tax charge - 208,261

Deferred taxOrigination and reversal of temporary differences - -Income tax expense - 208,261Income tax expense reported in the statement of profitor loss and other comprehensive income - 208,261

Reconciliation between income tax expense andprima facie tax on accounting profit

Accounting profit / (loss) before income tax 2,528,878 2,070,885

Tax at Australia's statutory income tax rate of 27.5% 695,441 569,493Adjust for tax effect of:Income attributable to members (29,360) (22,466)Expenses attributable to members 163,003 162,540Mutuality principle (981,771) (636,869)Other items (net) 138,876 135,563Tax losses not utilised 13,811 -Income tax expense / (benefit) - 208,261

Deferred tax assetsCarrying amount of depreciable assets 253,144 159,188Provisions and accruals 27,656 19,186Employee entitlements 22,762 17,514Retrospective adjustments (AASB 16) 16,640 -Cumulative unused tax losses 13,811 -Gross deferred tax assets 334,013 195,888Deferred tax assets not recognised (334,013) (195,888)Net deferred tax assets - -

Deferred tax liabilitiesDeferred tax liabilities - -

Deferred tax assets arising from deductible temporary differences and unused tax losses have notbeen recognised to the extent that it is not probable that taxable profit will be available againstwhich the deductible temporary differences and unused tax losses can be utilised.

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2019 2018$ $

5 Cash and Cash Equivalents

CurrentCash at bank and on hand 9,819,638 9,560,355

6 Trade and Other Receivables

CurrentTrade debtors 4,536 5,730Other debtors 46,179 38,218

50,715 43,948

7 Inventories

CurrentAt cost:Stock on hand 68,126 59,836

8 Other Assets

CurrentPrepayments 214,297 264,605

9 Property, Plant and Equipment

LAND AND BUILDINGS

Land & buildings:Buildings and leasehold improvements 22,126,358 18,518,695Less: Accumulated depreciation (13,650,830) (12,090,628)

8,475,528 6,428,067Total land and buildings 8,475,528 6,428,067

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2019 2018$ $

PLANT AND EQUIPMENT

Plant and equipment:Plant and equipment 13,724,540 12,833,317Less: Accumulated depreciation (9,784,043) (9,049,382)

3,940,497 3,783,935Total plant and equipment 3,940,497 3,783,935Total property, plant and equipment 12,416,025 10,212,002

Movements in carrying amounts

Movement in the carrying amounts for each class of property, plant and equipment between thebeginning and the end of the current financial year.

Land, buildingsand leaseholdimprovements

Pokermachines

Plant &Equipment

Total

$ $ $ $Balance at 1 January 2018 7,257,839 2,240,605 1,210,807 10,709,251Additions 129,331 1,081,089 674,616 1,885,036Disposals (73,932) (48,372) (88,216) (210,520)Depreciation expense (885,171) (883,064) (403,530) (2,171,765)Balance at 31 December 2018 6,428,067 2,390,258 1,393,677 10,212,002Additions 2,103,979 1,139,514 312,763 3,556,256Capitalised operating leases 1,504,684 - 56,338 1,561,022Disposals (809) (90,372) (13,782) (104,963)Retrospective adjustment (AASB 16) (501,561) - - (501,561)Depreciation expense (1,058,832) (919,253) (328,646) (2,306,731)Carrying amount at 31 December 2019 8,475,528 2,520,147 1,420,350 12,416,025

10 Intangible Assets

Poker machine entitlements 1,901,004 1,373,0041,901,004 1,373,004

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2019 2018$ $

11 Trade and Other Payables

CurrentTrade creditors 330,220 480,014Other payables 822,928 910,798

1,153,148 1,390,812Non-CurrentOther payables - 55,836

Financial liabilities at amortised cost classified astrade and other payables

Trade and other payables:- Total current 1,153,148 1,390,812- Total non-current - 55,836

1,153,148 1,446,648Less: Other payables (822,928) (966,634)Financial liabilities as trade and other payables 330,220 480,014

12 Borrowings

CurrentHire purchase liability - 7,743

13 Lease Liabilities

CurrentLease liability 96,488 -

Non-CurrentLease liability 1,170,939 -

14 Employee Benefits

CurrentProvision for annual leave 234,391 248,108Provision for long service leave 119,268 86,591

353,659 334,699

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2019 2018$ $

Non-CurrentProvision for long service leave 47,556 54,038

15 Provisions

CurrentProvision for linked jackpots 52,625 45,693

52,625 45,693

16 Other Liabilities

CurrentIncome in advance 142,297 155,129Membership in advance 66,230 55,019

208,527 210,148Non-CurrentMembership in advance 40,469 35,456

17 Retained Earnings

Retained earnings at the beginning of the financialyear 19,186,109 17,323,485Net profit attributable to members of the company 2,528,878 1,862,624Retrospective adjustments (293,311) -Retained earnings at the end of the financial year 21,421,676 19,186,109

18 Capital and Leasing Commitments

Finance Lease CommitmentsPayable:Not later than one year - 7,774Minimum lease payments - 7,774Less future finance charges - (31)Total finance lease liability - 7,743

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2019 2018$ $

Operating Lease CommitmentsPayable:Not later than one year 164,975 173,892Later than one year but not later than two years 164,975 181,473Later than two years but not later than five years 434,189 549,251Later than five years 872,222 -Minimum lease payments 1,636,361 904,615Less future finance charges (368,934) -Total operating lease liability 1,267,427 904,615

Deferred Purchase CommitmentsPayable:Not later than one year 55,836 166,422Later than one year but not later than two years - 55,836Total deferred purchase liability 55,836 222,258

Deferred purchase commitments relate to pokermachine purchases on deferred repayment terms.These are provided within the Other Payables accountbalance.

Capital Expenditure Commitments

There are no capital expenditure commitments thathave been contracted at balance date but not providedin the financial statements.

19 Contingent Liabilities

Bank guaranteesTotalizator Agency Board 5,000 5,000

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2019 2018$ $

20 Key Management Personnel

Key management personnel, being those personshaving authority and responsibility for planning,directing and controlling the activities of the entity,include the directors and senior management.

The totals of remuneration paid to key managementpersonnel of the company during the year are asfollows:

Key management personnel compensation 884,992 818,158

21 Related Party Transactions

Transactions between related parties are on normalcommercial terms and conditions. These terms andconditions are no more favourable than those availableto other parties unless otherwise stated.

Transactions with related parties:

Sallianne Faulkner (Director) has declared that she is apartner in N F Faulkner & Sons which was engaged bythe club to provide plumbing services. Thisengagement was performed under normal marketconditions at normal market rates. 22,040 21,762

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2019 2018$ $

22 Financial Risk Management

The company's financial instruments consist mainly of deposits with banks, local money marketinstruments, short-term investments, accounts receivable and payable.

The carrying amounts for each category of financial instruments, measured in accordance withAASB 139 as detailed in the accounting policies to these financial statements are as follows:

2019 2018Note $ $

Financial AssetsCash and cash equivalents 5 9,819,638 9,560,355Loans and receivables 6 50,715 43,948Total Financial Assets 9,870,353 9,604,303

Financial LiabilitiesTrade and other payables 11 330,220 480,014Hire purchase liabilities 12 - 7,743Total Financial Liabilities 330,220 487,757

The net fair value is equivalent to the carrying amount unless otherwise stated.

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2019 2018$ $

23 Cash Flow Information

a) Reconciliation of CashCash and cash equivalents consist of cash on handand balances with banks, and investments in moneymarket instruments. Cash and cash equivalentsincluded in the cash flow statement comprise thefollowing balance sheet amounts:

Cash at bank and on hand 9,819,638 9,560,355

b) Reconciliation of net cash provided by operatingactivities to profit after income taxOperating profit (loss) after income tax 2,528,878 1,862,624

Adjustments:(Gain) / Loss on sale of non-current assets (27,710) 30,426Depreciation 2,306,731 2,171,765Financing flows in operating profits 72,767 5,321(Increase) Decrease in inventories (8,290) (26,715)(Increase) Decrease in receivables 27,026 (13,127)(Increase) Decrease in accrued income (33,793) (4,670)(Increase) Decrease in prepayments 50,310 (106,909)Increase (Decrease) in trade creditors (149,794) 309,187Increase (Decrease) in other creditors (137,797) (197,345)Increase (Decrease) in employee provisions 12,478 69,435Increase (Decrease) in other provisions 6,932 7,065Increase (Decrease) in tax liabilities (268,498) 197,460Increase (Decrease) in income in advance (2,518) 133,956

4,376,722 4,438,473

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2019 2018$ $

24 Company Details

The registered office of the company is:

Cnr Chuter Avenue, Ramsgate Road, Sans Souci NSW 2219

The principal place of business is:

Cnr Chuter Avenue, Ramsgate Road, Sans Souci NSW 2219

The principal activities of the company are that of a Registered Club.

25 Disclosure Requirements under Section 41E of the Registered Clubs Act

Core and Non-core Property

Section 41E of the Act defines core property as meaning any real property owned or occupied by aregistered club that comprises:

(a) the defined premises of the club; or(b) any facility provided by the club for use of its members and their guests; or(c) any other property declared, by resolution passed by a majority of the members present at ageneral meeting of the ordinary members of the club, to be core property of the club.

Non-core property is defined as meaning any real property owned or occupied by the club that is notcore property.

The company's defined premises at Cnr Chuter Avenue, Ramsgate Road, Sans Souci NSW 2219 isconsidered to be core property.

The company is not considered to have any non-core property.

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DIRECTORS' DECLARATION

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 6 to 30, are in accordance with theCorporations Act 2001 including:

(a) giving a true and fair view of the company's financial position as at 31 December 2019 and ofits performance as represented by the results of its operations and its cash flows for the yearended on that date; and

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and theCorporations Regulations 2001; and

2. In the directors' opinion there are reasonable grounds to believe that the company will be ableto pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the Board of Directors.

Director: _________________________________________________________Sallianne Robyn Faulkner


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INDEPENDENT AUDITOR'S REPORTTO THE MEMBERS OF RAMSGATE RSL MEMORIAL CLUB LTD

ABN: 15 000 967 340

Auditor's Opinion

We have audited the accompanying financial report of Ramsgate RSL Memorial Club Ltd (the company),which comprises the statement of financial position as at 31 December 2019, and the statement of profit orloss and other comprehensive income, statement of changes in equity and statement of cash flows for theyear then ended, and notes to the financial statements comprising a summary of significant accountingpolicies and other explanatory information, and the directors' declaration.

In our opinion, the accompanying financial report of the company is in accordance with the Corporations Act2001, including:

(a) giving a true and fair view of the company's financial position as at 31 December 2019 and ofits financial performance for the year then ended; and

(b) complying with Australian Accounting Standards - Reduced Disclosure Requirements and theCorporations Regulations 2001.

Basis for Auditor's Opinion

We conducted our audit in accordance with Australian Auditing Standards. Those standards require that wecomply with relevant ethical requirements relating to audit engagements and plan and perform the audit toobtain reasonable assurance about whether the financial report is free from material misstatement. Ourresponsibilities under those standards are further described in the Auditor's Responsibility section of ourreport.

We are independent of the company in accordance with the Corporations Act 2001 and the ethicalrequirements of the Accounting Professional and Ethical Standards Board's APES 110 Code of Ethics forProfessional Accountants (the code) that are relevant to our audit of the financial report in Australia. Wehave also fulfilled our other ethical responsibilities in accordance with the code.

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

Other Information

The directors of the company are responsible for the other information. The other information comprises theinformation included in the directors' report, but does not include the financial report and our auditor's reportthereon.

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ABN: 15 000 967 340

Our opinion on the financial report does not cover the other information and we do not express any form ofassurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, indoing so, consider whether the other information is materially inconsistent with the financial report or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work wehave performed, we conclude that there is a material misstatement of this other information, we are requiredto report that fact. We have nothing to report in this regard.

Directors' Responsibility for the Financial Report

The directors of the company are responsible for the preparation of the financial report and have determinedthat the basis of preparation described in Note 1 to the financial report is appropriate to meet therequirements of the Corporations Act 2001 and Australian Accounting Standards - Reduced DisclosureRequirements and is appropriate to meet the needs of the members. The directors' responsibility alsoincludes such internal control as the directors determine necessary to enable the preparation of a financialreport that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the company's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the directors either intend to liquidate the company or to cease operations, orhave no realistic alternative but to do so.

Auditor's Responsibility

Our responsibility is to express an opinion on the financial report based on our audit. Our objectives are toobtain reasonable assurance about whether the financial report as a whole is free from materialmisstatement, 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 inaccordance with Australian Auditing Standards will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,they could reasonably be expected to influence the economic decisions of users taken on the basis of thisfinancial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgementand maintain professional scepticism throughout the audit.

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ABN: 15 000 967 340

We identify and assess the risks of material misstatement of the financial report, whether due to fraud orerror, design and perform audit procedures responsive to those risks, and obtain audit evidence that issufficient and appropriate to provide a basis for our opinion. The risk of not detecting a materialmisstatement 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.

We obtain an understanding of internal control relevant to the audit in order to design audit procedures thatare appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectivenessof the company's internal control.

We evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates made by the directors.

We 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 conditionsthat may cast significant doubt on the company's ability to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to draw attention in our auditor's report to the related disclosuresin the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions arebased on the audit evidence obtained up to the date of our auditor's report. However, future events orconditions may cause the company to cease to continue as a going concern.

We 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 thatachieves fair presentation.

We communicate with the directors regarding, among other matters, the planned scope and timing of theaudit and significant audit findings, including any significant deficiencies in internal control that we identifyduring our audit.

Maher Partners Assurance Pty Limited

_________________________________________________________Jason Maher

Taren Point


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RAMSGATE RSL MEMORIAL CLUB LTD ABN: 15 000 …...RAMSGATE RSL MEMORIAL CLUB LTD ABN: 15 000 967 340...

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