16 NSW Masonic Club October 2018 ANNUAL REPORT 2018 Interest revenue is recognised using the effective interest rate method. Dividend revenue is recognised when the right to receive a dividend has been established. All revenue is stated net of the amount of goods and services tax (GST). (j) Goods and Services Tax (“GST”) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (k) Comparative Figures Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. 2018 2017 $ $ NOTE 2: REVENUE AND OTHER INCOME Sales of goods and provision of services 4,225,604 4,078,957 Poker machine takings 8,861 18,909 Rent received 221,950 189,360 Members subscriptions 73,036 74,249 Room hire 86,786 77,988 Interest received 85,819 68,582 Dividends received 16,242 12,425 Compensation payments received 340,000 - Other 43,740 10,262 Total revenue 5,102,038 4,530,732 Other income/(expense): Net gain/(loss) on disposal of investments (3,372) 10,446 Net gain/(loss) on available-for-sale financial assets at fair value (after tax effect) 8,480 (12,605) Net gain/(loss) on fair value of financial assets has been determined with reference to the market value of the investments at reporting date. NOTE 3: PROFIT BEFORE INCOME TAX Depreciation of buildings 301,919 234,201 Depreciation of plant and equipment 192,478 189,573 Auditor’s remuneration – for audit services 21,500 21,000 Auditor’s remuneration – for other services 3,100 3,000 Bad debts written off – trade and other receivables 6,364 - NOTE 4: INCOME TAX EXPENSE The components of tax expense/(benefit) comprise: Current tax 177,895 6,815 Deferred tax (31,251) 93,993 146,644 100,808 The prima facie tax on profit from ordinary activities before income tax is reconciled to the income tax expense as follows: Prima facie tax payable at 27.5% (2017: 27.5%) 188,040 169,288 NOTE 4: INCOME TAX EXPENSE Less tax effect of: Income tax rate change on deferred tax assets - 10,234 Mutuality rate change on timing differences (9,797) (1,714) Franked dividends received (4,330) (3,597) Net non-allowable/non-assessable items (781) (4,247) Net mutual income and non-allowable items (26,488) (69,156) Income Tax Expense 146,644 100,808 The applicable weighted average effective tax rates are: 21.4% 16.4% 2018 2017 $ $ NOTE 5: CASH AND CASH EQUIVALENTS Cash on hand 17,000 17,000 Cash at bank 497,689 323,658 514,689 340,658 NOTE 6: TRADE AND OTHER RECEIVABLES Current Trade receivables 64,664 88,436 Provision for impairment - - Other receivables 37,777 29,698 102,441 118,134 Lease commitments receivable Future minimum lease payments receivable from non-cancellable operating leases at reporting date: Receivable - Not later than one year 112,085 164,091 Later than one year and not later than five years 177,969 161,476 290,054 325,567 Lease receivables relate to premises owned and let by the Club. NOTE 7: FINANCIAL ASSETS Current Fixed interest deposits 3,600,000 3,400,000 Non Current Available-for-sale financial assets at fair value - shares in listed corporations 452,072 358,383 Available-for-sale financial assets comprise investments in the ordinary share capital of various entities. There are no fixed returns or fixed maturity dates attached to these investments. NOTE 8: INVENTORIES Current - at cost Raw materials - Beverages and consumables 37,218 34,228 - Car parking vouchers - - 37,218 34,228 NOTE 9: OTHER ASSETS Current Prepayments 94,731 55,059 NOTE 10: PROPERTY, PLANT & EQUIPMENT (a) Land and Buildings Freehold land at independent valuation 2017 13,000,000 13,000,000 Buildings, lifts and integral plant and equipment - at independent valuation 2017 22,000,000 22,000,000 Accumulated depreciation (301,919) - 21,698,081 22,000,000 Building improvements – at cost - - Accumulated depreciation - - - - Total buildings 21,698,081 22,000,000 Total land and buildings 34,698,081 35,000,000 (b) Plant and Equipment Plant, furniture and equipment – at cost 2,293,252 1,950,711 Accumulated depreciation (1,861,557) (1,669,078) 431,695 281,633 Capital works in progress 90,132 53,111 Total plant and equipment 521,827 334,744 Total property, plant and equipment 35,219,908 35,334,744 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2018