b'NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2020exchange for those goods or services.Revenue is recognised by applying a20202019five-step model as follows:$$1. Identify the contract with the customer; NOTE 3: PROFIT BEFORE INCOME TAX2. Identify the performance obligations; Depreciation of buildings216,000306,0003. Determine the transaction price; Depreciation of plant and equipment307,740217,2204. Allocate the transaction price to the performance obligations; and Auditors remunerationfor audit services30,42021,5005. Recognise revenue as the performance obligations are satisfied.Auditors remunerationfor other services3,8503,600Superannuation contributions139,578142,031Accommodation revenue Bad debts written offtrade and other receivables- -AccommodationrevenueisrecognisedatthepointintimeservicesareNOTE 4:INCOME TAX EXPENSEprovided to the guest. The components of tax expense comprise: Room hire revenue Current tax-47,047Other room hire is recognised at the time service is provided to the hirer. Deferred tax(13,551) (23,656)Food and beverage sales(13,551) 23,391Food and beverage sales are recognised at the time the goods are deliveredThe prima facie tax on profit from ordinary to the customer, being the point of sale. Income received in advance of theactivities before income tax is reconciled to date of food and beverage consumption is deferred. the income tax expense as follows: Membership subscription revenue Prima facie tax (recoverable)/payable at 27.5%(99,442)20,478(2019: 27.5%)Membership income is recognised over time, through the period to whichLess tax effect of:themembershiprenewalrelates.AnymembershipsubscriptionrevenueIncome tax rate change on deferred tax assets5,612-relating to periods beyond the current financial year is carried forward in theMutuality rate change on timing differences(14,300)3,150Statement of Financial Position as income received in advance. Franked dividends received(5,009)(5,907)Lease income Net non-allowable/non-assessable items(17,095)(535)Lease income from the tenanted shop is recognised on a straight line basisNet mutual income and non-allowable items19,7336,205over the term of the lease. Benefit of tax losses not taken up96,950 -Interest revenue Income Tax (Benefit)/Expense (13,551)23,391Interest revenue is recognised using the effective interest rate method. The applicable weighted average effective tax rates are:3.75% 31.4%Dividend income NOTE 5:CASH AND CASH EQUIVALENTSDividend revenue is recognised when the right to receive a dividend has beenCash on hand5,00017,000established. Cash at bank358,044237,274(j) Goods and Services Tax (GST) 363,044254,274Revenues, expenses and assets are recognised net of the amount of GST,NOTE 6:TRADE AND OTHER RECEIVABLESexceptwheretheamountofGSTincurredisnotrecoverablefromtheCurrentAustralian Taxation Office. In these circumstances, the GST is recognisedTrade receivables3,93586,700as part of the cost of acquisition of the asset or as part of an item of theAllowance for expected credit losses(5,155)-expense.Receivables and payables in the statement of financial position areOther receivables 161,595 40,941shown inclusive of GST.160,375 127,641Cash flows are presented in the statement of cash flows on a gross basis,Lease commitments receivable except for the GST component of investing and financing activities, which areFuture minimum lease payments receivable fromdisclosed as operating cash flows. non-cancellable operating leases at reporting date: (k) Comparative Figures Receivable - Where required by Accounting Standards, comparative figures have beenNot later than one year18,69231,276adjusted to conform to changes in presentation for the current financial year.Later than one year and not later than five years- 26,991 18,692 58,26720202019$$ Lease receivables relate to premises owned NOTE 2: REVENUE AND OTHER INCOME and let by the Club.Provision of accommodation services2,598,3903,607,987 NOTE 7:FINANCIAL ASSETS Sales of food and beverage354,228385,145 CurrentPoker machine takings(761)7,642 Fixed interest deposits 2,600,000 3,400,000Rent received48,205110,938 Non Current Members subscriptions65,88968,204 Investments in equity instruments designated as at fairRoom hire118,104114,454 value through other comprehensive income Interest received59,41889,654Dividends received19,51221,904 Listed investments:Compensation payments received46,000168,590 - shares in listed corporations 454,513 434,273Australian Government Covid-19 cash boost62,500- Investments in equity instruments comprise investments in the Sale of gaming entitlements102,667- ordinary share capital of various entities. There are no fixed Other 1,3951,979 returns or fixed maturity dates attached to these investments.Total revenue3,475,5474,576,497Other income/(expense): NOTE 8:INVENTORIESNet (loss)/gain on disposal of property,Current - at costplant and equipment(169,491)- Raw materials Net (loss)/gain on disposal of investments (675) 243 - Liquor and beverage18,141 25,773 (170,166)243 NOTE 9:OTHER ASSETSNet gain/(loss) on available-for-sale financialCurrentassets at fair value (after tax effect) (16,194) 9,919 Prepayments56,89449,545Net loss on fair value of financial assets has been Income tax recoverable - 29,840determined with reference to the market value of 56,89479,385the investments at reporting date.October 2020 NSW Masonic Club15'