b'NoTes To The FiNaNCiaL sTaTemeNTsFOR THE yEAR ENDED 30 JUNE 2021significant impact on the Clubs operating cash flows and financial position.Thecarryingamountofplantandequipmentisreviewedannuallyby Due to the uncertainty around the ongoing impacts of COVID and any potentialdirectors to ensure it is not in excess of the recoverable amount from these future increases in restrictions, there is a degree of uncertainty associatedassets. The recoverable amount is assessed on the basis of the expected with forecasting cash flows over the following 12 month period. Therefore,netcashflowsthatwillbereceivedfromtheassetsemploymentand existing cash flow forecasts are based on minimal cash inflows and knownsubsequent disposal. The expected net cash flows have been discounted to cash outflows to enable the Directors to determine the maximum monthly cashtheir present values in determining recoverable amounts.flow loss. Repairs and maintenance are charged to the profit and loss account during The Directors believe there are reasonable grounds to conclude the Club willthe financial period in which they are incurred.continue as a going concern on the basis of the following:DepreciationThe Club maintains significant balances of term deposit cash and liquidThe depreciable amount of all fixed assets including buildings and capitalised equity investments on which to draw, to fund expected shortfalls in cashlease assets, but excluding freehold land, is depreciated on a straight-line basis flow for a period of over 24 months from signing of the financial report; and over the assets useful life to the Club commencing from the time the asset is The Club holds no external debt, and as such is not subject to servicing anyheld ready for use.Depreciation is recognised in the profit and loss account.significant external liabilities.The depreciation rates used for each class of depreciable assets are:Accounting Policies Class of Fixed AssetDepreciation Rate(a) Income Tax Buildings1.0% - 2.5%The income tax expense/(benefit) for the year comprises current income taxPlant & Equipment10.0%33.3%expense/ (benefit) and deferred tax expense/(benefit). The assets residual values and useful lives are reviewed, and adjusted if Current income tax expense charged to the profit or loss is the tax payableappropriate, at the end of each reporting period.on taxable income calculated using applicable income tax rates enacted,An assets carrying amount is written down immediately to its recoverable or substantially enacted, as at the end of the reporting period.Current taxamountiftheassetscarryingamountisgreaterthanitsestimated liabilities/(assets) are therefore measured at the amounts expected to berecoverable amount.paid to/(recovered from) the relevant taxation authority. Gainsandlossesondisposalsaredeterminedbycomparingproceeds Deferred income tax expense reflects movements in deferred tax asset andwith the carrying amount. These gains and losses are included in the profit deferred tax liability balances during the year as well as unused tax losses.and loss account. When revalued assets are sold, amounts included in the Current and deferred income tax expense/(income) is charged or creditedrevaluation surplus relating to that asset are transferred to retained earnings.outside the profit and loss when the tax relates to items that are recognised(d) Financial Instrumentsoutside the profit and loss. FinancialinstrumentsarerecognisedinitiallyonthedatethattheClub Deferredtaxassetsandliabilitiesareascertainedbasedontemporarybecomes party to the contractual provisions of the instrument.differences arising between the tax bases of assets and liabilities and theirOn initial recognition, all financial instruments are measured at fair value carryingamountsinthefinancialstatements.Deferredtaxassetsalsoplus transaction costs (except for instruments measured at fair value through result where amounts have been fully expensed but future tax deductionsprofit or loss where transaction costs are expensed as incurred).are available.No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, whereFinancial assetsthere is no effect on accounting or taxable profit or loss. All recognised financial assets are subsequently measured in their entirety Deferred tax assets and liabilities are calculated at the tax rates that areat either amortised cost or fair value, depending on the classification of the expected to apply to the period when the asset is realised or the liability isfinancial assets.settled, based on tax rates enacted or substantively enacted at the end ofClassificationthe reporting period.Their measurement also reflects the manner in whichOn initial recognition, the Club classifies its financial assets into the following management expects to recover or settle the carrying amount of the relatedcategories, those measured at:asset or liability.Deferred tax assets relating to temporary differences and unused tax losses areamortised costrecognised only to the extent that it is probable that future taxable profit will befair value through profit or loss - FVTPLavailable against which the benefits of the deferred tax asset can be utilised. fair value through other comprehensive income - equity instrument (FVOCI Current tax assets and liabilities are offset where a legally enforceable- equity)right of set-off exists and it is intended that net settlement or simultaneousfair value through other comprehensive income - debt investments (FVOCI realisation and settlement of the respective asset and liability will occur. - debt)Deferred tax assets and liabilities are offset where a legally enforceableFinancial assets are not reclassified subsequent to their initial recognition right of set-off exists, the deferred tax assets and liabilities relate to incomeunless the Club changes its business model for managing financial assets.taxes levied by the same taxation authority on either the same taxableAmortised costentity or different taxable entities, where it is intended that net settlement orAssets measured at amortised cost are financial assets where:simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred taxthe business model is to hold assets to collect contractual cash flows; andassets or liabilities are expected to be recovered or settled. the contractual terms give rise on specified dates to cash flows are solely (b) Inventories payments of principal and interest on the principal amount outstanding.Inventories are measured at the lower of cost and net realisable value.The Clubs financial assets measured at amortised cost comprise trade and (c) Property, Plant and Equipment other receivables and cash and cash equivalents in the statement of financial Freehold land and buildings are shown at their fair value (being the amountposition.for which an asset could be exchanged between knowledgeable willingSubsequent to initial recognition, these assets are carried at amortised cost parties in an arms length transaction), based on periodic valuations byusing the effective interest rate method less provision for impairment.external independent valuers, less subsequent depreciation for buildings. Interest income and impairment are recognised in profit or loss. Gain or loss Increases in the carrying amount arising on revaluation of land and buildingson derecognition is recognised in profit or loss.arecreditedtoarevaluationsurplusinothercomprehensiveincome.Fair value through other comprehensive incomeDecreases that offset previous increases of the same asset are chargedTheClubsinvestmentsinequityinstrumentsnotheldfortradinghave against revaluation surpluses directly in other comprehensive income; allbeen designated as fair value through other comprehensive income. The other decreases are charged to the profit and loss account. movement in fair value on equity instruments is accumulated in the financial Anyaccumulateddepreciationatthedateofrevaluationiseliminatedassets reserve.against the gross carrying amount of the asset and the net amount isDividend revenue received on underlying equity instruments investment is restated to the revalued amount of the asset. recognised in profit or loss.Plant and Equipment Financial assets through profit or lossPlant and equipment are measured on the cost basis less accumulatedThe Club did not have any financial assets at fair value through profit or loss depreciation and impairment losses. during the financial year.14NSW Masonic Club October 2021'