b'NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2022Going Concern (continued) Thecarryingamountofplantandequipmentisreviewedannuallyby The Directors believe there are reasonable grounds to conclude the Club willdirectors to ensure it is not in excess of the recoverable amount from these continue as a going concern on the basis of the following: assets. The recoverable amount is assessed on the basis of the expected The Club has experienced strong trading conditions towards the end ofnetcashflowsthatwillbereceivedfromtheassetsemploymentand the 2022 financial year, with record occupancy and strong revenues as asubsequent disposal. The expected net cash flows have been discounted to result. The Club expects these conditions to continue throughout the earlytheir present values in determining recoverable amounts.period of the 2023 financial year; Repairs and maintenance are charged to the profit and loss account during The Club maintains significant balances of term deposit cash and liquidthe financial period in which they are incurred.equity investments on which to draw, if required and DepreciationThe Club holds no external debt, and as such, no debt servicing obligations. The depreciable amount of all fixed assets including buildings and capitalised Accounting Policies lease assets, but excluding freehold land, is depreciated on a straight-line basis (a) Income Tax over the assets useful life to the Club commencing from the time the asset is The income tax expense/(benefit) for the year comprises current income taxheld ready for use. Depreciation is recognised in the profit and loss account.expense/ (benefit) and deferred tax expense/(benefit). The depreciation rates used for each class of depreciable assets are:Current income tax expense charged to the profit or loss is the tax payableClass of Fixed AssetDepreciation Rateon taxable income calculated using applicable income tax rates enacted,Buildings1.0% - 2.5%or substantially enacted, as at the end of the reporting period. Current taxPlant & Equipment10.0%33.3%liabilities/(assets) are therefore measured at the amounts expected to beThe assets residual values and useful lives are reviewed, and adjusted if paid to/(recovered from) the relevant taxation authority. appropriate, at the end of each reporting period.Deferred income tax expense reflects movements in deferred tax asset andAn assets carrying amount is written down immediately to its recoverable deferred tax liability balances during the year as well as unused tax losses. amountiftheassetscarryingamountisgreaterthanitsestimated Current and deferred income tax expense/(income) is charged or creditedrecoverable amount.outside the profit and loss when the tax relates to items that are recognisedGainsandlossesondisposalsaredeterminedbycomparingproceeds outside the profit and loss. with the carrying amount. These gains and losses are included in the profit Deferredtaxassetsandliabilitiesareascertainedbasedontemporaryand loss account. When revalued assets are sold, amounts included in the differences arising between the tax bases of assets and liabilities and theirrevaluation surplus relating to that asset are transferred to retained earnings.carryingamountsinthefinancialstatements.Deferredtaxassetsalso(d) Financial Instrumentsresult where amounts have been fully expensed but future tax deductionsFinancialinstrumentsarerecognisedinitiallyonthedatethattheClub are available. No deferred income tax will be recognised from the initialbecomes party to the contractual provisions of the instrument.recognition of an asset or liability, excluding a business combination, whereOn initial recognition, all financial instruments are measured at fair value there is no effect on accounting or taxable profit or loss. plus transaction costs (except for instruments measured at fair value through Deferred tax assets and liabilities are calculated at the tax rates that areprofit or loss where transaction costs are expensed as incurred).expected to apply to the period when the asset is realised or the liability isFinancial assetssettled, based on tax rates enacted or substantively enacted at the end ofAll recognised financial assets are subsequently measured in their entirety the reporting period. Their measurement also reflects the manner in whichat either amortised cost or fair value, depending on the classification of the management expects to recover or settle the carrying amount of the relatedfinancial assets.asset or liability.Deferred tax assets relating to temporary differences and unused tax losses areClassificationrecognised only to the extent that it is probable that future taxable profit will beOn initial recognition, the Club classifies its financial assets into the following available against which the benefits of the deferred tax asset can be utilised. categories, those measured at:Current tax assets and liabilities are offset where a legally enforceableamortised costright of set-off exists and it is intended that net settlement or simultaneousfair value through profit or loss - FVTPLrealisation and settlement of the respective asset and liability will occur.fair value through other comprehensive income - equity instrument (FVOCI Deferred tax assets and liabilities are offset where a legally enforceable- equity)right of set-off exists, the deferred tax assets and liabilities relate to incomefair value through other comprehensive income - debt investments (FVOCI taxes levied by the same taxation authority on either the same taxable- debt)entity or different taxable entities, where it is intended that net settlement orFinancial assets are not reclassified subsequent to their initial recognition simultaneous realisation and settlement of the respective asset and liabilityunless the Club changes its business model for managing financial assets.will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled. Amortised cost(b) Inventories Assets measured at amortised cost are financial assets where:Inventories are measured at the lower of cost and net realisable value.the business model is to hold assets to collect contractual cash flows; and(c) Property, Plant and Equipment the contractual terms give rise on specified dates to cash flows are solely Each class of property, plant and equipment is carried at cost or fair valuepayments of principal and interest on the principal amount outstanding.asindicatedless,whereapplicable,anyaccumulateddepreciationandThe Clubs financial assets measured at amortised cost comprise trade and impairment losses. other receivables and cash and cash equivalents in the statement of financial Land and Buildings position.Freehold land and buildings are shown at their fair value (being the amountSubsequent to initial recognition, these assets are carried at amortised cost for which an asset could be exchanged between knowledgeable willingusing the effective interest rate method less provision for impairment.parties in an arms length transaction), based on periodic valuations byInterest income and impairment are recognised in profit or loss. Gain or loss external independent valuers, less subsequent depreciation for buildings. on derecognition is recognised in profit or loss.Increases in the carrying amount arising on revaluation of land and buildingsFair value through other comprehensive incomearecreditedtoarevaluationsurplusinothercomprehensiveincome.TheClubsinvestmentsinequityinstrumentsnotheldfortradinghave Decreases that offset previous increases of the same asset are chargedbeen designated as fair value through other comprehensive income. The against revaluation surpluses directly in other comprehensive income; allmovement in fair value on equity instruments is accumulated in the financial other decreases are charged to the profit and loss account. assets reserve.AnyaccumulateddepreciationatthedateofrevaluationiseliminatedDividend revenue received on underlying equity instruments investment is against the gross carrying amount of the asset and the net amount isrecognised in profit or loss.restated to the revalued amount of the asset.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 2022'