b'NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2023 The Club uses the presumption that a financial asset is in default when: Revenue is recognised by applying a five-step model as follows:the other party is unlikely to pay its credit obligations to the Club in full,1. Identify the contract with the customer;without recourse to the Club to actions such as realising security (if any2. Identify the performance obligations;is held); or 3. Determine the transaction price;the financial asset is more than 90 days past due. 4. Allocate the transaction price to the performance obligations; andCredit losses are measured as the present value of the difference between5. Recognise revenue as the performance obligations are satisfied. the cash flows due to the Club in accordance with the contract and the cashAccommodation revenueflows expected to be received. This is applied using a probability weightedAccommodation revenue is recognised at the point in time services are approach. On derecognition of a financial asset measured at amortisedprovided to the guest.cost, the difference between the assets carrying amount and the sum of the consideration received and receivable is recognised in profit or loss. Room hire revenueTrade receivables (and contract assets) Other room hire is recognised at the time service is provided to the hirer.Impairment of trade receivables and contract assets have been determinedFood and beverage salesusingthesimplifiedapproachinAASB9whichusesanestimationofFood and beverage sales are recognised at the time the goods are delivered lifetime expected credit losses. The Club has determined the probability ofto the customer, being the point of sale. Income received in advance of the non-payment of the receivable and contract asset and multiplied this by thedate of food and beverage consumption is deferred.amount of the expected loss arising from default. Membership subscription revenueThe amount of the impairment is recorded in a separate allowance accountMembership income is recognised over time, through the period to which with the loss being recognised in the statement of profit or loss. Once thethemembershiprenewalrelates.Anymembershipsubscriptionrevenue receivable is determined to be uncollectable then the gross carrying amountrelating to periods beyond the current financial year is carried forward in the is written off against the associated allowance. Statement of Financial Position as income received in advance.Other financial assets measured at amortised cost Lease incomeImpairmentofotherfinancialassetsmeasuredatamortisedcostareLease income from the tenanted shops is recognised on a straight line basis determinedusingtheexpectedcreditlossmodelinAASB9.Oninitialover the term of the lease.recognition of the asset, an estimate of the expected credit losses for theInterest revenuenext 12 months is recognised. Where the asset has experienced significantInterest revenue is recognised using the effective interest rate method.increase in credit risk then the lifetime losses are estimated and recognised.Financial liabilities Dividend incomeThe Club measures all financial liabilities initially at fair value less transactionDividend revenue is recognised when the right to receive a dividend has been costs, subsequently financial liabilities are measured at amortised cost usingestablished.the effective interest rate method. Compensation payments receivedThe financial liabilities of the Club comprise trade and other payables. Compensationpaymentsarepaymentsreceivedfromthirdpartiesto (e) Impairment of Assets compensate for works occurring on and around the Clubs premises. These At the end of each reporting period, the Club assesses whether there is anypayments are recognised as income when it is received or when the right to indication that an asset has been impaired.If such an indication exists, anreceive payment is established.impairment test is carried out on the asset by comparing the recoverable(j) Goods and Services Tax (GST)amount of the asset, being the higher of the assets fair value less costs to sellRevenues, expenses and assets are recognised net of the amount of GST, and value in use to the assets carrying value. Any excess of the assets carryingexceptwheretheamountofGSTincurredisnotrecoverablefromthe value over its recoverable amount is expensed to the profit and loss account. Australian Taxation Office. In these circumstances, the GST is recognised Where it is not possible to estimate the recoverable amount of an individualas part of the cost of acquisition of the asset or as part of an item of the asset, the Club estimates the recoverable amount of the cash-generating unitexpense.Receivables and payables in the statement of financial position to which the asset belongs. are shown inclusive of GST.(f) Employee Benefits 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 Provision is made for the Clubs liability for employee benefits arising fromdisclosed as operating cash flows.services rendered by employees to balance date. Employee benefits that(k) Comparative Figuresare expected to be settled within one year have been measured at theWhere required by Accounting Standards, comparative figures have been amounts expected to be paid when the liability is settled. Employee benefitsadjusted to conform to changes in presentation for the current financial year.payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those benefits. In determining20232022the liability, consideration is given to employee wage increases and the$$probability that the employees may not satisfy vesting requirements. ThoseNOTE 2: REVENUE AND OTHER INCOMEcash flows are discounted using market yields on corporate bonds withProvision of accommodation services4,713,5031,661,330terms to maturity that match the expected timing of cash flows. Commissions paid(590,827)(186,872)(g) Provisions Net accommodation revenue4,122,6761,474,458ProvisionsarerecognisedwhentheClubhasalegalorconstructiveSales of food and beverage1,030,676580,690obligation, as a result of past events, for which it is probable that an outflowRent received181,55158,163of economic benefits will result and that outflow can be reliably measured. Members subscriptions44,65845,825Provisions are measured using the best estimate of the amounts required toRoom hire195,717104,340settle the obligation at reporting date. Interest received36,9633,397(h) Cash and Cash Equivalents Dividends received30,14521,943Cash and cash equivalents include cash on hand, deposits held at call withCompensation payments received218,064368,145banks, other short-term highly liquid investments with original maturities ofOther 22,3671,107three months or less, and bank overdrafts. Bank overdrafts are shown withinTotal revenue5,882,8172,658,068short-term borrowings in current liabilities on the statement of financial position. Other (expense)/income:(i) Revenue Recognition Net gain on disposal of investments 26,46250,110Revenue from contracts with customers Other comprehensive income: The core principle of AASB 15 is that revenue is recognised on a basisNet loss on available-for-sale financial assetsthat reflects the transfer of promised goods or services to customers atat fair value (after tax effect)(19,817) (60,287)an amount that reflects the consideration the Club expects to receive in exchange for those goods or services.Net loss on fair value of financial assets has been determined with reference to the market value of the investments at reporting date. October 2023 NSW Masonic Club15'