GLENELG GOLF CLUB INCORPORATED

Notes To And Forming Part Of The Accounts For The Period Ended 31 March 2023

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Associations Incorporations Act of South Australia.

The financial report covers the consolidated entity of Glenelg Golf Club Inc (Club) as the individual controlling entity and the controlled entity, Glenelg Golf Links Limited (GGL) incorporated and domiciled in Australia.

The financial report of Glenelg Golf Club Inc and the controlled entity and Glenelg Golf Club Inc as an individual controlling entity comply with all Australian equivalents to International Financial Reporting Standards (IFRS) in their entirety except where compliance is not mandatory for non-corporate entities.

The financial report has been prepared on an accrual basis and is based on historical costs and does not take into account changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair values of the consideration given in exchange for assets.

The principal continuing activity of the Club consisted of:

- providing a golf course for member and social play; and

- providing bar and dining facilities in the clubhouse

The following is a summary of the material accounting policies adopted by the consolidated entity in preparation of the financial report. The accounting policies have been consistently applied unless otherwise stated.

a) Principles of Consolidation

The Club controls the share capital of Glenelg Golf Links Limited. The consolidated accounts incorporated the assets and liabilities of Glenelg Golf Links Limited as at 31 March 2023 and the results of GGL for the period then ended. The effects of all transactions between the Club and GGL are eliminated in full. Outside equity interests in the results and group equity are shown separately in the consolidated profit and loss account and balance sheet respectively.

The cost of acquiring shares in Glenelg Golf Links Limited have been accounted for as an interest in the land owned by that company and reflected accordingly.

b) Financial Instruments

Financial assets and liabilities are initially recognised when the Club becomes a party to the contractual provisions to the instrument. For Financial assets, this is the date that the Club commits itself to the purchase or sale of the asset.

Financial assets are initially measured at fair value, where the values in an active market are used to determine the value.

A financial asset can be subsequently measured in three ways; amortised cost, fair value through other comprehensive income, or fair value through profit and loss.

A financial asset is subsequently measured at fair value through other comprehensive income as it is irrevocably designated by Committee of Management (note 17b) to be treated in this way, with fair value adjustments to be made against a reserve in equity.

As the value of the shares do not impact the business operating performance, the fair value adjustment need not impact operating surplus/deficit.

A financial liability can be measured at amortised cost or at fair value through the Profit and Loss. In relation to the Club's loan and Commercial Bill facilities they are measured at the amortised cost and the effective interest rate method is applied.

This means the interest costs related to the debt are expensed in the Profit and Loss over the relevant period. Changes to accounting standard AASB 9 have impacted the way that the Glenelg Golf Link Limited shares are to be reported in the 2019-2020, and all future Financial reports. Previously shares had been recorded at purchase price.

c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost less, where applicable, any accumulated depreciation and impairment losses.