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

h) Inventories

Inventories are measured at the lower of cost and net realisable value. No provision has been made for slow moving inventory, but shall be accounted for if required.

i)

Course Redevelopment Expenditure

Expenditure incurred on redevelopment of the course is recognised as an expense in the profit and loss statement as incurred, unless it is capital in nature, in which case it is capitalised in accordance with the capital expenditure definition.

j)

Construction - Work In Progress

Construction work in progress is stated at the aggregate of contract costs incurred to date and included if applicable, as part of Property, Plant & Equipment.

k)

Cash and cash equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

l) Comparative Figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

m)

Leases - Right of Use Assets

The Change to AASB 16: "Leases" became applicable from 1 January 2019 for Leases with more than 12 months remaining. This has an impact on the previously noted Operating Leases the Club holds for Golf Carts and Course Equipment This has involved the initial transaction to bring on a lease liability discounted to the present value of the remaining lease payments at the commencement date. The interest rate used for the new leases in 20222023 is 5.88% (2021-2022: 2.45%), which is the interest rate applicable to the newest bank contract entered into during the year. Interest and principal are applied on an incremental basis for the remaining life of the lease.A corresponding Right-of-use Asset is to be recorded in the Balance Sheet based on the value of the lease liability recorded. This Right-of-use Asset is depreciated over the lease term or in a straight line basis over the useful life of the asset, whichever is the shortest.

n) Other Income - Government Incentives

During the 2022 - 2023 year, the Club received wage subsidies for the employment of apprentices amounting to $66,489 (2021 - 2022: $30,160).

Glenelg Golf Club Incorporated Notes To And Forming Part Of The Accounts For The Period Ended 31 March 2023

NOTE 2 - CASH & CASH EQUIVALENTS

The effective interest rate on short-term bank deposits was 0.01% (2021-2022: 0.01%); these deposits have an average maturity of 20 days.

The Heritage Fund holds funds donated and bequeathed to the Club for specific projects that are identified and approved by the Committee of Management these funds are not available for funding operational activities.

Reconciliation of Cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to items in the balance sheet as follows:

NOTE 3 - TRADE & OTHER RECEIVABLES

NOTE 4 - INVENTORIES

NOTE 5 - FINANCIAL ASSETS

Per changes to Accounting standard AASB 9 in relation to Financial Instruments, the shares held in Glenelg Golf Links Ltd are now recognised at balance date at Fair Value, with the value being based on the last sale price recorded. The last sale price recprded was in 2022/2023 at $280.00 per share (2019 $302.00 per share) the revaluation of these shares is carried through Other Comprehensive income and a reserve on the Balance Sheet.