Yarraville Club Annual Report 2017

2017 Annual Report

Your Community. Your Club.

On behalf of the Board of Directors, Management and Staff, we would like to wish all our Members a Safe and Happy Christmas and a Prosperous New Year.

We look forward to once again welcoming you back to the Yarraville Club in 2018.

Chairman’s Report th

It gives me great pleasure to table the Clubs 111 Annual Report. I am happy to say that the Club is meeting all its operational and financial commitments, is trading in the black, and is continuing to support the local community with community benefits either in cash or in kind which in total equal $749,881.

The club successfully relocated the Snooker Club to a new location just down the street at 175D Stephen Street Yarraville. The snooker club has rebranded itself as the Snooker & Billiards Academy which is gaining attention and interest from the local community and is also the home of the Victorian Billiards & Snooker Association.

Whilst the snooker club continues to enjoy the financial support from the Yarraville Club, it is showing that it has the ability to become self-sufficient. It is also enjoying the financial benefits of major sponsorship from the Reventon Group. The Academy is well run by its own committee and is a standalone professional facility we can all be proud of.

The Club also successfully established the sports bar lounge facility with a huge TV screen and directional overhead sound system to rival the best in the west. This room witnessed attendees in excess of 200 on each occasion both for the AFL Grand Final and the Melbourne Cup. The new sports lounge is truly within keeping of our vision and 10 year master plan to provide amenities that allow members and the local community to come together to socialise. I attended the grand final screening at the club and witnessed firsthand how members and non-members from our community came together and enjoyed a first class facility. I was truly proud to call the Yarraville Club – my Club.

In keeping with working on the 10 year master plan, the old atrium room was remodelled and reopened in June as Bar 135. The bar and parquetry floor was re sanded to reveal its’ original timber specie. The walls were recovered with ornate wall paper and a beautiful crystal chandelier commands the presence of the room. The sum of all these modifications has created a sophisticated night time bar for the discerning member wanting to relax in a beautiful amenity and enjoy a special cocktail or whisky.

The outdoor alfresco project has currently hit a snag with the Maribyrnong council. They rejected our proposal to build the outdoor area. As such we had no choice but to fight the rejection at VCAT. The matter is before VCAT and we cannot say anymore until Councils issues are resolved. It is greatly disappointing on two fronts. One that council did not see fit to discuss the matter with us before it unilaterally rejected our proposal. We are a community club - some degree of collaboration was wanting here. Two, VCAT is a legal forum and a costly place to resolve issues. We are a community club and are loath to spend money on lawyers when that money could be best spent in the community. Our overriding objective is to protect and isolate the Clubs existing rights and not to reduce these to accommodate any new conditions that may be asked or imposed to get the project approved. We will ensure that the best outcome is achieved for the club at VCAT. Once the alfresco issue is resolved, (one way or the other) it will be back to the master plan to look at the function room and the elephant in the room, (The car park or lack of proper parking facilities). As I said in the 2014 and 2015 annual reports” The redevelopment of the club will entail the design of the Clubs’ master plan. It is a holistic exercise that flows from the vision to the physical layout of the Club”. We have made progress to that end with the sports bar lounge, Bar 135 and the snooker Academy. The Alfresco is now the main focus. The hard task will be the car park. That will be a huge financial undertaking. The hard decisions need to be made. We will make them.

I have a strong cohesive board. At board meetings and especially at our strategic meetings, we dare to dream.

We explore, argue, discuss, debate, disagree and agree. We are open, honest, friendly, respectful and engaging.

The Yarraville Club board is made of the right stuff. We engage in good board governance ensuring the best outcomes are achieved for our members.

I would like to thank our management team headed by Chris Byrne, Scott Phillips and Rita Looke. I would like to thank the continued hard work given by our Vice Chairman, Mr Domenic Kennedy, Directors Aaron Mahoney, Ryan Ebert and Jules Brooke.

Also, to all the members of the club, a huge thank you for being supportive of your club. Please continue to frequent the club and always engage in referring your family and friends to become members.

I wish you all a joyous Christmas, and a happy and safe holiday season.

Yours sincerely,

John Papazisis

Manager’s Report

On behalf of our Board of Directors, management and staff, I thank you for your continued patronage and loyalty to your club. As another financial year has closed, it is my pleasure to submit the Annual Report for the year ended June 30, 2017.

Financially, we have reported another strong result. Whilst we are a not for profit organisation, I continually remind members that it is important for us to continue to remain profitable so that we can re-invest in Club facilities and community outcomes. This year our operating profit was (EBITDA) of $1,593 million before provisions and finance costs and a nett profit of $235,014.

This year’s achievements included the opening of our refurbished Atrium area with the new name Bar135.

As many members would also be aware, we relocated our Snooker Room to a new premise at 175D Stephen Street (200 metres down the street). This relocation has seen the snooker room increase from 6 to 8 tables and is also now the home of the Victorian Billiards & Snooker Association.

Snooker Club

membership is now in growth and I continually receive positive feedback from the members about this new space.

I would like to personally thank Jason Colebrook and George Hoy, along with the Snooker Club

committee for their great work in what is now one of Australia’s leading Snooker and Billiards rooms.

With the relocation of the Snooker & Billiards room, the Club has now been able to make more space for members within the club house.

Many members will have seen the new space with the huge video wall

and modernised TAB space. If you haven’t seen it yet, drop in and have a look.

Success is only achieved through great people and great relationships. Our Board, led by John Papazisis and our management team have worked cohesively to develop a relationship of trust and partnership allowing us to align on the key priorities to drive business performance. I am proud of our teamwork at the Yarraville Club and fully recognise it is the great work and of the staff that happens throughout our Club that allows us to continue to succeed.

As I have stated in the past, ‘our people make the difference’. I know that talented, committed team members and managers are a very important part of the equation – we are blessed to have this team. Our focus as always, is still looking after our members, and your club and the community that we serve.

Finally, my thanks to all members for their support and friendship over the past 12 months. The Yarraville Club is much more than bricks and mortar. Our Club is all about the people and I am very grateful for your support. I trust you will see that this report confirms the commitment of the Yarraville Club to its members and the wider community.

Yours sincerely,

Christopher J. Byrne

2017 – Our Year In Review “Community Snapshot 2017” In 2016/2017, Yarraville Club continued it’s commitment to the local community by providing support through sponsorships, donations and grants. Yarraville Club also provides facilities for clubs and community groups to meet and hold functions on a regular basis.

Functions & Fundraising Support In May this year, Yarraville Club together with our caterers, Pekish hosted the 2017 Bendigo Bank Community Pitch. Local community groups took part in the pitch shared and they shared in over $21,000 worth of community donations provided by local businesses, including Yarraville Club.

This year 18 inner-west community groups pitched their causes and were given 3 minutes on stage to tell the businesses why they were seeking funds for various projects.

Willing Older Workers offers emotional and practical support to mature-aged unemployed and underemployed workers and their families. Their pitch was all about trying to raise funds to be able to add phone & internet services at their office. Yarraville Club provided funds to help out Marilyn and her team, so that this could become a reality for them all and they could communicate with all the people that needed their help.

Some of the organisations that we have helped during the year include: • • • • • • • • • • • • • • • •

Rotary Club of Yarraville Yarraville Gardens Christmas Carols Operation Plum Pudding Run For Hope 2017 Very Special Kids Piggy Bank Appeal Lifestyle For Kids Footscray Yarraville City Band Hyde Street Kindergarten Tomorrow Foundation Anglicare Christmas Tree Appeal 20th Man Foundation Footscray West Primary School Yarraville Community Kindergarten Wembley Primary School Local Aged Care Facilities Willing Old Workers

Sporting Club Support We continue our sponsorships of local Sporting Clubs again this year, which has assisted them with their end of season functions, presentation nights, and fund-raising events.

Some of these clubs include: Western Region Football League Yarraville Club Golf Club Yarraville Seddon Eagles Yarraville Club Snooker & Billiards Club Australian Billiards & Snooker Council Victorian Billiards & Snooker Association

General Community Support The Yarraville Club have been hosting Community Group catch-ups and training sessions which allows these groups to be able to meet up in a comfortable and safe environment.

U3A Computer Training, Money Talk Groups, and just recently we have welcomed Tai Chi on Monday mornings. The ladies needed somewhere warm and out of the elements of winter to continue their Tail Chi and Yarraville Club have offered a space for them to catch up when the weather is not favourable to outdoor activities.

The Community Bus continues to be popular with Members of the Club as well as school groups and seniors groups that need to hire the bus for their social activities.

Members Community Benefits Yarraville Club Members continue to enjoy special occasions put on by the Club through-out the year.

This year we have successfully hosted Grand Final Day BBQ & Cup Day and Spring Racing Carnival in our new Sports Lounge which has a giant sized TV and plenty of space for our Members to sit and enjoy the relaxed environment in this new area. Yarraville Club are also proud to have recently opened BAR 135, a wine bar/cocktail bar which is a little more laid back and can be just the place for a quiet drink before or after a meal or one of our live shows. We continue to provide Members a safe and enjoyable place to come to eat drink, or just catch-up with family and friends.

Events & Entertainment

Our events and entertainment continue to bring people into the Club to enjoy a diverse range of entertaining activities for young and old.

This year for the first time, we had Lion Dancers for Chinese New Year which was quite a spectacle and drew a large crowd and was enjoyed by all who came along for the performance.

The Club plan to keep bringing in new forms of entertainment and events to attract all demographics.

Families are catered for with our School Holidays Programmes which will continue next year with new and exciting events to be added. We will continue providing entertainment including: • • • •

Morning Melodies School Holiday Programme Halloween Face Painting Yarraville Live & Yarraville Laughs Shows

Yarraville Club Sub Clubs & Groups We continue our support of local sub-groups by accommodating them to use our facilities. This is a great way to help these community groups continue to catch-up and socialise with each other. These groups include Indoor Bowls, Euchre, Children’s Chess.

By continuing our support via sponsorships, donations and making or facilities available, we are proud to work closely with the Communities in the area to develop successful partnerships and look forward to continuing this into 2018.

report

ADVANCED ACCOUNTANTS RTM PTY LTD ACN 603 839 694 ABN 53 603 839 694

Ph: F: E: W: A: Po:

+617 3272 7027 +617 3319 6721 rtm@advancedaccountants.com.au www.advancedaccountants.com.au 19 Abney Street MOOROOKA Qld 4105 PO Box 3080 SUNNYBANK SOUTH Qld 4109

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF

YARRAVILLE CLUB INCORPORATED Incorporation No. A0021290X ABN 52 802 171 641 REPORT on Audit of the Financial Report

Opinion We have audited the financial report of Yarraville Club Incorporated (the association), which comprises the Statement of Financial Position as at 30 June 2017, Statement of Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information. , and the certification by members of the committee on the annual statements giving a true and fair view of the financial position and performance of the association.

In our opinion, the accompanying financial report of Yarraville Club Incorporated is in accordance with the Associations Incorporation Reform Act 2012 (Vic), including: i.

giving a true and fair view of the association's financial position as at 30 June 2017 and of its financial performance for the year then ended; and

ii.

that the financial records kept by the association are such as to enable financial statements to be prepared in accordance with Australian Accounting Standards.

Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the association in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110: Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter – Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared to assist the association to meet the requirements of the the Associations Incorporation Reform Act 2012 (Vic). As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter.

Responsibilities of the Board for the Financial Report The Board is responsible for the preparation and fair presentation of the financial report in accordance with the financial reporting requirements of the Associations Incorporation Reform Act 2012 (Vic) and for such internal control as the Board determines is necessary to enable the preparation and fair presentation of a financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the committee is responsible for assessing the association’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the committee either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.

Accounting

Audit page 1 of 2

Advice

report

AUDITOR’S Responsibilities for the Audit of the Financial Report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report.

As part of an audit in accordance with Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: •

Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the association’s internal control.

•

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the committee.

•

Conclude on the appropriateness of the committee’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the association to cease to continue as a going concern.

•

Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.

We communicate with the committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Auditor’s name and signature:

Robert White Registered Company Auditor (# 5902) Registered SMSF Auditor (# 100211005) Public Accountant (MIPA # 222132)

Name of firm:

Advanced Accountants RTM Pty Ltd

Dated:

18 September 2017

Page 2 of 2

page 2 of 2

YARRAVILLE CLUB INC. STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

Revenue Revenue from Operating Activities Revenue from Non-Operating Activities

(2) (2a) (2b)

5,275,710 49,789

4,787,608 87,932

Expenses Cost of Sales Employee Expenses Finance Costs Operational Expenses

(3) (3a) (3b) (3c) (3d)

(413,855) (868,460) (303,860) (2,424,848)

(405,323) (801,230) (275,360) (2,237,781)

1,314,476

1,155,846

(1,071,073)

(994,666)

243,403

161,180

(8,389)

(5,509)

Net Result for the Period After Income Tax Expense

235,014

155,671

Comprehensive Result for the Period

235,014

155,671

Net Result Before Capital & Specific Items Capital & Specific Items Depreciation & Amortisation Expense

(4) (4a)

Net Result Before Income Tax Income Tax Expense

The accompanying notes form part of these financial statements

YARRAVILLE CLUB INC. STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 Note CURRENT ASSETS Cash & Cash Equivalents Trade & Other Receivables Inventories Other Assets

2017 $

(6) (7)

2016 $

272,255 22,223 62,015 2,331

305,700 18,820 46,097 2,015

358,824

372,632

2,465,000 11,563,856 2,212,457 75,988 223,018

2,465,000 11,226,104 2,578,784 53,709 231,407

TOTAL NON-CURRENT ASSETS

16,540,319

16,555,004

TOTAL ASSETS

16,899,143

16,927,636

383,913 40,217 1,109,477 171,283

399,340 35,295 624,143 727,951

1,704,890

1,786,729

9,244 4,672,904 -

14,464 4,678,069 171,283

TOTAL NON CURRENT LIABILITIES

4,682,148

4,863,816

TOTAL LIABILITIES

6,387,038

6,650,545

10,512,105

10,277,091

6,592,136 3,919,969

6,592,136 3,684,955

10,512,105

10,277,091

(7a)

TOTAL CURRENT ASSETS NON-CURRENT ASSETS Investment Properties Property, Plant & Equipment Intangible Assets Other Financial Assets Deferred Tax Asset

(8) (9) (10) (11) (5)

CURRENT LIABILITIES Trade & Other Payables Employee Benefits Interest Bearing Liabilities Other Financial Liabilities

(12) (13) (14) (15)

TOTAL CURRENT LIABILITIES NON CURRENT LIABILITIES Employee Benefits Interest Bearing Liabilities Other Financial Liabilities

(13) (14) (15)

NET ASSETS EQUITY Reserves Retained Earnings

TOTAL EQUITY Contingent Assets & Liabilities Commitments to Expenditure

(16) (17)

The accompanying notes form part of these financial statements

YARRAVILLE CLUB INC. STATEMENT OF CHANGES IN EQUITY AS AT 30 JUNE 2017

Retained Earnings $ 2017 Balance at beginning of year Net Result for Year

3,684,955 235,014

Asset Revaluation Reserve (Land) $

5,538,500

Asset Revaluation Reserve ( Buildings &Site (Improvements) $

1,053,636

-

-

TOTAL $

10,277,091 235,014

Other Comprehensive Income

-

-

-

-

Revaluation Increment/(Decrement)

-

-

-

-

Transfer from/to Reserve

-

-

-

-

Balance at end of year

3,919,969

Retained Earnings $ 2016 Balance at beginning of year Net Result for Year

3,529,284 155,671

5,538,500

Asset Revaluation Reserve (Land) $

5,538,500

TOTAL $

10,121,420

-

-

155,671

-

-

-

Revaluation Increment/(Decrement)

-

-

Transfer from/to Reserve

-

-

3,684,955

Asset Revaluation Reserve ( Buildings &Site (Improvements) $

10,512,105

1,053,636

Other Comprehensive Income

Balance at end of year

1,053,636

5,538,500

-

-

1,053,636

The accompanying notes form part of these financial statements

-

10,277,091

YARRAVILLE CLUB INC. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Note

2017 2016 $

2016 2015 $

CASH FLOW FROM OPERATING ACTIVITIES Receipts From Gaming Receipts From Customers & Members Interest Received Finance Costs Paid Payments for Employees Other Payments GST Received Paid to ATO

4,393,829 1,556,362 1,175 (303,860) (868,758) (3,137,661) (308,880)

3,954,325 1,461,199 1,205 (258,712) (797,669) (2,771,503) (275,578)

1,332,207

1,313,267

Payment for Other Financial Assets Proceeds from Disposal of Property, Plant and Equipment Payment for Property, Plant and Equipment

(22,595) 9,823 (1,105,098)

(1,077) (2,126,746)

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

(1,117,870)

(2,127,823)

Repayment of Gaming Entitlements Net Proceeds/(Repayments) of Borrowings

(727,951) 263,040

(613,018) 1,424,506

NET CASH INFLOW/(OUTFLOW) FROM FINANCING ACTIVITIES

(464,911)

811,488

NET INCREASE/(DECREASE) IN CASH HELD Cash and Cash Equivalents at Beginning of Period

(250,574) 155,829

(3,068) 158,897

(94,745)

155,829

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

(19b)

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOW FROM FINANCING ACTIVITIES

CASH AND CASH EQUIVALENTS AT END OF PERIOD

(19a)

The accompanying notes form part of these financial statements

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial statements cover Yarraville Club Inc. as an individual entity. Yarraville Club Inc. is an association incorporated in Victoria and operating pursuant to the Associations Incorporation Reform Act 2012 .

Basis of preparation The financial statements are general purpose financial statements which have been prepared in accordance with Australian Accounting Standards (including Australian Accounting Interpretations) and the Associations Incorporation Reform Act 2012.

The Association is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

Australian Accounting Standards set out accounting policies that the AASB has concluded would result in financial statements containing relevant and reliable information about transactions, events and conditions to which they apply. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for cash flow information, have been prepared on an accrual basis and are based on historical costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. (a)

Reporting Entity Report The report includes all the controlled activities of The Yarraville Club Inc.

(b)

Rounding Of Amounts All amounts shown in the financial statements are expressed to the nearest $1.

(c)

Cash and Cash Equivalents Cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of 3 months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the Statement of Financial Position.

For the Statement of Cash Flows presentation purposes, cash and cash equivalents includes bank overdrafts, which are included as current borrowings in the Statement of Financial Position.

(d)

Receivables Receivables and other debtors include amounts due from members as well as receivables from customers for goods sold in the ordinary course of business. Receivables expected to be collected within 12 months of the end of the reporting period are classified as current assets.

All other receivables are classified non-current assets.

Receivables are initially recognised at fair value and subsequently measured at amortised cost, using the effective interest rate method, less any provision for impairment.

(e)

Inventories Inventories include goods and other property held either for sale or distribution at no or nominal cost in the ordinary course of business operations. It includes land held for sale and excludes depreciable assets.

Inventories held for distribution are measured at cost, adjusted for any loss of service potential. All other inventories including land held for sale, are measured at the lower of cost and net realisable value.

Bases used in assessing loss of service potential for inventories held for distribution include current replacement cost and technical or functional obsolescence. Technical obsolescence occurs when an item still functions for some or all obsolescence occurs when of the tasks it was originally acquired to do, but no longer matches existing technologies. Functional obsolescence occurs when an item no longer functions the way it did when it was first acquired.

Cost for all other inventory is measured on the basis of weighted average cost.

Inventories acquired for no cost or nominal considerations are measured at current replacement cost at the date of acquisition.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (f)

Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the Association becomes a party to the contractual provisions to the instrument, For financial assets, this is the equivalent to the date that the Association commits itself to either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instrument are initially measured at fair value plus transaction costs except where the instrument is classified 'At fair value through profit or loss', in which case transaction costs are expensed to profit or loss.

Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost.

Amortised cost is calculated as the amount at which the financial asset or financial liability is measured at initial recognition less principal repayments and any reduction for impairment, and adjusted for any cumulative amortisation of the difference between the initial amount and the maturity amount calculated using the effective interest method.

The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that discounts estimated future cash payments or receipts over the expected life of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future cash flows will necessitate an adjustment to the carrying amount with a consequential recognition of income or expense in profit or loss.

Loans and receivables Loans and receivables are financial instrument assets with fixed and determinable payments that are not quoted on an active market.

These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial measurement, loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

Loans and receivables category includes cash and deposits, term deposits with maturity greater than three months, trade receivables, loans and other receivables, but not statutory receivables.

Available-for-sale financial assets Available-for-sale financial assets are those designated as available-for-sale or not classified in any other category of financial instrument asset. Such assets are initially recognised at fair value. Gains and losses arising from changes in fair value are recognised directly in equity until the investment is disposed of or is determined to be impaired, at which time the cumulative gain or loss previously recognised in equity is included in the net result for the period.

(g)

Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment are measured on the cost basis and are therefore carried at cost less accumulated depreciation and any accumulated impairment losses. In the event the carrying amount of plant and equipment is greater than the estimated recoverable amount, the carrying amount is written down to the estimated recoverable amount. A formal assessment of recoverable amount is made when impairment indicators are present.

The cost of fixed assets constructed by the Association includes the cost of materials, direct labour, borrowing costs and an appropriate proportion of fixed and variable overheads.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Association and the cost of the item can be measured reliably. All other repairs and maintenance are recognised in the profit or loss during the financial period in which they are incurred.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (h)

Fair Value of Assets and Liabilities The Association measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard.

Fair value is the price the Association would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date.

As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value.

Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. The fair values of assets and liabilities that are not traded in an active market are determined using one or more valuation techniques. These valuation techniques maximise, to the extent possible, the use of observable market data.

To the extent possible, market information is extracted from the principal market for the asset (i.e. the market with the greatest volume and level of activity for the asset or liability). In the absence of such a market, information is extracted from the most advantageous market available to the entity at the reporting date (i.e. The market maximises the receipts from the sale of the asset or minimises the payment made to transfer the liability, after taking into account transaction costs and transport costs).

For non-financial assets, the fair value measurement also takes into account a market participant's ability to use the asset in its highest and best use, or sell it to another market participant that would use the asset in its highest and best use.

The fair value of liabilities and the Association's own equity instruments (excluding those related to share-based payments arrangements may be valued, where there is no observable market price in relation to the transfer of an identical or similar financial instrument, by reference to observable market information where identical or similar instruments are held as assets. Where the information is not available, other valuation techniques are adopted and, where significant, are detailed in the respective note to the financial statements.

(i)

Depreciation The depreciable amount of all fixed assets, including buildings and capitalised lease assets, is depreciated on a straight-line basis over the asset's useful life commencing from the time the asset is available for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful life of the improvements.

The following table indicates the depreciation rates of non current assets on which the depreciation charges are based.

Buildings Site Improvements Plant & Equipment Office Equipment (j)

2017 2.5% to 40% 2.5% to 40% 5% to 30% 5% to 30%

2016 2.5% to 40% 2.5% to 40% 5% to 30% 5% to 30%

Impairment of Assets At the end of each reporting period, the Association assesses whether there is any indication that an asset may be impaired. The assessment will consider both external and internal sources of information. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less cost of disposal and value-in-use, to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is immediately recognised in profit or loss.

Where the future economic benefits of the asset are not primarily dependent upon the asset's ability to generate net cash inflows and when the Association would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset.

Where it is not possible to estimate the recoverable amount of an individual asset, the Association estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Where an impairment loss on a revalued asset is identified, this is recognised against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that class of asset.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (k)

Comparative Figures Where necessary comparative figures have been reclassified to facilitate comparisons.

(l)

Payables Payables represent the liability outstanding at the end of the reporting period for goods and services received by the Association during the reporting period that remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.

(m) Provisions Provisions are recognised when the Association has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (n)

Goods & Services Tax Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO).

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or payables in the Statement of Financial Position.

Cash flows are represented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to, the ATO are presented as operating cash flows included in receipts from customers or payments to suppliers.

(o)

Employee Benefits Short-term employee benefits Provision is made for the Association's obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service, including wages and salaries. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled.

The Association's obligations for short-term employee benefits such as wages and salaries are recognised as a part of the current trade and other payables in the Statement of Financial Position.

Other long-term employee benefits Provision is made for employees' annual leave entitlements not expected to be settled wholly before 12 months after the end of the annual reporting period in which the employees render the related service. Other long-term employee benefits are measured at the present value of the expected future payments to be made to employees. Expected future payments are measured at present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to end-of-reporting-period market yields or Government bonds that have maturity dates approximating the terms of the obligations. Any remeasurements of other long-term employee benefit obligations due to changes in assumptions are recognised in profit or loss in the periods in which the exchanges occur.

The Association's obligations for long-term employee benefits are presented as non-current provision in the Statement of Financial Position, except where the Association does not have an unconditional right to defer settlement for at least 12 months after the reporting date, in which case the obligations are present as current provisions.

On-Costs Employee benefit on-costs, such as superannuation and workers compensation are recognised together with the provisions for employee benefits.

Superannuation Contributions to contribution superannuation plans are expensed when incurred.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (p)

Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the Association are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amount equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values.

Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is likely that the Association will obtain ownership of the asset or ownership over the term of the lease.

Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses on a straight-line basis over the lease term.

Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

(q)

Borrowings All borrowings are initially recognised at fair value on the consideration received, less directly attributable transaction costs. The measurement basis subsequent to initial recognition depends on, whether the Association has categorised its borrowings as either, financial liabilities designated at fair value through profit and loss, or financial liabilities at amortised cost. Any difference between the initial recognised amount and the redemption value being recognised in net result over the period of the interest bearing liability using the effective interest rate method.

(r)

Income Recognition Revenue is recognised in accordance with AASB 118 Revenue . Income is recognised as revenue to the extent it is earned. Unearned income at reporting date is reported as income in advance.

Amounts disclosed as revenue are, where applicable, net of returns, allowances and duties and taxes.

Gaming Income derived from electronic Gaming Machines is recognised when the cash is received.

Food Income derived for the provision of meals is recognised when the cash is received.

Memberships Membership income is recognised when the cash is received.

Interest Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial asset.

Dividend Revenue Dividend revenue is recognise on the date the shares are quoted ex-dividend and, if not received at the end of the reporting period, is reflected in the Statement of Financial Position as a receivable at net market value.

Other Income Other income is recognised as revenue when the cash is received.

(s)

Property, Plant & Equipment Revaluation Reserve The asset revaluation reserve is used to record increments and decrements on the revaluation of non-current assets.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (t)

Income Tax The Association calculates its liability to tax by applying the Mutuality Principle. The charge for the current income tax expenses is based on the profit for the year adjusted for any non-assessable or disallowed items. It is calculated using the applicable income tax rates enacted, or substantially enacted, as at reporting date. Current tax liabilities and assets are therefore measured at the amounts expected to be paid or (recovered from) the relevant taxation authority.

In accordance with the Commissioner of Taxation Tax Determination (TD 1999/38), all income from gaming machines, Keno, TAB and vending machines has been included as fully assessable income. Likewise, expenditure incurred in relation to these income activities has been included as fully deductible expenditure in accordance with Australian Taxation guidelines. All other income and expenses have been included in accordance with the Principle of Mutuality and other appropriate Australian Taxation legislation.

Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where amounts have been fully expensed but future tax deductions are available.

Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the tax rates enacted or substantially enacted at reporting date. Their measurement also reflects the manner in which management expects to recover or settle the carrying amount of the related asset or liability.

Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.

(u)

New Accounting Standards for Application in Future Periods The AASB has issued a number of new and amended Accounting Standards that have mandatory application dates for future reporting periods, some of which are relevant to the Association. The Association has decided not to early adopt any of the new and amended pronouncements. The Association's assessment of the new and amended pronouncements that are relevant to the Association but applicable in future reporting periods is set out below:

Standard / Interpretation

Summary

AASB 9 Financial Instruments

This standard simplifies requirements for the classification and measurement of financial assets, a new hedging accounting model and a revised impairment loss model to recognise impairment losses earlier, as opposed to the current approach that recognises impairment only when incurred.

AASB 15 Revenue from Contracts with Customers

The core principle of AASB 15 requires an entity to recognise revenue when the entity satisfies a performance obligation by transferring a promised good or service to a customer.

Applicable for reporting periods beginning on 1 January 2018

1 January 2017 (Exposure Draft 263 - potential deferral to 1 Jan 2018)

Impact on the Association's Annual Statements The assessment has identified that the financial impact of available for sale (AFS) assets will now be reported through other comprehensive income (OCI) and no longer recycled to the profit and loss.

While the preliminary assessment has not identified any material impact arising from AASB 9, it will continue to be monitored and assessed.

The changes in revenue recognition requirements in AASB 15 may result in changes to the timing and amount of revenue recorded in the financial statements. The Standard will also require additional disclosures on service revenue and contract modifications.

A potential impact will be the upfront recognition of revenue from licenses that cover multiple reporting periods.

Revenue that was deferred and amortised over a period may now need to be recognised immediately as a transitional adjustment against the opening returned earnings if there are no former performance obligations outstanding.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

NOTE 1 : STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (u)

New Accounting Standards for Application in Future Periods (Continued)

Standard / Interpretation

Summary

AASB 16 Leases

The key changes of AASB 16 requires an entity to recognise a right-of-use asset and liability for all leases (excluding short-term leases with less than 12 months of tenure and leases relating to low-value assets), depreciation of right-of-use assets in line with AASB 116 Property, Plant and Equipment in profit and loss and unwinding of the liability in principal and interest components and inclusion of additional disclosure requirements.

Applicable for reporting periods beginning on 1 January 2019

Impact on the Association's Annual Statements When effective, this Standard will replace the current accounting requirements applicable to leases in AASB 17 Leases and related interpretations. AASB 16 introduces a single lessee accounting model that eliminates the requirement for leases to be classified as operating or finance leases.

While the adoption of AASB 16 will impact on the Association's financial statements, it is impracticable at this stage to provide a reasonable estimate of such impact.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

958,275 166,502 2,816 3,994,390 12,141 70,254 5,204,378

922,388 133,086 3,594,841 8,095 61,613 4,720,023

26,094 21,104 17,656 932 5,546 71,332

22,388 13,372 27,131 901 3,793 67,585

5,275,710

4,787,608

1,175 36,135 12,479 49,789

1,205 41,000 29,054 16,673 87,932

5,325,499

4,875,540

Bar Food

324,528 89,327

323,495 81,828

TOTAL COST OF SALES

413,855

405,323

Salaries & Wages Superannuation, Work Cover and Payroll Tax Contract Labour/Consultancy Fees Other Staff Costs

721,485 105,762 6,000 35,213

686,379 93,267 643 20,941

TOTAL EMPLOYEE EXPENSES

868,460

801,230

2. REVENUE 2a. Revenue from Operating Activities Bar, Food & Gaming Income Bar Income Food Income Function Income Gaming Revenue Keno Commission TAB Wagering Commission Other Sales & Commissions ATM Rebates Commissions Memberships Other Income Raffles

Sub-Total Revenue from Operating Activities 2b. Revenue from Non-Operating Activities Other Income Interest Discounts Received Rental Income Sundry Income Sub-Total Revenue from Non-Operating Activities

Total Revenue

3. EXPENSES 3a. COST OF SALES

3b. EMPLOYEE EXPENSES

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

3c. FINANCE COSTS Bank Charges Interest Leases Other Finance Charges

9,817 278,854 10,021 5,168

7,834 218,615 32,263 16,648

TOTAL FINANCE COSTS

303,860

275,360

41,310 11,250 9,000 26,771 246,700 115,933 11,418 178,329 121,914 20,716 279,313 33,250 52,777 49,017 176,926 1,374,624

37,486 17,333 9,000 15,107 226,979 97,598 15,920 167,187 107,317 25,883 294,169 36,188 87,540 40,589 150,521 1,328,817

109,924 50,567 138,477 97,668 129,270 73,154 30,567 629,627

91,426 45,136 128,216 102,192 94,166 72,336 30,881 564,353

16,289 243,872 22,816 254 64,280 347,511

4,294 218,538 20,369 446 62,667 306,314

48,669 1,039 23,378 73,086

38,297 38,297

2,424,848

2,237,781

3d. OPERATIONAL EXPENSES Administration Expenses Accountancy Other Services Audit Fees Computer Expenses Consultancy & Management Fees Convention Expenses Professional Fees Donations & Sponsorships Functions & Entertainment Bar Consumables Advertising, Marketing & Promotion Licences & Subscriptions Loss on Disposal of Assets Postage, Printing & Stationery Other Administration Expenses

Occupancy Expenses Cleaning & Waste Disposal Insurances Light Heating & Power Rates & Taxes Repairs & Maintenance Security Telephone & Internet

Direct Expenses Gaming Consumables & Supplies Gaming Expenses - New Gaming Regime TAB and Keno: Kiosk & Consumables Charges Raffle Expenses Sky Channel/Foxtel Other Expenses Snooker & Billiards Academy Expenses BAR 135 Expenses Rental Property Expenses

TOTAL OPERATIONAL EXPENSES

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

4. CAPITAL & SPECIFIC ITEMS 4a. DEPRECIATION & AMORTISATION Buildings Site Improvements Plant & Equipment Electronic Gaming Machines Office Equipment Motor Vehicle Amortisation - Leased Assets Amortisation - Intangible Assets TOTAL DEPRECIATION & AMORTISATION

171,710 10,152 99,937 214,149 6,695 4,883 197,720 365,827

171,259 10,152 99,004 215,023 8,024 2,560 110,065 378,579

1,071,073

994,666

5. DEFERRED TAX ASSET Net Deferred Tax (Asset)/Liability at Beginning Income Tax Expense Net Deferred Tax (Asset)/Liability at End of Period

(231,407) 8,389 (223,018)

(236,916) 5,509 (231,407)

Cash on Hand Cash at Bank

165,981 106,274

187,150 118,550

TOTAL CASH & CASH EQUIVALENTS

272,255

305,700

272,255

305,700

272,255

305,700

Trade Debtors Operator Commission Receivable

18,746 3,477

28,518 (9,698)

TOTAL TRADE & OTHER RECEIVABLES

22,223

18,820

Set Up Costs - Seddon Café Project Set Up Costs - YVC Investments Ltd, an Associated entity

1,190 1,141

1,190 825

TOTAL TRADE & OTHER RECEIVABLES

2,331

2,015

6. CASH & CASH EQUIVALENTS

Represented By: Operational Funds TOTAL CASH & CASH EQUIVALENTS

(19)

7. TRADE & OTHER RECEIVABLES

7a. OTHER ASSETS

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

2,465,000 2,465,000

2,465,000 2,465,000

2,465,000

2,465,000

8. INVESTMENT PROPERTIES Balance at Beginning of Period Additions Disposals of Property Held for Resale Revaluation Increment/(Decrement) Balance at End of Period

TOTAL INVESTMENT PROPERTIES

(2c)

Investment Properties located at:

14 York Street, Yarraville VIC 3013 5 Sandford Grove, Yarraville VIC 3013

16 York Street, Yarraville VIC 3013 11 Sandford Grove, Yarraville VIC 3013

Investment Properties were revalued by PPE Valuations Pty Ltd, Certified Practising Valuers, at 30 June 2015, to Fair Value, using Market Value.

9. PROPERTY, PLANT AND EQUIPMENT Land, Buildings & Site Improvements Land at Valuation 2015 Land at Valuation 2016 - 7 Sandford Grove Buildings at Cost 7 Sandford Grove Additions - 7 Sandford Grove Gaming Room Renovations less Accumulated Depreciation

Buildings at Valuation 2015 less Accumulated Depreciation

Site Improvements at Valuation 2015 less Accumulated Depreciation Site Improvements at Cost Leasehold Improvements - Snooker Room Works in Progress - Buildings Total Land, Buildings & Site Improvements

5,705,000 295,000

5,705,000 295,000

470,321 5,409 115,589 (23,169) 568,150

470,321 4,509 113,589 (11,359) 577,060

6,395,000 (4,156,800) 2,238,200

6,395,000 (3,996,900) 2,398,100

305,000 (228,304) 76,696 6,986 90,632 127,755

305,000 (218,152) 86,848 16,385

9,108,419

Land, Building and Site Improvements were revalued by PPE Valuations Pty Ltd, Certified Practising Valuers, at 30 June 2015 to Fair Value, using Market Value. Land was valued by the Directors at 30 June 2016.

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

9,078,393

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note 9. PROPERTY, PLANT AND EQUIPMENT (Continued) Plant & Equipment Plant & Equipment at Cost less Accumulated Depreciation

2017 $

2016 $

2,578,006 (2,034,935) 543,071

2,420,521 (1,934,998) 485,523

Office Equipment at Cost less Accumulated Depreciation

149,683 (131,889) 17,794

146,252 (125,194) 21,058

Electronic Gaming Machines less Accumulated Depreciation

1,115,694 (582,572) 533,122

1,070,594 (466,246) 604,348

Motor Vehicle - Courtesy Buses less Accumulated Depreciation

54,113 (13,193) 40,920

54,113 (8,310) 45,803

1,134,907

1,156,732

1,718,080 (397,550) 1,320,530

1,237,299 (246,320) 990,979

1,320,530

990,979

TOTAL PROPERTY, PLANT AND EQUIPMENT

11,563,856

11,226,104

TOTAL PROPERTY, PLANT, EQUIPMENT & INVESTMENT PROPERTIES

14,028,856

13,691,104

Total Plant & Equipment

Leased Assets Plant & Equipment at Cost less Accumulated Amortisation

Total Leased Assets

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

10. INTANGIBLE ASSETS

EGM Entitlements less accumulated Amortisation

Capitalised Borrowing Costs TOTAL INTANGIBLE ASSETS

3,999,800 (1,787,343) 2,212,457

3,999,800 (1,423,791) 2,576,009

2,212,457

2,775 2,578,784

The Club purchased gaming machine entitlements for 78 Machines in 2009/10, via the Victoria State Governments Governments 'pre auction club offer' and a subsequent auction process.

These entitlements took effect from 16 August 2012 and are for a ten year period.

Additional gaming machine entitlements were purchased during 2014/15 and 2015/16 to increase the number of EGMs in the premises.

Borrowing costs associated with the finance restructure of the club have been capitalised and amortised over a five year period.

11. OTHER FINANCIAL ASSETS

Term Deposit (Bank Guarantee - Bank of Queensland) Term Deposit (Bank Guarantee - Westpac)

21,200 54,788

53,709

TOTAL OTHER FINANCIAL ASSETS

75,988

53,709

Trade Creditors Amounts Payable to ATO State Gaming Tax Payable Payroll Liabilities Accrued Expenses

183,372 90,174 69,325 12,709 28,333

194,918 89,315 75,557 9,283 30,267

TOTAL TRADE & OTHER PAYABLES

383,913

399,340

33,209 7,008 40,217

35,295 35,295

9,244 9,244

14,464 14,464

49,461

49,759

367,000 299,678 442,799 1,109,477

149,871 120,249 354,023 624,143

3,984,922 687,982 4,672,904 5,782,381

4,304,986 373,083 4,678,069 5,302,212

12. TRADE & OTHER PAYABLES

13. EMPLOYEE BENEFITS Current Annual Leave Unconditional Long Service Leave Entitlements Non Current Conditional Long Service Leave Entitlements

TOTAL EMPLOYEE BENEFITS 14. INTEREST BEARING LIABILITIES Current - Bank Overdraft - Bank Loan - Finance Leases Non Current - Bank Loan - Finance Leases TOTAL INTEREST BEARING LIABILITIES

The Bank Overdraft and Bank Loan are secured by registered first mortgage over the Land and Building assets of the Club as well as the Club's Investment Properties. Finance Leases have a general lien over the EGM's of the Club.

-

-

-

Amortisation/Depreciation

Reclassifications

Revaluation Increment/(Decrement)

-

-

-

Amortisation/Depreciation

Reclassifications

Revaluation Increment/(Decrement)

6,000,000

-

Disposals

Balance at 30 June 2017

-

Additions

6,000,000

-

Disposals

Balance at 30 June 2016

295,000

5,705,000

2,806,350

-

-

(171,710)

-

2,900

2,975,160

-

-

(171,259)

-

588,419

2,558,000

$

$

Additions

Balance at 1 July 2015

Buildings

Land

83,682

-

-

(10,152)

-

6,986

86,848

-

-

(10,152)

-

-

97,000

Site Improvements $

90,632

-

-

-

-

90,632

-

-

-

-

-

-

-

Leasehold Improvements $

127,755

-

-

-

-

111,370

16,385

-

-

-

-

14,385

2,000

Work in Progress $

Reconciliation of carrying values of all asset classes at the beginning and end of the current and prior year is set out below

9. PROPERTY, PLANT AND EQUIPMENT (Continued)

543,071

-

-

(99,937)

-

157,485

485,523

-

-

(99,004)

-

125,626

458,901

Plant & Equipment $

-

533,122

-

-

(214,149)

(10,886)

153,809

604,348

-

-

(215,023)

87,540

185,562

721,349

Electronic Gaming Machines $

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS AS AT 30 JUNE 2017

17,794

-

-

(6,695)

-

3,431

21,058

-

-

(8,024)

-

4,419

24,663

Office Equipment $

40,920

-

-

(4,883)

-

-

45,803

-

-

(2,560)

-

27,800

20,563

Motor Vehicles $

1,320,530

-

-

(197,720)

(51,714)

578,985

990,979

-

-

(110,065)

-

697,935

403,109

Leased Assets $

11,563,856

-

-

(705,246)

(62,600)

1,105,598

11,226,104

-

-

(616,087)

(87,540)

1,939,146

8,469,837

Total $

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

15. OTHER FINANCIAL LIABILITIES

Current EGM Entitlements Liability

171,283 171,283

727,951 727,951

-

171,283 171,283

171,283

899,234

Non Current EGM Entitlements Liability

TOTAL OTHER FINANCIAL LIABILITIES

The 'EGM entitlements liability' represents the balance owing by the Club at 30 June, for gaming machine entitlements. This is repayable via quarterly instalments. This is in agreement with the offer from the Victorian State Government.

16. CONTINGENT ASSETS & LIABILITIES

2017 $

2016 $

At balance date, the Club had the following bank guarantee facilities in place: Tabcorp - TAB Security Deposit Bank Of Queensland Westpac - Overdraft Facility

5,000 21,200 54,788 80,988

5,000 53,709 58,709

The Committee of Management was not aware of any other contingent asset or liability as at 30 June 2017.

17. COMMITMENTS TO EXPENDITURE As at balance date, Yarraville Club Inc. had no contracted Capital commitments.

As at balance date, Yarraville Club Inc. had no other contracted loan or lease commitments, other than those disclosed at Note 14.

18. EVENTS OCCURRING AFTER BALANCE DATE There were no events occurring after 30 June, that would materially effect the Financial Statements at balance date.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

Note

2017 $

2016 $

19a. RECONCILIATION OF CASH For the purpose of the Statement of Cash Flows, cash assets includes cash on hand, in banks and investments. Cash at the end of the year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: Cash & Cash Equivalents - Operational Funds Bank Overdraft

(6) (13)

272,255 (367,000)

305,700 (149,871)

(94,745)

155,829

Comprehensive Result for the Period Depreciation & Amortisation Net (Profit) Loss on Disposal of Assets (Increase)/decrease in Other Assets (Increase)/decrease in Trade & Other Receivables (Increase)/decrease in Inventories Increase/(decrease) in Trade & Other Payables Increase/(decrease) in Employee Benefits Increase/(decrease) in Tax Liabilities

235,014 1,071,073 52,777 (3,403) (15,918) (15,427) (298) 8,389

155,671 1,011,314 87,540 (1,580) 30,774 (7,993) 28,471 3,561 5,509

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

1,332,207

1,313,267

TOTAL CASH 19b. CASH FLOW INFORMATION

20. RELATED PARTY DISCLOSURES The following Committee of Management served on the Committee during the financial year ended 30 June, 2017 Mr John Papazisis - Chairman Mr Dominic Kennedy - Vice Chairman Mr Aaron Mahoney - Director Mr. Ryan Ebert - Director The Club paid 'AATech Pty Ltd.' $ 8,728 ($9,680 in 2015/16) *, for services provided during the year of which Mr. Aaron Mahoney has a beneficial interest.

The Club paid 'Ink Creative' $24,154 ($26,197 in 2015/16) * for services provided during the year of which Mr. Dominic Kennedy has a beneficial interest.

The Club paid 'Yarra Tax' $12,375 ($30,800 in 2015/16) * for goods and services provided during the year of which Mr. John Papazisis has a beneficial interest.

The Club paid Ryan Ebert and Ebert Enterprises $17,710 ($10,045 in 2015/16) * for services provided during the year of which Mr. Ryan Ebert has a beneficial interest.

The Club paid Jules Brooke and "Handle Your Own PR" $3,300 * for services provided during the year of which Ms. Jules Brooke has a beneficial interest.

In addition to the disclosures above, it is noted that Office Bearers of the Club during the course of the Club's operations for the year, incurred Club expenditures, which are paid upon satisfying the Club's operational standards, with appropriate documentation. * Amounts may be inclusive of GST paid.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

21.

FINANCIAL INSTRUMENTS

Financial Risk Management Objectives and Policies Yarraville Club Inc.'s principal financial instruments comprise of deposits with banks, accounts receivable and payable, interest bearing liabilities and other financial liabilities. ATO liabilities have not been included, as these are not considered financial instruments.

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Note

Financial Assets Cash at Bank Trade & Other Receivables

(6) (7)

Total Financial Assets

Financial Liabilities At amortised cost Trade & Other Payables Interest Bearing Liabilities Other Financial Liabilities

(12) (14) (15)

Total Financial Liabilities

Carrying Amount 2017 $

Carrying Amount 2016 $

106,274 22,223

118,550 18,820

128,497

137,370

293,739 5,782,381 171,283

310,025 5,302,212 899,234

6,247,403

6,511,471

Specific Financial Risk Exposures and Management (a) Credit risk Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties of contract obligations that could lead to a financial loss to the Yarraville Club Inc. The Association does not have any material credit risk exposures.

Credit risk exposures The maximum exposure to credit risk, by class of recognised financial assets at the end of the reporting period is equivalent to the carrying value and classification of those financial assets (net of any provisions) as presented in the statement of financial position.

Trade and other receivables that are neither past due or impaired are considered to be of high credit quality The Association has no significant concentration of credit risk exposure to any single counterparty or group of counterparties.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

21.

FINANCIAL INSTRUMENTS (Continued)

(b) Liquidity Risk Liquidity risk arises from the possibility that the Yarraville Club Inc. might encounter difficulty in settling its debts or otherwise meeting its obligations related to financial liabilities. Yarraville Club Inc. manages this risk through the following mechanisms: -

preparing forward-looking cash flow analysis in relation to its operational, investing and financing activities; and

-

only investing surplus cash with major financial institutions.

The table below discloses the contractual maturity analysis for the Yarraville Club Inc.'s financial liabilities.

Financial liability and financial assets maturity analysis Within 1 Year 2017 2016 $ $

1 to 5 Years 2017 2016 $ $

Over 5 Years 2017 2016 $ $

Total 2017 $

2016 $

Financial Liabilities due for payment Trade & Other Payables Interest Bearing Liabilities

293,739

310,025

-

-

-

293,739

310,025

4,678,069

-

-

5,782,381

5,302,212

171,283

-

-

171,283

899,234

1,109,477

624,143

171,283

727,951

Total contractual outflows

1,574,499

1,662,119

4,672,904

4,849,352

-

-

6,247,403

6,511,471

Total expected outflows

1,574,499

1,662,119

4,672,904

4,849,352

-

-

6,247,403

6,511,471

Other Financial Liabilities

4,672,904

-

-

Financial assets - Cash flow realisable Cash at Bank

106,274

118,550

-

-

-

-

106,274

118,550

Trade & Other Receivables

22,223

18,820

-

-

-

-

22,223

18,820

128,497

137,370

-

-

-

-

128,497

137,370

(1,446,002)

(1,524,749)

(6,118,906)

(6,374,101)

Total anticipated inflows Net (outflow)/inflow on financial instruments

(4,672,904)

(4,849,352)

-

-

(c) Market Risk (i) Interest rate risk The financial assets of the Yarraville Club Inc. are not exposed to any significant interest rate risk since cash balances are maintained at various fixed interest rates.

Interest rate risk refers to the risk that the value of a financial instrument or cash flows associated with the instrument will fluctuate due to changes in market interest rates. Interest rate risk arises from interest bearing financial assets and liabilities that are used.

The interest rate exposure on the debt portfolio is managed by appropriate budgeting strategies and by managing in accordance with target maturity profiles. (ii) Price risk Price risk relates to the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.

Yarraville Club Inc. is exposed to insignificant foreign currency risk and other price risks.

YARRAVILLE CLUB INC. NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

21.

FINANCIAL INSTRUMENTS (Continued)

Net Fair Values Fair value estimation The fair values of financial assets and liabilities are presented in the following table and can be compared to their carrying values as presented in the statement of financial position. Fair values are those amounts at which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

Differences between fair values and carrying values of financial instruments with fixed interest rates are due to the change in discount rates being applied by the market since their initial recognition by the association. Most of these instruments which re carried at amortised cost (i.e. trade receivables, loan liabilities) are to be held until maturity and therefore the net fair value figures calculated bear little relevance to the association.

Net Fair Value Carrying Amount 2017 $

Net Fair Value 2017 $

Carrying Amount 2016 $

Net Fair Value 2016 $

Financial Assets Cash at Bank Trade & Other Receivables

106,274 22,223

106,274 22,223

118,550 18,820

118,550 18,820

Total Financial Assets

128,497

128,497

137,370

137,370

Trade & Other Payables Interest Bearing Liabilities Other Financial Liabilities

293,739 5,782,381 171,283

293,739 5,782,381 171,283

310,025 5,302,212 899,234

310,025 5,302,212 899,234

Total Financial Liabilities

6,247,403

6,247,403

6,511,471

6,511,471

Financial Liabilities

Sensitivity analysis The following table illustrates sensitivities to the association's exposure to changes in interest rates. The table indicates the impact on how - A parallel shift of + 1% and -2% in market interest rates (AUD).

Profit $

Equity $

Year ended 30 June 2017 +1% in interest rates -2% in interest rates

(56,761) 113,522

(56,761) 113,522

Year ended 30 June 2016 +1% in interest rates -2% in interest rates

(51,837) 103,673

(51,837) 103,673

No sensitivity analysis has been performed on foreign exchange risk as the association is not exposed to foreign currency fluctuations.

YARRAVILLE CLUB INC. ANNUAL STATEMENTS GIVE TRUE AND FAIR VIEW OF FINANCIAL POSITION AND PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2017

We, John Papazisis and Dominic Kennedy being members of the Yarraville Club Inc. certify that

The Statements attached to this certificate give a true and fair view of the financial position and performance of the Yarraville Club Inc. during and at the end of the financial year for the association ending on 30 June 2017.

………………………………………………….

CHAIRMAN

………………………………………………….

VICE CHAIRMAN

Dated this

17th day of October, 2017

Yarraville Club Incorporated Incorporation No: A0021290X ABN No. 52802171641 135 Stephen St.Yarraville www.yarravilleclub.com.au Tel: 03 9689 6033 Email: info@yarravilleclub.com.au

Your Community. Your Club.

135 Stephen St.Yarraville Tel: 03 9689 6033 www.yarravilleclub.com.au