ABN: Financial Report

Transcription

1 CYC (SA) Unit Trust CYC (SA) Unit Trust Financial Report For the Year Ended 31 May 2012

2 CYC (SA) Unit Trust For the year ended 31 May 2012 Contents Page Statement by the Directors 1 Statement of Comprehensive Income 2 Statement of Financial Position 3 Statement of Changes in Equity 4 Statement of Cash Flows 5 Notes to the Financial statements 6 Detailed Profit and Loss 18 Independent Audit Report 19

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4 CYC (SA) Unit Trust Statement of Comprehensive Income For the Year Ended 31 May 2012 Note Revenue 2 138, ,000 Depreciation 3 (255,115) (254,728) Other expenses 3 (91,916) (86,804) Finance costs Operating profit/(loss) (209,031) (203,532) Other comprehensive income - - Total comprehensive income (209,031) (203,532) 2

5 CYC (SA) Unit Trust Statement of Financial Position ASSETS Note CURRENT ASSETS Trade and other receivables Total Current Assets - - NON-CURRENT ASSETS Trade and other receivables 4 1,936,983 2,026,984 Property, plant and equipment 5 5,869,640 6,124,754 Total Non-Current Assets 7,806,623 8,151,738 TOTAL ASSETS 7,806,623 8,151,738 LIABILITIES CURRENT LIABILITIES Trade and other payables 6 3,050 1,200 Total Current Liabilities 3,050 1,200 NON-CURRENT LIABILITIES Long term borrowings 7 850, ,041 Total Non-Current Liabilities 850, ,041 TOTAL LIABILITIES 853, ,241 NET ASSETS 6,952,915 7,169,497 EQUITY Settled Capital Issued units 6,118,144 6,125,695 Reserves 8 2,175,318 2,175,318 Accumulated losses (1,341,119) (1,132,088) TOTAL 6,952,915 7,169,497 3

6 CYC (SA) Unit Trust Statement of Changes in Equity Contributed Capital Retained Earnings Revaluation Reserve Premium Unit Reserve Total $ 2012 Balance at 1 June ,126,266 (1,132,088) 793,018 1,382,300 7,169,496 Contributed / (reduction) in capital (7,550) - - (7,550) - Operating surplus/(deficit) for the year - (209,031) (209,031) Balance at 31 May ,118,716 (1,341,119) 793,018 1,382,300 6,952, Balance at 1 June ,044,166 (928,556) 793,018 1,305,150 7,213,778 Contributed / (reduction) in capital 82, , ,250 Operating surplus/(deficit) for the year - (203,532) - 0 (203,532) Balance at 31 May ,126,266 (1,132,088) 793,018 1,382,300 7,169,496 4

7 CYC (SA) Unit Trust Statement of Cash Flows For the Year Ended 31 May 2012 Cash from operating activities Note Rental and other receipts 138, ,000 Payments to suppliers (90,065) (91,804) Interest paid 0 - Net cash provided by (used in) operating activities 47,933 46,196 Cash flows from investing activities: Payment for property, plant and equipment 0 (107,588) Net cash provided by (used in) investing activities 0 (107,588) Cash flows from financing activities: Proceeds from the issue of units (7,550) 159,250 Proceeds/ (repayments) from borrowings (40,383) (97,858) Net cash provided by (used in) financing activities (47,933) 61,392 Net increase (decreases) in cash held (0) - Cash at beginning of financial year - - Cash at end of financial year 11 (0) - 5

8 1 Summary of Significant Accounting Policies General Information The financial report covers CYC (SA) Unit Trust as an individual entity. CYC (SA) Unit Trust is a unit CYC (SA) Unit Trust, established and domiciled in Australia. Note 1: Significant Accounting Policies The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. New, revised or amending Accounting Standards and Interpretations adopted CYC SA Unit Trust has adopted all of the new, revised or amending Accounting Standards and interpretations issued by the Australian Accounting Standards Board ( AASB) that are mandatory for the current reporting period. CYC SA Unit Trust has early adopted AASB 1053 Application of Tiers of Australian Accounting Standards and AASB Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. No other new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have been early adopted. Any significant impact on the accounting policies of the incorporated entity from the adoption of these Accounting Standards and Interpretations are disclosed in the relevant accounting policy. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of CYC SA Unit Trust. The following Accounting Standards and Interpretations are most relevant to the incorporated entity: AASB 1053 Application to Australian Accounting Standards CYC SA Unit Trust has early adopted AASB 1053 from 1 June This standard establishes a differential financial reporting framework consisting ogf two Tiers of reporting requirements for preparing general purpose financial statements, being Tier 1 Australian Accounting Standards and Tier 2 Australian Accounting Standards Reduced Disclosure Requirements. CYC SA Unit Trust being classed as Tier 2 continues to apply the full recognition and measurements requirements of Australian Accounting Standards with substantially reduced disclosure in accordance with AASB AASB Amendments to Australian Standards arising from Reduced Disclosure Requirements CYC SA Unit Trust has early adopted AASB from 1 January These amendments make numerous modifications to a range of Australian Accounting Standards and Interpretations, to introduce reduced disclosure requirements top the pronouncements for application be certain types of entities in preparing general purpose financial statements. The adoption of these amendments has significantly reduced CYC SA Unit Trusts disclosure requirements. Basis of preparation These general purpose financial statements havehas been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements and Interpretations issued by the Australian Accounting Standards Board ( AASB ). These financial statements do not comply with International Financial Reporting Standards as issued by the International Accounting Standards Board ( IASB ). Historical cost convention The financial statements has been prepared under the historical cost convention, except for the revaluation of certain non-current assets. 6

9 (a) Income Tax The entity is exempt from income tax under Div 50 of the Income Tax Assessment Act (b) Inventories Inventories are measured at the lower of cost and net realisable value. (c) 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. Property, plant and equipment are shown at their fair value being the depreciated replacement cost of the asset, based on periodic valuations by external independent valuers, less subsequent depreciation. In periods where the property plant and equipment are not subject to independent valuation, the Board of Management conducts Board of Management valuations to ensure the carrying amount is not materially different to the fair value. Increases in the carrying amount arising on revaluation of property, plant and equipment are credited to a revaluation reserve in equity. Decreases that offset previous increases of the same asset are charged against fair value reserves directly in equity; all other decreases are charged to the statement of comprehensive income. Any accumulated depreciation is eliminated against the gross carrying amount of the assets and the net amount is restated to the revalued amount of the asset. The carrying amount of property, plant and equipment is reviewed annually by the Board of Management to ensure it is not in excess of the recoverable amount from these assets. Refer Note 1 (f) for further details relation to the treatment of assets when impaired The cost of fixed assets constructed within the entity includes the cost of materials, direct labour and borrowing costs. Subsequent costs are included in the asset s carrying amount or recognised as a separate asset, as appropriate, only when it is probable the future economic benefits associated with the item will flow to the economic entity and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred. Depreciation The depreciable amount of all fixed assets including buildings and capitalised leased assets, is The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Buildings 2.5% - 3% Marina 2.50% Plant and Equipment 5% - 50% The assets residual value and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. 7

10 (c) Property, Plant and Equipment (Continued) Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the statement of comprehensive income. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (d) Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the entity are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts 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 entity will obtain ownership of the asset over the term of the lease. Lease payments for operating leases, where substantially all of the risks and benefits remain with the lessor, are changed as expenses on a straight line basis over the life of the lease term. (e) Financial Instruments Initial recognition and measurement Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is the equivalent to the date that the entity commits itself to either purchase or sale of the asset (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transactions 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 immediately. Classification and subsequent measurement Finance instruments are subsequently measured at either of fair value, amortised cost using the effective interest rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: The amount in which the financial asset or financial liability is measured at initial recognition; less principal repayments; plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and less any reduction for impairment. 8

11 (e) Financial Instruments (continued) The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payment or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. The economic entity does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the requirements of accounting standards specifically applicable to financial instruments. (i) Financial assets at fair value through profit or loss Financial assets are classified at fair value through profit or loss when they are either held for trading for the purpose of short-term profit taking, derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss. (ii) Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Loans and receivables are included in current assets expected for those which are not expected to mature within 12 months after the end of ht reporting period, which will be classified as noncurrent assets. (iii) Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity s intention to hold these investments to maturity. They are subsequently measured at the amortised cost. Held-to maturity investments are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period, which will be classified as current assets. If during the period the entity sold or reclassified more than an insignificant amount of held-tomaturity investments before maturity, the entire category of held-to-maturity investments would be tainted and would be reclassified as available-for-sale. 9

12 (e) Financial Instruments (continued) (iv) Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not suitable to be classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. Available-for-sale financial assets are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period, which will be classified as current assets. (v) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Impairment At each reporting date, the entity assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the statement of comprehensive income. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either discharged, cancelled or expired. The difference between the carrying value of the financial liability extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed is recognised in profit or loss. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine fair value for all unlisted securities, including recent arm s length transactions, reference to similar instruments and option pricing models. 10

13 (f) Impairment of Assets At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, is compared to the asset s carrying value. Any excess of the asset s carrying value over its recoverable amount is expenses to the statement of comprehensive income. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. (g) Employee Benefits Provision is made for the entity s liability for employee benefits arising from services rendered by employees to balance date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled. Employee benefits payable later than one year have been measured at present value of the estimated future cash outflows to be made for those benefits. These cash flows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. (h) 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 statement of financial position. (i) Revenue and Other income Revenue from the sale of goods is recognised at the point of delivery as this corresponds to the transfer of significant risks and rewards of ownership of the goods and the cessation of all involvement in those goods. Annual members subscriptions and fees raised by the entity during the year are recognised as gross revenue. Sales and Licenses to occupy Marina West Berths have been accounted for in accorance with AASB 117 Leases. In accordance with that standard, the license income received is proportionaly recognised over the 40 year license period. The amount of license income received that represents income to be earned in future accounting period is disclosed in the balance sheet as being unearned income. The accounting policy for the historic sale of Marina East Berths was to recognise the entire License Income in the year received. All revenue is stated net of the amount of goods and services tax (GST). (j) Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of these assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in income in the period in which they are incurred. 11

14 (k) Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, expect for the GST component and financing activities, which are disclosed as operating cash flows. (l) Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. Where the entity has retrospectively applied an accounting policy, made a retrospective restatement or reclassified items in its financial statements, an additional statement of financial position as at the beginning of the earliest comparative period will be disclosed. (m) Critical Accounting Estimates and Judgements The Board of Management evaluated estimated and judgements incorporated into the financial report based on historical knowledge and best available current information. Estimated assume a reasonable expectation of future events and based on current trends and economic data, obtained both externally and within the entity. Key estimates Impairment The entity assesses impairment at each reporting date by evaluating conditions specific to the entity that may be indicative of impairment triggers. Recoverable amounts of relevant assets are reassessed using the value-in-use calculations which incorporate various key assumptions. With respect to cash flow projections for plant and equipment, growth rates of 2% have been factored into valuation models for the next 10 years on the basis of Board of Management s expectations. Discount rates of 10% have been used in all models. (n) New Accounting Standards for Application in Future Periods The AASB has issued new and amended Accounting Standards and interpretations that have mandatory application dates for future reporting periods and which the economic entity has decided not to early adopt. The entity does not expect these requirements to have any material effect on the entity s financial statements. (o) New Accounting Standards for Application in Future Periods The AASB has issued new and amended Accounting Standards and interpretations that have mandatory application dates for future reporting periods and which the economic entity has decided not to early adopt. The economic entity does not expect these requirements to have any material effect on the entity s financial statements. 12

15 2. Revenue Other Revenue - Land lease rental 90,000 90,000 - Lease rental revenue 48,000 48, , , Profit for the Year Operating loss has been determined after: Accounting fees 0 67 Audit Fees 1,200 (5,000) Bank Charges 0 (204) Depreciation 255, ,728 Printing and Stationary 716 1,941 Land lease expense 90,000 90,000 Interest paid to others , , Trade and other receivables NON-CURRENT Advance to: CYC Ramp Trust 1,936,983 2,026,984 1,936,983 2,026,984 The entity s only significant concentration of credit risk is with respect to related entities. Collateral held as security No collateral is held as security for any receivable balance. Financial assets classified as loans and receivables Total non-current Financial Assets 1,936,983 2,026,984 1,936,983 2,026,984 13

16 5. Property, Plant and Equipment Land at valuation (market value)/cost 2,800,000 2,800,000 Buildings at valuation 2,037,951 2,037,951 Accumulated depreciation (249,119) (188,400) Total buildings 1,788,832 1,849,551 Plant and Equipment at valuation 133, ,352 Accumulated depreciation (32,061) (25,393) Total plant and equipment 101, ,959 Marina and improvements at valuation 1,929,299 1,929,299 Accumulated depreciation (749,782) (562,054) Total Marina 1,179,517 1,367,244 Total property, plant and equipment 5,869,640 6,124,754 The marina and improvements comprise all leasehold improvements formally the property of the Cruising Yacht Club of South Australia Incorporated and valued by the directors of the CYC (SA) Management Pty Limited at the time of the purchase of the land by the Trust in Units to the value of this amount were issued to members of the Cruising Yacht Club of South Australia Incorporated in accordance with the constitution of the CYC (SA) Unit Trust. The property, plant and equipment were revalued at 9 April 2008 by independent valuers. Valuations were made on the market value, existing use and depreciated replacement value. The revaluation surplus was credited to an asset revaluation reserve in member s equity. 14

17 6. Trade and other payables CURRENT Other payables 3,050 1,200 3,050 1, Borrowings NON-CURRENT Advance from: CYC (SA) Inc (unsecured) 850, , , , Issued Capital ,812 (2011: 121,963) fully paid issued units at $50 each 6,090,600 6,098,150 27,545 (2011: 27,545) fully paid issued units at $1 each 27,545 27,545 Total 6,118,144 6,125, Reserves The asset revaluation reserve records revaluations of non-current assets. The unit premium reserve records premiums attached to units. 10. Cash Flow Information Reconciliation of Cash Cash at end of the financial year as shown in the cash flow statement is reconciled to items in the balance sheet as follows: Cash and cash equivalents - - Bank overdraft

18 11. Lease Commitment The Minister of Transport has leased the Port Vincent Marina Basin to the District Council of Yorke Peninsula for a term of 99 years from 1 May The Council has agreed to underlease that portion of the marina basin on which the Marina is situated to CYC (SA) Management Pty Ltd for a nominal rent of ($1.00 per annum if demanded) for a term of 99 years less one day commencing on 1 May CYC (SA) Management Pty Ltd has underleased the area it is leasing to the Cruising Yacht Club of South Australia Inc. for the same nominal rent and on the same terms and conditions for a term of 99 years less 2 days commencing 1 May CYC Ramp Pty Ltd, as a trustee for the CYC Ramp Trust, has leased the Western Marina Basin to the CYC (SA) Management Pty Ltd, as trustee for the CYC (SA) Unit Trust, for a term commencing on 1 November 2008 and ending on 1 November 2083, for rent as agreed by the directors. The CYC (SA) Management Pty Ltd, as trustee for the CYC (SA) Unit Trust, has agreed to under lease that portion of the marina basin on which Marina West is situated to the Cruising Yacht Club of South Australia Inc. (the Club ), for a term commencing on 1 November 2008 and ending on 31 October 2083, at the same rent. 12. Contingent Liabilities A bill discount line is provided to CYC (SA) Management Pty Ltd as trustee for the CYC (SA) Unit Trust. Cross guarantees in support of the facility have been provided over the non-current assets of CYC (SA) Unit Trust. As at the 31 May 2012 $Nil was drawn down on the bill facility (2011: $Nil). A bank overdraft facility of $50,000 is provided to the Cruising Yacht Club of SA Inc., which is secured by an unlimited interlocking guarantee from CYC (SA) Management Pty Ltd as trustee for the CYC (SA) Unit Trust and CYC Ramp Pty Ltd as trustee for the CYC Ramp Trust. The facility was drawn down to $Nil at 31 May 2012 (2011: $Nil). 16

19 13. Segment Reporting The trust operates predominantly in one business and geographical segment, being in the leisure sector providing facilities to members of the Club in South Australia. 14. Key Management Personnel Compensation All senior management personnel are employed at the Cruising Yacht Club of SA Incorporated. 15. Trust Details The registered office of CYC (SA) Management Pty Ltd: Cruising Yacht Club of South Australia Inc., Lady Gowrie Drive NORTH HAVEN SA

20 CYC (SA) Unit Trust Statement of Comprehensive Income For the Year Ended 31 May 2012 Income Land lease rental 90,000 90,000 Lease rental revenue 48,000 48,000 Total Income 138, ,000 Less: Expenses Accounting Fees 0 67 Auditors remuneration 1,200 (5,000) Bank Charges 0 (204) Depreciation 255, ,728 Printing and stationary 716 1,941 Land lease expense 90,000 90,000 Total Expenses 347, ,532 Profit / (Loss) (209,031) (203,532) 18

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