GLENELG GOLF CLUB INCORPORATED

Property

Freehold land is shown at cost. Building is shown at cost less any accumulated depreciation and impairment losses.

Plant and Equipment

The depreciable amount of all fixed assets including building, but excluding freehold land, is depreciated on a straight line basis over their useful lives to the consolidated entity commencing from the time the asset is held ready for use.

The depreciation rates for each class of depreciable assets are based on the following estimated useful lives, expressed in years:

At each reporting date, the Committee of Management reviews the carrying values of its assets to determine whether there is any indicators of impairment. If such an indication exists, the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell or value in use, is compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is recognised immediately to the profit and loss statement.

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

Provision is made for the association's liability for employee benefits arising from services rendered by employees to balance date. Employee entitlements expected to be settled within one year together with entitlements arising from wages and salaries, annual leave and long service leave which will be settled after one year, have been measured at their nominal amount. Other employee entitlements payable later than one year have been measured at the present value of the estimated future cash outflows to be made for those entitlements.

f) Subscription & Entrance Fee Income g) Income Tax

Subscription revenue is recognised in the profit and loss statement in the Membership year it relates to. The Membership year runs in-line with the Financial year of the 1st April through to 31st March of the following year.

Entrance Fee income has been adjusted to be apportioned to the expected average tenure of the membership. Entrance Fees are put to a liability account (Note 13 - Entrance Fees - Accrued) to be apportioned over future years.

A 10 year average has been applied to Provisional, Six Day, Weekday and Company member Entrance Fees.

A 5 year average has been applied to Country, Casual and Intermediate member Entrance Fees. Junior Entrance fees are applied at time of invoicing as the spread of these payments is already applied.

The Club is exempt from Income Tax in accordance with Section 50-5 of the Income Tax Assessment Act, 1997.