Financial Statements for 2010

Chris Malkin, Monday, 19 July 2010
Couta Boat Association Incorporated
BALANCE SHEET
As At March 31, 2010
NOTE 2010 2009
$ $
Current Assets
            Cash and cash equivalents 2     39,867     33,416
            Trade and other receivables 3      3,215      4,223
            Inventories 4      4,238      6,536
Total Current Assets     47,320     44,175
Total Non Current Assets           -             -  
Total Assets     47,320     44,175
Current Liabilities
           Trade and other payables 5           -        1,577
Total Current Liabilities           -        1,577
Total Non Current Liabilities           -             -  
Total Liabilities           -        1,577
Net Assets     47,320     42,598
Equity
           Retained Profits     42,598     36,211
           Current Year's Earnings      4,722      6,387
Total Equity     47,320     42,598
INCOME STATEMENT
For The Year Ended March 31, 2010
NOTE 2010 2009
$ $
Income
Non-trading income
        Subscriptions     14,880     12,575
        less credit notes given -    3,360           -  
        Interest Received         781      1,410
        Advertising         300         682
        Subscriptions in advance           -           253
        Miscellaneous Income      3,616         182
Total Non-trading Income     16,217     15,101
Trading income
        Net sales of CBA T-shirts         406         218
        Stock write down -    1,411           -  
Total Income     15,212     15,319
Less Expenditure
        Affiliation Fees           50         300
        Class Measurer Expenses      1,165           -  
        Bank Charges         601         474
        Function Expenses         800      1,601
        Gifts & Trophies         592           55
        Miscellaneous expenses      2,245           -  
        Registrations      3,475      1,561
        Sponsorship           -        1,875
        Stationary           -           215
        Printing          799      2,054
        Postage and Post Box Rental         445         479
        Web Site 
                Yachting Australia         118         118
                CBA Web site rebuilding and hosting         200         200
Total Expenditure     10,490      8,933
Profit for the Year from Operations      4,722      6,387
STATEMENT OF RECOGNISED INCOME AND EXPENSE
For The Year Ended March 31, 2010
NOTE Retained
Earnings		 Total
Balance at 1 April 2008     36,801     36,801
Profit attributable to members      6,387      6,387
Adjustment to prior year -       590 -       590
Balance at 31 March 2009     42,598     42,598
Profit attributable to members      4,722      4,722
Balance at 31 March 2010     47,320     47,320
THE ACCOMPANYING NOTES FORM PART OF THESE ACCOUNTS
NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended March 31, 2010
     This financial report covers the Couta Boat Association Incorporated as an individual entity. 
     Couta Boat Association Incorporated is an associated incorporated in Victoria under the
     Associations Incorporations Act 1981.
1    STATEMENT OF ACCOUNTING POLICIES
     This financial report is a general purpose financial report that has been prepared in accordance
     with Australian Accounting Standards, Australian Accounting Interpretations and the Associations
     Incorporation Act 1981.
     Australian Accounting Standards set out accounting policies that the AASB has concluded would 
     result in a financial report containing relevant and reliable information about transactions, events 
     and conditions to which they apply. Compliance with Australian Accounting Standards ensures
     that the financial statements and notes also comply with International Financial Reporting Standards.
     Material accounting policies adopted in the preparation of this financial report are presented below
     and have been consistently applied unless otherwise stated.
     The financial report has been prepared on an accrual basis and is based on historical costs,
     modified, where applicable by the measurement of fair value of selected non-current assets, 
     financial assets and financial liabilities.
a.  Income tax
     No provision for income tax has been raised, as the entity is exempt from income tax under
     Div 50 of the Income Tax Assessment Act 1997.
b.  Inventories
     Inventories are measured at the lower of cost and net realisable value. Costs are assigned 
     on the basis of weighted average costs.
c.  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 equivalent to the date
     that the association commits itself to either purchase or sell the asset (ie. Trade date accounting)
     Financial instruments are initially measured at cost on trade date, which includes transaction costs,
     when the related contractual rights or obligations exist. Subsequent to initial recognition these
     instruments are measured as set out below.
     Classification and subsequent measurement
     Finance instruments are subsequently measured at either or 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 assets 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.
       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 payments 
       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 company does not designate any interest as being subject to the requirements of
       accounting standards specifically applicable to financial instruments.
       (i) 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.
       (ii) Financial liabilities
       Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured
       at amortised cost.
d.    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.
e.    Revenue and Other Income
       Revenue is measured at the fair value of the consideration received or receivable, after taking into
       account any trade discounts and volume rebates allowed.
       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.
       Interest revenue is recognised using the effective interest rate method, which, for floating rate
       financial assets is the rate inherent in the instrument. 
       Revenue from the provision of membership subscriptions is recognised on a straight-line basis
       over the financial year.
f.    Goods and 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 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 balance sheet are shown inclusive of GST.
2010 2009
2    CASH AND CASH EQUIVALENTS
      ANZ Bank Account       13,262      7,593
      ANZ V2 Deposit at Call Account     26,605     25,823
$     39,867  $      33,416
3    TRADE AND OTHER RECEIVABLES
      Subscriptions receivable      2,210      4,223
      GST receivable         805           -  
      Other receivable         200           -  
$      3,215  $       4,223
4    INVENTORIES
      Merchandise stock on hand      4,238      6,536
$      4,238  $       6,536
     a.  A stock write down of $1,411 was recorded during the year.
5    TRADE AND OTHER PAYABLES
      Creditors           -        1,346
      GST payable           -           231
$           -    $       1,577
6    STATEMENT OF CASH FLOWS
      
       Reconciliation of Cash
     For the purpose of the Statement of Cash Flows, cash included cash on hand, in banks and
     investments in money markets net of outstanding bank overdrafts, Cash at the end of the
     financial year as shown in the Statement of Cash Flows is reconciled to the related items
     in the statement of financial positions as follows:
2010 2009
               Cash at  bank and on deposit $ $39,867 $ $33,416
7    RELATED PARTIES
      (a)     Councillors of the Couta Boat Association Incorporated who held office at any time during
               the financial year were:
               Carmen Bell
               Steve Chiodo
               Mark Foley
               Bruce Griffiths
               Peter Gale
               Chris Malkin ex officio
               Bernard O'Hanlon 
               Andrew Skinner
               Peter Sydes
               David Todd
      (b)     No amount of remuneration was directly received or due and receivable by any
               Councillor.
8    CONTINGENT LIABILITIES
      At 31 March 2010, the association had no contingent liabilities
9    EVENTS AFTER BALANCE SHEET DATE
      No events have occurred since 31 March 2010 which would significantly affect the operations of
      the association.
10   FINANCIAL INSTRUMENTS
      The association's financial instruments consist mainly of deposits with banks, accounts receivable
      and accounts payable.
      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:
       2010 2009
$ $
      Financial Assets
      Cash and cash equivalents     39,867     33,416
      Trade receivables      3,215      4,223
    43,082     37,639
      Financial Liabilities
      Trade and other payables           -        1,577
          -        1,577
      Financial Risk Management Policies
      The association's treasurer is responsible for, among other issues, monitoring and managing 
      financial risk exposures of the association. The treasurer monitors the association's transactions
      and reviews the effectiveness of controls relating to credit risk, financial risk and interest rate risk.
      Discussions on monitoring and managing financial risk exposures are held on a regular basis.
      The treasurer's overall risk management strategy seeks to ensure that the association meets its
      financial targets, whilst minimising potential adverse effects of cash flow shortfalls.
      Specific Financial Risk Exposures and Management
       The main risks the association is exposed to through its financial instruments are interest rate risk.
       liquidity risk and credit risk.
       a.   Interest rate risk
       The association is not exposed to any significant interest rate risk since cash balances are 
       maintained at variable rates. As such, no sensitivity analysis has been performed.
       b.    Credit rate 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 association.
       Credit risk is managed through maintaining procedures ensuring, to the extent possible, that
       members and counterparties to transactions are of sound credit worthiness. Subscriptions are
       expected to be paid prior to the commencement of the subscription period.
       All subscriptions are past due.
10    FINANCIAL INSTRUMENTS (CONT.)
       b.    Credit rate risk continued
      Risk is also minimised by investing surplus funds in financial institutions that maintain a high
      credit rating or in entities that the committee has otherwise cleared as being financially secure.
      Credit risk exposures
      The maximum exposure to credit risk by class of recognised financial assets at balance date is 
      equivalent to the carrying value and classification of those financial assets (net of any provision)
      as presented in the balance sheet.
      There is no collateral held by the association securing trade and other receivables.
      The association has no significant concentration of credit risk with any single counterparty or
      group of counterparties.
      Trade and other receivables that are neither past due nor impaired are considered to be of high
      credit quality.
       c.    Liquidity risk
       Liquidity risk arises from the possibility that the association might encounter difficulty in settling
       its debts or otherwise meeting its obligations related to financial liabilities. The association
       manages this risk through the following mechanism:
       -    only investing surplus cash with major financial institutions; and
       -    proactively monitoring the recovery of unpaid subscriptions.
       d.    Foreign exchange risk
       The association is not exposed to fluctuations in foreign currencies.
       e.    Price risk
       The association is not exposed to fluctuations in commodity prices.
       Net fair values
       The net fair values of the Association's financial assets and liabilities are not expected to be
       significantly different from each class of asset and liability as recognised in the statement of 
       financial position as at March 31, 2010.
10     ASSOCIATION DETAILS
         The registered office and principal place of business of the association is:
         Couta Boat Association
         P.O.Box 490
         Port Melbourne
         Victoria  3207
© 2007 Couta Boat Association. All rights reserved.