Professional Documents
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ANNUAL REPORT
FOR THE FINANCIAL YEAR ENDED
31 DECEMBER 2007
Special purpose financial report
for the financial year ended 31 December 2007
Page
Committee’s Report 1
Income Statement 5
Balance Sheet 6
The names of the committee members during or since the end of the financial year are:
Name
John Trevorrow (Herald Sun): President
Peter Bartlett (Minter Ellison): Vice President
Bob Kearsley: Vice President
David Poulton (Minter Ellison): Treasurer
Sue Henderson: Secretary
Principal Activities
The principal activities of the association during the financial year were:
No significant change in the nature of these activities occurred during the financial year.
Operating Results
The surplus from ordinary activities for the year amounted to $60,346 (2006: $6,832). The figure for 2007 reflects
continuing improvement in the association' s financial position. In a challenging environment, where the market for
functions is becoming increasingly competitive, the association continued to contain expenses, was able grow
revenue and achieved a significant increase in its surplus. The association needs to maintain a careful approach to
financial management as economic conditions remain uncertain.
Treasurer:
Mr David Poulton
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Deloitte Touche Tohmatsu
A.B.N. 74 490 121 060
DX 111
Tel: +61 (0) 3 9208 7000
Fax: +61 (0) 3 9208 7001
www.deloitte.com.au
The Committee of the entity are responsible for the preparation and fair presentation of the financial report and have
determined that the accounting policies described in Note 1 to the financial statements, which form part of the
financial report, are appropriate to meet the financial reporting requirements of the Associations Incorporation Act
(Victoria) and are appropriate to meet the needs of the members. The responsibility of the Committee also includes
establishing and maintaining internal control relevant to the preparation and fair presentation of the financial report
that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting
policies; and making accounting estimates that are reasonable in the circumstances.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. No opinion is expressed as to
whether the accounting policies used, as described in Note 1, are appropriate to meet the needs of the members. We
conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we
comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance whether the financial report is free from material misstatement.
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 judgement, 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 Committee, as well as
evaluating the overall presentation of the financial report.
The financial report has been prepared for distribution to the members for the purpose of fulfilling the Committee
financial reporting requirements under the Associations Incorporation Act (Victoria). We disclaim any assumption
of responsibility for any reliance on this report or on the financial report to which it relates to any person other than
the members, or for any purpose other than that for which it was prepared.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
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Auditor’s Independence Declaration
In conducting our audit, we have complied with the independence requirements of the Australian professional
accounting bodies.
Auditor’s Opinion
In our opinion, the financial report presents fairly, in all material respects, the financial position of The Melbourne
Press Club Incorporated as at 31 December 2007 and of its financial performance, its cash flows and its changes in
equity for the year ended on that date in accordance with the accounting policies described in Note 1 to the financial
statements.
M J Schofield
Partner
Chartered Accountants
Melbourne, 23 June 2008
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The Melbourne Press Club Incorporated
Statement by Committee of Management
1. Presents fairly the financial position of The Melbourne Press Club Inc. as at 31 December 2007 and its
performance for the year ended on that date.
2. At the date of this statement, there are reasonable grounds to believe that The Melbourne Press Club Inc.
will be able to pay its debts as and when they fall due.
This statement is made in accordance with a resolution of the committee and is signed for and on the behalf of the
committee by:
Treasurer:
Mr David Poulton
4
The Melbourne Press Club Incorporated
Income statement
Income statement
for the financial year ended 31 December 2007
2007 2006
Note $ $
Continuing operations
Revenue 2 379,067 305,634
5
The Melbourne Press Club Incorporated
Balance sheet
Current liabilities
Trade and other payables 5 7,022 14,380
Short-term provisions 6 16,964 11,505
Total current liabilities 23,986 25,885
Total liabilities 23,986 25,885
Net assets 72,363 12,017
Members’ funds
Accumulated surplus 7 72,363 12,017
Total members’ funds 72,363 12,017
6
The Melbourne Press Club Incorporated
Statement of changes in equity
7
The Melbourne Press Club Incorporated
Cash flow statement
8
The Melbourne Press Club Incorporated
Notes to the financial statements
Statement of compliance
The financial report has been prepared in accordance with the requirements of the Associations
Incorporation Act (Victoria) and the following Australian Accounting Standards:
Australian Accounting Standard AASB 108: Accounting Policies, Changes in Accounting Estimates and
Errors, has not been applied but certain provisions of this standard have been adopted.
Basis of preparation
The financial report has been prepared on an accruals basis and is based on historic costs modified by the
revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair
value basis of accounting has applied. All amounts are presented in Australian dollars, unless otherwise
noted.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that
period or in the period of the revision and future periods if the revision affects both current and future
periods.
The following significant accounting policies have been adopted by the association in the preparation and
presentation of the financial report. The accounting policies have been consistently applied, unless
otherwise stated.
The Association is exempt from income tax pursuant to Section 50-5 of Income Tax Assessment
Act (1997).
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The Melbourne Press Club Incorporated
Notes to the financial statements
Note 1: Statement of Significant Accounting Policies (cont’d)
Leasehold improvements and office equipment are carried at cost less, where applicable, any
accumulated depreciation.
Depreciation
The depreciable amount of all fixed assets are depreciated on a straight-line basis over their useful
lives to the association commencing from the time the asset is held ready for use.
Leasehold improvements are amortised over the shorter of either the unexpired period of the lease
or the estimated useful lives of the improvements.
(c) 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 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 Association will obtain ownership of the asset or 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 in the period in which they are incurred.
Provision is made for the Association’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, plus
related on-costs. Employee benefits payable later than one year have been measured at the present
value of the estimated future cash outflows to be made for those benefits.
Cash and cash equivalents includes cash on hand, deposits held at call with banks, and bank
overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the
balance sheet.
(f) Revenue
Revenue from membership fees and sponsorships are recognised upon receipt.
Interest revenue is recognised on a proportional basis taking into account the interest rates
applicable to the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).
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The Melbourne Press Club Incorporated
Notes to the financial statements
Note 1: Statement of Significant Accounting Policies (cont’d)
(g) Investments
The carrying amount of investments is reviewed annually by directors to ensure it is not in excess
of the recoverable amount of these investments. The recoverable amount is assessed from the
quoted market value for shares in listed companies. The expected net cash flows from investments
have not been discounted to their present value in determining the recoverable amounts.
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. 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.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST
component of investing and financing activities, which are disclosed as operating cash flows.
Comparative figures have been adjusted to conform to changes in presentation for the current
financial year where required by accounting standards or as a result of changes in accounting
policy.
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The Melbourne Press Club Incorporated
Notes to the financial statements
2007 2006
$ $
Note 5: Payables
Current
Sundry payables and accrued expenses 386 9,375
GST Payable 874 13
PAYG payable 5,762 4,992
7,022 14,380
Note 6: Provisions
Employee Benefits 16,964 11,505
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The Melbourne Press Club Incorporated
Notes to the financial statements
2007 2006
$ $
(b) Reconciliation of profit for the period to net cash flows from operating activities
Surplus for the year 60,346 6,832
Non-cash flows in profit from ordinary activities
Depreciation 505 1,378
Increase/(decrease) in liabilities
Trade and other payables (7,358) 4,081
Provisions 5,459 (807)
Net cash from operating activities 27,491 10,010
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The Melbourne Press Club Incorporated
Notes to the financial statements
Committee Members
The names of the members of the committee who have held office during the financial year are:
John Trevorrow (Herald Sun): President
Peter Bartlett (Minter Ellison): Vice President
Bob Kearsley: Vice President
David Poulton (Minter Ellison): Treasurer
Sue Henderson: Secretary
Level 19
North Tower
525 Collins Street
Melbourne VIC 3000
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