The financial statements are for the entity AAF Company as an individual entity. The Company is a company limited by guarantee, subject to the Corporations Act 2001 and domiciled in Australia. It is registered as a charity with the Australian Charities and Not-for-profit Commission.
The sole activity of the AAF Company is to act as the trustee for the Army Amenities Fund and Messes Trust Fund.
Basis of preparation
The financial statements are general purpose – reduced disclosure regime financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that apply for the reporting period.
The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.
New Accounting Standards
Adoption of New Australian Accounting Standard requirements
No accounting standard has been adopted earlier than the application date as stated in the standard.
The AAF Company has applied the requirements of AASB 1058 Income of Not-for-Profit entities and AASB 15 Revenue from Contracts with Customer effective from 1 July 2019. As part of the implementation, management has undertaken an assessment and concluded that the income and revenue recognition methods that have historically been in place are consistent with the requirements of these new standards.
Impact of adoption
AASB 1058 and AASB 15 were adopted using the modified retrospective approach and as such comparatives have not been restated. There was no impact on opening retained profits as at 1 July 2019.
Future Australian Accounting Standard Requirements
All new/revised/amending standards and/or interpretations that were issued prior to the sign-off date and are applicable to the future reporting period(s) are not expected to have a future material impact on the AAF Company’s financial statements.
The AAF Company is Income Tax exempt but not exempt from Fringe Benefits Tax and the Goods and Services Tax.
Events after the reporting period
The impact of the Coronavirus (COVID-19) pandemic is ongoing, it is not practicable to estimate the potential impact, positive or negative, after the reporting date. The situation is rapidly developing and is dependent on measures imposed by the Australian Government and other countries, such as maintain social distancing requirements, quarantine, travel restrictions and any economic stimulus that may be provided.
No other matter or circumstance has arisen since 30 June 2020 that has significantly affect the ongoing structure and financial activities of the AAF Company.