This section analyses the financial performance of the AAF Company for the year ended 2019 -20
Note 1: Revenue and expense
The Company acts solely as trustee of the Trusts and does not carry on any business activity on its own behalf during the current year or the preceding year. Therefore, there are no revenues or expenses in relation to the Company during the current or preceding financial year.
Note 2: Trust liabilities and right of indemnity
The Company acts solely as trustee of the Trusts and liabilities have been incurred on behalf of the Trusts in the Company's capacity as corporate trustee.
Liabilities incurred on behalf of the Trusts are not recognised in the financial report when it is not probable that the Company will have to meet any of the Trusts liabilities from its own resources. If the Company becomes obliged to meet Trusts liabilities, the trustee has a right to be indemnified from Trusts assets. If it is probable that there will be a deficiency in Trusts assets, a liability is recognised by the Company to the extent of that deficiency.
Liabilities of the Trusts were not recorded in the financial statement of the Company were:
LIABILITIES - Army Amenities Fund
LIABILITIES - Messes Trust Fund
The assets of the Trusts, which lie behind the right of indemnity, are not directly available to meet any liability of the Company acting in its own right. The assets of the Trusts with $15.102m were sufficient to discharge all liabilities of the Trusts as at 30 June 2020.
Note 3: Statement of cash flows
The Company acts solely as Trustee of the Trusts and does not carry on any business activity on its own behalf during the current or preceding financial year. Therefore, there are no cash flows in relation to the Company during the current or preceding financial year. All movements in assets and liabilities relate to the Trusts and are not cash flows of the Company.
Note 4: Company limited by guarantee
The AAF Company is a company limited by guarantee and by its constitution, members' liability is restricted to $100 per member. As of 30 June 2020, the Company had seven members (2019 twelve members)