NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThis financial report is a special purpose financial report prepared for use by the Board of Directors.
The members have determined that the entity is not a reporting entity. The financial report has been prepared in accordance with the requirements of the following Australian Accounting Standards:
AASB 1031: Materiality
AASB 110: Events Occurring After Reporting Date
No other applicable Accounting Standards or mandatory professional reporting requirements have been applied.
The statements are prepared on an accrual basis. They are based on historic costs and do not take into account changing money values or, except where specifically stated, current valuations of non-current assets.
The following specific accounting policies, which are consistent with the previous period unless otherwise stated, have been adopted in the preparation of these statements:
(a) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net returns, trade allowances, rebates and amounts collected on behalf of third parties.
Donations are recognised as received from the Church members. No receivable exists for donations.
(b) Income Tax
The activities of the entity are exempt from taxation under Sec 50-5 of the Income Tax Assessment Act 1997.
(c) Cash and cash equivalent
Cash and cash equivalent includes deposits held at call with financial institutions, other short- term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in values, and bank overdrafts.
(d) Property, Plant and Equipment
Property, Plant and Equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the association and the cost of the item can be measured reliably.
(e) Goods and Service Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless GST incurred is not recoverable from the taxation authority. In this case, it is recognised as part of the cost of the acquisition of the asset or as part of the expense.
(f) Building Lease Income:
The lease income received till 31 December 2025 was $60,000
(g) Sale of Property (Lots 1-3, 31 Springfield Lakes Boulevard, Springfield Lakes):
The Board of Disciples Church Springfield approved the listing of the property for sale or lease, as recorded in the Minutes of the Board Meeting held 9 May 2023 (Minute 23.38). The Minutes of the Board Meeting held 21 November 2023 (Minutes 23.101) record that the Board approved entering into a contract with Hope Centre Church for the lease of the three lots, including an option to purchase.
Mn 23.101 also records the conditions of the contract, including that, if the option to purchase were exercised in February 2025 would be for a net price of $3,775,000 plus GST.
Hope Centre exercised this option and the property was subsequently sold for $3,775,000 plus GST, in accordance with these approved terms.
As a result of this sale, a profit of $2,047,631 on the disposal of property was recognized in the income and expenditure report for the year ended 2025.