www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
GOING CONCERN VALUATION
PVVAL308A
PLEASE SWITCH MOBILE PHONES OFF
If you leave phones on, except for emergencies, I will also leave my phone on and take calls during
lectures too.
Repeat offenders will be required to leave the lecture-room for the day.
Please do not continually walk in and out of the lecture-room during the course of the lecture as it
distracts the interested students who want to pass this course.
If you need your phone for emergency reasons, please see me before lectures.
APPOINTMENTS
IF YOU NEED TO SPEAK WITH ME OUT OF LECTURE TIME, PLEASE MAKE AN APPOINTMENT
WITH ANNA JIMENEZ ON PHONE (02) 9217-5302.
Ken Rayner
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Going Concern Valuation
Case Study – Cammeray Golf Club
Ken Rayner 2
Photo Source : Cammeray Golf Club
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Annual Report – 2016
Club Functions
– Trivia
– Twilight Golf
– Melbourne Cup Day Lunch
– Club’s 110th Anniversary
Ken Rayner 3
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Annual Report – 2016
Sell Poker Machines – $95,000
ProShop Changes
Bar GM 61.92%
Ken Rayner 4
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Annual Report – 2017
Sold Poker Machines – $98,455
Ken Rayner 5
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Annual Report – 2018
RMS – Western Harbour Tunnel and the Beaches
Link Tunnel
Ground lease expires 2026
Clubhouse and carpark lease expired June 2018
AusGrid to put new cables in May/June
Bar GM 58% compared with 59% in 2017
Ken Rayner 6
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Ken Rayner 7
| 2015 | 2016 | 2017 | 2018 | |
| Income | ||||
| Bar and Function Income | $379,881 | $397,132 | $401,220 | $393,739 |
| Services | $39,115 | $40,081 | $37,535 | $29,715 |
| Green Fees | $385,579 | $410,920 | $424,135 | $425,979 |
| Interest | $2,195 | $1,554 | $1,882 | $317 |
| Subs and Entrance Fees | $286,109 | $303,660 | $328,357 | $277,691 |
| Poker Machine Revenue | $16,473 | $5,261 | $0 | $0 |
| Admin and Other Revenue | $30,423 | $52,741 | $38,050 | $51,486 |
| Cart Hire | $0 | $0 | $67,234 | $52,220 |
| Other Income | $0 | $0 | ||
| Total Income | $1,139,775 | $1,211,349 | $1,298,413 | $1,231,147 |
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Ken Rayner 8
| Expenses | ||||
| Bar | $140,116 | $151,244 | $153,106 | $156,319 |
| Rent | $27,792 | $44,294 | $29,212 | $38,350 |
| Employee | $517,991 | $532,198 | $569,501 | $594,805 |
| Untilities | $105,720 | $106,128 | $105,932 | $120,065 |
| Depreciation | $119,206 | $115,527 | $105,794 | $73,264 |
| Cart Hire | $0 | $0 | $34,430 | $31,744 |
| Insurance | $36,774 | $41,293 | $41,600 | $42,651 |
| Maintenance | $154,115 | $144,451 | $152,681 | $138,902 |
| Pro-Shop | $48,369 | $48,570 | $52,775 | $34,272 |
| Accountinmg | $7,997 | $9,463 | $8,719 | $8,772 |
| Affiliation | $26,125 | $25,678 | $24,414 | $26,868 |
| Printing | $6,706 | $5,556 | $5,537 | $4,245 |
| Competition | $32,249 | $32,348 | $22,546 | $20,348 |
| Other Expenses | $75,308 | $83,122 | $101,462 | $81,595 |
| Finance Costs | $3,553 | $2,853 | $2,608 | $2,174 |
| Total Expenses | $1,302,021 | $1,342,725 | $1,410,317 | $1,374,374 |
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Ken Rayner 9
| Expenses | ||||
| Bar | $140,116 | $151,244 | $153,106 | $156,319 |
| Rent | $27,792 | $44,294 | $29,212 | $38,350 |
| Employee | $517,991 | $532,198 | $569,501 | $594,805 |
| Untilities | $105,720 | $106,128 | $105,932 | $120,065 |
| Depreciation | $119,206 | $115,527 | $105,794 | $73,264 |
| Cart Hire | $0 | $0 | $34,430 | $31,744 |
| Insurance | $36,774 | $41,293 | $41,600 | $42,651 |
| Maintenance | $154,115 | $144,451 | $152,681 | $138,902 |
| Pro-Shop | $48,369 | $48,570 | $52,775 | $34,272 |
| Accountinmg | $7,997 | $9,463 | $8,719 | $8,772 |
| Affiliation | $26,125 | $25,678 | $24,414 | $26,868 |
| Printing | $6,706 | $5,556 | $5,537 | $4,245 |
| Competition | $32,249 | $32,348 | $22,546 | $20,348 |
| Other Expenses | $75,308 | $83,122 | $101,462 | $81,595 |
| Finance Costs | $3,553 | $2,853 | $2,608 | $2,174 |
| Total Expenses | $1,302,021 | $1,342,725 | $1,410,317 | $1,374,374 |
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Case Study – Cammeray Golf Club
Ken Rayner 10
| Profit/Loss | -$162,246 | -$131,376 | -$111,904 | -$143,227 |
| -$162,246 | -$131,376 | -$111,904 | -$143,227 | |
| Add Back Depreciation | $119,206 | $115,527 | $105,794 | $73,264 |
| -$43,040 | -$15,849 | -$6,110 | -$69,963 |
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Assignment Scenario – Cammeray
Golf Club
Ken Rayner 11
| 2015 | 2016 | 2017 | 2018 | |
| Income | ||||
| Bar and Function Income | $1,379,881 | $1,397,132 | $1,401,220 | $1,393,739 |
| Services | $39,115 | $40,081 | $37,535 | $29,715 |
| Green Fees | $385,579 | $410,920 | $424,135 | $425,979 |
| Interest | $2,195 | $1,554 | $1,882 | $317 |
| Subs and Entrance Fees | $286,109 | $303,660 | $328,357 | $277,691 |
| Poker Machine Revenue | $16,473 | $5,261 | $0 | $0 |
| Admin and Other Revenue | $30,423 | $52,741 | $38,050 | $51,486 |
| Cart Hire | $0 | $0 | $67,234 | $52,220 |
| Other Income | $0 | $0 | ||
| Total Income | $2,139,775 | $2,211,349 | $2,298,413 | $2,231,147 |
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Assignment Scenario – Cammeray
Golf Club
Ken Rayner 12
| Expenses | ||||
| Bar | $538,154 | $544,881 | $574,500 | $585,370 |
| Rent | $27,792 | $44,294 | $29,212 | $38,350 |
| Employee | $517,991 | $532,198 | $569,501 | $594,805 |
| Untilities | $105,720 | $106,128 | $105,932 | $120,065 |
| Depreciation | $119,206 | $115,527 | $105,794 | $73,264 |
| Cart Hire | $0 | $0 | $34,430 | $31,744 |
| Insurance | $36,774 | $41,293 | $41,600 | $42,651 |
| Maintenance | $154,115 | $144,451 | $152,681 | $138,902 |
| Pro-Shop | $48,369 | $48,570 | $52,775 | $34,272 |
| Accountinmg | $7,997 | $9,463 | $8,719 | $8,772 |
| Affiliation | $26,125 | $25,678 | $24,414 | $26,868 |
| Printing | $6,706 | $5,556 | $5,537 | $4,245 |
| Competition | $32,249 | $32,348 | $22,546 | $20,348 |
| Other Expenses | $75,308 | $83,122 | $101,462 | $81,595 |
| Finance Costs | $3,553 | $2,853 | $2,608 | $2,174 |
| Total Expenses | $1,700,059 | $1,736,362 | $1,831,711 | $1,803,425 |
www.tafensw.edu.au/courses/tafe-nsw-degrees
Moodle: courses.highered.tafensw.edu.au
Going Concern Valuation
Good Luck!
Ken Rayner 13