Page 40 - Annual Report 2016

QUEENSLAND TOUCH ASSOCIATION Inc.
ABN 32 751 852 440
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016

NOTE 19: BORROWINGS
As part of the acquisition of Premier Touch and City Touch, Queensland Touch Association has borrowed $292,000 from
Touch Football Australia. $250,000 was used for the purchase of the two operations whilst the remainder was used for other
direct costs such as due diligence and legal fees. The rate per annum is variable and calculated on the TFA Fixed Cash
Term Deposit Rate. The facility expires 30 September 2021.
2016 2015
$ $
Current
Touch Football Australia Loan 36,500 -
Non-current
Touch Football Australia Loan 255,500 -
292,000 -

NOTE 20: OPERATING LEASE COMMITMENTS 2016 2015
$ $
Minimum Lease Payments:
Payable within one year 50,000 -
Payable within one year and five years 200,000 -
Total Contracted at Balance Date 250,000 -

In 2016, Queensland Touch Football entered into a new arrangement with the Australian Rugby League Commission
Ltd to lease space at the Rugby League Centre.

NOTE 21: INTANGIBLE ASSETS 2016 2015
$ $
Goodwill 410,000 -
410,000 -
Premier and City Touch Customer Contracts 220,000 -
Accumulated Amortisation (11,090) -
208,910 -

618,910 -

Movements during the year Customer Goodwill
Contracts
Opening balance - -
Premier and City Touch Business Combinations 220,000 410,000
Amortisation (11,090) -
Balance at 31 December 2016 208,910 410,000
Impairment tests for goodwill

Goodwill is monitored by management at the Association level for Premier and City Touch.
The association tests whether goodwill has suffered any impairment on an annual basis. The recoverable amount of a cash
generating unit (CGU) is determined based on value-in-use calculations which require the use of assumptions.

The calculations use cash flow projections based on financial budgets covering a five-year period.

Cash flows beyond the five-year period are extrapolated using the estimated growth rates. These growth rates are consistent
with forecasts included in industry reports specific to the industry in which each CGU operates.

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