THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD

Transcription

1 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD Level 27 Rialto South Tower 525 Collins Street MELBOURNE 3000 Tel: Fax: Annual Financial Report For The Year Ended December 31, 2014

2 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD DIRECTORS' REPORT The Directors present this report on the company for the financial year ended 31 December 2014 The names of Directors in office at any time during or since the end of the year are: Matthew James Addison (appointed 2/02/06) Garry Peter Carter (appointed 23/08/05) James Peter Thomas Carter (appointed 23/08/05) John David Birse (appointed 22/12/06) Amanda Louise Linton (appointed 4/10/10) Directors have been in office since the start of the financial year to the date of this report unless otherwise stated. Company Secretary The following person held the position of Company Secretary at the end of the financial year: Matthew Addison B Ec., ACA, FICB. Matthew Addison has worked for the Institute of Certified Bookkeepers since the commencement of operations, performing management, Company Secretary & Executive Director roles in the Company. He was appointed company secretary on 4th December Principal Activities The principal activities of the entity during the financial year were: member based professional association of bookkeepers for bookkeepers. There were no significant changes in the nature of the entity s principal activities during the financial year. Objectives The objectives of the company are the accreditation, the promotion and the development of professional bookkeepers. Operating Results The company is a not for profit organisation. The operations of the company for the year generated a net deficit of $12,022 (2013 deficit of $18,188) Going Concern The Institute of Certified Bookkeepers (ICB) is very pleased to declare a Net Asset position again in this the 8th year of operation; the Financial Statements have been prepared on a going concern basis. The Directors continue to manage the operation of ICB within its financial capacity. While not expecting to require it, the Directors also have received a guarantee of continued financial support and the Directors believe that such financial support will continue to be made available. Review of Operations Professional Association ICB continues to develop its strong leading position within the bookkeeper industry. As the professional association of choice for bookkeepers, education suppliers, employers, contractors, government and business, ICB continues to establish its credibility as the voice of the bookkeeper. ICB recognises that different skills exist within the bookkeeping profession and it seeks to work with all bookkeepers to provide a recognition of current skills and a development pathway for bookkeepers to develop their professionalism as appropriate. ICB continues to be the leading professional association for the whole of the bookkeeping community and to be the only association of bookkeepers for bookkeepers. ICB acts as a watchdog upon the educators to the community and continues in its role as advocate for bookkeepers to government, Treasury, Australian Tax Office, software providers and resource suppliers. ICB has been and also will continue to be a significant influencer, advocate, supporter and contributor to the BAS Agent regime. 1

3 Membership ICB recognises 4 levels of membership, appreciating the different skills and competence of bookkeepers. Cognisant of the different needs of bookkeepers in business, ICB awards its practicing certificate to appropriate bookkeepers. As at 31 December 2014 ICB has a total of 4505 admitted members (including 1736 Student and 13 Subscriber members); this represents a growth of 983 members or 27.91% over the 12 months. A further 17 applications have been received and we are in the process of verifying suitability for membership. Accreditation of skills ICB recognises skills and competence through certification by qualified accountants, recognition of approved recent education or through the conduct of ICB assessments of bookkeeping skill. ICB now offers assessments of software competence, technical knowledge and is working with Recognised Training Organisations to develop further efficient and effective training methods and assessment techniques. ICB believes there are many established and competent bookkeepers with significant experience who should be accredited and recognised for their acquired skills. The legislation to establish BAS Agents includes the education requirement of Certificate IV Bookkeeping or Accounting and a course of study in GST / BAS Principles and Payroll. Support by the bookkeeping industry ICB is privileged to continue to receive support and involvement of significant and well established groups within the bookkeeper industry. ICB has ongoing support from MYOB, Intuit, Reckon, Jim's Bookkeeping, Insurance Made Easy, GovReports and etax Local, and is also assisted by increasing involvement within ICB of further franchise bookkeeper organisations, bookkeeper individuals, software solutions providers, related and relevant groups. ICB continues to grow in its role of assisting bookkeepers to help bookkeepers and to assist in the journey of professionalism for bookkeepers. Board of Advisors The operations of ICB in Australia are guided and directed by the Advisory Board. The Advisory Board is comprised of Matthew Addison, (Executive Director of ICB), Rick Van Dyk (ICB General Manager), Amanda Linton (ICB Director), John Birse (ICB Director), Chris McComb (BAS Agent), Deborah Thompson (BAS Agent), Rick Freitag, Andrew Prescott, Deborah Anderson, Kirsteen Charge, Leanne Berry, Sue Tayler and Jo Voight. New members admitted during 2014 were Pauline Walton, Rochelle Park, Gillian Rossouw, Vija Platacis and Felicity Matthews. All advisory board members are current members of ICB. Financial Position The membership of ICB continues to grow strongly and the maintenance of membership through renewal allows the financial position of ICB continues to strengthen. The Directors enable the growth and involvement strategy of the company to be delivered in accordance with its financial capacity. 2

4 After Balance Date Events There are no significant nor reportable after balance date events directly effecting the financial position of ICB. Future Developments, Prospects and Business Strategies To further improve the entity s position and maximise member benefit, the following developments are intended to be implemented in the near future: (i) Continued growth in the number and frequency of network meetings including webinars. (ii) Development of the Resource Library and technical support provided to members. ICB has recently enhanced the capacity of the technical support team and is seeking a better utilisation of technology to provide resources. (iii) Increased range and provision of bookkeeping skill assessments and accreditation that are relevant to the Australian business environment. ICB will provide skill assessments that can be relied on by business in ensuring their bookkeeper is competent to the tasks for which they are engaged. Key Performance Measures The company measures its own performance through the use of both quantitative and qualitative benchmarks. The benchmarks are used by the Directors to assess the financial sustainability of the company and whether the company's objectives are being achieved. Industry Issues Bookkeepers are being recognised for their significant contribution to the Australian economy and business effectiveness. While this continues to require a higher profile and greater degree of recognition, the BAS Agent registration requirements and continual development of accounting software further emphasise the requirement for business to engage with professional bookkeepers. On the whole, the bookkeeper industry is continuing to positively develop. Understanding that bookkeepers are not just historical data entry processors but more akin to Integrated Business Systems Managers will assist software companies to appreciate the expertise of this sector. The bookkeeping community is increasingly being recognised and consulted by relevant government departments including the ATO and Treasury. Information on Directors Matthew James Addison Qualifications Experience Executive Director B Ec., ACA, FICB, MYOB Certified Consultant Partner in Accounting Practice & Bookkeeping Business , Bookkeeping Consultant since 1992 and trainer since 1999 Special Responsibilities Directorships held in other listed entities Chief Executive Officer, Remuneration Committee None Garry Peter Carter Qualifications Experience Directorships held in other listed entities Chairman FCI., FICB(Hon)., FBMA Founder & Chairman of ICB Global & ICB UK, Chief Executive The Association of Certified IT Professionals (UK), Chairman The Institute of Commerce (UK) Director of ICB Global & related entities, Director of The Genesis Senate (UK) James Peter Thomas Carter Qualifications Experience Special Responsibilities Directorships held in other listed entities Director FCI., FCITP., FICB(Hon). (all UK) 10 years involvement in ICB UK Operations consulting to ICB Australia ICB Global John David Birse Qualifications Experience Special Responsibilities Directorships held in other listed entities Director B.Ec., Dip.Ed., MBA(Subs), Registered BAS Agent Regional Franchisor Jims Bookkeeping, Chairman FBAA, 40 years involvement in Education Advisory Board member, Educational consultant, Remuneration Committee ICB representative on Tax Practitioner Advisory Forum Intuit Pro Advisor and Trainer; Saasu partner None 3

5 Amanda Louise Linton Qualifications Experience Interest in Shares and Options Special Responsibilities Directorships held in other listed entities REMUNERATION REPORT Director Cert IV Financial Services (Accounting), Registered BAS Agent, MYOB Certified Consultant Owner Freedom Accounting Support 2004-Current. Bookkeeping and Consulting Company operating in Tasmania & South Australia. MYOB Certified Consultant since Administration Manager and Practicing Bookkeeper in employment None Advisory Board member, Trainer, Bookkeeping advisor, Remuneration Committee None This report details the nature and amount of remuneration for each Director of the Institute of Certified Bookkeepers Limited, and for the executives receiving the highest remuneration. The only Director or executive receiving remuneration during the year is Mr Matthew Addison who is paid through provision of his services on a contract basis by businesses associated with Mr Addison. He is paid at a commercial rate for time charged. Details of remuneration for year ended 31 December 2014 The remuneration for each Director during the year was as follows: Directors Matthew James Addison Garry Peter Carter James Peter Thomas Carter June Marie Carter John David Birse Amanda Louise Linton Paid on contract basis to business employing this Director amounting to $144,875 (2013 $157,969) $Nil $Nil $Nil $Nil $Nil Meetings of Directors During the financial year, a number of meetings of Directors were held by teleconference or resolution Directors' Meetings Number eligible to attend Number attended Number eligible to attend Audit Committee Committee Meetings Number attended Advisory Board Number eligible to attend Number attended Matthew James Addison Garry Peter Carter James Peter Thomas Carter Amanda Louise Linton John David Birse Indemnifying Officers or Auditor During or since the end of the financial year the company has given an indemnity or entered into an agreement to indemnify, or paid or agreed to pay insurance premiums as follows: The company has paid premiums to insure the executive Director against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of Director of the company, other than conduct involving a wilful breach of duty in relation to the company. Proceedings on Behalf of Company No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year. 4

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8 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD INCOME STATEMENT Note $ $ Revenue 2 1,615,130 1,439,118 COS Membership Based Direct Costs (568,372) (521,138) Bank Charges (29,126) (25,690) Office Costs (94,482) (70,594) Professional Costs (21,300) (14,573) Marketing (5,651) (9,893) Travel Expenses (6,159) (14,984) Wages & Salaries (810,538) (730,480) Insurance (5,121) - Depreciation and amortisation expense (4,551) (4,327) COS Network Meeting Costs (74,039) (58,497) Other expenses (7,813) (7,130) Deficit before income tax (12,022) (18,188) Income tax expense - - Net deficit from continuing operations (12,022) (18,188) The accompanying notes form part of these financial statements. 7

9 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD BALANCE SHEET AS AT 31 DECEMBER 2014 Note $ $ ASSETS CURRENT ASSETS Cash and cash equivalents 5 147, ,374 Trade and other receivables 6 381, ,460 TOTAL CURRENT ASSETS 529, ,834 NON-CURRENT ASSETS Trade and other receivables 6 23,500 6,920 Property, plant and equipment 7 12,548 11,624 TOTAL NON-CURRENT ASSETS 36,048 18,544 TOTAL ASSETS 565, ,379 CURRENT LIABILITIES Trade and other payables 8 118, ,010 Current tax liabilities 9 28,427 27,852 TOTAL CURRENT LIABILITIES 147, ,862 TOTAL LIABILITIES 147, ,862 NET ASSETS 418, ,517 EQUITY Guarantee Reserves - - Retained earnings 418, ,517 TOTAL EQUITY 418, ,517 The accompanying notes form part of these financial statements. 8

10 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD STATEMENT OF CHANGES IN EQUITY Total $ Balance at 1 January 2013 Profit attributable to the entity Balance at 1 January 2014 Profit attributable to the entity Balance at 31 December ,705 (18,188) 430,517 (12,022) 418,495 9

11 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD STATEMENT OF CASHFLOWS Note $ $ CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 1,624,726 1,365,050 Payments to suppliers and employees (1,686,402) (1,433,221) Interest received 4,736 8,648 Net cash provided by (used in) operating activities 14a (56,940) (59,523) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of property, plant and equipment - - Proceeds from sale of investments - - Purchase of property, plant and equipment (5,475) (3,505) Net cash provided by (used in) investing activities (5,475) (3,505) CASH FLOWS FROM FINANCING ACTIVITIES Net cash provided by (used in) financing activities - - Net increase in cash held (62,415) (63,028) Cash at beginning of financial year 1i 210, ,402 Cash at end of financial year 5 147, ,374 The accompanying notes form part of these financial statements. 10

12 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS The Financial Statements are for the Institute of Certified Bookkeepers as an individual entity, incorporated and domiciled in Australia. The Institute of Certified Bookkeepers is a company Limited by Guarantee. Note 1 Summary of Significant Accounting Policies Basis of Preparation The Institute of Certified Bookkeepers Not For Profit (Reduced Disclosure Requirements) Limited applies Australian Accounting Standards Reduced Disclosure Requirements as set out in AASB 1053: Application of Tiers of Australian Accounting Standards and AASB : Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements of the Australian Accounting Standards Board (AASB) and the Corporations Act The company is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards. Australian Accounting Standards set out accounting policies that the AASB has concluded would result in Financial Statements containing relevant and reliable information about transactions, events and conditions. Material accounting policies adopted in the preparation of these Financial Statements are presented below and have been consistently applied unless otherwise stated. The Financial Statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs modified where applicable by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar. Accounting Policies (a) Income Tax No provision for income tax has been made as the company is a non-profit company and meets the "non-profit requirement". The Institute prepares its income tax returns by reference to the application of the principle of mutuality to the revenue and expenses of the Institute. The principle of mutuality is a common law principle arising from the premise that individuals cannot profit from themselves. Accordingly, receipts from members are deemed to be mutual income and not subject to income tax, and expenses in connection with mutual activities are therefore not deductible for taxation purposes. All other receipts and payments are classified in accordance with taxation legislation. (b) Property, Plant and Equipment Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses. Plant and equipment Plant and equipment are measured on the cost basis less depreciation and impairment losses. In the event the carrying amount of plant and equipment is greater than its estimated recoverable amount, the carrying amount is written down immediately to its estimated recoverable amount and impairment losses are recognised either in profit or loss or as a revaluation decrease if the impairment losses relate to a revalued asset. A formal assessment of recoverable amount is made when impairment indicators are present (refer Note 1(d) for details of impairment). Depreciation The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold land, is depreciated on a straight-line basis over their useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Plant and equipment Depreciation Rate 20% The assets residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. An asset s carrying amount is written down immediately to its recoverable amount if the asset s carrying amount is greater than its estimated recoverable amount. 11

13 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (c) Financial Instruments Initial recognition and measurement Financial instruments are recognised when the entity becomes a party to the contractual provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to either purchase or sell the asset, (i.e. trade date accounting is adopted). Financial instruments are initially measured at fair value plus transaction costs except where the instrument is classified "at fair value through profit or loss" in which case transaction costs are expensed to profit or loss immediately. Classification and subsequent measurement Financial instruments are subsequently measured at fair value, amortised cost using the effective interest method, or cost. Where available, quoted prices in an active market are used to determine fair value. In other circumstances, valuation techniques are adopted. Financial assets at fair value through profit and loss A financial asset is classified at fair value through profit and loss when they are held for trading for the purpose of short term profit taking. Such assets are subsequently measured at fair value with changes in carrying amount being included in profit or loss. Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial asset is derecognised. Financial liabilities Non-derivative financial liabilities other than financial guarantees are subsequently measured at amortised cost. Gains or losses are recognised in profit or loss through the amortisation process and when the financial liability is derecognised. Impairment At each reporting date, the entity assesses whether there is objective evidence that a financial instrument has been impaired. In the case of available for sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. A financial asset (or a group of financial assets) is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events (a "loss event") having occurred, which has an impact on the estimated future cash flows of the financial asset(s). In the case of financial assets carried at amortised cost, loss events may include: indications that the debtors or a group of debtors are experiencing significant financial difficulty, default or delinquency in interest or principal payments; indications that they will enter bankruptcy or other financial reorganisation; and changes in arrears or economic conditions that correlate with defaults. For financial assets carried at amortised cost (including loans and receivables), a separate allowance account is used to reduce the carrying amount of financial assets impaired by credit losses. After having taken all possible measures of recovery, if management establishes that the carrying amount cannot be recovered by any means, at that point the written-off amounts are charged to the allowance account or the carrying amount of impaired financial assets is reduced directly if no impairment amount was previously recognised in the allowance account. De-recognition Financial assets are derecognised when the contractual rights to receipt of cash flows expire or the asset is transferred to another party whereby the entity no longer has any significant continuing involvement in the risks and benefits associated with the asset. Financial liabilities are derecognised when the related obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability, which is extinguished or transferred to another party, and the fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss. 12

14 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS (d) Fair value of Assets and Liabilities The company measures some of its assets and liabilities at fair value on either a recurring or non-recurring basis, depending on the requirements of the applicable Accounting Standard. Fair value is the price the company would receive to sell an asset or would have to pay to transfer a liability in an orderly (i.e. unforced) transaction between independent, knowledgeable and willing market participants at the measurement date. As fair value is a market-based measure, the closest equivalent observable market pricing information is used to determine fair value. Adjustments to market values may be made having regard to the characteristics of the specific asset or liability. To the extent possible, market information is extracted from the principal market for the asset or liability (i.e. the market with the greatest volume and level of activity for the asset or liability). (e) Impairment of Assets At the end of each reporting period, the entity assesses whether there is any indication that an asset may be impaired. If such an indication exists, an impairment test is carried out on the asset by comparing the recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, to the asset's carrying amount. Any excess of the asset's carrying amount over its recoverable amount is recognised immediately in profit or loss, unless the asset is carried at a revalued amount in accordance with another Standard (e.g. in accordance with the revaluation model in AASB 116). Any impairment loss of a revalued asset is treated as a revaluation decrease in accordance with that other Standard. Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. (f) (g) Intangibles The entity has no intangible assets. New Accounting Standards for Application in future periods The AASB has issued, revised and amended standards and interpretations that have mandatory applications dates for future reporting periods. The company has now taken early adoption of these standards. Transaction and balances Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the yearend exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate at the date when fair values were determined. Exchange differences arising on the translation of monetary items are recognised in the income statement, except where deferred in equity as a qualifying cash flow or net investment hedge. Exchange differences arising on the translation of non-monetary items are recognised directly in equity to the extent that the gain or loss is directly recognised in equity, otherwise the exchange difference is recognised in the income statement. (h) Short-term employee benefits Provision is made for the company s obligation for short-term employee benefits. Short-term employee benefits are benefits (other than termination benefits) that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service, including wages, salaries and sick leave. Short-term employee benefits are measured at the (undiscounted) amounts expected to be paid when the obligation is settled. The company s obligations for short-term employee benefits such as wages, salaries and sick leave are recognised as a part of current trade and other payables in the statement of financial position. 13

15 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS (i) Other long-term employee benefits The company classifies employees long service leave and annual leave entitlements as other long-term employee benefits as they are not expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. Provision is made for the company s obligation for other long-term employee benefits, which are measured at the present value of the expected future payments to be made to employees. Expected future payments incorporate anticipated future wage and salary levels, durations of service and employee departures, and are discounted at rates determined by reference to market yields at the end of the reporting period on government bonds that have maturity dates that approximate the terms of the obligations. Upon the re-measurement of obligations for other long-term employee benefits, the net change in the obligation is recognised in profit or loss classified under employee benefits expense. The company s obligations for long-term employee benefits are presented as non-current liabilities in its statement of financial position. (j) Provisions Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions recognised represent the best estimate of the amounts required to settle the obligation at the end of the reporting period. (k) (l) (m) Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the Statement of Financial Position. Revenue Revenue from the provision of services is recognised immediately upon the receipt of membership or renewal fees. Membership fees are non-refundable. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax (GST). Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with the other receivables or payables in the statement of financial position. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. (n) (o) Comparative Figures Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year. Rounding of Amounts Amounts have been rounded to the nearest whole dollar. (p) Critical accounting estimates and judgments The directors evaluate estimates and judgments incorporated into the Financial Statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the entity. Key estimates Impairment The entity assesses impairment at each reporting date by evaluating conditions specific to the entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. (q) Trade and Other Payables Trade and other payables represent the liabilities for goods and services received by the company during the reporting period that remain unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. 14

16 Note 2 Revenue & Other Income THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS Note $ $ Operating activities Sale of goods 4,278 16,200 Interest received 2(a) 4,736 8,648 Membership Fees 1,035, ,793 Examination Fees 9,998 9,751 Training Centre 26,364 22,045 Regional Conferences 432, ,854 Sponsorships & Marketing Revenue 102,205 97,827 Total Revenue 1,615,130 1,439,118 (a) Interest revenue from: other corporations 4,736 8,648 Total interest revenue 4,736 8,648 Note 3 (a) (b) Key Management Personnel Compensation Names and positions held of economic and parent entity key management personnel in office at any time during the financial year are: Key Management Person Position Matthew James Addison (appointed 2/02/06) Executive Director / Company Secretary Garry Peter Carter (appointed 23/08/05) Director / Chairman James Peter Thomas Carter (appointed 23/08/05) Director John David Birse (appointed 22/12/06) Director Amanda Linton (appointed 4/10/10) Director Rick Van Dyk General Manager Key Management Personnel Compensation The board s policy for determining the nature and amount of compensation of key management for the group is as follows: The compensation structure for key management personnel is based on a number of factors, including length of service, particular experience of the individual concerned, and overall performance of the company. The contracts for service between the company and key management personnel are on a continuing basis, the terms of which are not expected to change in the immediate future. Upon retirement key management personnel are paid employee benefit entitlements accrued to date of retirement. Key management personnel are paid a percentage of between 0 10% of their salary in the event of redundancy. Executive Director Matthew Addison provides services to the company via a business associated with Mr Addison. The amount of contract remuneration for service is included below. Directors John Birse and Amanda Linton have received the remuneration disclosed below in the 2014 year for payment for time engaged to present material for ICB. The remuneration is not related to their role as Director. Chris McComb provides technical support and bookkeeping technical resources to the company via a business associated with Mr Addison. The amount of contract remuneration for service is included below. 15

17 (c) 2014 Matthew James Addison Garry Peter Carter James Peter Thomas Carter John David Birse Amanda Linton 2013 Matthew James Addison Garry Peter Carter James Peter Thomas Carter John David Birse Amanda Linton THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS Short-term benefits Cash, salary & commissions $ Post Employment Benefits Total Performance related Super -annuation $ $ % 144, , % % % 4,500-4, % , ,375 Cash, salary & commissions $ Super -annuation $ $ % 157, , % % % ,600-3, % 162, ,425 Note 4 Auditor Remuneration $ $ Remuneration of the auditor of the entity for: auditing or reviewing the Financial Statements 4,345 3,915 taxation services - - due diligence services - - taxation services provided by related practice of auditor - - Note 5 Cash and Cash Equivalents Cash at bank and in hand Short-term bank deposits Cash Advance 32,317 39, , , , ,374 Note 6 Trade and Other Receivables CURRENT Trade receivables 8,800 48,730 8,800 48,730 GST receivable 11,037 29,981 Other receivables 99, ,229 Amounts receivable from: Prepaid membership fees 262, ,521 NON-CURRENT Security Deposits 23,500 6, , ,380 16

18 Note 7 PLANT AND EQUIPMENT Plant and equipment: (a) 2014 Balance at the beginning of year Additions Disposals Revaluation increments/(decrements) Depreciation expense Carrying amount at the end of year (a) 2013 Property, Plant and Equipment At cost Accumulated depreciation Total Property, Plant and Equipment Balance at the beginning of year Additions Disposals Revaluation increments/(decrements) Depreciation expense Carrying amount at the end of year THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS $ $ 44,785 39,310 (32,237) (27,686) 12,548 11,624 Plant and Equipment $ 11,624 5, (4,551) 12,548 Plant and Equipment $ 12,446 3, (4,327) 11,624 Note 8 Trade and Other Payables CURRENT Employee Entitlements Trade payables Sundry payables and accrued expenses Amount due under contract 58,665 47,062 7,809 5,478 20,160 21,678 32, , , ,010 (a) Financial liabilities at amortised cost classified as trade and other payables Trade and other payables: Note 17 total current 147, ,862 total non-current - - Less: deferred income 32,307 54,540 Less: employee provisions 58,665 47,062 Financial liabilities as trade and other payables 56, ,261 Note 9 (a) Tax Liabilities CURRENT GST Liability 28,427 27,852 28,427 27,852 9

19 THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS Note 10 Equity $ $ Reserves Retained Earnings , , , ,517 The company is limited by guarantee. If the company is wound up, the Constitution states that each guarantee member is required to contribute a maximum of $100 each towards meeting any outstanding obligations of the company. At 31 December 2014 the number of guarantee providing members was 1. Note 11 Operating Lease Commitments Operating Lease Commitments Non-cancellable operating leases contracted for but not capitalised in the Financial Statements Payable minimum lease payments not later than 12 months 61,650 60,000 between 12 months and 5 years 68, ,654 greater than 5 years , ,654 All property leases are short term, with rent payable monthly in advance. Note 12 Finance Lease Commitments There are no finance lease commitments. Note 13 Contingent Liabilities and Contingent Assets There are no contingent liabilities or Contingent Assets Note 14 Cash Flow Information (a) Reconciliation of Cash Flow from Operations with Profit after Income Tax Profit after income tax Changes in assets and liabilities (Increase)/decrease in trade and term receivables (Increase)/decrease in Trade & Other Receivables (Increase)/decrease in Trade Advances Increase/(decrease) in trade payables and accruals Increase/(decrease) in GST payable Increase/(decrease) in GST Receivable Increase/(decrease) in Accumulated Depreciation Cash flow from operations (12,022) (18,188) (4,612) (63,562) (64,376) 31, (1,858) 18,944 (12,203) 4,551 4,327 (56,940) (59,523) (c) Credit Standby Arrangements with Banks Corporate Credit Card facility 50,000 50,000 Credit facility Amount utilised (286) (264) 50,214 50,236 Note 15 Events After the Balance Sheet Date (a) (b) There were no reportable events after the balance sheet date. The Financial Statements were authorised for issue on 20 February 2015 by the board of directors. 18

20 Note 16 Related Party Transactions THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions with related parties: $ $ (a) Associated Companies Sponsorship support provided by ICB Global - - ICB Global provide Website, management, infrastructure support not charged to ICB Ltd. (b) Key Management Personnel Administration service fee paid to business associated with Director Matthew Addison. 144, ,969 Presentation and representation fees were paid to Directors for their time in meeting an operational role with ICB. Neither of these Directors received remuneration for their role as a Director. - John Birse - Amanda Linton 4, ,600 A floating trade facility is provided, at no interest, by Addisons Productivity Solutions in respect to these service fees and various other disbursements incurred from time to time. This amount is disclosed as remuneration to directors above. Note 17 Financial Risk Management The entity s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable. (i) Interest Rate Risk The entity's exposure to interest rate risk is minimal and only relates to interest derived on cash at call Note $ $ Financial Assets: Cash and cash equivalents Loans and receivables Total Financial Assets 5 147, , , , , ,754 Financial Liabilities: Trade and sundry payables Total Financial Liabilities 8 56, ,261 56, ,261 Note 18 Sponsorship Financial sponsorship agreements current at 31/12/14 are held with MYOB, Intuit, Reckon, Insurance Made Easy, GovReports and etax Local. Note 19 Economic Dependency The company operates by agreement from the Guaranteeing member in use of its name, royal crest, brand and provision of website and other resources. 19

21 Note 20 Company Details THE INSTITUTE OF CERTIFIED BOOKKEEPERS LTD NOTES TO THE FINANCIAL STATEMENTS The registered office of the company is: The Institute of Certified Bookkeepers Ltd 5 Seymour Street RINGWOOD VIC 3134 The principal place of business is: The Institute of Certified Bookkeepers Ltd 5 Seymour Street RINGWOOD VIC

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