QUESTUS RESIDENTIAL INVESTMENT FUND

Transcription

1 ARSN Financial Report CONTENTS Responsible Entity's Report Auditor s Independence Declaration Independent Auditor s Report Directors Declaration Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows Notes to the Financial Statements This is annexure A of pages referred to in Form 388: Notification of annual report Director Dated the 25th day of September 2013

2 RESPONSIBLE ENTITY S REPORT The Directors of the Responsible Entity present their report together with the financial report of the Questus Residential Investment Fund ( the Fund ) for the year ended 30 June Principal Activity Participant in the National Rental Affordability Scheme (NRAS). Operating Result The profit / (loss) for the year after income tax was $NIL (2012: $NIL) Review of Operations The activities of the Fund during the during the year were that of accepting applications from entities/individuals who have acquired an interest in the non-entity Joint Venture and the receipt and distribution of federal and state incentives in regard to the NRAS. Future Developments There are no likely developments. Events Subsequent to the end of the Financial Period No matter or circumstances have arisen since the end of the financial period, that significantly affected or may significantly affect the operations of the Fund, the results of those operations, or the state of affairs of the Fund in subsequent financial years. Environmental Regulation The Fund s operations are not regulated by any significant environmental regulation under a Law of the Commonwealth or of a State or Territory. Insurance of Directors and Officers During the financial period, the Responsible Entity paid insurance premiums in respect of a contract insuring all the directors and officers against a liability incurred as their role as directors and officers of the Fund, except where the liability arises from fraudulent or dishonest conduct. 1

3 RESPONSIBLE ENTITY S REPORT Directors The names and qualifications of directors in office at any time during or since the end of the year are: David Somerville (B.Bus, MBA, CPA, AFAIM) Executive Director Mr Somerville has a background as a Certified Practising Accountant with considerable experience in capital raising, business development and property development over 25 years. Mr Somerville was a senior partner with a large Western Australian accounting practice, where he was responsible for a large number of clients across a broad range of industries, through the provision of accounting, taxation and management services. Mr Somerville was the founding director and shareholder of Questus Group in Meetings Attended: 4 of 4. Maurizio Oteri (MBA, JD) Executive Director Mr Oteri has accumulated a wealth of SME and Corporate experience over the last 30 years as owner manager of numerous enterprises and consultant to others across a broad range of industries. Mr Oteri s qualifications include a MBA in International Business; China Program, Juris Doctor (JD), Diploma of Business Administration and Graduate Diploma of Legal Practice which he collectively applies as an unrestricted legal practitioner within Western Australia with Robertson Hayles Lawyers. Meetings Attended: 4 of 4 Robert Olde (Dip FS, AIMM) Non-Executive Director Mr Olde studied Commerce at Murdoch University and holds a Diploma in Financial Planning and also holds a Triennial Certificate as a Real Estate and Business Agent from the Real Estate Institute of Western Australia. Mr Olde has considerable experience in the Funds Management sector and is a responsible officer on the companies within the group that hold AFSL s. Meetings Attended: 4 of 4. 2

4 RESPONSIBLE ENTITY S REPORT Directors Units David Somerville has two interests in the Fund and Robert Olde has one interest in the Fund. They do not have any other rights or options over interests in the Fund or contracts to which the Director is a party or under which the Director is entitled to a benefit and that confer a right to call for or deliver an interest in the Fund. Auditor s Independence Declaration A copy of the auditor s independence declaration as required under section 307C of the Corporations Act 2001 is included within the financial statements. Director Dated the 25th day of September

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8 DIRECTORS DECLARATION The directors of the responsible entity, Questus Funds Management Limited, declare that: 1. the financial statements and notes, are in accordance with the Corporations Act 2001 and: a. comply with Australian Accounting Standards, which, as stated in accounting policy Note 2(b) to the financial statements, constitutes explicit and unreserved compliance with International Financial Reporting Standards; and b. give a true and fair view of the Fund s financial position as at 30 June 2013 and of its performance for the year ended on that date; 2. in the directors opinion there are reasonable grounds to believe that the Fund will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Board of Directors of Questus Funds Management Limited. Director Dated this 25th day of September

9 STATEMENT OF COMPREHENSIVE INCOME Note $ $ Revenue 3 8,830 4,018 Other expenses 4 (8,830) (4,018) Profit / (loss) before income tax expense - - Income tax expense - - Profit / (loss) after income tax expense - - Other comprehensive income - - Total comprehensive income for the year - - The accompanying notes form part of these financial statements 8

10 STATEMENT OF FINANCIAL POSITION As at 30 June Note $ $ CURRENT ASSETS Cash and cash equivalents 6(a) 23,251 12,072 TOTAL CURRENT ASSETS 23,251 12,072 TOTAL ASSETS 23,251 12,072 CURRENT LIABILITIES Trade and other payables 5 23,251 12,072 TOTAL CURRENT LIABILITIES 23,251 12,072 TOTAL LIABILITIES 23,251 12,072 NET ASSETS - - EQUITY Members participation - - Retained earnings - - TOTAL EQUITY - - The accompanying notes form part of these financial statements 9

11 STATEMENT OF CHANGES IN EQUITY Members participation Retained earnings Total $ $ $ As at 1 July Profit / (loss) for the year As at 30 June As at 1 July Profit / (loss) for the year As at 30 June The accompanying notes form part of these financial statements 10

12 STATEMENT OF CASH FLOWS Note $ $ Cash flows from operating activities Receipts from customer 8,791 3,939 Interest income Payment to suppliers (12,750) (1,329) Net cash flows (used in) / from operating activities 6(b) (3,690) 2,722 Cash flows from investing activities Proceeds from State NRAS Departments 649, ,864 Payments to participants (634,550) (343,989) Net cash flows from investing activities 14,869 6,875 Cash flows from financing activities Proceeds from borrowings - - Net cash flows (used in) financing activities - - Net increase in cash held 11,179 9,597 Cash held at the beginning of the financial period 12,072 2,475 Cash held at the end of the financial period 6(a) 23,251 12,072 The accompanying notes form part of these financial statements 11

13 NOTES TO THE FINANCIAL STATEMENTS 1. FUND INFORMATION. Questus Residential Investment Fund ( the Fund ) was established on the 19 March It is an Australian registered management investment scheme. Questus Funds Management Limited, the Responsible Entity of the Fund, is incorporated and domiciled in Australia. The registered office and principal place of business of the Responsible Entity is located at 105 Railway Road, Subiaco WA The nature of the operations and principal activities of the Fund are described in the Responsible Entity s Report. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (a) Basis of preparation The financial report is a general-purpose financial report, which has been prepared in accordance Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act Except for cash flow information, the financial report has been prepared on an accrual basis and is based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. Material accounting policies adopted in preparation of this financial report are presented below and have been consistently applied unless otherwise stated (b) Compliance statement Australian Accounting Standards set out accounting policies that the AASB has concluded would result in a financial report containing relevant and reliable information about transactions, events and conditions. Compliance with Australian Accounting Standards ensures that the financial statements and notes also comply with International Financial Reporting Standards. (c) Adoption of new and revised standards The Fund has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the Fund. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. 12

14 NOTES TO THE FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (CONT.) (d) Income tax The Fund is a non-entity joint venture and is not a separate legal entity, no income tax is payable by the Fund and accordingly no provision for income tax has been raised in the financial report. Income tax is determined by individual participants. (e) 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. (f) Trade and other receivables Trade receivables, which generally have day terms, are recognised and carried at original invoice amount less an allowance for any uncollectible amounts. An allowance for doubtful debts is made when there is objective evidence that the Fund will not be able to collect the debts. Bad debts are written off when identified. (g) Trade and other payables Trade payables and other payables are carried at amortised costs and represent liabilities for goods and services provided to the Fund prior to the end of the financial year that are unpaid and arise when the Fund becomes obliged to make future payments in respect of the purchase of these goods and services. Payables to related parties are recognised and carried at the nominal amount due. (h) Revenue 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). (i) 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 Taxation 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 in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. 13

15 NOTES TO THE FINANCIAL STATEMENTS 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. (CONT.) (j) Critical accounting estimates and judgments The directors of the responsible entity evaluate estimates and judgments incorporated into the financial report 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 Fund. In the opinion of the directors, there are no material accounting estimates and judgements made in the preparation of this financial report. 3. REVENUE Note $ $ NRAS fees 8,561 3,906 Interest Income ,830 4, OTHER EXPENSES Banking and management cost 8,830 4, TRADE AND OTHER PAYABLES Other creditors and accruals 23,251 12, NOTES TO THE STATEMENT OF CASH FLOWS. (a) Reconciliation of cash Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position as follows: Cash at bank 23,251 12,072 (b) Reconciliation of net cash provided by operating activities to loss after tax Profit / (loss) after tax - - Movement in assets and liabilities Payables (3,690) 2,722 Net cash from operating activities (3,690) 2,722 14

16 NOTES TO THE FINANCIAL STATEMENTS 7. FINANCIAL INSTRUMENTS (CONT.) Financial Risk Management Policies The Fund s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, loans to and from subsidiaries and loans from banks. The main purpose of non-derivative financial instruments is to raise finance for Fund operations. Derivatives are not used by the Fund. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows: Note $ $ Financial Assets Cash and cash equivalents 6a 23,251 12,072 Total Financial Assets 23,251 12,072 Financial Liabilities Financial liabilities at amortised cost Trade and other payables 5 23,251 12,072 Total Financial Liabilities 23,251 12,072 (i) Treasury Risk Management The directors of the Responsible Entity meet on a regular basis to analyse financial risk exposure and to evaluate management strategies in the context of the most recent economic conditions and forecasts. The directors overall risk management strategy seeks to assist the Fund in meeting its financial targets, whilst minimising potential adverse effects on financial performance. Risk management policies are approved and reviewed by the Board of the Responsible Entity on a regular basis. These include credit risk policies and future cash flow requirements. 15

17 NOTES TO THE FINANCIAL STATEMENTS 7. FINANCIAL INSTRUMENTS (CONT.) (ii) Financial Exposures and Management The main risks the Fund is exposed to through its financial instruments are interest rate risk, liquidity risk and credit risk. Interest rate risk The Fund does not have any material interest rate risk exposure to a single receivable or group receivables under financial instruments entered into by the Fund The Responsible Entity will seek to actively manage interest rate risk in line with movements in interest rates. Liquidity risk The Fund manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained. The Responsible Entity will actively manage the borrowings of the Fund in line with the status of various projects being undertaken by the Fund. The table below reflects undiscounted contractual maturity analysis for financial assets and liabilities: 2013 Within 1 year 1 to 5 years Total $ $ $ Financial Assets Cash assets 23,251-23,251 23,251-23,251 Financial Liabilities Payables 23,251-23,251 23,251-23, $ $ $ Financial Assets Cash assets 12,072-12,072 12,072-12,072 Financial Liabilities Payables 12,072-12,072 12,072-12,072 16

18 NOTES TO THE FINANCIAL STATEMENTS 7. FINANCIAL INSTRUMENTS (CONT.) Credit risk The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements. The Fund does not have any material credit risk exposure to a single receivable or group receivables under financial instruments entered into by the Fund. 8. EVENTS SUBSEQUENT TO THE REPORTING DATE There have been no events subsequent to reporting date that would significantly affect the operations or the state of affairs of the Fund. 9. CONTINGENT LIABILITIES There were no contingent liabilities at the reporting date. 10. COMMITMENTS FOR EXPENDITURE The Fund does not have any capital commitments as at the end of the financial year (2012: Nil). 11. RELATED PARTY DISCLOSURES (a) Responsible Entity The Responsible Entity of the Questus Residential Investment Fund is Questus Funds Management Limited, whose ultimate parent entity is Questus Limited. (b) Related party transactions All related party transactions are conducted on normal commercial terms and conditions. Related party receivables and payables, unless otherwise stated, are unsecured, receivable or payable within 30 days and do not bear interest. 17

19 NOTES TO THE FINANCIAL STATEMENTS 11. RELATED PARTY DISCLOSURES (CONT.) (b) Related party transactions (cont.) Services received by the Responsible Entity The following fees were paid or payable to Questus Funds Management Limited: $ $ Management fees 8,477 3,689 8,477 3,689 (c) Details of key management personnel Directors The Directors of Questus Funds Management Limited, the Responsible Entity of Questus Residential Investment Fund are considered to be key management personnel of the Fund. The names of the Directors of the Responsible Entity in office during the financial period are: David Somerville Robert Olde Maurizio Oteri (d) Compensation of key management personnel No payments were made to key management personnel of the Fund by the Fund. The Responsible Entity as part of its services provided for its management fee has paid some of the key management personnel in regard to work performed in relation to the Fund. (e) Units in the Fund held by key management personnel David Somerville has two interests in the Fund and Robert Olde has one interest in the Fund. 18

20 NOTES TO THE FINANCIAL STATEMENTS 12. NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Fund for the annual reporting period ended 30 June The Fund's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the Fund, are set out below. AASB 9 Financial Instruments, Amendments to Australian Accounting Standards arising from AASB 9, Amendments to Australian Accounting Standards arising from AASB 9 and Amendments to Australian Accounting Standards arising from AASB 9 This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1 January 2015 and completes phase I of the IASB's project to replace IAS 39 (being the international equivalent to AASB 139 'Financial Instruments: Recognition and Measurement'). This standard introduces new classification and measurement models for financial assets, using a single approach to determine whether a financial asset is measured at amortised cost or fair value. The accounting for financial liabilities continues to be classified and measured in accordance with AASB 139, with one exception, being that the portion of a change of fair value relating to the entity s own credit risk is to be presented in other comprehensive income unless it would create an accounting mismatch. The Fund will adopt this standard from 1 July 2015 but the impact of its adoption is yet to be assessed by the Fund. AASB 13 Fair Value Measurement and AASB Amendments to Australian Accounting Standards arising from AASB 13 This standard and its consequential amendments are applicable to annual reporting periods beginning on or after 1 January The standard provides a single robust measurement framework, with clear measurement objectives, for measuring fair value using the 'exit price' and it provides guidance on measuring fair value when a market becomes less active. The 'highest and best use' approach would be used to measure assets whereas liabilities would be based on transfer value. As the standard does not introduce any new requirements for the use of fair value, its impact on adoption by the consolidated entity from 1 July 2013 should be minimal, although there will be increased disclosures where fair value is used. AASB Amendments to Australian Accounting Standards - Disclosures - Offsetting Financial Assets and Financial Liabilities The amendments are applicable to annual reporting periods beginning on or after 1 January The disclosure requirements of AASB 7 'Financial Instruments: Disclosures' (and consequential amendments to AASB 132 'Financial Instruments: Presentation') have been enhanced to provide users of financial statements with information about netting arrangements, including rights of set-off related to an entity's financial instruments and the effects of such rights on its statement of financial position. The adoption of the amendments from 1 July 2013 will increase the disclosures by the Fund. 19

21 NOTES TO THE FINANCIAL STATEMENTS 12. NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (CONT.) AASB Amendments to Australian Accounting Standards - Offsetting Financial Assets and Financial Liabilities The amendments are applicable to annual reporting periods beginning on or after 1 January The amendments add application guidance to address inconsistencies in the application of the offsetting criteria in AASB 132 'Financial Instruments: Presentation', by clarifying the meaning of "currently has a legally enforceable right of set-off"; and clarifies that some gross settlement systems may be considered to be equivalent to net settlement. The adoption of the amendments from 1 July 2014 will not have a material impact on the Fund. 13. FUND DETAILS The registered office and principal place of business of the Fund is: 105 Railway Road SUBIACO WA