FINANCIAL SUMMARY. behalf of the company for all or any part of those proceedings.

Transcription

1 ADMA ANNUAL REPORT FINANCIAL SUMMARY The company made a profit for the year of $101,576 which compares to a profit of $113,127 in the previous year. Income for the year increased from $7,726,015 to $8,399,972, an 8.7% increase, while costs increased to $8,298,396 from $7,612,888, or a 9.0% increase. No significant changes in the company s state of affairs occurred during the financial year. The principal activities of the company are the promotion and protection of the status of data - driven marketing, the provision of technical advice and training services to members and the operation of the ADMA Global Forum and numerous events. No significant change in the nature of these activities occurred during the year. Subsequent to the year end, Association for Datadriven Marketing and Advertising (ADMA) formally changed its name by means of special resolution to Australian Alliance for Data Leadership Ltd (AADL). No other matter or circumstance has arisen since 30 June 2017 that has significantly affected, or may significantly affect the company s operations, the results of those operations, or the company s state of affairs in future financial years. Likely developments in the operations of the company and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable prejudice to the economic entity. The company s operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory. 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. Contributions on winding up In the event of the company being wound up, ordinary members are required to contribute a maximum of $100 each. The total amount that members of the company are liable to contribute if the company is wound up is $68,800 (2016: $60,700), based on 688 current members (2016: 607). AUDITOR S INDEPENDENCE DECLARATION A copy of the auditor s independence declaration as required under section 307C of the Corporations Act 2001 is set out on the following page. Signed in accordance with a resolution of Directors: J Sangster CEO Dated 31 October 2017 S Brennen Director Dated 31 October 2017 The company is prohibited by its Memorandum and Articles of Association from paying dividends and accordingly the Directors do not recommend payment of a dividend. No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the 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

2 AUDITOR S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE DIRECTORS OF THE ASSOCIATION FOR DATA- DRIVEN MARKETING AND ADVERTISING LTD I declare that, to the best of my knowledge and belief during the year ended 30 June 2017 there have been: no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. William Buck Chartered Accountants ABN L.E. Tutt Partner Sydney, 31 October 2017 CHARTERED ACCOUNTANTS & ADVISORS Sydney Ofice Level 29, 66 Goulburn Street Sydney NSW 2000 Telephone: Parramatta Ofice Level 7, 3 Horwood Place Parramatta NSW 2150 PO Box 19 Parramatta NSW 2124 Telephone: williambuck.com William Buck is an association of independent firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.

3 ADMA ANNUAL REPORT STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 NOTE Revenue 2(b) 8,350,841 7,720,861 Other income 2(b) 49,131 5,154 8,399,972 7,726,015 Employee benefits expense (3,082,650) (2,971,835) Occupancy expenses (343,008) (306,510) Depreciation, amortisation and impairment losses (416,973) (242,413) Education costs (1,055,076) (971,148) Events costs (1,247,137) (1,651,173) Other expenses (2,153,552) (1,469,809) Profit before income tax 101, ,127 Income tax expense - - Profit for year 101, ,127 Other comprehensive income for the year, net of tax - - Total comprehensive income for the year 101, ,127 Profit attributable to members of the entity 101, ,127 Total comprehensive income attributable to members of the entity 101, ,127 The accompanying notes form part of these financial statements.

4 ADMA ANNUAL REPORT STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017 NOTE ASSETS Current Assets Cash and cash equivalents 3 1,440,429 1,427,769 Trade and other receivables 4 1,817,333 1,741,396 Other current assets 5 781, ,622 Total Current Assets 4,039,525 3,913,787 Non-Current Assets Property, plant and equipment 6 74, ,865 Intangible assets 7 1,353,013 1,567,528 Total Non-Current Assets 1,427,482 1,687,393 TOTAL ASSETS 5,467,007 5,601,180 LIABILITIES Current Liabilities Trade and other payables 8 4,240,055 4,461,663 Short-term provisions 9 219, ,983 Total Current Liabilities 4,459,342 4,646,646 Non-Current Liabilities Trade and other payables 8 13,941 71,050 Long-term provisions 9 49,821 41,157 Total Non-Current Liabilities 63, ,207 TOTAL LIABILITIES 4,523,104 4,758,853 NET ASSETS 943, ,327 EQUITY Retained earnings 943, ,327 TOTAL EQUITY 943, ,327 The accompanying notes form part of these financial statements.

5 ADMA ANNUAL REPORT STATEMENT OF CHANGES IN EQUITY FOR YEAR ENDED 30 JUNE 2017 Total equity at the beginning of the year 842, ,200 Profit (Loss) for year 101, ,127 Total equity at the end of the year 943, ,327 The accompanying notes form part of these financial statements. STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Note Cash Flow From Operating Activities Receipts from customers 8,380,575 7,835,402 Payments to suppliers and employees (8,472,303) (6,273,751) Grants received 150,000 - Interest received 49,132 5,154 Net cash provided by operating activities ,404 1,566,805 Cash Flow From Investing Activities Proceeds from sale of intangible assets 95,000 - Purchase of intangible assets (211,237) (995,118) Net cash used in investing activities (116,237) (995,118) Cash flow from financing activities Net movement on related party loans 21,493 - Net cash provided from financing activities 21,493 - Net increase in cash held 12, ,687 Cash and cash equivalents at beginning of year 1,427, ,082 Cash and cash equivalents at end of year 1,440,429 1,427,769 The accompanying notes form part of these financial statements.

6 ADMA ANNUAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017 NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The principal accounting policies adopted in the presentation of the financial statements are set out below. These policies have been consistently applied to all years being presented, unless otherwise stated. Association for Data-Driven Marketing and Advertising (ADMA) is a company limited by guarantee, incorporated and domiciled in Australia. The financial statements cover ADMA as an individual entity and are presented in Australian Dollars, which is ADMA s functional and presentation currency. New or amended Accounting Standards and Interpretations adopted The company has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ( AASB ) that are mandatory for the current reporting period. Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. Basis of Preparation In the directors opinion, the company is not a reporting entity because there are no users dependent on general purpose financial statements. These are special purpose financial statements that have been prepared to meet the needs of the directors of Association for Data-Driven Marketing and Advertising. These financial statements have been prepared in accordance with the recognition and measurement requirements specified by the Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ( AASB ) and the disclosure requirements of AASB 101 Presentation of Financial Statements, AASB 107 Statement of Cash Flows, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors, AASB 1048 Interpretation of Standards and AASB 1054 Australian Additional Disclosures, as appropriate. Historical cost convention The financial statements have been prepared under the historical cost convention. Critical accounting estimates The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed below. Accounting Policies Income Tax No provision for income tax has been raised as the company is exempt from income tax under subsection 50-5 of the Income Tax Assessment Act Current and non-current classification Assets and liabilities are presented in the statement of financial position based on current and noncurrent classification. An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the company s normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within 12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non- current. A liability is classified as current when: it is either expected to be settled in the company s normal operating cycle; it is held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other liabilities are classified as noncurrent. Revenue Education fees and membership subscriptions in respect of the year 2018, that have been invoiced prior to 30 June 2017 have been recorded as deferred income in the financial statements. This policy is consistent with that adopted in previous years. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.

7 ADMA ANNUAL REPORT Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Grant revenue is recognised at its fair value where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. All revenue is stated net of the amount of goods and services tax (GST). Cash and cash equivalents Cash and cash equivalents includes cash on hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. Trade and other receivables Trade and other receivables are recognised at amortised cost, less any provision for impairment. Plant and Equipment Each class of plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation. The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the asset s employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. The depreciable amount of all fixed assets is depreciated on a straight-line basis over their useful lives to the company commencing from the time the asset is held ready for use. The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Depreciation Rate Plant and equipment 15-20% Leased plant and equipment Over the term of lease The assets residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. 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. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the Statement of Profit or Loss and other Comprehensive Income. Goodwill Goodwill is initially recorded at the amount by which the purchase price for a business exceeds the fair value attributed to its net assets at date of acquisition. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. Intangibles Website Website creation costs are recorded at cost. The website has a finite life and is carried at cost less accumulated amortisation. It has an estimated useful life of three years and is assessed annually for impairment. Course Writing Course Writing is recorded at cost. Course writing has a finite life and is carried at cost less accumulated amortisation and any impairment losses. It has an estimated useful life of two years and is assessed annually for impairment. Trademarks Trademarks are recorded at cost. Trademarks are determined to have an indefinite life and is not amortised. Management assess the asset at least annually for impairment. Education Skills Assessment Tool Education Skills Assessment Tool is recorded at cost. Education Skills Assessment Tool has a finite life and is carried at cost less accumulated amortisation and any impairment losses. It has an estimated useful life of three years and is assessed for impairment annually. Trade and other payables These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year and which are unpaid. Due to their short-term nature, they are measured at amortised cost and are not discounted. Employee Benefits Provision is made for the company s liability for employee benefits arising from services rendered by employees to reporting date. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later than one year have been measured at the present value of

8 ADMA ANNUAL REPORT the estimated future cash outflows to be made for those benefits. 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 in the Statement of Financial Position are shown inclusive of GST. 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. Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to the company are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Critical Accounting Estimates and Judgments Key estimates Valuation of Goodwill No impairment loss has been recognised in respect of goodwill for the year ended 30 June 2017 as the company believes that the goodwill is supported by forecasts, indicating profitability in the next financial year. Key estimates Provision for impairment of receivables The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical collection rates and specific knowledge of the individual debtor s financial position. Key estimates Estimation of useful lives of assets The company determines the estimated useful lives and related depreciation and amortisation charges for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation and amortisation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. New Accounting Standards and Interpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended June The company is currently in the process of assessing the impact of these new Accounting Standards and Interpretations.

9 ADMA ANNUAL REPORT NOTE 2: PROFIT FROM ORDINARY ACTIVITIES a. Expenses Depreciation and amortisation of property, plant and equipment 416, ,413 Remuneration of auditor: - audit or review 17,750 17,200 - taxation services 3,300 2,800 17,750 20,000 Salaries 2,637,595 2,400,605 Superannuation 260, ,350 Marketing expenses 366, ,426 Bad debts written off 174,924 - Rental expense on operating leases: minimum lease payments 343, ,510 b. Significant Revenues The following significant revenue items are relevant in explaining the financial performance: Membership and sponsorship 2,947,459 2,087,072 Conference and exhibition 653, ,687 Set-up contributions - 430,000 Education 2,794,684 2,559,101 Government grants 175,000 - Other events 583, ,700 Awards 333, ,189 Branches 299,839 92,545 Sundry 563, ,567 8,350,841 7,720,861 Gain on disposal of assets 40,825 - Interest 8,306 5,154 49,131 5,154

10 ADMA ANNUAL REPORT Note 3: Cash and Cash Equivalents CURRENT Cash at bank 1,318,387 1,322,029 Cash in hand Short-term bank deposits 122, ,345 1,440,429 1,427,769 Note 4: Trade and other receivables CURRENT Trade receivables 1,847,333 1,873,671 Provision for impairment of receivables (30,000) (139,425) 1,817,333 1,734,246 Loan receivable - related parties - 7,150 1,817,333 1,741,396 Note 5: Other Current Assets CURRENT Prepayments 781, , , ,622

11 ADMA ANNUAL REPORT Note 6: Plant and Equipment Leasehold Improvements At cost 74,442 74,442 Accumulated depreciation (42,914) (31,298) 31,528 43,144 Plant and equipment At cost 536, ,261 Accumulated depreciation (493,320) (459,540) 42,941 76,721 Total plant and equipment 74, ,865

12 ADMA ANNUAL REPORT Note 7: Intangible Assets Education Course Writing Costs At cost 992, ,148 Accumulated amortisation (622,254) (377,719) 369, ,429 Goodwill At cost 472, ,840 Accumulated impairment losses (48,000) (48,000) 424, ,840 Website Costs At cost 801, ,594 Accumulated amortisation (353,553) (236,510) 448, ,084 Education Skills Assessment Tool 120,000 - At cost (9,999) - Accumulated impairment losses 110,001 - Trademarks At cost - 54,175 Accumulated impairment losses ,175 Total intangible assets 1,353,013 1,567,528

13 ADMA ANNUAL REPORT Note 8: Trade and Other Payables CURRENT Trade payables 523, ,489 Sundry payables and accrued expenses 695,243 1,236,513 Deferred income - education 404, ,316 Deferred income - events 928, ,817 Deferred income - other 19, ,622 Membership fees in advance 1,655,197 1,666,906 Loan payable - related parties 14,343-4,240,055 4,461,663 NON-CURRENT Membership fees in advance 13,941 71,050 13,941 71,050 Note 9: Provisions CURRENT Employee benefits 219, , , ,983 NON-CURRENT Employee benefits 49,821 41,157 49,821 41,157 Note 10: EQUITY - RETAINED SURPLUS Retained surplus at the beginning of the financial year 842, ,200 Surplus after income tax expense for the year 101, ,127 Retained surplus at the end of the financial year 943, ,327

14 ADMA ANNUAL REPORT NOTE 11: CAPITAL AND LEASING COMMITMENTS Operating Lease Commitments Non-cancellable operating leases contracted but not yet capitalised in the financial statements. Payable - minimum lease payments not later than 12 months 284, ,967 between 12 months and 5 years 643, , ,027 1,205,804 The company had no capital commitments at 30 June 2017 (2016: none). NOTE 12: CASH FLOW INFORMATION Reconciliation of Cash Flow from Operations with Profit after Income Tax Profit after income tax 101, ,127 Non-cash flows in profit: Depreciation and amortisation 416, ,413 Gain on disposal of intangible assets (40,825) - Unrealised foreign exchange Changes in assets and liabilities: (Increase) / decrease in trade and other receivables (83,087) (361,898) (Increase) / decrease in other assets (37,141) 18,889 Increase / (decrease) in deferred revenue 303,648 1,023,837 Increase / (decrease) in payables (597,517) 476,440 Increase / (decrease) in provisions 42,968 53, ,404 1,566,806

15 Association of Data-Driven Marketing and Advertising Ltd Independent auditor s report to the members Report on the Audit of the Financial Report Opinion We have audited the financial report of the Association of Data-Driven Marketing and Advertising Ltd (the Company), which comprises the statement of financial position as at 30 June 2017, the statement of profit or loss and other comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information, and the directors declaration. In our opinion, the accompanying financial report of the Company, is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company s financial position as at 30 June 2017 and of its financial performance for the year ended on that date; and (ii) complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter Basis of Accounting We draw attention to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors financial reporting responsibilities under the Corporations Act As a result, the financial report may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Responsibilities of the Directors for the Financial Report The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. CHARTERED ACCOUNTANTS & ADVISORS Sydney Ofice Level 29, 66 Goulburn Street Sydney NSW 2000 Telephone: Parramatta Ofice Level 7, 3 Horwood Place Parramatta NSW 2150 PO Box 19 Parramatta NSW 2124 Telephone: williambuck.com In preparing the financial report, the directors are responsible for assessing the ability of the Company to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so. William Buck is an association of independent firms, each trading under the name of William Buck across Australia and New Zealand with affiliated offices worldwide. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees.

16 Auditor s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. William Buck Chartered Accountants ABN L.E. Tutt Partner Sydney, 31 October 2017