The Sydney Orthodontic Alumni Limited ACN Annual Report For the Year Ended 30 June 2015

Transcription

1 Annual Report For the Year Ended 30 June Dean Street Albury NSW 2640 Australia

2 THE SYDNEY ORTHODONTIC ALUMNI LIMITED () FOR THE YEAR ENDED 30 JUNE 2015 Contents Directors Report... 1 Auditor s Independence Declaration... 3 Note 1 - Statement of Significant Accounting Policies... 8 Note 2 - Revenue Note 3 - Income Tax Note 4 - Cash and Cash Equivalents Note 5 - Financial Assets Note 6 - Other Assets Note 7 - Trade and Other Payables Note 8 - Accumulated Surplus Note 9 - Cash Flow Information Note 10 - Contributed Equity Note 11 - Contingent Liabilities Note 12 - Events Occurring After the Balance Sheet Date Note 13 - Related Party Transactions Note 14 - First-Time Adoption of Accounting Standards Directors Declaration Independent Auditor s Report

3 DIRECTORS REPORT Directors Report The directors present their report on The Sydney Orthodontic Alumni Limited ( the Company ) for the year ended 30 June Directors The following persons were directors of the Company during the financial period and up to the date of this report: Name Position Experience (Years Managing the Company) Stephen Leonard DUNCAN President 1 Peter William SYNOTT Company Secretary 1 Allan John WARD Treasurer 1 Directors were in office from the beginning of the financial period, unless otherwise stated. Principal activities During the financial period the principal continuing activities of the Company were: o o o o Promotion and encourage amongst members and colleagues education, training and research in science and practice of orthodontics in Australia; Promote the awareness and development of professional standards, ethics and professional integrity in the practice of orthodontics in Australia; Provide an environment promoting fellowship and support amongst orthodontic Alumni of the University of Sydney; and Advocate on any issue which affects the science or practice of orthodontics in Australia. Operating results The Alumni changed its registration from an incorporated association (a body corporate) to a company limited by guarantee on 31 October The assets and liabilities of the previous entity were taken over by the Company. For the year ended 30 June 2015, the operating surplus of the Company amounted to $7,626 (2014: loss of $173). Short and long tern objectives The short term objective of the Company is to conduct education and training programmes for practitioners to maintain specialist orthodontic skills and encourage and support members in undertaking continuous professional development. The company s long term objectives are to promotion high standards of practices, ethics and professional integrity in orthodontic training, specialist education, scientific research and practice. Page 1

4 DIRECTORS REPORT Strategy for achieving the objectives The directors meet regularly to review the Company s strategic position and apply budgetary controls to monitor its financial position and its abilities to achieve the objectives. Membership The entity is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the Company is wound up, the Constitution states that each member is required to contribute a maximum of $2 toward meeting any outstanding obligations of the Company. Auditors' Independence Declaration A copy of the Auditors' Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on the following page. This report is made in accordance with a resolution of directors. On behalf of the directors: Stephen Leonard Duncan President Dated this 4 November 2015 Sydney, Australia Page 2

5 Level 3, 377 Sussex Street, Sydney NSW 2000, Australia Tel: (02) Fax: (02) ABN Postal Address : PO Box 20130, World Square NSW 2002 Auditor s Independence Declaration (Under Section 307C of the Corporations Act 2001) To the Directors of The Sydney Orthodontic Alumni Limited I declare that, to the best of my knowledge and belief, during the year ended 30 June 2015, there have been: (i) (ii) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and no contraventions of any applicable code of professional conduct in relation to the audit. Kee & Co. Certified Practising Accountants Wallace Kee 4 November 2015 Registered Tax Agent Kee Partners is a CPA Practice and member of Approved SMSF Auditor Registered Company Auditor Wallace Kee, M.Tax, M.Com, CPA, CTA Andrew Kwong, MBA, MA, FCPA, JP Liability limited by a scheme approved under Professional Standards Legislation Page 3

6 STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2015 Statement of Profit and Loss and Other Comprehensive Income Note $ $ Revenue 17,268 59,224 Other Income 7,387 4,550 Total Revenue 2 24,655 63,774 Expenses Advertising Expenses - 1,127 Bank Charges 1 30 Conference and Gathering Expenses 11,265 59,842 Insurance - 2,948 Legal Fee 5,763 - Total Expenses 17,029 63,947 Surplus / (Deficit) for the Year 8 7,626 (173) The accompanying notes form part of these financial statements. Page 4

7 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2015 Statement of Financial Position Note $ $ ASSETS Current Assets Cash and Cash Equivalents 4 146,173 36,160 Financial Assets 5 59, ,668 Other Assets 6-63 Total Current Assets 205, ,891 TOTAL ASSETS 205, ,891 LIABILITIES Current Liabilities Trade and Other Payables 7 1,727 - Total Current Liabilities 1,727 - TOTAL LIABILITIES 1,727 - NET ASSETS 203, ,891 EQUITY Accumulated Surplus 8 203, ,891 TOTAL EQUITY 203, ,891 The accompanying notes form part of these financial statements. Page 5

8 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2015 Statement of Changes in Equity Note $ $ Total Equity at the Beginning of the Year 8 195, ,064 Total Comprehensive Income for the Period 8 7,626 (173) Total Equity at the End of the Financial Year 8 203, ,891 Total Comprehensive Income for the Year Attributable to Members of the Company Comprised:- Surplus/(Deficit) for the Year 8 7,626 (173) The accompanying notes form part of these financial statements. Page 6

9 STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2015 Statement of Cash Flows Note $ $ Cash Flow From Operating Activities Cash Received 18,994 65,146 Payments to Suppliers and Employees (16,965) (70,141) Interest Received 7,387 4,550 Net Cash Inflow From Operating Activities 9(a) 9,416 (445) Cash Flows From Investing Activities (Increased)/Decreased in Term Deposits 100,597 (3,559) Net Cash Inflow from Investing Activities 100,597 (3,559) Net Increase/(Decrease) in Cash and Cash Equivalents 110,013 (4,004) Cash and Cash Equivalents at Beginning of the Year 36,160 40,164 Cash and Cash Equivalents At End of the Year 9(b) 146,173 36,160 The accompanying notes form part of these financial statements. Page 7

10 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 The financial statements are for The Sydney Orthodontic Alumni Limited as an individual entity, incorporated and operate in Australia. The University of Sydney Orthodontic Alumni has changed its registration from a body corporate to The Sydney Orthodontic Alumni Limited, a company limited by guarantee on 31 October The Company took over the assets and liabilities of the previous incorporated association, the University of Sydney Orthodontic Alumni. Note 1 - Statement of Significant Accounting Policies (a) First time adoption of accounting standards This financial report is the first general purpose financial report to be prepared in accordance with Australian Accounting Standards Reduced Disclosure Requirements of the Australian Accounting Standards Board and the Corporations Act The financial statements of the previous University of Sydney Orthodontic Alumni to 30 June 2014 had not been prepared in accordance with any Australian Accounting Standards. When preparing the Company s financial report for the year ended 30 June 2015, directors have amended certain accounting and valuation methods applied in the Australian Accounting Standards. The comparative figures in respect of 2014 were restated to reflect these adjustments. Reconciliations of transition to the Australian Accounting Standards Reduced Disclosure Requirements have been included in Note 14. (b) Basis of Preparation 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 and the Corporations Act In preparing the financial report the company has taken the exemptions available to small not for profit entities. 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 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. (c) Accounting Policies The following is a summary of the significant accounting policies adopted in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated. (i) Income tax No provision for income tax has been raised as the Company is exempt from income tax under Division 50 of the Income Tax Assessment Act (ii) Revenue recognition Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, allowances and duties. Revenue is recognised for the major business activities as follows: Conference Income and advertising Income These are recognised as revenue when due and receivable. Page 8

11 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Interest revenue Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. (iii) Cash and cash equivalents Cash and cash equivalents include cash on hand and at call, deposits with banks or financial institutions, other short-term highly liquid investments with original maturities of three months or less, and bank overdraft. Short-term deposits at bank are shown within Financial Assets in current assets on the Statement of Financial Position. (iv) Receivables Receivables are recognised initially at fair value and subsequently measured at amortised cost. Collectability of receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for doubtful debts is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. (v) 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. 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 which 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. Plant and equipment that have been contributed at no cost, or for nominal cost, are valued and recognised at the fair value of the asset at the date it is acquired. (vi) Payables These amounts represent the liabilities outstanding at the end of the reporting period for goods and services received by the Company during the reporting period which remain unpaid. The balance is recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability. (vii) Employee benefits Provision is made for Company s liability for employee benefits arising from services rendered by employees to the end of the 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 the estimated future cash outflows to be made for those benefits. In determining the liability, consideration is given to employee wage increases and the probability that the employee may not satisfy vesting requirements. Those cash outflows are discounted using market yields on national government bonds with terms to maturity that match the expected timing of cash flows. Contributions are made by the Company to employee superannuation funds and are charged as expenses when incurred. Page 9

12 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 (viii) Provisions Provision is recognised when the Company 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. (ix) Goods and Services Tax (GST) Expenses and assets are recognised net of the amount of Goods and Services Tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). In these circumstances the GST is recognised as part of the cost of acquisition of an asset or as part of an item of expenses. The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Statement of Financial Position. Cash flows are included in the Statement of Cash Flows on a gross basis, except for the GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the ATO. The GST component of financing and investing activities which is recoverable from, or payable to, the ATO is classified as a part of operating cash flows. Accordingly, investing and financing cash flows are presented in the Statement of Cash Flows net of GST that is recoverable from, or payable, to the ATO. (x) Financial instruments Initial recognition and measurement Financial assets and financial liabilities 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 transactions 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 rate method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties. Quoted prices in an active market, where available, are used to determine fair value. In other circumstances, valuation techniques are adopted. Amortised cost is calculated as: the amount at which the financial asset or financial liability is measured at initial recognition; less principal repayments; plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised and the maturity amount calculated using the effective interest method; and less any reduction for impairment. The effective interest method is used to allocate interest income or interest expense over the relevant period and is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value with a consequential recognition of an income or expense in profit or loss. Page 10

13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Financial assets at fair value through profit or loss Financial assets are classified as fair value through profit or loss when they are held for trading for the purpose of short-term profit taking, or where they are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation where a group of financial assets is managed by key management personnel on a fair value basis in accordance with a documented risk management or investment strategy. Such assets are subsequently measured at fair value with changes in carrying value being included in profit or loss. Held-to-maturity investments Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or determinable payments, and it is the entity s intention to hold these investments to maturity. They are subsequently measured at amortised cost. Held-to-maturity investments are included in non-current assets, except for those which are expected to mature within 12 months after the end of the reporting period. (All other investments are classified as current assets.) If during the period the company sold or reclassified more than an insignificant amount of the held-tomaturity investments before maturity, the entire held-to-maturity investments category would be tainted and reclassified as available-for-sale. Available-for-sale financial assets Available-for-sale financial assets are non-derivative financial assets that are either not capable of being classified into other categories of financial assets due to their nature, or they are designated as such by management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor fixed or determinable payments. Such assets are subsequently measured at fair value. Available-for-sale financial assets are included in non-current assets, except for those which are expected to be disposed of within 12 months after the end of the end of the reporting period. (All other financial assets are classified as current assets.) Financial liabilities Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm s length transactions, reference to similar instruments and option pricing models. Impairment At the end of each reporting period, the Company 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 Statement of Comprehensive Income. Page 11

14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 De-recognition Financial assets are derecognised where 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 where the related obligations are discharged, cancelled or expired. The difference between the carrying value 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. (xi) Impairment of assets At the end of each reporting period, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset s fair value less costs to sell and value in use, is compared to the asset s carrying value. Any excess of the asset s carrying value over its recoverable amount is expensed to the statement of comprehensive income. Where the future economic benefits of the asset are not primarily dependent upon the asset s ability to generate net cash inflows and when the entity would, if deprived of the asset, replace its remaining future economic benefits, value in use is determined as the depreciated replacement cost of an asset. Where it is not possible to estimate the recoverable amount of a class of assets, the entity estimates the recoverable amount of the cash-generating unit to which the class of assets belong. Where an impairment loss on a revalued asset is identified, this is debited against the revaluation surplus in respect of the same class of asset to the extent that the impairment loss does not exceed the amount in the revaluation surplus for that same class of asset. (xii) Critical accounting estimates and judgements 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 company. Key estimates - Impairment The Company assesses impairment at each reporting date by evaluating conditions specific to the company which may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of an asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates. (xiii) Comparative figures Comparative figures have been adjusted to conform to changes in presentation for the current financial year where required by Accounting Standards or as a result of changes in accounting policy. Page 12

15 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE $ $ Note 2 - Revenue Revenue from Continuing Operations: Advertisement Income 7,000 - Conference and Gathering Income 10,268 59,224 Other Income: Interest Received 7,387 4,550 Total Revenue from Continuing Operations 24,655 63,774 Note 3 - Income Tax No provision for income tax has been raised as the entity is exempt from income tax under Division 50 of the Income Tax Assessment Act Note 4 - Cash and Cash Equivalents Cash at Bank 146,173 36,160 Note 5 - Financial Assets Term Deposits at Bank 59, ,668 Note 6 - Other Assets GST Refundable - 63 Note 7 - Trade and Other Payables GST Payable 1,727 - Note 8 - Accumulated Surplus Accumulated Surplus 203, ,891 Movement: Accumulated Surplus at the Beginning of the Year 195, ,064 Net Surplus for the Year 7,626 (173) Accumulated Surplus at the End of the Year 203, ,891 Page 13

16 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Note 9 - Cash Flow Information (a) Reconciliation of Operating Surplus to the Net Cash Flows From Operating Activities $ $ Operating Surplus/(Deficit) 7,626 (173) Changes in Assets and Liabilities:- - Receivables - Prepaid Expenses - Payables - Payables 1,790 (272) Net Cash Provided by Operating Activities 9,416 (445) (b) Reconciliation of Cash Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to items in the Statement of Financial Position as follows:- Cash at Bank 146,173 36,160 Note 10 - Contributed Equity The Company is limited by guarantee. In the event of winding up of the company, the Constitution States that each member is required to contributed a maximum of $2 towards meeting any outstanding obligations of the company. Note 11 - Contingent Liabilities The directors of the Company are not aware of any contingent liabilities. Note 12 - Events Occurring After the Balance Sheet Date There have been no events which have occurred between balance date and the date of these accounts which will materially impact the Company. Note 13 - Related Party Transactions There were no related party transactions during the year. Page 14

17 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2015 Note 14 - First-Time Adoption of Accounting Standards The Company has prepared these financial statements using Australian Accounting Standards and their related pronouncements. As these financial statements are for the first financial period reported in accordance with Australian Accounting Standards Reduced Disclosure Requirements, it is necessary to explain how the transition to Australian Accounting Standards affected the previously reported financial position and financial performance since 1 July In accordance with the Accounting Standard AASB 1: First-Time Adoption of Australian Accounting Standards, the comparative information has been restated using the Australian Accounting Standards. (a) Reconciliation of balances previously reported to its balances under Australian Accounting Standards (AASB) (i) Reconciliation of Statement of Profit and Loss and Other Comprehensive Income for the year ended 30 June 2013 There were no effects to the Statement of Profit and Loss and Other Comprehensive Income for the year ended 30 June (ii) Reconciliation of Statement of Financial Position at the Date of Transition to AASB: 1 July 2014 There were no effects to the Statement of Financial Position at the date of transition to AASB on 1 July (iii) Reconciliation of Statement of Cash Flows for the year ended 30 June 2013 There were no effects to the Statement of Cash Flows for the year ended 30 June Page 15

18 DIRECTORS DECLARATION Directors Declaration The directors of The Sydney Orthodontic Alumni Limited ( the Company ) declare that: 1. the financial statements and notes thereto are in accordance with the Corporations Act 2001 and: (a) give a true and fair view of the financial position of the Company as at 30 June 2015 and of its performance, as represented by the results of its operations and its cash flows, for the period ended on that date; and 2. in the opinion of the directors, there are reasonable grounds to believe that the Company 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. Stephen Leonard Duncan President Dated this 4 th November 2015 Page 16

19 ABN Level 3, 377 Sussex Street, Sydney NSW 2000, Australia Tel: (02) Fax: (02) Postal Address : PO Box 20130, World Square NSW 2002 Independent Auditor s Report To the members of The Sydney Orthodontic Alumni Limited Report on the Financial Report We have audited the accompanying financial report of The Sydney Orthodontic Alumni Limited ( the Company ), which comprises the Statement of Financial Position as at 30 June 2015, and the Statement of Profit and Loss and Other Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows for the period ended on that date, a summary of significant accounting policies, other explanatory notes and the Directors' Declaration. Directors' Responsibility for the Financial Report The directors of the Company are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards Reduced Disclosure Requirements and the Corporations Act This responsibility includes establishing and maintaining internal controls relevant to the preparation and fair presentation of the financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial report 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 entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. Registered Tax Agent Approved SMSF Auditor Registered Company Auditor Wallace Kee, M.Tax, M.Com, CPA, CTA Andrew Kwong, MBA, MA, FCPA, JP Kee Partners is a CPA Practice and member of Liability limited by a scheme approved under Professional Standards Legislation

20 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act We confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of the Company, would be in the same terms if provided to the directors as at the date of this auditor's report. Basis for Qualified Opinion The company was established on 31 October 2014 and took over the assets and liabilities of the previous association, University of Sydney Orthodontic Alumni on that time. The accounts of the previous association for the year ended 30 June 2014 have not been previously audited and we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded assets and liabilities, and the elements making up the statement of profit and loss and other comprehensive income, statement of changes in equity and statement of cash flows. Accordingly, our opinion on the current year s financial report is modified because of the possible effect of these matters on the comparability of the current year s figures. Qualified Auditor s Opinion In our opinion, except for the effects of the matters described in Basis for Qualified Opinion paragraph, the financial report of The Sydney Orthodontic Alumni Limited is in accordance with the Corporations Act 2001, including: (a) giving a true and fair view of the Company's financial position as at 30 June 2015 and of its performance for the period ended on that date; and (b) complying with Australian Accounting Standards Reduced Disclosure Requirements and the Corporations Regulations Wallace Kee Registered Company Auditor 4 November 2015 Sydney, Australia Page 2