Creative Industries Precinct Pty Ltd trading as QUT ......Creative Industries Precinct Pty ltd 2013...
Transcript of Creative Industries Precinct Pty Ltd trading as QUT ......Creative Industries Precinct Pty ltd 2013...
Creative Industries Precinct Pty Ltd trading as QUT Creative Enterprise Australia
Financial Statements
For the Year Ended 31 December 2013
ABN: 82 099110 924
Principal place of business and registered office:
Creative Industries Precinct z1 The Works Building 34 Parer Place via Musk Ave Kelvin Grove OLD 4059
Creative Industries Precinct Pty ltd 2013 Financial Report
Table of Contents For the Year Ended 31 December 2013
Directors Report Auditor's Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Equity
Notes to the Financial Statements
Directors Declaration Independent Auditor's Report
Page
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Directors Report For the Year Ended 31 December 2013
Your directors present their report on the company for the financial year ended 31 December 2013.
Directors
The names of the directors in office at any time during or since the end of the financial year are:
Mr Michael Smellie Mr Clayton Cooke (term expired 11 November 2013) Ms Ruth Drinkwater Mr Brian Richards (term expired 11 November 2013) Professor Scott Sheppard Professor Rod Wissler Ms Kylie Lamprecht (appointed 11 November 2013) Mr Gavan Ranger (appointed 11 November 2013)
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
Company Secretary
The name of the company secretary in office from 1st to 281h January was Mr Colin Melvin. Ms Amanda
Boland-Curran was appointed on 281h January 2013 for the rest of the financial year.
Registered Office and Principal Place of Business
Level2, Z1 the works, 34 Parer Place via Musk Avenue, Kelvin Grove Qld 4059.
Directors' Meetings
The number of meetings of directors held during the year and the number of meetings attended by each director were as follows:
2013 2012 Director No. Meetings Meetings No. Meetings Meetings
to be attended attended to be attended attended -Michael Smellie 7 7 6 6 Brian Richards 6 6 6 6
· Clayton Cooke 6 4 6 6 Prof Rod Wissler 7 7 6 5 Prof Scott Sheppard 7 3 6 4 Ruth Drinkwater 7 7 6 5 Gavan Ranger 2 2 - -Kylie LamQrecht 2 2 - -
At the November meeting, Clayton Cooke and Brian Richards attended and stepped down during the meeting . Whilst Gavan Ranger and Kylie Lamprecht attended the meeting and were appointed Directors at the end of that meeting.
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Directors Report For the Year Ended 31 December 2013
Operating Results
The loss of the company for the financial year after providing for income tax amounted to $901,329 (2012: $509,811).
Review of Operations
A review of the operations of the company during the financial year found that during the period the company continued to develop key business services and operations that are targeted at developing creative industries. The results of this period are disclosed in the attached financial statements.
Significant Changes in State of Affairs
No significant changes in the state of affairs of the company occurred during the financial year.
Principal Activity
The principal activity of the company during the financial year was to manage creative business development services and incubator facilities based at the Creative Industries Precinct at Kelvin Grove. The company has developed support services and events that it has delivered nationally, building on work undertaken in 2012 particularly in enabling creative ventures to build more robust commercial and financial models. The company continued to develop its signature event, the Creative3 forum for a fourth year to expand reach of services. This year continued the new model model for the CEA Fashion & Design Incubator to expand a more cost effective delivery structure for technical and business services. This included expanding into other aspects of design as well fashion based services.
The company has also continued strategic development work during 2013 to launch a 'proof of concept' investment fund for early stage creative businesses with a view to generate future long term revenues. The Creative Enterprise Fund launched in July 2013 and the company has been assessing prospective investment opportunities in line with the framework agreed by its Board and shareholder via a new Investment Sub Committee. No investments have been made during the financial year.
No other significant change in the nature of activities occurred during the year.
Matters Subsequent to the End of the Financial Year
No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.
Likely Developments
Likely developments in the operations of the company and the expected results of those operations have not been included in this report as the directors believe, on reasonable grounds, that they are unable to determine such a result.
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Directors Report For the Year Ended 31 December 2013
Environmental Issues
The company's operations are not regulated by any significant environmental regulation under a law of the commonwealth or of a State or Territory.
Dividends Paid or Recommended
No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.
Options
No options over issued shares or interests in the company were granted during or since the end of the financial year and there were no options outstanding at the end of the financial year.
Indemnification of Officer or Auditor
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.
Auditor's Independence Declaration
The auditor's independence declaration can be found on page 4.
Proceedings on Behalf 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 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.
Signed in accordance with a resolution of the Board of Directors:
····1;"'"" \
Dated this 291h day of January 2014.
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Creative Industries Precinct pty Ltd 2013 Financial Report
Auditor's Independence Declaration
To the Directors of Creative Industries Precinct Pty Ltd (t/a QUT Creative Enterprise Australia)
This auditor's independence declaration has been provided pursuant to s.307C of the Corporations Act 2001 .
Independence Declaration
As lead auditor for the audit of Creative Industries Precinct Pty ltd for the year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been -
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
1fJ.dd-J F WELSH FCPA Queensland Audit Office as Delegate of the Auditor-General of Queensland Brisbane
Dated in Brisbane this 291h day of January 2014.
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2013
Revenue
Incubator Membership, Rent & Recoveries
Facilities hire
Grants
Interest received
Creative 3 Forum
Fashion Incubator
Other
Total Revenues
Expenses
Employee benefits expense
Superannuation costs
Financial Management Costs
Contractors
Enterprise Outgoings Communication and IT Costs
Materials and Services
Industry Development and Marketing
Creative 3 Forum
Grant Costs
Fashion Incubator
Loss on Disposal of Property, Plant and Equipment
Depreciation and Amortisation
Total Expenses
Profit/(Loss) before related income tax
Income tax expense
Net Profiti(Loss) after tax attributable to members of the Company
Other comprehensive income
Total comprehensive lncome/(Loss) attributable to members of the Company
Note
2
2013 $
133,540
14,721
16,179
112,445
132,831
14,970
424,686
715,578
55,776
4,425
66,561
138,427
19,641
42,946
84,129
94,522
63,062
5,967
34,981
1,326,015
(901,329)
(901,329)
(901,329)
2012 $
254,897
14,755
132,993
19,356
130,239
162,675
14,535
729,450
600,495
45,868
44,190
106,358
18,061
38,408
44,733
116,128
99,145
76,302
4,412
45,161
1,239,261
(509,811)
(509,811)
(509,811)
The above Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with acco~m~a!.l..4"~~~. 5 QAO
cerltfted slatements
Creative Industries Precinct Pty Ltd 2013 Financial Report
Statement of Financial Position As at 31 December 2013
2013 2012 Note $ $
ASSETS
CURRENT ASSETS Cash and cash equivalents 3 907,049 607,570 Trade and other receivables 4 29,756 78,689 Other assets 5 11,867 14,490 TOTAL CURRENT ASSETS
948,672 700 749 NON-CURRENT ASSETS
Trade and other receivables 4 6,440 7,000 Property, plant and equipment 6 22,535 35,912 Intangible assets 7 35,367 8,502 TOTAL NON-CURRENT ASSETS
64,342 51,414 TOTAL ASSETS
1,013,014 752,163
LIABILITIES CURRENT LIABILITIES
Trade and other payables 8 117,340 41,373 Other liabilities 9 29,320 38,993 Provisions 10 38,815 33,575 TOTAL CURRENT LIABILITIES
185,475 113,941 NON-CURRENT LIABILITIES
Provisions 10 21,082 14,292 TOTAL NON-CURRENT LIABILITIES
21,082 14,292 TOTAL LIABILITIES
206,557 128,233 NET ASSETS
806,457 623,930
EQUITY Contributed Equity 11 4,344,321 3,260,465 Retained Losses (3,537,864) (2,636,535)
806,457 623,930 TOTAL EQUITY
806,457 623,930
The above Slalemenl of Financial Position is to be read in conjunction wilh the accompanying notes.
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Statement of Cash Flows For the Year Ended 31 December 2013
2013 2012 Note $ $
CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts in the course of operations 461,283 681,852 Cash payments in the course of operations (1, 196, 724) (1,208,704) Interest received 16,179 19,356 GST collected on sales 37,721 73,487 GST paid on purchases (48,401) (72,036) Net cash provided by (used in) operating activities 12(b) (729,942) (506,045)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments for property, plant and equipment (54,435) (5,000)
Net cash provided by/(used in) investing activities (54,435) {5,000)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issue of shares 1,083,856 392,568
Net cash provided by/(used in) investing activities 1,083,856 392,568
Net increase (decrease) in cash and cash equivalents held 299,479 (118,477)
Cash and cash equivalents at the beginning of the financial year 607,570 726,047
Cash and cash equivalents at end of financial year 12{a) 907,049 607,570
The above Statement of Cash Flows is to be read in conjunction with the accompanying -~ 7 ~ ~~~& rt ,rle{~l~tements
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Statement of Changes in Equity For the Year Ended 31 December 2013
2013
Balance at 1 January 2013
Total Comprehensive Income for the year
Transactions with owners in their capacity as owners: Proceeds from issue of Capital
Balance at 31 December 2013 attributable to members of the Company
2012
Balance at 1 January 2012
Total Comprehensive Income for the year
Transactions with owners in their capacity as owners: Proceeds from issue of capital
Balance at 31 December 2012 attributable to members of the Company
Note
Note
Contributed Retained Equity Losses
$ $
3,260,465 (2,636,535}
(901,329)
1,083,856
4,344,321 {3,537 ,864}
Contributed Retained Equity Losses
$ $
2,867,897 (2, 126, 724) (509,811)
392,568
3,260,465 (2,636,535}
The above Statement of Changes in Equity is to be read in conjunction with the accompanyin 8
Total $
623,930
(901,329)
1,083,856
806,457
Total $
741,173 (509,811)
392,568
623,930
Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
1 Summary of Significant Accounting Policies
(a) Basis of Preparation
The financial statements are special purpose financial statements that have been prepared in accordance with the Corporations Act 2001, and the following applicable Australian Accounting Standards:
AASB 101: AASB 107: AASB 108: AASB 1031: AASB 1048:
Presentation of Financial Statements Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Materiality Interpretation and Application of Standards
No other Accounting Standard, Urgent Issues Group Interpretations or other authoritative pronouncements or the Australian Accounting Standards Board have mandatory application in respect of disclosure requirements. The Company has however applied the measurement and recognition criteria of all accounting standards.
The directors have prepared the financial statements on the basis that the for-profit Company is a non-reporting entity because there are no users dependent on general purpose financial reports. This financial report is therefore a special purpose financial report that has been prepared in order to meet the needs of the business.
Creative Industries Precinct Ply Ltd is a company limited by shares, incorporated and domiciled in Australia, which also operates under the trading name QUT Creative Enterprise Australia.
Creative Industries Precinct Ply Ltd is a controlled entity of QUT Enterprise Holdings Trust which is consolidated into the annual financial statements of the Queensland University of Technology (QUT as the ultimate parent entity).
The financial report has been prepared on an accrual basis and is based on historical costs. It does nol take into account changing money values or, except where stated, current valuations of non-current assets.
The following is a summary of the material accounting policies adopted by the economic entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.
The financial report was authorised for issue on 30 January 2014.
(b) Property, Plant and Equipment
Property, plant and equipment are carried at costs. All assets are depreciated over their useful lives to the Company. Creative JndiJ.c;tries Precinct Pty Lid recognises nil rlant and equipment with a purchase ~t of $5,000 ~greater as fixGc! assets. The depreciation rates used for each class of assets are:
Class of fixed assets
Office equipment Computer equipment Building & leasehold improvements
(c) Intangible Assets
Useful life
4 years 2.5 years 5 years
Software- Software is recorded at costs. Software has a finite life and ts carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of 2.5 years.
(d) Cash and cash equivalents
For the purposes of the Statement of Cash Flows, cash includes cash on hand and at call deposits with banks or financial inslitutions.
9 QAO .. _s:ert1fied stalements ------~
Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
1 Summary of Significant Accounting Policies (cont.)
(e) Employee benefits
Provision is made for the company's liability for employee benefits arising from services rendered by employees to the end of the reporting year. Employee benefits have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.
(f) Receivables
Collectability of debtors is reviewed on an ongoing basis. A provision for impairment is raised where doubt as to collection exists. Debts, which are known to be uncollectible, are written off.
(g) Trade & Sundry Creditors
Trade and sundry creditors represent liabilities for goods and services provided to the company prior to the end of the financial year, which are unpaid. The amounts are unsecured and usually paid within 30 days of recognition.
(h) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (GSD, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST.
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 in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority is classified as operating cash flows.
(i) Comparative figures
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.
(j) Revenue and other income
The company's main source of revenue this year was derived from incubator membership services including business development, Stitchlab services, event income and rents. Grants received from government agencies are recogmsed in the period that these monies are received to the extent that the grant monies have been consumed .
Membership fees, rent, recoveries, facilities hire, event income and other revenues are recognised in the period that these monies are earned.
All revenue is stated net of the amount of Goods and Services Tax.
(k) Unearned revenue
Grant revenue is recognised to the extent that the services required to be performed by the grantee have been performed or the grant eligibility criteria have been satisfied. Where grant monies are paid in advance of performance or eligibility, unearned revenue is recognised.
10 OAO '~ed statements
Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
Summary of Significant Accounting Policies (cont.)
(I) Income Tax
Temporary differences, which arise due to the different accounting periods in which items of revenue and expenses are included In the determination of accounting profit and taxable Income are brought to account either as a deferred tax asset or liability at the rate of income tax applicable to the period in which the benefit will be received or the liability will become payable.
Deferred tax assets are only carried forward as an asset where realisation of the benefit can be regarded as probable.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income taxation legislation. and the anticipation that the economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
(m) Currency
The financial report is presented in Australian dollars and rounded to the nearest one dollar.
(n) Critical Accounting Estimates and Judgments
The directors' evaluation, estimates and judgements incorporated into the financial report are based on historical knowledge and best available current information. Estimates assume a reasonable expectation offuture events and are based on current trends and economic data, obtained both externally and within the trust. There were no key adjustments during the year which required accounting estimates or judgements.
These estimates and judgements are based on the best infonnation available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates .
(o) Application of New Accounting Standards and Interpretations
There are no new and revised Standards and Interpretations adopted in these financial statements affecting the reporting results or financial position.
AI the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.
AASB 9 'Financial Instruments'. This is one of a series of amendments that are expected to eventually completely replace AASB 139. It simplifies the classifications of financial assets into those to be carried at amortised cost and those to be carried at fair value. This amendment will be applicable to periods beginning on or after 1 Jan 2015. It is expected that this will not have a material !mpact on the entity.
It is expected that the amendments will not have a material impact on the entity.
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Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
1 Summary of Significant Accounting Policies (cont.)
(p) Financiallnstruments
Recognition
Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contracted rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below:
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 stated at amortised cosl using the effective interest rate method.
Financial Liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal repayments and amortisation.
(q) Capital Risk Management
The Directors manage the capital to ensure that the company is able to continue as a going concern to be able to satisfy future capital needs of the company, through the optimisation of debt and equity balances.
The capital structure of the company consists of cash and cash equivalents and equity comprising of share capital and retained earnings.
The Board reviews this structure and the associated risks with each class of capital on a regular basis.
Capital risk management policies remain unchanged from the prior year.
2 Enterprise Centre Outgoings
Electricity Cleaning
Rates
Car parking
Water
Statutory maintenance
Security
Repairs and maintenance
3 Cash and cash equivalents Petty Cash
Cash at bank
12
2013 $
24,391
18,727 6,200
62,707 12,332
7,005
2,928
4,137
138,427
500 906,549
907,049
2012 $
24,391 20,480 10,399
29.459
8,459
7,005
3,150
3,015
106,358
300
607,270
607,570
QAO certified statements
Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
4 Trade and Other Receivables
Current
Trade debtors Less provision ror impairment
GST refund due
Loans Receivable
Non-Current
Loan receivable
2013 $
22,946 (6,838)
13,648
29,756
6,440
6,440
2012 $
75,721 (19,191)
2,968 19,191
78,689
7,000
7,000
The company has one loan outstanding which is due for repayment in 2015. A repayment plan has been commenced.
5 Other Assets Current Prepayments
6 Property, Plant and Equipment
Office Equipment
Office equipment - at cost Less accumulated depreciation
Computer Equipment
Computer equipment - at cost Less accumulated depreciation
Building and Leasehold Improvements
Building and leasehold improvements - at cost
Less accumulated depreciation
Plant and Equipment Plant and EqUlpm~nt- at cost Less accumulated depreciation
7 Intangible Assets
Website development - at cost Less accumulated amortisation
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11,867
11,867
81,661 {81,661)
33,555 (27,944)
5,611
111,295 {98,683)
12,612
11,948 (7,636)
4,312
22,535
46,880 (11,513)
14,490
14,490
97,948
(96,451)
1,497
26,000 (26,000)
111,294
(83,581)
27,713
11,948
(5.246)
6,702
35,912
19,400
(10,898)
35,367 8,502
Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
8 Trade and Other Payables
Current
Trade creditors
PAYG withholding
Accrued expenses
Superannuation payable
NAB Credit Card
9 Other Liabilities
Current
Unearned revenue
Customers deposits
10 Provisions Current
Provision for annual leave entitlements
Non-Current
Provision for long service leave entitlements
11 Contributed Equity 4,344,321 {2012: 3,260,465) fully paid ordinary shares held by OUT Enterprise Holdings Trust
Total These shares have no par value.
Movement in share capital
Balance at the beginning of the financial year
Ordinary shares issued
Balance at the end of the financial year
12 Cash Flow Information
(a) Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flows reconciled to items in the Statement of Financial Position as follows:
NAB Business cheque account
NAB Business Loan fund account
Petty cash
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is
2013 $
60,227 10,744 27,792 14,117 4,460
117,340
18,835 10,485
29,320
38,815
38,815
21,082
21,082
4,344,321
4,344,321
3,260,465 1,083,856
4,344,321
811,862
94,687 500
907,049
2012 $
3,718 11,248 26,407
41,373
15,000 23,993
38,993
33,575
33,575
14.292
14,292
3,260,465
3,260.465
2,867,897 392,568
3,260,465
528,531 78,739
300 607,570
QAO <';111fler:! statements _______....
Creative Industries Precinct Pty Ltd 2013 Financial Report
Notes to the Financial Statements For the Year Ended 31 December 2013
12 Cash Flow Information (cont.)
(b) Reconciliation of Joss after related income tax expense to net cash
Reconciliation of net income to net cash provided by operating activities:
ProfiV(Ioss) for the year
Non-cash items included in changes to net assets:
Depreciation
Provision for doubtful debts
Write down of property, plant and equipment
Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:
(lncrease)/decrease in receivables
(lncrease)/decrease in other assets
lncrease/(decrease) in trade and other payables
lncrease/(decrease) in other liabilities
lncrease/(decrease) in provisions
Cash flows from operating activities
13 Contingencies
The company has no known contingent assets or liabilities as at 31 December 2013.
14 Economic Dependence
2013 2012 $ $
(901,329) (509,811)
34,980 45,161 (12,353) 13,532
5,967 4,411
52,775 (28,242)
22,373 10,802
66,295 2,922
12,030 (50,813)
(10,680) 5,993
(729,942) (506,045)
During the last financial year, the company has been reliant on generating new forms of revenue from client services and investment in key areas such as Creative 3 forum and the CEA Fashion Incubator. This has included securing funds from the private sector.
The company Is also reliant on funding from its parent entity through capital contributions to enable ilto carry out its operations and meet its objectives. Similarly, the parent company is substantially reliant on funding from Queensland University of Technology, which adopts a budget framework on a triennial basis to facilitate the alignment with organisational areas' strategic plans reflecting the University methodologies and policies relating to the distribution of revenue and capital inflows
A new triennial budget framework methodology and policies for the 2014 to 2016 period has been completed and provides for the future funding needs of the company and QEH Trust and during that period.
15 Post Balance Date Events
The company is not aware of any significant post-balance date events.
16 Commitments
The company has no significant capital commitments as at 31 December 2013.
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Directors Declaration
The directors of the company declare that:
1. The financial statements and notes, as set out on pages 5 to 15 are in accordance with the Corporations Act 2001:
(a) comply with Accounting Standards and the Corporations Regulations 2001; and
(b) give a true and fair view of the company's financial position as at 31 December 2013 and of the performance for the financial year ended on that date.
2. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and ~hen they become due and payable.
This declaration is made in accordance with a resolution of the directors.
Dated this 291h day of January 2014.
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Independent Auditors Report
To the Members of Creative Industries Precinct Pty Ltd
Report on the Financial Report
I have audited the accompanying financial report, being a special purpose financial report of Creative Industries Precinct Pty Ltd, which comprises the statement of financial position as at 31 December 2013, the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors' declaration.
Directors' Responsibility 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 and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors' responsibility also includes 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.
Auditor's Responsibility
My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed to obtain reasonable assurance about 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 company's preparation of the financial report that gives a true and fair view 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. 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.
1 believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
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Independence
The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of alf Queensland public sector entities and can be removed only by Parliament.
The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General's opinion are significant.
In conducting the audit the independence requirements of the Corporations Act 2001 have been complied with. I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Creative Industries Precinct Pty Ltd, would be in the same terms if given to the directors as at the time of the auditor's report.
Opinion
In my opinion, the financial report of Creative Industries Precinct Pty Ltd is in accordance with the Corporations Act 2001, including -
(a) giving a true and fair view of the company's financial position as at 31 December 2013 and of its performance for the year ended on that date; and
(b) complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations 2001.
Emphasis of Matter- Basis of Accounting
Without modifying my opinion, attention is drawn 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 2001 . As a result, the financial report may not be suitable for another purpose.
J F Welsh FCPA (as Delegate of the Auditor-General of Queensland) Queensland Audit Office
Dated in Brisbane this 4 day of reB~I./fi~Y 2014
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