SMSF Professionals’ Association of Australia...

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SMSF Professionals’ Association of Australia Limited

ACN 103 739 617

Financial Statements for the Year Ended 30 June 2013


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CONTENTS

Directors’ Report 3

Auditor’s Independence Declaration 7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Financial Statements 12

Directors’ Declaration 28

Independent Audit Report 29


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DIRECTORS’ REPORT

Your directors present this report on the entity for the financial year ended 30 June 2013.

Directors

The names of each person who has been a director during the year and to the date of this report are:

Andrew John Hamilton - Chairman

Peter Ian Crump – Vice Chairman

Louise Janet Biti

Robin Lewis Bowerman

Peter Thomas Hogan (Resigned 19 February 2013)

David Stewart Shirlow

Andrew Crawfurd Gale

Brett Nicholas Kenny (Appointed 1 October 2012)

Andrea Elizabeth Slattery (Appointed 31 May 2013)

Directors have been in office since the start of the financial year to the date of this report unless otherwise

stated.

Principal Activities

The principal activities of the entity during the financial year was to represent the SMSF Sector in Australia, to raise the standard of advice provided by all professionals to the SMSF industry, to lead the advocacy for the SMSF sector and to be the thought leader for Professional advice both nationally and internationally.

The entity is committed to promoting a high standard of education and competency among SMSF professionals, assisting them to work within the regulatory framework and providing trusted advice, services and products to all stakeholders.

No significant changes in the nature of the entity’s activity occurred during the financial year.

The entity’s short-term objectives are to:

- See that SSATM

and SSAud®

accredited members are recognised specialists in the Australian

marketplace and will be the SMSF advisors of choice for consumers.

- Support the Australian Taxation Office (ATO), the Australian Securities and Investment Commission

(ASIC) and other regulatory bodies and industry associations to promote compliance and provide, protect

and preserve assets for retirement.

- Provide invaluable networking opportunities for SMSF professionals.

The entity’s long-term objectives are summarised as follows:

- The entity’s Vision is “The pre-eminent professional body leading a vibrant SMSF sector.”

- The entity’s Purpose is “The peak professional association for best practice in the SMSF sector.”

- The entity’s Value Proposition is “SPAA’s sole focus, leadership and integrity for the SMSF sector

provides an integrated approach for all professionals and assists members grow their businesses.”

To achieve the Vision, Purpose and Value Proposition, the entity has adopted the following strategies:

- Offering vital services to SMSF professionals and overseeing a stringent accreditation process through

which advisors are endorsed as specialists in their field. The entity also offers constant support, ongoing

education and services to its members.

Key Performance Measures

The entity’s performance is measured by a combination of quantitative and qualitative indicators. The

indicators are used by the directors to assess whether the entity’s short – term and long – term objectives

are being achieved. Quantitative indicators include: growth in conference revenue; growth in membership

through retention and new membership; and the achievement of financial budgets. Qualitative indicators

include: advocacy, communications, education, marketing, media, public relations and risk management.


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DIRECTORS’ REPORT

Operating Results

The profit after tax of the entity amounted to $34,724 (2012: $457,719).

Dividends Paid or Recommended

Being a company limited by Guarantee, the entity is precluded from paying a dividend following

amendments to the Corporations Act 2001, effective 28 June 2010.

Review of Operations

A review of operations of the entity during the financial year and the results of those operations shows

additional conference income over expenses, with increased revenue from member subscriptions, offset

by an increased investment in Human Resources.

Significant Changes in State of Affairs

No significant changes in the entity’s state of affairs occurred during the financial year.

After Balance Date Events

No matters or circumstances have arisen since the end of the financial year which significantly affected or

may significantly affect the operations of the entity, the results of those operations, or the state of affairs of

the entity in future financial years.

Future Developments

The entity expects to maintain the present status and level of operations and hence there are no likely

developments in the entity’s operations.

Environmental Issues

The entity’s operations are not regulated by any significant environmental regulation under a law of the

Commonwealth or of a state or territory.

Information on Directors and Office Holders

Andrew John Hamilton — Chairman

Qualifications —

Diploma of Financial Services and SMSF Specialist Advisor.

Experience — Andrew has over 25 years experience in all aspects of super, ranging

from product design, software and hardware development, training

programs, technical knowledge and understanding of compliance

issues.

Peter Ian Crump — Vice Chairman, Chairman of the Professional Standards Committee.

Qualifications —

Fellow of the Institute of Actuaries of Australia, Chartered Tax Adviser, Advanced Diploma of Financial Planning and SMSF Specialist Advisor.

Experience — Peter provides strategic financial planning advice to his clients as well

as actuarial advice to clients and lawyers on superannuation and family

law issues. Peter is a regular presenter on superannuation issues.

Louise Janet Biti — Director, Chairman of the Education Committee.

Qualifications —

SMSF Specialist Advisor, Certified Financial Planner and Chartered Tax Adviser. Masters of Taxation (UNSW), Bachelor Economics, Bachelor Arts (Asian Studies) and Diploma of Financial Planning.

Experience — Louise has extensive experience within the financial services industry in

both technical and executive roles. Louise has a prominent industry

profile and is a frequent commentator on superannuation issues.


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DIRECTORS’ REPORT

Robin Lewis Bowerman — Director, Chairman of the National Membership Committee.

Qualifications — Industry specialist and advisor.

Experience —

Head of Market Strategy and Communications at Vanguard, Robin

holds expertise in investor education, funds management, industry and

regulatory related topics. Robin has over 15 years experience as a

leading financial services writer, commentator and editor.

Peter Thomas Hogan — Chairman of the National Membership Committee.

Qualifications — Bachelor of Law from University of Sydney, Diploma of Financial

Planning and SMSF Specialist Advisor.

Experience — Peter has been involved in the finance industry for over 20 years,

working in government, accounting, actuarial and financial services

companies.

David Stewart Shirlow — Director, Chairman of the Regulatory Committee.

Qualifications — Law and Economics Degrees (University of Sydney), a practising

member of the NSW Law Society, SMSF Specialist Advisor and

Chartered Tax Adviser.

Experience — An Executive Director at Macquarie Bank where he manages

government relations and technical media commentary, David has

worked in the financial services industry since 1985.

Andrew Crawfurd Gale — Director.

Qualifications — Fellow of the Institute of Actuaries of Australia , Bachelor of Arts

majoring in Actuarial Studies (Macquarie), Masters of Business

Administration (Macquarie).

Experience — Andrew has over 30 years’ experience in the financial services

industry, with particular areas of expertise in leadership and people,

M&A, operations, corporate strategy, marketing, distribution, product

management and design, wealth management, financial planning, and

new ventures.

Brett Nicholas Kenny —

Director, Company Secretary (Appointed 24/4/13).

Qualifications —

Bachelor of Economics, Fellow of the Institute of Chartered Accountants in Australia, Member of CPA Australia and SMSF Specialist Advisor.

Experience — Brett has been providing self-managed super fund services to clients

for over 30 years specialising in strategic decision making and

forecasting models along with tax, accounting and general commercial

advice.

Andrea Slattery — Managing Director/CEO, Company Secretary (Resigned 24/4/13)

Qualifications — Masters Degree in Commerce from the University of South Australia,

Bachelor of Arts in Accountancy, CPA, CPA Financial Planning Specialist,

FAICD and SMSF Specialist Advisor.

Experience — Andrea has more than 21 years’ experience in the SMSF industry and the

financial services industry as an accomplished accountant and financial

planner, specialising in strategic governance, membership services,

stakeholder management and Government policy and advocacy.


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DIRECTORS’ REPORT

Meetings of Directors

During the financial year, 9 meetings of directors (excluding committee meetings) were held. Attendances

by each director were as follows:

Directors Meetings

Number eligible to attend Number attended

Andrew John Hamilton – Chairman 9 9

Peter Ian Crump - Vice Chairman 9 9

Andrea Elizabeth Slattery - As

CEO & Director from 31 May 2013

9 9

Louise Janet Biti 9 9

Robin Lewis Bowerman 9 7

Peter Thomas Hogan 6 3

David Stewart Shirlow 9 7

Andrew Crawfurd Gale 9 9

Brett Nicholas Kenny 7 7

Indemnifying Officers or Auditor

No indemnities have been given during or since the end of the financial year, for any person who is or has

been an officer or auditor of the entity.

Insurance paid for Directors and Officers

Insurance premiums have been paid during the financial year totalling $8,547 (2012: $8,126) for all

Directors and Officers. No insurance premiums have been paid for the auditor.

Proceedings on Behalf of the Entity

No person has applied for leave of the Court to bring proceedings on behalf of the entity or intervene in

any proceedings to which the entity is a party for the purpose of taking responsibility on behalf of the entity

for all or any part of those proceedings. The entity was not a party to any such proceedings during the

year.

Members’ Guarantee

Details of the members’ guarantee are set out in Note 22 to the financial statements.

Auditor’s Independence Declaration

The lead auditor’s independence declaration for the year ended 30 June 2013 has been received and can

be found on page 7.

Signed in accordance with a resolution of the Board of Directors.

Director

____________________________________

Andrew John Hamilton – Chairman

Dated this ___________ day of ____________________ 2013

25th September


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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 2012

$ $

Revenue 2 5,314,731 4,434,631

Administration expenses 1,468,985 1,184,097

Conference expenses 1,262,853 1,030,370

Employee expenses, including directors’ costs 2,091,347 1,366,928

Other expenses 391,103 302,725

Profit (loss) before income tax 3 100,443 550,511

Income tax expense (benefit) 4 65,719 92,792

Profit for the year 34,724 457,719

Total comprehensive income for the year 34,724 457,719

The accompanying notes form part of these financial statements.


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STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2013

Note 2013 2012

$ $

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5 3,529,484 3,327,509

Trade and other receivables 6 139,586 127,591

Tax assets 9 23,363 182

TOTAL CURRENT ASSETS 3,692,433 3,455,282

NON-CURRENT ASSETS

Property, plant and equipment 7 97,426 74,912

Intangible assets 8 290,717 270,217

Deferred tax assets 9 30,815 26,251

TOTAL NON-CURRENT ASSETS 418,958 371,380

TOTAL ASSETS 4,111,391 3,826,662

CURRENT LIABILITIES

Trade and other payables 10 1,871,088 1,664,469

Tax liabilities 9 - 24,139

Short-term provisions 11 162,222 139,884

TOTAL CURRENT LIABILITIES 2,033,310 1,828,492

NON-CURRENT LIABILITIES

Long-term provisions 11 85,687 40,500

TOTAL NON-CURRENT LIABILITIES 85,687 40,500

TOTAL LIABILITIES 2,118,997 1,868,992

NET ASSETS 1,992,394 1,957,670

EQUITY

Founding members contributions 12 26,000 26,000

Retained Earnings 1,966,394 1,931,670

TOTAL EQUITY 1,992,394 1,957,670



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STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 30 JUNE 2013

Share

Capital

Ordinary

Shares

Retained

Earnings

Total

$ $ $

Balance at 1 July 2011 26,000 1,473,951 1,499,951

Profit attributable to the entity - 457,719 457,719

Total other comprehensive income for

the year

Balance at 30 June 2012 26,000 1,931,670 1,957,670

Balance at 1 July 2012 26,000 1,931,670 1,957,670

Profit (loss) attributable to the entity - 34,724 34,724

Total other comprehensive income for

the year

Balance at 30 June 2013 26,000 1,966,394 1,992,394



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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 2012

$ $

CASH FLOW FROM OPERATING ACTIVITIES

Receipts from members, sponsors and non-mutual income 5,155,753 4,254,932

Payments to suppliers and employees (4,735,884) (3,210,973)

Income taxes paid (117,603) (101,313)

Net cash generated from operating activities 18(b) 302,266 942,646

CASH FLOW FROM INVESTING ACTIVITIES

Payment for property, plant and equipment (53,969) (11,585)

Payment for intangible assets (193,305) (118,071)

Interest received 146,983 133,932

Net cash used in investing activities (100,291) 4,276

CASH FLOW FROM FINANCING ACTIVITIES

Net cash used in financing activities - -

Net increase in cash held 201,975 946,922

Cash at beginning of the financial year 3,327,509 2,380,587

Cash at the end of the financial year 5 3,529,484 3,327,509



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NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2013

The financial statements are for SMSF Professionals’ Association of Australia Limited as an individual

entity, incorporated and domiciled in Australia. SMSF Professionals’ Association of Australia Limited is a

company limited by guarantee.

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation

The financial statements are general purpose financial statements that have been prepared in accordance

with Australian Accounting Standards (including Australian Accounting Interpretations) and the

Corporations Act 2001 applicable to Tier 3 Companies Limited by Guarantee.

Australian Accounting Standards set out accounting policies that the Australian Accounting Standards

Board (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 comply with all Australian equivalents to International Financial

Reporting Standards in their entirety.

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.

Accounting Policies

a. Revenue

Revenue from the rendering of a service is recognised upon the delivery of the service to the

customers. Accordingly, subscriptions and sponsorship revenue is recognised on a pro rata basis

over the period to which they relate. Conference revenue is recognised upon completion of the

event.

Interest revenue is recognised using the effective interest rate method, which for floating rate

financial assets is the rate inherent in the instrument.

All revenue is stated net of the amount of goods and services tax (GST).

b. Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated, less,

where applicable, accumulated depreciation and impairment losses.

Plant and Equipment

Plant and equipment are measured on the cost basis less 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 that will be received from the assets 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.

All repairs and maintenance are charged to the Income Statement during the financial period in

which they are incurred.


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Depreciation

The depreciable amount of all fixed assets including buildings and capitalised lease assets is

depreciated on a straight line or diminishing value basis over the asset’s useful life to the entity

commencing from the time the asset is held ready for use. Leasehold improvements are

depreciated over the shorter of either the unexpired period of the lease or the estimated useful

lives of the improvements.

The effective life used for each class of depreciable assets are:

Class of Fixed Asset Effective Life (years)

Office equipment 2 – 6

Office Improvements 5 – 40

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each

balance date.

Asset classes 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 income statement. When revalued assets are sold,

amounts included in the revaluation reserve relating to that asset are transferred to retained

earnings.

c. Intangible assets

Intangible assets comprise iMIS costs, including the website, and are recognised as the expenses

are incurred. Costs are capitalised when it is probable that future economic benefits will flow; the

costs can be measured reliably; and the nature of the costs and stage of development of the

system and website are consistent with capitalisation under Australian Accounting Standards and

Interpretations. Capitalised costs are amortised once the system and website are operational,

over the useful life of the asset, which is estimated to be short.

d. Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of

the asset, but not the legal ownership, are transferred to the entity are classified as finance leases.

Finance leases are capitalised, recording an asset and a liability equal to the present value of the

minimum lease payments, including any guaranteed residual values.

Leased assets are depreciated on a straight-line basis over their estimated useful lives where it is

likely that the entity will obtain ownership of the asset. Lease payments are allocated between the

reduction of the lease liability and the lease interest expense for the period.

Lease payments for operating leases, where substantially all the risks and benefits remain with the

lessor, are charged as expenses on a straight-line basis over the lease term.

Lease incentives under operating leases were taken to income in year one on the basis of

immateriality.

e. Impairment of Assets

At each reporting date, 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 Income Statement.


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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 an assets class, the entity estimates the

recoverable amount of the cash-generating unit to which the class of assets belong.

Where an impairment loss on revaluation of an asset is identified, this is debited against the revaluation

reserve in respect of the same class of asset to the extent that the impairment loss does not exceed the

amount in the revaluation reserve for that same class of asset.

f. Employee Benefits

Provision is made for the entity’s liability for employee benefits, including bonuses, arising from services

rendered by employees to balance date. Employee benefits expected to be settled within one year have

been measured at the amounts expected to be paid when the liability is settled. Other employee benefits

payable later than one year have been measured on a basis that approximates net present value.

Contributions are made by the entity to an employee superannuation fund and are charged as expenses

when incurred.

g. Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at-call with banks, other short-term highly

liquid investments with original maturities of three months or less, and bank overdrafts.

h. Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of

GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is

recognised as part of the cost of acquisition of the asset or as part of an item of 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.

i. Income Tax

Non - member income of the company is only assessable for tax, as member income is exempt under the

Principle of Mutuality. Non member income includes sponsorship and conference income (less a

proportion of expenses) and interest income.

The charge for current income tax expenses is based on the profit (loss) for the year adjusted for any non-

assessable or disallowed items. It is calculated using tax rates that have been enacted or are

substantively enacted by the balance date.

Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences

arising between the tax bases of assets and liabilities and their carrying amounts in the financial

statements; and taxation losses. No deferred income tax will be recognised from the initial recognition of

an asset or liability, excluding a business combination, where there is no effect on accounting or taxable

profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is

realised or liability is settled. Deferred tax is credited in the income statement except where it relates to

items that may be credited directly to equity, in which case the deferred tax is adjusted directly against

equity.

Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be

available against which deductible temporary differences can be utilised.

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.


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j. Provisions

Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events,

for which it is probable that an outflow of economic benefits will result and that outflow can be reliably

measured. Provisions recognised represent the best estimate of the amounts required to settle the

obligation at reporting date.

k. Comparative Figures

Where required by Accounting Standards comparative figures have been adjusted to conform with

changes in presentation for the current financial year.

l. Accounts Payable and Other Payables

Accounts payable and other payables represent the liability 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.

m. Critical Accounting Estimates and Judgments

The directors evaluate estimates and judgments incorporated into the financial statements based on

historical knowledge and best available current information. Estimates assume a reasonable expectation

of future events and are based on current trends and economic data, obtained both externally and within

the company. Critical estimates include the percentage of time employees spend on mutual and non-

mutual activities and the percentage of non-members attending conferences, in determining the provision

for income tax.

n. New Accounting Standards for Application in Future Periods

The Australian Accounting Standards Board has issued new and amended Accounting Standards and

Interpretations that have mandatory application dates for future periods. The Company has decided

against early adoption of these Standards and Interpretations.

AASB Amendment

Standards Affected

Application Date of Standard. Accounting periods commencing

on or after:

AASB 9: Financial Instruments

and AASB 2010 -7: Amendments

to Australian Accounting Standards

arising from AASB 9; AASB 2012-61

AASBs 1,3,4,5,7,101,102, 108,112,118,120,

121,127,128,131,132,136,137,139,1023,

1038, and Interpretations 2,5,10,12,19 and 127

1 January 2015

AASB 10, 11, 12, 127, 128, and AASB

2011-7, 2012-9, 2012-10 2

AASBs 1,2,3,5,7,9,10, 11, 12, 2009-11, 101,107,112, 118, 121,124, 127, 128, 132,133,136,138,139, 1023 & 1038 and Interpretations 5,9,16 & 17

1 January 2013

AASB 13, AASB 2011-8 , and

AASB 2012-13

AASBs 1,2,3,4,5,7,9, 13, 2009-11,2010-7, 101, 102, 108, 110,116,117,118,119,120,121,128, 131, 132,133,134,136,138,139,140,141,1004, 1023, & 1038 and Interpretations 2, 4, 12, 13, 14, 17, 19,131 & 132

1 January 2013

& 1 July 2013

AASB 119, AASBs 2011-10 and

2011-11 4

AASB 119, 1, 8, 101, 124, 134, 1049, &2011-8;

and Interpretation 14.

1 January 2013

AASB 1053: Application of Tiers of Accounting Standards; and AASB 2010 - 2: Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements

5

AASBs 1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110,

111, 112, 116, 117, 119, 121, 123, 124, 127,

128, 131, 133, 134, 136, 137, 138, 140, 141,

1050, & 1052 and Interpretations 2, 4, 5, 15,

17, 127, 129 & 1052

1 July 2013


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n. New Accounting Standards for Application in Future Periods (Continued)

AASB Amendment

Standards Affected

Application Date of

Standard. Accounting

periods commencing on

or after:

AASB 2010 – 7

6

AASBs 1,3,4,5,7,101,102,108,112,118,120,121, 127,128,131,132,136,137,139,1023 & 1038 and Interpretations 2,5,10,13,19 & 127

1 January 2013

AASB 2010-10 7

AASB 2009 – 11 & AASB 2010 -7

1 January 2013

AASB 2011-2 8 AASB 101 1 July 2013

AASB 2011- 4 9 AASB 124 1 July 2013

AASB 2011- 6 10

AASB 127, 128, & 131 1 July 2013

AASB 2011-10 11

AASBs 1,8,101,124,134,1049, and

interpretation 2011-8

1 January 2013

AASB 2011-11 12

AASB 119 1 July 2013

AASB 2011-12 13

AASB 1 1 January 2013

AASB 2012-2 14


AASB 2012-3 15


AASB 2012-4 16

AASBs 1,120,139 1 January 2013

AASB 2012-5 17


AASB 2012-7 18

AASBs 7, 12, 101, 127 1 July 2013

AASB 2012-11 19

AASBs 1,2,8,10,107,128,133,134, 2011-4 1 July 2013

AASB 2013-3 20


AASB 2014-3 21


Notes:

1. These standards are intended to improve and simplify the approach for classification, measurement,

recognition and de-recognition of financial instruments.

2. This suite of six related standards were released to update existing standards to improve the accounting requirements for consolidated financial statements, joint arrangements, and off balance sheet vehicles. They also provide a single definition of “control”; remove the option to apply proportionate consolidation; and change disclosure requirements.

3. Amendments to Australian Accounting Standards arising from AASB 13. That Standard sets out a framework for measuring Fair Value.

4. These Standards introduce a number of changes to accounting and presentation of defined benefit plans. 5. This Standard gives effect to the AASB’s Reduced Disclosure Requirements of AASB 1053’s differential

reporting framework and the two tiers of reporting requirements for preparing general purpose financial statements.

6. These Standards make amendments to a range of Australian Accounting Standards and Interpretations as a consequence of the issue of AASB 9: Financial Instruments in December 2010.

7. The amendments brought by this Standard provide relief for first – time adopters of Australian Accounting Standards from having to reconstruct transactions that occurred before their transition date.

8. These amendments arise from the Trans – Tasman Convergence Project relating to Reduced Disclosure Requirements.

9. These amendments remove individual Key Management Personnel disclosure requirements in the Financial Statements of Disclosing Entities.


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n. New Accounting Standards for Application in Future Periods (Continued)

10. These amendments extend further relief from consolidation, the equity method, and proportionate consolidation.

11. Amendments to Australian Accounting Standards arising from AASB 119. 12. Amendments to Australian Accounting Standards arising from AASB 119 from Reduced Disclosure

Requirements. 13. Amendments to Australian Accounting Standards arising from the issuance of IFRIC Interpretation 20 by the

IASB relating to the first – time adoption of Australian Accounting Standards. 14. This Standard principally amends AASB 7 Financial Instruments to enable users to evaluate the effect of

netting arrangements, including rights of set – off. 15. This Standard principally amends AASB 132 Financial Instruments: Presentation, to address inconsistencies

in that Standard, including the meaning of rights of set – off. 16. This Standard adds an exemption to the retrospective application of AASB 1 First – Time Adoption of

Australian Accounting Standards relating to AASB 120 Accounting for Government Grants and Disclosure of Government Assistance, and AASB 139 Financial Instruments.

17. Amendments resulting from the 2009 – 2011 Annual Improvements Cycle including the repeat application of AASB 1 and clarification of comparative information requirements where a third balance sheet is required.

18. This Standard updates the Reduced Disclosure Requirement versions of the listed Standards for amendments to AASBs 2010-6; 12; 127; 2011-9; 2012-2; 2012-5; and 2012-6.

19. This Standard arises from editorial corrections to existing Standards relating to Reduced Disclosure Requirements.

20. This Standard amends the requirements of AASB 136 requiring additional information about fair value measurements and discount rates.

21. This Standard amends the requirements of AASB 139 to permit the continuation of hedge accounting in circumstances where a derivative, which has been designated as a hedging instrument, is novated from one counterparty to a central counterparty as a consequence of laws or regulations.

The AASB has issued the following Compiled Standards that are not new Standards. Unless indicated, all apply to accounting periods beginning on or after 01/01/2013. The Standards are:

AASB: 1*,2*,3*,5*,7*,8,10,11,12,13,101*,102,107*,108,110,112*,116,117,118*,127*,128,131,2011-7.

* Separate For - Profit and Not - For - Profit versions. The Not - For - Profit versions apply from 01/01/2014.

No other known or reliable estimable information relevant to assessing the possible impact of these Standards on the Entity is presently available, though it is anticipated that there will be no direct impact on the recognition and measurement criteria of amounts included in the Financial Statements. The financial statements for the year ended 30 June 2013 (including comparatives) were approved and authorised for issue by the Board of Directors on the date shown in the Directors’ Declaration.


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2013

2012

$ $

NOTE 2: REVENUE AND OTHER INCOME

Revenue from operating activities

— Conferences 2,975,051 2,502,870

— Interest 146,983 133,932

— Other mutual and non mutual income 278,244 158,977

— Specialist accreditation of members 237,412 274,019

— Sponsorship 148,333 30,000

— Subscriptions 1,528,708 1,334,833

5,314,731 4,434,631

NOTE 3: PROFIT FOR THE YEAR

a. Expenses included in Administration or Other expenses

Auditor Remuneration

— Audit services paid for 2012 year 23,050 16,920

— Audit services accrued for 2013 year 12,000 17,780

Total Audit Remuneration, paid and accrued 35,050 34,700

Computer expenses 68,767 48,481

Consultants 189,635 96,475

Depreciation and Amortisation

— Office equipment, furniture and equipment 31,455 21,783

— Intangible assets 172,805 133,422

Total Depreciation and Amortisation 204,260 155,205

Marketing 371,078 354,487

Rental expense on operating leases

— minimum lease payments 139,231 116,739

Travel & accommodation – non board 211,143 121,716

NOTE 4 : INCOME TAX EXPENSE

a. The components of tax expense comprise:

Current tax 70,283 96,374

Deferred tax (4,564) (3,582)

65,719 92,792


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2013 2012

$ $

NOTE 4 : INCOME TAX EXPENSE (CONTINUED)

b. The prima facie tax payable / (benefit) on profit / (loss) from

ordinary activities before income tax is reconciled to the income

tax expense as follows:

Prima facie tax payable / (benefit) on operating profit / (loss)

before income tax at 30% (2012: 30%)

30,133 165,153

Add:

Tax effect of non-deductible items 1,174,449 796,364

Tax effect of temporary differences 17,479 (3,685)

Income tax losses to be recognised in future periods - -

Less:

Income tax losses recognised in current period - -

Tax effect of items not assessable for tax 1,156,342 865,040

Tax effect of permanent differences - -

Income tax attributable to entity 65,719 92,792

NOTE 5: CASH AND CASH EQUIVALENTS

Cash at bank 1,350,331 958,851

Term Deposits 2,179,153 2,368,658

3,529,484 3,327,509

NOTE 6: TRADE AND OTHER RECEIVABLES

CURRENT

Trade receivables 60,638 105,050

Other receivables 78,948 22,541

139,586 127,591

NOTE 7: PROPERTY, PLANT AND EQUIPMENT

Office equipment and furniture and fixtures at cost

At cost 182,081 151,265

Less accumulated depreciation (129,124) (106,370)

52,957 44,895

Office improvements

At cost 84,204 61,051

Less accumulated depreciation (39,735) (31,034)

44,469 30,017

Total property, plant and equipment 97,426 74,912


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NOTE 7: PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Movements in Carrying Amounts

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and

the end of the current financial year:

Office

Equipment

Office

Improvements Total

$ $ $

2012

Balance at the beginning of the year 49,273 35,837 85,110

Additions at cost 11,585 - 11,585

Depreciation expense (15,963) (5,820) (21,783)

Carrying amount at end of year 44,895 30,017 74,912

2013

Balance at the beginning of the year 44,895 30,017 74,912

Additions at cost 30,815 23,154 53,969

Depreciation expense (22,754) (8,701) (31,455)

Carrying amount at end of year 52,956 44,470 97,426

2013 2012

$ $

NOTE 8: INTANGIBLE ASSETS

iMIS IT System and website

At cost 627,856 434,551

Accumulated amortisation (337,139) (164,334)

Accumulated Impairment - -

Net carrying value 290,717 270,217

iMIS IT System and website is amortised over a three year period.

Movements in Carrying Amounts

Movement in the carrying amounts for intangible assets between the beginning and the end of the current

financial year:

2013 2012

$ $

Balance at the beginning of the year 270,217 285,568

Additions at cost 193,305 118,071

Amortisation expense (172,805) (133,422)

Carrying amount at end of year 290,717 270,217


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2013 2012

$ $

NOTE 9: TAX ASSETS

ASSETS

Current

Income Tax 23,363 182

23,363 182

DEFERRED

Deferred tax assets comprise:

Provisions 30,815 26,251

30,815 26,251

LIABILITIES

Current

Income Tax - 24,139

- 24,139

RECONCILIATIONS

Gross movements

The overall movement in the deferred tax account is as follows:

Opening balance 26,251 22,669

(Charge) / credit to income statement 4,564 3,582

Closing balance 30,815 26,251

NOTE 10: TRADE AND OTHER PAYABLES

CURRENT

Trade payables 75,959 60,851

Sundry payables:

— Net GST 116,984 122,847

— Other 65,744 62,684

Income received and receivable in advance:

— Subscriptions 1,310,590 1,066,344

— Conferences – including related parties: $156,200 (2012: $82,500) 301,811 351,743

1,871,088 1,664,469


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NOTE 11: PROVISIONS

Short-term

Employee

Benefits

Long-term

Employee

Benefits

Total

$ $ $

Opening balance at 1 July 2012 139,884 40,500 180,384

Additional provisions raised during year 42,812 45,187 87,999

Amounts used (20,474) - (20,474)

Balance at 30 June 2013 162,222 85,687 247,909

2013 2012

$ $

Analysis of Total Provisions

Current 162,222 139,884

Non-Current 85,687 40,500

247,909 180,384

Provision for Long-term Employee Benefits

A provision is recognised for employee entitlements relating to long service leave. In calculating the

present value of future cash flows in respect of long service leave, the probability of long service leave

being taken is based on historical data. The measurement and recognition criteria relating to employee

benefits have been included in Note 1 to these financial statements.

NOTE 12: FOUNDING MEMBERS CONTRIBUTIONS

Founding Member Contributions were subscribed in order to fund the establishment of SPAA, of which

thirteen members initially contributed $2,000 each, totalling $26,000.

NOTE 13: CAPITAL AND LEASING COMMITMENTS

2013 2012

$ $

a. Operating Lease Commitments

Non-cancellable operating leases contracted for but not

capitalised in the financial statements

Payable — minimum lease payments

— not later than 12 months 136,500 133,800

— later than 12 months but not later than 5 years 546,000 546,000

682,500 679,800

NOTE 14: CONTINGENT LIABILITIES AND ASSETS

The company has no contingent liabilities that it expects may become payable, which require disclosure in

the financial statements.


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NOTE 15: EVENTS AFTER THE REPORTING PERIOD

No events have occurred subsequent to the end of the financial reporting period, which requires

adjustment in these financial statements.

NOTE 16: KEY MANAGEMENT PERSONNEL COMPENSATION

Salary &

Fees

Short-term

Benefits

Superannuation

Total

$ $ $

2013

Total compensation 384,206 32,386 416,592

2012

Total compensation 308,428 15,775 324,203

NOTE 17: RELATED PARTY TRANSACTIONS

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other persons unless otherwise stated. No fees for professional services were paid to a firm related to a director. No material amount was outstanding at year end. Refer also Note 10 regarding conference income received in advance.

NOTE 18: CASH FLOW INFORMATION

Note 2013 2012

$ $

a. Reconciliation of Cash

Cash and cash equivalents 3,529,484 3,327,509

5 3,529,484 3,327,509

b. Reconciliation of Cashflow from Operations with Profit

after Income Tax

Profit (loss) after income tax 34,724 457,719

Non cash flows

Depreciation and amortisation 204,260 155,205

Investment activities

Interest received (146,983) (133,932)

Changes in assets and liabilities

(Increase)/decrease in trade and other receivables (11,996) (45,767)

Increase/(decrease) in trade and other payables 206,620 441,073

(Increase)/decrease in deferred tax assets (4,564) (3,582)

Increase/(decrease) in provisions 67,524 76,869

Increase/(decrease) in current tax liabilities (47,319) (4,939)

Net cash generated from operating activities 302,266 942,646

c. Credit Stand-by Arrangements and Loan Facilities

The company has no formal credit stand-by arrangements.


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NOTE 19: FINANCIAL RISK MANAGEMENT

The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed

in the accounting policies to these financial statements, are as follows:

2013 2012

$ $

Financial Assets

Cash and cash equivalents 5 3,529,484 3,327,509

Trade receivables 6 139,586 127,591

Current tax asset 9 23,363 182

Total expected inflows within one year 3,692,433 3,455,282

Financial Liabilities

Financial liabilities at amortised cost

— Trade and other payables 10 1,871,088 1,664,469

Total expected outflows within one year 1,871,088 1,664,469

Net inflows on financial instruments within one year 1,821,345 1,790,813

Financial Risk Management Policies

Consisting of senior committee members, the finance committee’s overall risk management strategy seeks

to assist the company in meeting its financial targets, whilst minimising potential adverse effects on

financial performance. Risk management policies are approved and reviewed by the finance committee on

a regular basis. These include credit risk policies and future cash flow requirements.

Specific Financial Risk Exposures and Management

The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity

risk, credit risk, price risk and market risk.

a. Interest rate risk

Exposure to interest rate risk arises on financial assets and financial liabilities recognised at

reporting date whereby a future change in interest rates will affect future cash flows or the fair value

of fixed rate financial instruments.

The company’s exposure to interest rate risk and the effective weighted average interest rates on

its financial assets and financial liabilities, is as follows:

Weighted Average Floating Interest Rate Fixed Interest Rate Maturing

Effective Interest Rate Within 1 Year 1 to 5 Years

2013 2012 2013 2012 2013 2012 2013 2012

Financial Assets % % $ $ $ $ $ $

Cash at bank Nominal Nominal 1,350,331 958,851

Deposits at call 5.82% 5.57% 2,179,153 2,368,658

Total Financial Assets

3,529,484 3,327,509


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NOTE 19: FINANCIAL RISK MANAGEMENT (CONTINUED)

b. Liquidity risk

Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or

otherwise meeting its obligations related to financial liabilities. The company manages this risk through

the following mechanisms:

— preparing forward looking cash flow analysis in relation to its operational, investing and financing

activities;

— maintaining a reputable credit profile;

— managing credit risk related to financial assets;

— investing only in surplus cash with major financial institutions; and

— comparing the maturity profile of financial liabilities with the realisation profile of financial assets.

c. Credit risk

Exposure to credit risk relating to financial assets arises from the potential non-performance by counter

parties of contract obligations that could lead to a financial loss to the company.

Credit risk is managed through the maintenance of procedures (such procedures include the utilisation of

systems for the approval, granting and removal of credit limits, regular monitoring of exposures against

such limits and monitoring of the financial stability of significant customers and counter parties), ensuring

to the extent possible, that customers and counter parties to transactions are of sound credit worthiness.

Such monitoring is used in assessing receivables for impairment.

Risk is also minimised through investing surplus funds in financial institutions that maintain a high credit

rating, or in entities that the finance committee has otherwise cleared as being financially sound. Where

the company is unable to ascertain a satisfactory credit risk profile in relation to a customer or counter

party, then risk may be further managed by retention clauses over goods or obtaining security by way of

personal or commercial guarantees over assets of sufficient value which can be claimed against in the

event of any default.

Credit Risk Exposures

The maximum exposure to credit risk by class of recognised financial assets at balance date is

equivalent to the carrying value and classification of those financial assets (net of any provisions) as

presented in the statement of financial position.

Trade and other receivables that are neither past due or impaired are considered to be of high credit

quality. Aggregates of such amounts are as detailed in Note 6.

The company does not have any material credit risk exposure to any single receivable or group of

receivables under financial instruments entered into by the company. The trade receivables balance at

30 June 2013 and 30 June 2012 do not include any counter parties with external credit ratings.

Aged Analysis

The ageing analysis of receivables is as follows: 2013 2012 $ $

0-30 days 47,988 105,050

31-60 days - -

61-90 days (past due not impaired) - -

61-90 days (considered impaired) - -

91+ days (past due not impaired) 12,650 -

91+ days (considered impaired) - -

Total 60,638 105,050


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NOTE 19: FINANCIAL RISK MANAGEMENT (CONTINUED)

d. Price risk

Price risk relates to the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in market prices largely due to demand and supply factors for

commodities.

The company is not presently exposed to price risk other than to ensure the appropriateness of

subscription rates for Membership; and of Sponsorship opportunities.

e. Market risk

The company is subject to the normal economic indicators including volatility in Stock markets,

foreign exchange and interest rates.

f. Sensitivity analysis

In the directors’ opinion a sensitivity analysis of reasonably possible variances in the above risks

would not show material impacts on the company’s financial position or performance.

g. Net fair values

The fair values of financial assets and financial liabilities approximate the carrying values presented

in the Statement of Financial Position at Balance Date.

NOTE 20: CAPITAL MANAGEMENT

The directors control the capital of the entity to ensure that it can fund its operations and continue as a

going concern.

Being a Company Limited by Guarantee, it has no Ordinary Shares other than Foundation Subscriptions,

which are supported by financial assets and liabilities.

The entity has no external debt and there are no externally imposed capital requirements.

The directors effectively manage the entity’s capital by assessing the entity’s financial risks and responding

to changes in these risks and in the market. These responses may include Members subscriptions and

Sponsorship opportunities.

There have been no changes to the strategy adopted by management to control the capital of the entity

since the previous year.

NOTE 21: ENTITY DETAILS

The registered office of the entity is:

SMSF Professional’ Association of Australia Limited

SPAA House

Level 1, 366 King William Street

Adelaide

South Australia 5000

The principal place of business is:

SMSF Professional’ Association of Australia Limited

SPAA House

Level 1, 366 King William Street

Adelaide

South Australia 5000


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NOTE 22: MEMBERS’ GUARANTEE

The entity is incorporated under the Corporations Act 2001 and is an entity Limited by Guarantee. If the

entity is wound up, the constitution states that each member is required to contribute a maximum of $10

each towards meeting any outstanding obligations of the entity. At 30 June 2013 the number of members

was 2,731, (2012: 2,496), so that the total amount that members of the entity are liable to contribute on

winding up is $27,310 (2012: $24,960).

DIRECTORS’ DECLARATION


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DIRECTORS’ DECLARATION

The directors of the entity declare that:

1. The financial statements and notes, as set out on pages 8 to 28, are in accordance with the

Corporations Act 2001:

a. comply with Australian Accounting Standards; and

b. give a true and fair view of the financial position as at 30 June 2013 and of the performance

for the year ended on that date of the entity.

2. In the directors’ opinion there are reasonable grounds to believe that the entity 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.

_________________________________________

Andrew John Hamilton - Chairman

Dated this ______________ day of _________________________ 2013

25th September

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