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DIRECTORS’ REPORT AND FINANCIAL REPORTFOR THE YEAR ENDED 30 JUNE 2013

ABN 98 069 759 922

TABLE OF CONTENTS

Directors’ report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-10

Directors’ declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Auditor’s independence declaration . . . . . . . . . . . . . . . . . . . . . . . 12

Financial report

Statement of comprehensive income . . . . . . . . . . . . . . . 13

Statement of financial position . . . . . . . . . . . . . . . . . . . . . 14

Statement of changes in equity . . . . . . . . . . . . . . . . . . . . 14

Statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Notes to financial statements . . . . . . . . . . . . . . . . . . . 16-23

Directors’ declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Auditor’s report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24-25

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DIRECTORS’ REPORT

RESULTS

SIGNIFICANT CHANGES IN STATE OF AFFAIRS

The directors present their report together with the financial report of Viscopy Limited for the year ended 30 June 2013 and auditor’s report thereon. This financial report has been prepared in accordance with Australian Accounting Standards.

Directors’ names The names of the directors in office at any time during or since the end of the year are:

Cass Matthews appointed 3 October 2012

Christopher Westworth

Gary Carsley appointed 3 October 2012

Jeremy Thorpe

Katherine Fries

Matthew (Marcus) Clark

Matthew Sleeth appointed 27 November 2012

Megan Cope

Timothy Denny

Alida Stanley resigned 1 July 2012

Desmond Griffin retired 27 November 2012

Lynette Riley resigned 1 April 2013

Merilyn Fairskye retired 27 November 2012

The directors have been in office since the start of the year to the date of this report unless otherwise stated.

The surplus of the company for the year after providing for income tax amounted to $20,455.

The revenue recognised in Viscopy Limited for the year was reduced due to royalties for artistic works in UK publications now being paid directly to the UK affiliate rather than to Viscopy Limited.

The company continued to engage in its principal activity, the results of which are disclosed in the attached financial statements.

Significant changes in the state of affairs of the company during the financial year, were as follows:

Viscopy Limited and Copyright Agency Limited entered into a service agreement effective 3 July 2012 for Copyright Agency Limited to provide back‑office services to Viscopy Limited and its members and licensees. This agreement will be reviewed by both organisations after three years.

REVIEW OF OPERATIONS

4

DIRECTORS’ REPORT

COMPANY OBJECTIVES AND PERFORMANCE

PRINCIPAL ACTIVITIES

The Company’s objectives are to:

• Maximise distributions to members

• Increase the number of members

• Ensure compliance with the Code of Conduct for Collecting Societies

• Succesfully execute a services agreement with Copyright Agency for the provision of back‑office services

In order to meet these objectives the following targets were set for the three year period following the commencement of the 2011‑12 financial year:

• 20% increase in members

• Budgeted revenue growth in existing licensing schemes

Viscopy Limited operates as the dedicated visual arts copyright collection agency in Australia and New Zealand.

The company operates internationally through a business network of visual arts collecting societies to protect and license member artists’ work throughout the world.

The company specialises in the international protection and licensing of Aboriginal and Torres Strait Islander artists’ copyright.

No significant change in the nature of these activities occurred during the 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.

The company expects to maintain the present status and level of operations.

The company is limited by guarantee. No dividends are permitted to be paid under the constitution of the company.

Gary Carsley Director

Qualifications BFA & MFA (UNSW)

Experience Gary has an internationally focused practice which he maintains while basing himself in Sydney where he holds a position as a Senior Lecturer at the College of Fine Arts, University of New South Wales (UNSW). Gary’s practice involves an intervention into both the photograph and its relationship to the real. He has undertaken numerous large scale public commissions including Sullivan & Cromwell’s Global head office in New York, Orchard Central in Singapore and the Justice Precinct at Parramatta, Sydney. Curatorially, Gary has been responsible for the conception and production

INFORMATION ON DIRECTORS

AFTER BALANCE DATE EVENTS

LIKELY DEVELOPMENTS

DIVIDENDS PAID, RECOMMENDED AND DECLARED

5

DIRECTORS’ REPORT

Marcus Clark Director and Secretary

Qualifications Bachelor of Laws (Hons), FANZCN

Experience Marcus Clark is a Sydney‑based partner with Allens, an international law firm with offices throughout Australia and Asia. Before his appointment as a director of Viscopy, Marcus led an Allens team which represented Viscopy pro bono in its negotiation of the service arrangements with Copyright Agency. Marcus is admitted to practise law in New York and in New South Wales where he is also a public notary. He has lived and practised law in Australia, Hong Kong, Singapore, Thailand and the United States.

Special responsibilities

Megan Cope Director

Qualifications Bachelor of Visual Arts

Experience Megan Cope has a diverse practice that investigates issues relating to identity, the environment and mapping practices. She is a descendant from the Quandamooka region (North Stradbroke Island) in South East Queensland, and through her art explores decolonising methodologies which have become a primary concern in her work.

Her recent work focuses heavily on the toponymy (the study of place names) and geomorphology (the study of the nature and history of landforms) of heavily populated tourist destinations along the east coast of Australia; locations many Australians hold a personal affiliation to.

Works by Megan Cope have been presented in Australia and abroad, including in the ARC Biennial in Brisbane, the Koori Heritage Trust in Melbourne and Wellington City Gallery in New Zealand. Her work was also recently exhibited in Lie of the Land: New Australian Landscapes (2012) at the Embassy of Australia, Washington DC, USA, curated by Alex Taylor (Terra Foundation of American Art Predoctoral Fellow at the Smithsonian American Art Museum).

Megan’s work is also included in the NEWflames Anne Gamble Myer collection.

of ground breaking exhibitions such as Parthenogenesis, a commission from the New South Wales Ministry for the Arts at Performance Space, and Take A Bowery for the MCA in Sydney which later travelled to the 2005 Venice Biennale. From the point of view of private practice Gary is one of the few Australian artists who has maintained an active exhibition profile in Europe, North America and Asia while being based in Sydney. His work is held in more than 40 major museums and his recent and current projects include Scenic Route at the Art Gallery of New South Wales and Sticks and Stones for the IMA in Brisbane and the Kunstverein Ulm.

Special responsibilities Gallery Committee

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DIRECTORS’ REPORT


Additionally, Megan has managed and curated several art spaces and projects including tinygold, Desperate Spaces, and the artist handbook So You Want To Be An Artist published by Artworkers Alliance. She was the Creative Director of the Brisbane Artist Run Initiatives (BARI) Festival in 2009‑2010 and managed the Salt Water Murris Quandamooka Art Gallery on North Stradbroke Island in 2011.

Megan is a recent member of the Brisbane based Indigenous Art Collective ProppaNOW.


Timothy Denny Director

Qualifications CPA, BBus (Acc/Fin)

Experience Tim Denny has worked in the field of copyright for more than 24 years specialising in the intellectual property held in musical works. Tim currently serves as the Chief Financial Officer of APRA|AMCOS.

Special responsibilities Audit Committee; Nominations Committee

Merilyn Fairskye Director (retired on 27 November 2012)

Qualifications GradDipEd SCAE, MVA SCA Sydney

Experience Merilyn Fairskye is an artist who makes videos and photographs through her production company Plus & Minus Productions. Recent works have engaged with the aftermath of the 1986 nuclear accident at Chernobyl. Her art videos have been screened in film and video festivals around the world including the 8th Al Jazeera International Documentary Film Festival, the International Film Festival Rotterdam, Videobrasil and Sydney Film Festival, and in art museums including the Tate Modern London, the Stedelijk Museum in Amsterdam, the MCA in Sydney and the National Palace Museum in Taipei. Her work is represented in many public collections. She has been awarded artist residencies in the USA, Italy, France and Australia, and has been the recipient of Australia Council and Australian Film Commission grants and a Rockefeller Foundation Fellowship. She teaches in the Photomedia Studio at Sydney College of the Arts, The University of Sydney. She has previously served as President of the IMA in Brisbane and as Co–Chair of Artspace in Sydney.


Katherine Fries Director

Qualifications BFA (Hons) UNSW, MVA Sydney

Experience Kath Fries is a Sydney based artist, whose site‑responsive practice explores impermanence and transience through materiality, spatiality and archetypal narratives. She undertakes site specific projects and residencies around Australia, and exhibits widely. Kath has also worked in

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DIRECTORS’ REPORT


galleries and art education. She currently co‑ordinates the Gunyah artist‑in‑residence program in Port Stephens NSW, and is on the judging panel of the John Fries Memorial Prize.

Special responsibilities Nominations Committee; Gallery Committee

Desmond Griffin Director (retired 27 November 2012)

Qualifications Masters of Science (Wellington, NZ); Doctor of Philosophy (Tas); AM

Experience Des Griffin is presently the Gerard Krefft Memorial Fellow at the Australian Museum in Sydney. He was director of the Museum from 1976‑1998. He is also Chairman of the Arts Industry Advisory Committee for the University of Technology, Sydney. Des graduated with a Masters degree in science from Victoria University, Wellington, New Zealand in 1962 and obtained his PhD from the University of Tasmania in 1966. He joined the Australian Museum in 1966 as an Assistant Curator and was later promoted Senior Research Scientist and then in 1972, Assistant Director. He was the first President from 1993‑1996, of Museums Australia (the single association representing museums of art, history and science). Des has a long standing interest in the arts and cultural activities generally and has published extensively on many aspects of museums including governance, leadership and relations with communities and with Indigenous peoples. Des was appointed a Member of the Order of Australia (AM) in 1990 in recognition of services to museums.

Cass Matthews Director

Qualifications BA/LLB (Hons), MAA (Hons)

Experience Cass Matthews is a lawyer specialising in arts and media. She has represented leading Australian and international media, arts and technology organisations for over ten years. Cass runs the media law subject at the University of Melbourne. Since completing a Masters of Arts Administration at UNSW College of Fine Arts she has been involved with various contemporary art projects in Australia, Japan and the US. She is also a director of dlux Media Arts.

Special responsibilities Nominations Committee; Gallery Committee

Lynette Riley Director (resigned 1 April 2013)

Qualifications Dip Ed and Grad Dip Ed (Aboriginal)

Experience Lynette Riley has over 30 years working experience, as a teacher and in Aboriginal education and administration within primary school, high school, TAFE, state office and universities. Lynette was one of the founding members of the NSW DET Aboriginal Education Unit which created the first Aboriginal Education Policy in 1982, much of which was based on her research under taken in 1980, whilst completing studies at the Australian College

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DIRECTORS’ REPORT


of Applied Education (ACAE). She was extensively involved in establishing the NSW Aboriginal Education Consultative Group (AECG), and coordinated the first ever AECG conference in the early 1980’s. She has also been instrumental in establishing Aboriginal presence in universities establishing one of the first support programs within Australia at the University of New England (UNE), Oorala Centre (1986‑1992).

Matthew Sleeth Director

Qualifications BA (Cinema)

Experience Matthew Sleeth is an artist who lives and works between Melbourne and New York. His multidisciplinary practice is conceptually driven across a range of media including sculpture, photography, video and public installation. Recent exhibitions include his sculptural installation The Rise and Fall of Western Civilization at the Claire Oliver Gallery and Negotiating This World at the National Gallery of Victoria. In 2008 his Pattern Recognition project was installed across billboards, screens, public spaces and galleries as part of the Melbourne International Arts Festival. Matthew’s work is held in galleries both nationally and internationally as well as various private collections.


Jeremy Thorpe Director

Qualifications Bachelor of Economics, Bachelor of Law (Hons.)

Experience Jeremy Thorpe is a regulatory economist and a partner at PricewaterhouseCoopers. One of his areas of specialisation is in the economic analysis of copyright issues. Such work includes: the determination of appropriate level and structure of copyright licences and royalty rates, the assessment of the impact of piracy, the valuation of copyright industries and the assessment of costs and benefits associated with changes to copyright law. Jeremy is currently completing a PhD in law from the University of Technology, Sydney looking at empirical assessment of Australian copyright litigation.

Special responsibilities Chair of the Board; Nominations Committee; Audit Committee

Christopher Westworth Director

Qualifications Bachelor of Laws (Hons), FCA, MAICD

Experience Chris Westworth is a former partner of Ernst & Young, having worked with the firm in the UK and Denmark before moving to Australia in 1985. He is a board member and chair of the audit committees for the Australian Institute of Management (NSW and ACT). He was also the former Chairman for the Kolling Foundation and a former director of Pacific Opera.

Special responsibilities Audit Committee (Chair)

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DIRECTORS’ REPORT

Alida Stanley Director (resigned on 2 July 2012)

Qualifications Bachelor of Arts, Bachelor of Laws

Experience Alida Stanley was nominated by the National Association of Visual Artists and elected to the Viscopy Board of Directors and Viscopy Finance Committee in November 2006. Following her graduation from the UNSW Law School in 1998, Alida worked as a Solicitor in Mallesons Stephen Jaques’ telecommunications practice group and then in the intellectual property and information technology practice group. In 2000 Alida moved to New York where she worked in the law firm of Weil, Gotshal & Manges LLP specialising in intellectual property and information technology transactions, competition and regulatory law. Upon returning to Sydney in 2005, Alida worked as the Senior Solicitor at the Arts Law Centre of Australia representing artists and arts organisations and as a Solicitor in the Office of General Counsel at The University of Sydney. Alida served as chief executive of Viscopy from February 2010. Alida is a passionate supporter of the arts in Australia.

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DIRECTORS’ REPORT

Directors Directors’ meetings Audit Committee meetings

Gallery Committee meetings

Nominations Committee meetings (1)

Number eligible to

attend

Number attended

Number eligible to

attend

Number attended

Number eligible to

attend

Number attended

Number eligible to

attend

Number attended

Gary Carsley 4 4 ‑ ‑ 5 5 ‑ ‑

Marcus Clark 5 4 ‑ ‑ ‑ ‑ ‑ ‑

Megan Cope 6 5 ‑ ‑ 5 5 ‑ ‑

Timothy Denny 6 5 6 5 ‑ ‑ ‑ ‑

Merilyn Fairskye 3 3 ‑ ‑ ‑ ‑ ‑ ‑

Katherine Fries 6 6 ‑ ‑ 5 5 ‑ ‑

Desmond Griffin 2 1 ‑ ‑ ‑ ‑ ‑ ‑

Cass Matthews 4 4 ‑ ‑ 5 5 ‑ ‑

Lynette Riley 5 2 ‑ ‑ ‑ ‑ ‑ ‑

Matthew Sleeth 4 4 ‑ ‑ 5 5 ‑ ‑

Jeremy Thorpe 6 4 6 4 ‑ ‑ ‑ ‑

Christopher Westworth 6 5 6 5 ‑ ‑ ‑ ‑

MEETINGS OF DIRECTORS

(1) The Nominations Committee did not formally meet during the year although members of the Nominations Committee have been involved in interviews and meetings with prospective directors and provided recommendations directly to the Board.

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DIRECTORS’ DECLARATION

AUDITOR’S INDEPENDENCE DECLARATION

PROCEEDINGS ON BEHALF OF THE COMPANY

MEMBERS GUARANTEE

INDEMNIFICATION OF OFFICERS

INDEMNIFICATION OF AUDITORS

The company 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 to a maximum of $2 each towards meeting any outstandings and obligations of the company. At 30 June 2013 the number of members was 10,074 (2012: 8,876).

The company has agreed to indemnify certain current and former directors against liabilities incurred by them in, or arising out of, the conduct of the business of the company or any act or omission by them in their capacity as directors of the company. The indemnity does not cover liabilities which the company is precluded by law from indemnifying or the relevant director is indemnified for by another person. The indemnity also provides for advancements to pay a director’s reasonable legal costs pending determination of whether the indemnity is available.

The company has also paid or agreed to pay insurance premiums in order to indemnify the directors of the company against costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of director or officer of the company, other than conduct involving a wilful breach of duty in relation to the company.

Further disclosure required under section 300(9) of the Corporations Act 2001 is prohibited under the terms of the contract.

No indemnities have been given or insurance premiums paid, during or since the end of the year, for any person who is or has been an auditor of the company.

A copy of the auditor’s independence declaration under section 307C of the Corporations Act 2001 in relation to the audit for the financial year is provided with this report.

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.

Signed on behalf of the board of directors.

Director: ________________________________________________ Christopher Westworth

Director: ________________________________________________ Jeremy Thorpe

Dated this day of 2013

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In relation to the independent audit for the year ended 30 June 2013, to the best of my knowledge and belief there have been:

(i) No contraventions of the auditor independence requirements of the Corporations Act 2001; and

(ii) No contraventions of any applicable code of professional conduct.

An independent New South Wales Partnership. ABN 35 415 759 892Liability limited by a scheme approved under Professional Standards Legislation

R M SHANLEY PITCHER PARTNERS Partner Sydney

Dated this 2nd day of October, 2013

VISCOPY LIMITEDABN 98 069 759 922

AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS OF VISCOPY LIMITED

13

FINANCIAL REPORT

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2013

Note 2013 $

2012 $

Revenue

Sales revenue 4 2,049,397 3,097,598

Other revenue 4 75,303 125,837

4 2,124,700 3,223,435

Less: expenses

Distributions to members (1,551,404) (2,310,424)

Service fee expense (470,591) ‑

Employee benefits expense ‑ (706,887)

Depreciation and amortisation expense ‑ (15,946)

Lease expense ‑ (52,692)

Other expenses (82,250) (333,743)

(2,104,245) (3,419,692)

Surplus / (deficit) before income tax ex-pense

20,455 (196,257)

Income tax expense ‑ ‑

New surplus / (deficit) from continuing operations

20,455 (196,257)

Other comprehensive income for the year ‑ ‑

Total comprehensive income 20,455 (196,257)

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FINANCIAL REPORT

STATEMENT OF FINANCIAL POSITIONAS AT 30 JUNE 2013

Note 2013 $

2012 $

Current assets

Cash and cash equivalents 7 2,881,335 2,263,505

Receivables 8 231,453 1,286,554

Other assets 10 1,813 12,485

Total current assets 3,114,601 3,562,544

Non‑current assetsProperty, plant and equipment 9 ‑ 30,849

Total non‑current assets ‑ 30,849

Total assets 3,114,601 3,593,393

Current liabilitiesPayables 11 2,648,506 3,121,647

Provisions 12 ‑ 26,106

Total current liabilities 2,648,506 3,147,753

Total liabilities 2,648,506 3,147,753

Net assets 466,095 445,640

EquityRetained earnings 13 466,095 445,640

Total equity 466,095 445,640

Reserves $

Retained earnings

$

Total equity $

Balance as at 1 July 2011 260,000 381,897 641,897

Surplus/(deficit) for the year ‑ (196,257) (196,257)

Total comprehensive income for the year ‑ (196,257) (196,257)

Transfers (260,000) 260,000 ‑

Balance as at 30 June 2012 ‑ 445,640 445,640

Balance as at 1 July 2012 ‑ 445,640 445,640

Surplus/(deficit) for the year ‑ 20,455 20,455

Total comprehensive income for the year ‑ 20,455 20,455

Balance as at 30 June 2013 ‑ 466,095 466,095

STATEMENT OF CHANGES IN EQUITYFOR THE YEAR ENDED 30 JUNE 2013

15

STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 30 JUNE 2013

Note 2013 $

2012 $

Cash flow from operating activities

Gross royalties received 3,183,652 3,221,358

Payments to suppliers and employees (387,036) (970,553)

Interest received 66,057 95,199

Distributions to members (2,244,843) (1,760,214)

Net cash provided by operating activities 14(b) 617,830 585,790

Reconciliation of cashCash at beginning of the financial year 2,263,505 1,677,715

Net increase in cash held 617,830 585,790

Cash at end of financial year 14(a) 2,881,335 2,263,505

FINANCIAL REPORT

16

NOTES TO FINANCIAL STATEMENTS

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2013

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards ‑ Reduced Disclosure Requirements, Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The financial report was approved by the directors as at the date of the directors’ report.

The financial report is for the entity Viscopy Limited as an individual entity. Viscopy Limited is a company limited by guarantee, incorporated and domiciled in Australia. Viscopy Limited is a not‑for‑profit entity for the purpose of preparing the financial statements.

The following is a summary of the material accounting policies adopted by the company in the preparation and presentation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

(a) Basis of preparation of the financial report

Historical Cost Convention

The financial report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets as described in the accounting policies

(b) RevenueRevenue from the rendering of services is recognised upon the delivery of the service to the customers.

Interest revenue is recognised when it becomes receivable on a proportional basis taking in to account the interest rates applicable to the financial assets.

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

(c) Income taxCurrent income tax expense or revenue is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities.

Specific provisions, applicable to copyright collecting societies, ensure (a) copyright income collected and held on behalf of the members, pending allocation to the member; and (b) non copyright income that falls within certain limits, are not subject to income tax.

(d) ImpairmentAssets with an indefinite useful life are not amortised but are tested annually for impairment in accordance with AASB 136. Assets subject to annual depreciation or amortisation are reviewed for impairment whenever events or circumstances arise that indicate that the carrying amount of the asset may be impaired.

An impairment loss is recognised where the carrying amount of the asset exceeds its recoverable amount. The recoverable amount of an asset is defined as the higher of its fair value less costs to sell and value in use.

Where the future economic benefits of an asset are not primarily dependent on the asset’s ability to generate net cash inflows and where the company would, if deprived of the asset, replace its remaining future economic benefits, the recoverable amount is assessed on the basis of the asset’s depreciated replacement cost which is defined as the current replacement cost less accumulated depreciation calculated on the basis of such cost.

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(e) ProvisionsProvisions are recognised when the company has a legal or constructive obligation, as a result of past events, for which it is probable that an out flow of economic benefits will result and that outflow can be reliably measured.

(f) Employee benefits(i) Short‑term employee benefit obligations

Liabilities arising in respect of wages and salaries, annual leave and any other employee benefits expected to be settled within twelve months of the reporting date are measured at their nominal amounts based on remuneration rates which are expected to be paid when the liability is settled. The expected cost of short‑term employee benefits in the form of compensated absences such as annual leave is recognised in the provision for employee benefits. All other short‑term employee benefit obligations are presented as payables.

(ii) Long‑term employee benefit obligations

Liabilities arising in respect of long service leave and annual leave which is not expected to be settled within twelve months of the reporting date are measured at the present value of the estimated future cash outflow to be made in respect of services provided by employees up to the reporting date.

Employee benefit obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur.

(g) 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 Tax Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST.

Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

(h) ComparativesWhere necessary, comparative information has been reclassified and repositioned for consistency with current year disclosures.

NOTE 2: CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Certain accounting estimates include assumptions concerning the future, which, by definition, will seldom represent actual results. No estimates or assumptions are considered to have the potential to materially impact the assets or liabilities of the company in the next financial year.


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NOTE 3: FINANCIAL RISK MANAGEMENT

NOTE 4: REVENUE

The company is exposed to interest rate, credit and liquidity risk. The directors are responsible for the management of these risks and delegate these responsibilities to the Audit Committee and management as required.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market interest rates. The company’s interest rate risk is limited to movements in interest rates receivable on cash at bank.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The company does not have any material credit risk exposure to any single debtor or group of debtors under financial instruments entered into by the company.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. Liquidity risk is managed through cash flow projections and holding cash reserves to cover expected cash requirements.

2013 $

2012$

Rendering of services 2,049,397 3,097,598

Other revenue

Interest income 75,303 95,199

Donations and grants ‑ 21,302

Sundry income ‑ 9,337

75,303 125,838

2,124,700 3,223,436

In prior years, a significant component of the company’s revenue were allocations by Copyright Agency for any artistic work appearing in a UK published work. Following renegotiation of the agreement between the UK author, visual artist and publisher collecting societies, Copyright Agency has now been directed to pay those allocations direct to the UK society.

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NOTE 6: KEY MANAGEMENT PERSONNEL COMPENSATION

NOTE 7: CASH AND CASH EQUIVALENTS

2013 $

2012$

Surplus/ (deficit) before income tax has been determined after:

Cost of sales

Depreciation ‑ 15,946

Bad and doubtful debts 26,704 22,591

Rental expense on operating leases (4,361) 52,692

Employee benefits ‑ 706,887

Loss on disposal/revaluation of non current assets 24,035 40,964

Remuneration of auditors for:

Pitcher Partners (Sydney)

Audit and assurance services ‑ Audit or review of the financial report

15,000 15,000

Other non‑audit services

‑ Taxation services 2,500 2,500

17,500 17,500

NOTE 5: OPERATING SURPLUS

Compensation received by key management personnel of the company

‑ short‑term employee benefits ‑ 174,411

‑ 174,411

Directors are not entitled to and did not receive any remuneration during the year.

Cash on hand ‑ (10)

Cash at bank 2,881,335 2,263,515

2,881,335 2,263,505

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2013 $

2012$

CURRENT

Trade debtors 274,474 1,316,145

Impairment loss (43,021) (29,591)

231,453 1,286,554

231,453 1,286,554

Impairment of trade receivablesTrade receivables are non interest bearing with 14 days terms. An impairment loss is recognised when there is objective evidence that an individual trade receivable is impaired. The impairment losses have been included within other expenses in the statement of comprehensive income. All trade receivables that are not impaired are expected to be received within trading terms.Movements in the accumulated impairment losses were:

Opening balance at 1 July 29,591 10,000

Charge for the year 28,031 19,591

Amounts written off (14,601) ‑

Closing balance at 30 June 43,021 29,591

Plant and equipmentOffice equipment at cost ‑ 17,071

Accumulated depreciation ‑ (13,819)

‑ 3,252

Furniture, fixtures and fittings at cost ‑ 50,698

Accumulated depreciation ‑ (23,101)

‑ 27,597

Total plant and equipment ‑ 30,849

Total property, plant and equipment ‑ 30,849

(a) Reconciliations

Reconciliation of the carrying amounts of property, plant and equipment at the beginning and end of the current financial year

Office equipment

Opening carrying amount 3,252 10,318

Disposals (3,252) (1,322)

Depreciation expense ‑ (5,744)

Closing carrying amount ‑ 3,252

NOTE 9: PROPERTY, PLANT AND EQUIPMENT

NOTE 8: RECEIVABLES

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NOTE 10:OTHER ASSETS

2013 $

2012$

Furniture, fixtures and fittings

Opening carrying amount 27,597 77,441

Disposals (27,597) (39,642)

Depreciation expense ‑ (10,202)

Closing carrying amount ‑ 27,597

CURRENT

Prepayments 1,813 12,485

CURRENT

Unsecured liabilities

Trade creditors 2,307,145 2,998,324

Sundry creditors and accruals 320,590 45,398

Taxes payables 20,771 77,925

2,648,506 3,121,647

CURRENT

Employee benefits (a) ‑ 26,106

(a) Aggregate employee benefits liability ‑ 26,106

Retained earnings at beginning of year 445,640 381,897

Net surplus / (deficit) 20,455 (196,257)

Transfers (to) / from reserves ‑ 260,000

466,095 445,640

NOTE 11: PAYABLES

NOTE 12: PROVISIONS

NOTE 13: RETAINED EARNINGS


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NOTE 14: CASH FLOW INFORMATION

NOTE 15: RELATED PARTY TRANSACTIONS

2013 $

2012 $

(a) Reconciliation of cash

Cash at the end of the financial year as shown in the statement of cash flows is reconciled to the related items in the statement of financial position is as follows:

Cash on hand ‑ (10)

Cash at bank 2,881,335 2,263,515

2,881,335 2,263,505

(b) Reconciliation of cash flow from operations with profit after income tax

Profit / (loss) from ordinary activities after income tax 20,455 (196,257)

Adjustments and non‑cash items

Depreciation ‑ 15,946

Charges to provision for impairment 13,430 19,591

Net (gain) / loss on disposal of property, plant and equipment

30,849 40,964

Changes in assets and liabilities

Decrease in receivables 1,041,670 114,424

(Increase) / decrease in other assets 10,672 (5,089)

Increase / (decrease) in payables (473,140) 592,553

Increase / (decrease) in provisions (26,106) 3,658

Cash flows from operating activities 617,830 585,790

Transactions between related parties are on normal commercial terms and conditions no more favourable than those available to other parties otherwise stated.

There are no transactions with related parties.

There were no contingent liabilities at or subsequent to balance date.

There has been no matter or circumstance, which has arisen since 30 June 2013 that has significantly affected or may significantly affect:

(a) the operations, in financial years subsequent to 30 June 2013, of the company, or

(b) the results of those operations, or

(c) the state of affairs, in financial years subsequent to 30 June 2013, of the company.

NOTE 16: CONTINGENT LIABILITIES

NOTE 17: EVENTS SUBSEQUENT TO REPORTING DATE

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The directors of the company declare that:

1. The financial statements and notes, as set out on pages 13‑25, are in accordance with the Corporations Act 2001: and

(a) comply with Australian Accounting Standards ‑ Reduced Disclosure Requirements and the Corporations Regulations 2001; and

(b) give a true and fair view of the financial position as at 30 June 2013 and performance for the year ended on that date of the company.

2. In the directors’ opinion 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.

2. In the directors’ opinion 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.

Director: ________________________________________________ Christopher Westworth

Director: ________________________________________________ Jeremy Thorpe

Dated this day of 2013


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We have audited the accompanying financial report of Viscopy Limited, which comprises the statement of financial position as at 30 June 2013, the statement of 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 in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.

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. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit 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 in 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.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF VISCOPY LIMITED

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R M SHANLEY PITCHER PARTNERS Partner Sydney

Dated this 3 October 2013

An independent New South Wales Partnership. ABN 35 415 759 892Liability limited by a scheme approved under Professional Standards Legislation

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Opinion

In our opinion:

(a) the financial report of Viscopy Limited is in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and

(b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.


INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OF VISCOPY LIMITED

NOTES

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abn 98 069 759 922 directors’ report and financial report · directors’ report and financial...

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