australian timeshare & holiday ownership council … · with accor since 2010, previously with...

AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED

ACN 065 260 095

FINANCIAL REPORT

FOR THE YEAR ENDED 30 JUNE 2013

PAGE

Directors' Report 1

Auditor's Independence Declaration 5

Statement of Comprehensive Income 6

Statement of Financial Position 7

Statement of Changes in Equity 8

Statement of Cash Flows 9

Notes to the Financial Statements 10

Directors' Declaration 24

Independent Auditor's Report 25

ACN 065 260 095

CONTENTS

FINANCIAL REPORT



Directors

Ramy Filo Craig Wood Kevin Sharp

Barry Robinson Charisse Cox

Stephanie Kewming Jennifer Burns (resigned 9/9/2012)

Carole Smith Joseph Hickman

Ivan Hill

Martyn Rix

Principal Activities

Strategy and Objectives

Mission Statement-

-

-

Short and long term objectives of the entity

Strategy for achieving our objectives

How our activities assisted in achieving the entity’s objectives

Positive relationships with Regulators and currently updating the Code of Practice with ASIC in line with changes

due to the FOFA reform; Continued reduced cooling off period; Resale benefits for sold out resorts; Annual

compliance report provided; Good attendance for conference/training provisions provided; ATHOC Board

members and GM on Tourism Body Committees increasing profile of industry sector.

Foster a high standard of ethics and adherence to industry best practice amongst our Members and to

maintain good standing with all stakeholders.

Continually promote the benefits of the industry and to protect the goodwill of Members and consumers.

Assist all Members to achieve growth and profitability in an ever-changing business environment.

To be the leading voice for the Timeshare and Holiday Ownership Industry in the region with Governments

(local, state and federal), consumers and the general public.

To represent, unite and advance the timeshare and holiday ownership industry in Australia through the provision

of professional services, advocacy and lobbying programs thereby increasing industry and public awareness of

the timeshare and holiday ownership product and promoting a positive community understanding of the industry

as a whole. To ensure that members abide by the Industry Code of Practice and work within the parameters of

the regulatory environment.


ACN 065 260 095

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

DIRECTORS' REPORT

The directors present their report on the company for the financial year ended 30 June 2013, and report in

accordance with a resolution of the directors as follows:

Working closely with the membership to identify specific issues; Regular meetings with Regulatory bodies;

Monitor industry compliance; Conferences, seminars and training day to help educate industry staff and board;

Promote the industry through various Tourism Bodies Nationally; Lobby Government at all levels; Profile the

industry in media at all opportunities.

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

stated.

Charisse Cox was the appointed Company Secretary until resignation on 9/9/2012 after which Stephanie

Kewming was appointed Company Secretary for the rest of the year. Details of their professional qualifications

are listed below in the Information about Directors.

The principal activity of the company in the course of the financial year was to unite the timeshare industry and

advocate the needs and interests of the timeshare industry. No significant change in the nature of these

activities occurred during the year.

Laura Duesbury (Alternate Director for

Craig Wood) (resigned 16/1/2013)

Andrew Shields (Alternate Director for

Barry Robinson)

Kate Cunningham (Alternate Director for

Craig Wood) (appointed 16/1/2013)

1


Strategy for achieving our objectives (continued)

Review of Operations

Significant Changes in the State of Affairs

Matters Subsequent to the End of the Financial Year

Information about the Directors

Ramy Filo, Vice President

Prior to the year end the lessor of the current premises went into receivership and the building was sold. ATHOC

was given the opportunity to relocate to the 5th floor of the current premises at the same annual rental or

alternately given the opportunity to leave the building prior to the end of the lease without the need to make good

of the said premises. Due to the high rental costs and not required to incur the cost associated with making

good the premises, ATHOC elected to move and reduce costs. A new lease was entered into on 26 July 2013,

effective on 1 August 2013 for a three year period.

Particulars of Directors’ qualifications, experience and special responsibilities as at the date of this report, are as

follows:

Barry Robinson, President

With more than 30 year’s hospitality experience, Barry has a vast knowledge of the hotel and resort industry –

from development to branding, management, franchising and operations. During his career Barry has held a

number of senior leadership positions with some of the world’s largest hospitality companies including Swiss-

Belhotel International, Swissôtel Worldwide Partner Hotels and Choice Hotels International.

BE (Mech), Fellow of the Australian Institute of Company Directors.

CEO of Classic Holidays and Director of eight timeshare resort/clubs. Involved in all aspects of timeshare

including sales, marketing and resort management. Currently Responsible Manager for three Responsible

Entities, managing Timesharing Schemes. Chairman of the Board of DAE Global, a timeshare exchange

company with 12 international offices. Vice President of ATHOC and involved in industry regulatory compliance

discussions, policy and future wellbeing of the industry. Chairman of GATE (the international association of

Timesharing), representing all global associations.

Through issues raised by the regulators and the outcome of those issues as well as feedback from Regulators;

Number of complaints attracted by the industry overall; attendance numbers for events; member feedback;

timing of events versus planned; number of media articles and increase profile of industry; Value proposition for

members.

How the entity measures its performance, including any key performance indicators used by the entity

ACN 065 260 095

DIRECTORS' REPORT (CONTINUED)

There were no significant changes in the state of affairs of the company during the financial year.

CEO and Managing Director of Wyndham Vacation Resorts Asia Pacific since September 2003. Director and

chairperson for ATHOC Foundation Limited. In 2009, Barry launched the Wyndham Hotel Group in the South

Pacific as Managing Director. Under his supervision, both Wyndham Vacation Resorts Asia Pacific and

Wyndham Hotel Group in the South Pacific have expanded their portfolios in the Australian, New Zealand and

South Pacific regions and are to actively expand into new Asian markets.

The profit of the company for the year ended 30 June 2013 after providing for income tax amounted to $16,306

(2012: $27,803).

No other matters or circumstances have arisen since the end of the financial year that have 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 the years subsequent to this financial year.

2


Information about the Directors (continued)

Carole Smith, Treasurer

Stephanie Kewming, Company Secretary from 9/9/2012)

Charisse Cox, Company Secretary until 9/9/2012

Ivan Hill

Joseph Hickman

Jennifer Burns (Resigned 9/9/2012)

Craig Wood

Kevin Sharp

Andrew Shields (Alternate Director for Barry Robinson)

Laura Duesbury (Alternate Director for Craig Wood) (resigned 16/1/2013)

Legal Counsel, BA LLB.

Admitted as a solicitor to the Supreme Court of NSW and High Court of Australia. With Accor since 2010,

previously with Clayton Utz in Sydney.

Managing Director of Korora Bay Village Limited with over 24 years industry experience in timeshare, resort

management and yield management which includes 9 years service with RCI Australia. Former Director of

Coffs Coast Tourism and Company Secretary for Korora Bay Village Limited.

Manager and director Eastcoast Vacations Pty Ltd. Over 20 years industry experience with a certificate 3 in

business management.

Came from the hotel industry to holiday ownership some 25 years ago. Has managed several resorts and held

multiple executive positions in both Australia and Indonesia within the industry. CEO of ICE vacations for the

past 12 years.

Member of Silver Sands Resort committee since 1989 and served as chairperson for seven years. Now serves

as the General Manager of the Silver Sands Timeshare Club and oversees the total running of this independent

Resort. Ivan has been on the ATHOC committee for more than ten years and was involved with the committee

that originally formed the ATHOC organisation. Director of ATHOC Foundation Limited.

Principal of Monad Pacific Management, a New Zealand timeshare management company.

Chairman and founding member of the New Zealand Holiday Ownership Council. Over 30 years experience in

resort, hotel and timeshare management.

Senior Council Compliance (BA,LLB & MA) - with Wyndham Vacation Resorts South Pacific Ltd. Wyndham has

resorts in 24 locations in Australia, New Zealand and Fiji. Admitted as a Barrister to the High Court of Australia

since 1997 and Solicitor in Queensland since 2000.

JP (qualified), Diploma Hospitality Management & Tourism Operations Management, Fellow of the Australian

Institute of Company Directors, Licenced Real Estate Agent and Licenced Commercial Agent. Over 25 years

timeshare management experience. Chief Operating Officer of Classic Holidays and responsible for managing

the day to day operations of 17 resorts/clubs.

Managing Director of RCI Pacific. Vice Chairperson of New Zealand Holiday Ownership Council. Over

25 years experience in the timeshare industry in Australia, New Zealand and Fiji. Member of the original

steering committee for the formation of ATHOC. Director of ATHOC Foundation Limited.

CEO of Accor Vacation Club. 24 years experience in the vacation ownership industry at the most senior level.

Over the last 17 years has been exclusively involved in branded vacation clubs, managing operations in 8

countries across Asia, including 13 years for Marriott Vacation Club and over 4 years with Accor.

Martyn Rix

Executive Director Asia-Pacific for Interval International. Almost 30 years experience in Asia-Pacific in the

hospitality industry holding senior management positions with Shangri-La, Westin and Conrad Hotels in Asia.

Over 20 years in the vacation ownership industry with Hilton Grand Vacations, RCI and for over 10 years,

Interval.

ACN 065 260 095


3


Information about the Directors (continued)

Kate Cunningham (Alternate Director for Craig Wood) (Appointed 16/1/2013)

Meetings of Directors

Name

Barry Robinson

Carole Smith

Charisse Cox

Ramy FiloMartyn Rix

Ivan Hill

Stephanie Kewming

Joseph Hickman

Jennifer Burns

Craig WoodKevin Sharp

Andrew Shields (Alternate Director for Barry Robinson)

Members Guarantee

Auditors Independence Declaration

BARRY ROBINSONPresident

Signed at Surfers Paradise, 2 September 2013


7

Number of Meetings

Held while a Director

6

4

ACN 065 260 095

9

Australian Timeshare & Holiday Ownership Council Limited is incorporated under the Corporations Act 2001

and is a company limited by guarantee. The Constitution states that if upon the winding up of the dissolution of

the Company there remains after satisfaction of all its debts and liabilities any property whatsoever, such

property will not be paid to or distributed among Members but will be given or transferred to some institution or

institutions having objects similar or in part similar to the objects of the Company and which shall prohibit the

distribution of its or their income and property amount its or their members to an extent at least as great as that

imposed on the Company under the Constitution.

7

6

11

9

3 2

9 8

8

6

6

Legal counsel (BBuss LLB) for Accor Vacation Club since 2012, based in Sydney at Accor’s head office. Prior to

joining Accor, Kate was a senior associate in a commercial practice of a national law firm.

Signed in accordance with a resolution of the Board of Directors of Austraian Timeshare & Holiday Ownership

Council Limited.

Kate Cunningham (Alternate Director for Craig Wood)

Laura Duesbury (Alternate Director for Craig Wood)

8

8

9

9

5

9

8

7

9

8

3

7

During the financial year, 9 meetings of the company's directors were held. The number of meetings each

director of the company attended is as follows:

Number of Meetings

Attended

The Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 is set out on

page 5 and forms part of the directors' report for the year ended 30 June 2013.

4

Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

Crowe Horwath Brisbane ABN 79 981 227 862 Member Crowe Horwath International

Level 16 120 Edward Street Brisbane QLD 4000 Australia GPO Box 736 Brisbane QLD 4001 Australia Tel +61 7 3233 3555 Fax +61 7 3233 3567 www.crowehorwath.com.au

5

Auditor’s Independence Declaration

As auditor of Australian Timeshare & Holiday Ownership Council Limited for the year ended 30 June 2013, I declare that, to the best of my knowledge and belief, there have been:

i. no contraventions of the auditor independence requirements as set out in the Corporations

Act 2001 in relation to the review; and

ii. no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Australian Timeshare & Holiday Ownership Council Limited during the year.

CROWE HORWATH BRISBANE

Valerie Main

Partner

Signed at Brisbane, September 2013

NOTE 2013 2012

$ $

REVENUE

Membership fees 176,479 165,642

Training income 18,185 9,328

Conference and function income 174,825 155,932

Interest received 22,739 27,802

TOTAL REVENUE 392,228 358,704

EXPENSES

Administration and other expenses 37,458 50,216

Conference and function costs 90,640 62,166

Depreciation expenses 1,919 3,328

Employee benefits expenses 155,857 156,054

Leasing and premises costs 37,582 36,205

Professional services 16,420 20,303

RG 146 training and compliance costs 12,087 2,629

Research expenses 23,959 -

TOTAL EXPENSES 375,922 330,901

Surplus before income tax 2 16,306 27,803

Income tax expense 3 - -

SURPLUS FOR THE YEAR ATTRIBUTABLE TO MEMBERS 16,306 27,803

Other comprehensive income for the year - -

16,306 27,803

The above statement of comprehensive income should be read in conjunction with the accompanying notes.


STATEMENT OF COMPREHENSIVE INCOME


TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE

TO MEMBERS

6

NOTE 2013 2012

CURRENT ASSETS $ $

Cash and cash equivalents 4 510,942 50,239

Trade and other receivables 5 13,750 27,970

Financial assets 6 80,000 450,000

Other current assets 7 21,267 27,375

TOTAL CURRENT ASSETS 625,959 555,584

NON-CURRENT ASSETS

Property, plant and equipment 8 7,214 9,133

TOTAL NON-CURRENT ASSETS 7,214 9,133

TOTAL ASSETS 633,173 564,717

CURRENT LIABILITIES

Trade and other payables 9 112,429 62,341

TOTAL CURRENT LIABILITIES 112,429 62,341

NON-CURRENT LIABILITIES

Provisions 10 17,125 15,063

TOTAL NON-CURRENT LIABILITIES 17,125 15,063

TOTAL LIABILITIES 129,554 77,404

NET ASSETS 503,619 487,313

EQUITY

Retained earnings 503,619 487,313

TOTAL EQUITY 503,619 487,313

The above statement of financial position should be read in conjunction with the accompanying notes.

AS AT 30 JUNE 2013

STATEMENT OF FINANCIAL POSITION


7

STATEMENT OF CHANGES IN EQUITY

Retained

Earnings Total

$ $

Balance at 1 July 2011 459,510 459,510

Total comprehensive income:

Surplus for the year 27,803 27,803

Other comprehensive income - -

Total comprehensive income for the year 27,803 27,803

Transactions with owners in their capacity as owners - -

Balance at 30 June 2012 487,313 487,313

Balance at 1 July 2012 487,313 487,313

Total comprehensive income:

Surplus for the year 16,306 16,306

Other comprehensive income - -

Total comprehensive income for the year 16,306 16,306

Transactions with owners in their capacity as owners - -

Balance at 30 June 2013 503,619 503,619

The above statement of changes in equity should be read in conjunction with the accompanying notes.



8

STATEMENT OF CASH FLOWS

NOTE 2013 2012

Inflows Inflows

(Outflows) (Outflows)

$ $

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers 445,991 348,799

Payments to suppliers and employees (363,066) (375,894)

Interest received 25,324 40,112

GST paid (17,546) (12,801)

NET CASH FROM OPERATING ACTIVITIES 11 90,703 216

CASH FLOWS FROM INVESTING ACTIVITIES

Withdrawals from/(investment in) held-to-maturity financial assets 370,000 (70,000)

NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES 370,000 (70,000)

NET CASH FLOWS FROM FINANCING ACTIVITIES - -

Net increase/(decrease) in cash and cash equivalents held 460,703 (69,784)

Cash and cash equivalents at the beginning of the year 50,239 120,023

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 4 510,942 50,239

The above statement of cash flows should be read in conjunction with the accompanying notes.



9

NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

●

The financial report of Australian Timeshare & Holiday Ownership Council Limited (the company) for the year

ended 30 June 2013 was authorised for issue in accordance with a resolution of the directors on 2 September

2013. The Board of Directors have the power to amend the financial report after issue.

The estimates and judgements incorporated into the financial report are based on historical experiences

and the best available current information on current trends and economic data, obtained both externally

and within the company. The estimates and judgements made assume a reasonable expectation of future

events but actual results may differ from these estimates.

The preparation of the financial report in conformity with Australian Accounting Standards requires management

to make judgements, estimates and assumptions that affect the application of policies and the reported amounts

of assets, liablities, revenue and expenses.

The financial report is a general purpose financial report, which has been prepared in accordance with the

requirements of the Corporations Act 2001 , Australian Accounting Standards and other authoritative

pronouncements of the Australian Accounting Standards Board.

Basis of Preparation

Critical Accounting Estimates and Judgements

Reporting Basis and Conventions


NOTES TO THE FINANCIAL STATEMENTS


Reporting Entity

The financial report is presented in Australian dollars.

The company is an unlisted public company limited by guarantee incorporated and domiciled in Australia. The

financial report covers the company as an individual entity.

The company primarily represents and acts as an advocate for the timeshare industry in Australia.

Statement of Compliance

● Key Estimates - Long service leave provision

● Key Estimates — Impairment

The liability for long service leave is recognised and measured at the present value of the estimated future

cash flows to be made in respect of all employees at the reporting date. In determining the present value of

the liability, estimates of the attrition rates and pay increases through inflation and promotion have been

taken into account.

events but actual results may differ from these estimates.

The company assesses impairment at each reporting date by evaluating conditions specific to the company

that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the

asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a

number of key estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or

in the period of the revision and future periods if the revision affects both current and future periods. There were

no key adjustments during the year which required accounting estimates and judgements.

The financial statements have been prepared on an accruals basis and are based on historical costs modified by

the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value

basis of accounting has been applied.

10




NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(a) Property, plant and equipment

Plant and equipment

Plant and equipment are measured on the cost basis.

Subsequent costs

Depreciation

The depreciation rates used for each class of depreciable assets are:

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as

appropriate, only when it is probable that future economic benefits associated with the item will flow to the

company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to

the statement of comprehensive income during the financial period in which they are incurred.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the

recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net

cash flows which will be received from the assets employment and subsequent disposal. The expected net cash

flows have not been discounted to their present values in determining recoverable amounts.

Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any

accumulated depreciation and impairment losses.

The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold

land, is depreciated on a straight-line basis over their useful lives to the company commencing from the time the

asset is held ready for use.

The following is a summary of the significant accounting policies adopted by the company in the preparation of

the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

Class of Asset Depreciation Rate

Furniture & Equipment 7.5% - 75%

(b) Income tax

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or

losses are included in the statement of comprehensive income in the period in which they arise.

The charge for current income tax expense is based on the surplus or 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 at the reporting date.

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 statement of comprehensive income 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 tax is accounted for using the liability method in respect of temporary differences arising between the

tax bases of assets and liabilities and their carrying amounts in the financial report. 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 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 assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An

asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is

greater than its estimated recoverable amount.

11





(b) Income tax (continued)

(c) Employee entitlements

(d) Cash and cash equivalents

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 company will derive

sufficient future assessable income to enable the benefit to be realised and comply with the conditions of

deductibility imposed by law.

Cash and cash equivalents includes 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.

Contributions are made by the company to employee superannuation funds and are charged as expenses when

incurred.

Provision is made for the company’s liability for employee entitlements arising from services rendered by

employees to reporting date. Employee benefits expected to be settled within one year together with entitlements

arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been

measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Other employee

benefits payable later than one year have been measured at the present value of the estimated future cash

outflows to be made for those benefits.

No provision for employee's entitlements to sick leave has been made or considered necessary, as the amount

expected to be taken in future periods will not be greater than entitlements which are expected to accrue in

those periods.

Because of the principal of mutuality, only income arising from non-member activities is subject to income tax.

The company is able to identify all non-member income.

(e) Financial instrumentsRecognition

Loans and receivables

Held-to-maturity investments

Financial liabilities

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

These investments have fixed maturities, and it is the company’s intention to hold these investments to maturity.

Any held-to-maturity investments held by the company are stated at amortised cost using the effective interest

rate method.

Financial instruments are initially measured at fair value on trade date, which includes transaction costs, when

the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are

measured as set out below.

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 cost using the effective interest rate method.

Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal

payments and amortisation.

12





(e) Financial instruments (continued)Impairment

(f) Impairment of assets

(g) Revenue

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

(h) Goods and Services Tax (GST)

Sponsorship fees are recognised when the commitment to receive the fees has been established.

Revenue is measured at the fair value of consideration received or receivable, and is recognised when the

amount of revenue is reliably measured and it is probably that economic benefits will flow to the company.

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

At each reporting date, the company assesses whether there is objective evidence that a financial instrument

has been impaired. Impairment losses are recognised in the statement of comprehensive income in the period

in which they arise. Where it is not possible to estimate the recoverable amount of an individual asset, the

company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

At each reporting date, the company reviews the carrying value of tangible and intangible assets to determine

whether there is any indication that those assets have been impaired. If such an indication exists, the

recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is

compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is

expensed to the statement of comprehensive income.

Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the

financial assets.

(h) Goods and Services Tax (GST)

(i) Trade and other receivables

(j) Leases

(k) Provisions

(l) Trade and other payables

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

charged as expenses in the periods in which they are incurred as this represents the pattern of benefits derived

from the leased assets. Lease incentives under operating leases are recognised as a liability and amortised on

a straight-line basis over the life of the lease term.

Trade receivables, which generally have 31 day terms, are recognised at fair value. Collectability of trade

receivables is reviewed on an ongoing basis.

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

incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part

of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the

statement of financial position are shown inclusive of GST.

Cash flows are presented in the 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.

A liability is recorded for goods and services received prior to reporting date, whether invoiced or not. Trade

creditors are settled in accordance with supplier payment terms.

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

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

13





(m) Comparative figures

(n) New Accounting Standards and Interpretations

•

•

• AASB2011-4: Amendments to Australian Accounting Standards to Remove Individual Key Management

AASB 13: Fair value measurement: This standard replaces the existing IFRS guidance on fair value

measurement and disclosure (applicable for annual reporting periods commencing 1 January 2015). It

applies whenever another standard permits or requires the use of fair value measurements. It sets out

a fair value hierarchy for such measurements: Level 1 – quoted prices in active markets for identical

assets and liabilities, which can be accessed at the measurement date. Level 2 – inputs other than

quoted market prices included within Level 1, which are observable for the asset or liability, either

directly or indirectly. Level 3 – unobservable inputs for the asset or liability. There are also extensive

disclosure requirements relating to each of the three levels within the hierarchy.

Certain new accounting standards and interpretations have been published that are not yet effective. The

company's assessment of the impact of the relevant new standards and interpretations is set out below.

AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards

arising from AASB 9 (applicable for annual reporting periods commencing 1 January 2015). AASB9

addresses the classification and measurement of financial assets and is not applicable until 1 January

2015 but is available for early adoption. The company is yet to assess the full impact of the new

standard however, initial indications are that the standard is not expected to have any impact on the

company's financial statements.

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

presentation for the current financial year.

• AASB2011-4: Amendments to Australian Accounting Standards to Remove Individual Key Management

Personnel Disclosure Requirements. AASB 124 has been amended to remove the Australian specific

requirement for Key Management Personnel Disclosures (applicable for annual reporting periods

commencing on or after 1 July 2013). The company is yet to assess the full impact of the new

standard, however, initial indications are that the standard is not expected to have any impact on the

company's financial statements.

14




2013 2012

NOTE 2 - SURPLUS/(LOSS) BEFORE INCOME TAX $ $

Surplus before income tax has been determined after:

Expenses

Depreciation expenses 1,919 3,328

Rental expense on operating leases

- minimum lease payments 34,236 33,005

Auditor's remuneration

- Audit of financial report 3,465 3,317

- Other services 2,035 1,950

Superannuation expense 12,591 12,336

NOTE 3 - INCOME TAX

Prima facie tax payable on surplus before income tax at 30% (2012: 30%) 4,892 8,341

Adjustment for tax effect of:

- Amounts excluded under principal of mutuality (5,165) (13,304)

- Deferred tax assets not brought to account 273 4,963 - -

The prior year comparative disclosures were amended to better reflect the

comparative position of the current year tax disclosures.

The prima facie tax on surplus before income tax is reconciled to the income tax

expense is as follows:

Unused tax losses for which no deferred tax asset has been recognised 85,741 62,152

Potential tax benefit 25,722 18,646

(4,508) (26,022)

Potential tax benefit (1,352) (7,807) Total deferred tax benefits not brought to account 24,370 10,839

Unrecognised temporary differences for which deferred tax liabilities have not been

recognised

comparative position of the current year tax disclosures.

Deferred Tax Assets not brought to account, the benefits of which will only be

realised if the conditions for deductibility of tax losses set out in Note 1 occur

based on corporate tax rate of 30% (2012: 30%).

15




2013 2012

NOTE 4 - CASH AND CASH EQUIVALENTS $ $

Cash on hand 250 250

Cash at bank 510,692 49,989

510,942 50,239

Reconciliation of cash and cash equivalents

Cash and cash equivalents 510,942 50,239

NOTE 5 - TRADE AND OTHER RECEIVABLES

Current

Trade debtors 12,609 23,738

Other receivables 1,141 4,232

13,750 27,970

Cash at the end of the financial year as shown in the statement of cash flows is

reconciled to items in the statement of financial position as follows:

Cash at bank and cash on deposit earns interest at the current variable and short-

term deposit rates. The company holds all funds with Westpac Banking

Corporation.

The company by its nature and location has a concentration of credit risk in that

the majority of its trade debtors are due from customers in Australia operating in or

NOTE 6 - FINANCIAL ASSETS

Current

Held to maturity investments- Term deposits 80,000 450,000

NOTE 7 - OTHER ASSETS

Current

Prepayments and deposits 21,267 27,375

the majority of its trade debtors are due from customers in Australia operating in or

associated with the timeshare industry.

16




2013 2012

NOTE 8 - PROPERTY, PLANT AND EQUIPMENT $ $

Plant and equipment, at cost 45,218 45,218

Less accumulated depreciation (38,004) (36,085)

7,214 9,133

Total property, plant and equipment 7,214 9,133

Movements in carrying amounts

At 30 June 2013

Furniture &

Equipment Total

Balance at the start of the year 9,133 9,133

Depreciation expense (1,919) (1,919)

Carrying amount at end of the year 7,214 7,214

At 30 June 2012

Balance at the start of the year 12,777 12,777

Disposals (316) (316)

Depreciation expense (3,328) (3,328)

Carrying amount at end of the year 9,133 9,133

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

between the beginning and end of the current financial year:

NOTE 9 - TRADE AND OTHER PAYABLES

Current

Trade creditors 16,188 6,044

Sundry creditors and accruals 23,532 12,608

Income received in advance 62,898 32,731

Annual leave accrual 9,811 10,958 112,429 62,341

NOTE 10 - PROVISIONS

Non-Current

Provision for long service leave 17,125 15,063

Provision for Long-term Employee Entitlements

A provision has been recognised for non-current employee entitlements relating to

long service leave for employees.

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 upon historical

data. The measurement and recognition criteria for employee entitlements has

been included in Note 1.

17




2013 2012

NOTE 11 - CASH FLOW INFORMATION $ $

Surplus after income tax 16,306 27,803

Non-cash flows

- Depreciation expense 1,919 3,328

- Loss on disposal of non-current assets - 316

Changes in assets and liabilities

- Trade and other receivables 14,220 25,996

- Other current assets 6,108 (12,221)

- Trade and other payables 50,088 (49,128)

- Provision for employee benefits 2,062 4,122

Net cash from operating activities 90,703 216

NOTE 12 - RELATED PARTIES

Transactions with directors and director related entities:

(a)

(b)

Entities associated with directors are members of the company and are entitled to the same benefits as all

other members and pay fees to the company for member services at arm's length.

Fees for services totalling $7,020 (2012: $7,069) were paid in the ordinary course of business to Classic

Reconciliation of net cash from operating activities to surplus after income tax.

(b)

(c)

NOTE 13 - FINANCIAL RISK MANAGEMENT

Risk management policies are approved and reviewed by the Board of Directors on a regular basis. These

include the credit risk policies and future cash flow requirements.

The company’s financial instruments consist mainly of deposits with banks, short-term investments, accounts

receivable and accounts payable.

Fees for services totalling $7,020 (2012: $7,069) were paid in the ordinary course of business to Classic

Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.

RG146 commission totalling $3,548 (2012: $2,703) was received in the ordinary course of business from

One Step Further Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.

The directors’ overall risk management strategy seeks to assist the company in meeting its financial targets,

whilst minimising potential adverse effects on financial performance.

The company does not have any derivative instruments at 30 June 2013.

18




NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)

Treasury Risk management

i. Interest rate risk

Effective

interest rate

Floating

Interest

Rate

Non Interest

Bearing

Fixed

Interest

Rate Total

% $ $ $ $

2.90 510,692 250 - 510,942

- - 13,750 - 13,750

3.70 - - 80,000 80,000 510,692 14,000 80,000 604,692

- - 39,720 - 39,720

The directors of the company meet on a regular basis to review interest rates and to evaluate treasury

management strategies in the context of the most recent economic conditions and forecasts.

Financial Risk exposures and management

Trade and other receivables

The company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as

a result of changes in market interest rates and the effective average interest rates on those financial assets and

financial liabilities, is as follows:

Other financial assets

Trade and other payables

30 June 2013

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

and credit risk.

Interest rate risk is managed through floating rate bank accounts.

Cash and cash equivalents

Total Financial Assets

- - 39,720 - 39,720

Total Financial Liabilities - 39,720 - 39,720

Effective

interest rate

Floating

Interest

Rate

Non Interest

Bearing

Fixed

Interest

Rate Total

% $ $ $ $

1.60 49,989 250 - 50,239

- - 27,970 - 27,970

4.70 - - 450,000 450,000 49,989 28,220 450,000 528,209

- - 18,652 - 18,652

Total Financial Liabilities - 18,652 - 18,652

The companies interest rate risk policies remain unchanged from the prior year.

Total Financial Assets

Cash and cash equivalents


Other financial assets


30 June 2012

Trade and other receivables

19





Cash flow sensitivity analysis for variable rate instruments

ii. Foreign currency risk

iii Liquidity risk

The sensitivity analysis has been determined based on the exposure of the company to interest rates for non-

derivative financial instruments at the reporting date and the stipulated change taking place at the beginning of

the financial year and held constant throughout the reporting period. A 100 basis point increase or decrease is

used when reporting interest rates internally to key management personnel and represents management’s

assessment of the possible change in interest rates.

The following are contractual maturities of financial liabilities:

Trade payables are short term in nature.

At 30 June 2013, if the interest rates had changed by 100 basis points from the period-end rates with all other

variables held constant, post-tax profit for the year for the company would have been $2,478 (2012: $2,453)

lower/higher mainly as a result of lower/higher interest income on cash and cash equivalents and other current

financial assets.

The company is not exposed to fluctuations in foreign currencies.

The company manages liquidity risk by monitoring forecast and actual cash flows and ensuring that adequate

cash reserves are maintained.

The company is not exposed to any significant liquidity risk.

30 June 2013

Carrying

amount

Contractual

cash flows

Less than

one year 1-5 years over 5 years

$ $ $ $ $Trade and other payables 39,720 39,720 39,720 - -

Carrying

amount

Contractual

cash flows

Less than

one year 1-5 years over 5 years

$ $ $ $ $Trade and other payables 18,652 18,652 18,652 - -

The liquidity risk policies remain unchanged from the previous year.

30 June 2012

20





iv Credit risk

Gross Impairment Gross$ $ $

Not Past due (current) 10,548 - 26,532

Past due 0-30 days (30 day ageing) 2,450 - -

Past due 31-60 days (60 day ageing) - - -

752 - 1,258 13,750 - 27,790

-

-

-

-

$Impairment

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

The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to

recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as

disclosed in the statement of financial position and notes to the financial statements.

20122013

-

The ageing of the company's receivables at the reporting date was:

There are no material amounts of collateral held as security at 30 June 2013.

Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial

loss to the company. The company does not have any significant credit risk exposure to any single counterparty

or any group of counterparties having similar characteristics.

None of the past due receivables at 30 June 2013 were impaired. These receivables relate to a number of

Past due over 60 days (+90 day ageing)

Credit risk is managed and reviewed regularly by the Board of Directors. It arises from exposures to customers

as well as through deposits with financial institutions.

v Price risk

The company is not exposed to any material commodity price risk.

vi Capital risk management

The credit risk policies remain unchanged from the previous year.

The capital structure of the company consists of cash and cash equivalents and equity comprising retained

earnings.

The directors manage the capital to ensure that the company will be able to continue as a going concern and to

be able to satisfy future capital needs of the company, through the optimisation of debt and equity balances.

The other classes of other receivables do not contain impaired assets and are not past due. Based on the credit

history of the receivables, it is expected that these amounts will be received when due.

None of the past due receivables at 30 June 2013 were impaired. These receivables relate to a number of

independent members for whom there is no recent history of default. It is expected that these amounts will be

received in full.

21





Net Fair Values

NOTE 14 - KEY MANAGEMENT PERSONNEL REMUNERATION

NOTE 15 - COMMITMENTS

2013 2012

Operating lease commitments $ $

Payable - minimum lease payments:

- Within one year 2,977 30,136

The net fair values of financial assets and liabilities approximate their carrying value. No financial assets and

financial liabilities are readily traded on organised markets in standardised form.

The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in

the statement of financial position and in the notes to the financial statements.

The directors of the company are directly accountable and responsible for the strategic direction and operational

management of the company. Refer to the Directors' Report for information about the Directors and their

qualifications.

During the year there were no executives of the company.

The board reviews this structure and the risks associated with each class of capital on a regular basis.

The directors act in an honorary capacity and did not receive any remuneration during the 2013 year (2012:$nil).

Non-cancellable operating leases contracted for but not capitalised in the financial

statements.

Capital risk management policies remain unchanged from the prior year.

Payable - minimum lease payments:

- Within one year 2,977 30,136

- Later than one year but not later than 5 years - 7,624 - Minimum lease payments 2,977 37,760

NOTE 16 - CONTINGENT LIABILITIES

NOTE 17 - EVENTS AFTER THE REPORTING DATE

No other events have occurred subsequent to reporting date and up to the date of this report that will have a

material effect on the financial position or performance of the company.

There are no contingent liabilities that will have a material effect on the financial position or performance of the

company.

The premises lease which was up for renewal from 1 September 2013 was cancelled by the lessor with effect

from 31 July 2013.

Prior to the year end the lessor of the current premises went into receivership and the building was sold. ATHOC

was given the opportunity to relocate to the 5th floor of the current premises at the same annual rental or

alternately given the opportunity to leave the building prior to the end of the lease without the need to make good

of the said premises. Due to the high rental costs and not required to incur the cost associated with making good

the premises, ATHOC elected to move and reduce costs. A new lease was entered into on 26 July 2013,

effective on 1 August 2013 for a three year period. The first annual rental equates to $19,000 with an annual

escalation clause of 4%.

22




NOTE 18 - COMPANY DETAILS

Suite 8 c/- HWC Accountants

37 Bundall Road Suite 101 Bermuda Point

Surfers Paradise QLD 4217 20 Lake Orr Drive

Varsity Lakes QLD 4227

The registered office of the company is:

Australian Timeshare & Holiday Ownership

Council Limited

The principal place of business is:

Australian Timeshare & Holiday

Ownership Council Limited

23

The directors of the company declare that:

1

a.

b.

2

BARRY ROBINSON

President

Signed at Surfers Paradise, 2 September 2013

This declaration is made in accordance with a resolution of the Board of Directors of Australian Timeshare &

Holiday Ownership Council Limited.


DIRECTORS' DECLARATION

ACN 065 260 095

give 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.

comply with Australian Accounting Standards; and

the financial statements and notes, as set out on pages 5 to 23 are in accordance with the Corporations

Act 2001 and:

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.

24

Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.

Crowe Horwath Brisbane ABN 79 981 227 862 Member Crowe Horwath International Level 16 120 Edward Street Brisbane QLD 4000 Australia GPO Box 736 Brisbane QLD 4001 Australia Tel +61 7 3233 3555 Fax +61 7 3233 3567 www.crowehorwath.com.au

25

Independent Auditor’s Report

To the members of Australian Timeshare & Holiday Ownership Council Limited

Report on the Financial Statements

We have audited the accompanying financial report of the Australian Timeshare & Holiday Ownership Council Limited (the company), which comprises the statement of financial position as at 30 June 2013 and 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 is free from material misstatement, whether due to fraud or error. 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 of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Australian Timeshare & Holiday Ownership Council Limited, would be in the same terms if provided to the directors as at the date of this auditor’s report.

26

Auditor’ Opinion

In our opinion the financial report of Australian Timeshare & Holiday Ownership Council Limited is in accordance with the Corporations Act 2001, including: a) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and b) complying with Australian Accounting Standards and the Corporations Regulations 2001. CROWE HORWATH BRISBANE VALERIE MAIN Partner Signed at Brisbane, September 2013

australian timeshare & holiday ownership council … · with accor since 2010, previously with...

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