concise financial report · 1. continue to “raise the profile” of diabetes and make diabetes...

Concise Financial Report For the financial year ended 30 June 2015 ABN 71 005 239 510

The concise financial report is an extract from the full financial report of Diabetes Victoria. The financial statements and specific disclosures included in the concise financial report have been derived from the full financial report of Diabetes Victoria, and cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the company as the full financial report. Further financial information can be obtained from Diabetes Victoria’s full financial report, a copy of which, including the independent audit report, is available to all members, and will be sent to members without charge on request.

Diabetes Victoria Directors’ report

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The Directors of Diabetes Victoria (formerly Diabetes Australia - Victoria) hereby submit the annual financial report of the company for the financial year ended 30 June 2015. The directors report as follows. The names and particulars of the directors of the company during or since the end of the financial year are: Directors Christian Jose Elected 2007, elected President 2009

Qualifications Master of Business Administration (Melbourne Business School), Dip Law (Sydney).

Experience Director of Diabetes Australia Limited, Partner at Freehills practising in the areas of competition law and market regulation. Previously a barrister at the Victorian Bar and has worked for various government agencies.

Special responsibilities President, Chair of Executive Committee.

Kathryn Arndt Elected 2007

Qualifications B.Bus (HRM), Grad Dip (OHS), Member of the Australian Institute of Company Directors (MAICD).

Experience General Manager and Board Director with experience in not-for-profit, health services and community based organisations, FMCGs, financial services and industry associations. Directorships include Managing Director, Kathryn Arndt Governance and Strategic Management Consultancy; BM Hotel Holdings Pty Ltd & Kitchen Pro Pty Ltd (operating as DeVine Wine Online), Executive Director and Member of Audit & Governance Committee of Inner East Community Health Service (IECHS), Committee Member and Chair of Membership Sub Committee of Royal Melbourne Tennis Club (RMTC).

Special responsibilities Executive Committee, Chair of Programs and Services Committee.

Bill Butcher Elected 2011

Qualifications Graduate in Metallurgy from RMIT University, Graduate in Marketing from Monash University.

Experience Managing Partner of Beyond 19 Partners. Practitioner in Marketing in both business-to-business and business-to-consumer sectors within Australia and overseas. Areas of focus include Strategy, Brand & Positioning plus Market Segmentation.

Special responsibilities Executive Committee, Programs and Services Committee.

Peter Colman Elected 2014

Qualifications MBBS, FRACP, MD.

Experience Practising Endocrinologist/Diabetologist for 30 years. Head of Department of Diabetes and Endocrinology, Royal Melbourne Hospital for 20 years. Previous positions include President of Australian Diabetes Society, Board Member of Diabetes Australia Limited.

Special responsibilities Programs and Services Committee, Chair of Clinical Advisory Committee.


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Patricia Dunning AM Elected 2011

Qualifications RN, MEd, PhD, Grad Dip Health Education, Grad Dip Professional Writing.

Experience Chair in Nursing and Director Centre for Nursing and Allied Health Research Deakin University and Barwon Health, Vice President International Diabetes Federation, Member Course Advisory Committee Grad Cert Diabetes Education Deakin University.

Special responsibilities Programs and Services Committee.

Malcolm Gray AM Elected 1994

Qualifications B Com, D D A, F R E I, F A P I, FAICD.

Experience Executive Director Gray & Johnson, Director Bennelong Group of Companies, former President International Cricket Council, Chairman BQ Design.

Special responsibilities Director of Diabetes Australia Research Ltd, Audit & Risk Committee, Commercial Committee.

Margaret Kearin Elected 1998

Qualifications Registered Nurse, Graduate Certificate in Diabetes Education.

Experience Registered Nurse, Committee Member of Bendigo Branch of DA–Vic since 1968, currently President of Bendigo Diabetes Support Group.


Glen Noonan Elected 2011

Qualifications Bachelor of Science (Computer Science & Accounting), Member of Institute of Chartered Accountants.

Experience Consulting Partner at PricewaterhouseCoopers practising in the areas of Finance, Operations and Transformation.

Special responsibilities Chair of Audit & Risk Committee, Chair of Commercial Committee.

Jane Ryan Elected 1997

Qualifications PhD

Experience Pharmaceutical Industry – Biotechnology.

Special responsibilities Audit and Risk Committee, Commercial Committee.

Victoria Stevenson Elected 2011

Qualifications RN RM Grad Dip Hlth Ed CDE FRCNA.

Experience Manager - Diabetes Education Services & Co-ordinator - Islet Cell Transplant Program at Austin Health, Heidelberg Victoria.

Board member of the Diabetes Certificate Courses at Deakin University & Mayfield Education. National projects include Driving & Diabetes & the Type 1 Diabetes Consulting Skills & Technology Project.

Special responsibilities Programs and Services Committee, Clinical Advisory Committee.


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Edward Stockdale Elected 2012

Qualifications B Bus (VU), Fellow CPA, Fellow AICD and Fellow CSA.

Experience Trinity Bond Pty Ltd, Computershare Registry Services – Australia, UK & South Africa. Various senior management positions and board representations in Australia, USA, UK and South Africa.

Special responsibilities Audit and Risk Committee, Commercial Committee.

Helena Teede Elected 2009

Qualifications MBBS (Hons), FRACP, PhD.

Experience Director of Research at The Jean Hailes Foundation for Women’s Health & Head of Diabetes at Southern Health, Victoria’s largest Health Service.


All directors held office during and since the end of the financial year except Helena Teede, who resigned in October 2014. Mr. Lalith Abeysena FCMA (UK), FMIS (UK) held the position of Company Secretary of Diabetes Victoria for the financial year.


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Short and Long Term Objectives Diabetes Victoria’s main objective is to continue to be the peak consumer body and leading charity representing all people affected by diabetes and those at risk. Our aim is to reduce the impact of diabetes and contribute to the search for a cure. Our key strategic directions are detailed below.

1. Continue to “raise the profile” of diabetes and make diabetes the “top of mind” health issue on the political and public agenda.

2. Provide self-management support at various levels. 3. Prevent complications among people with diabetes and prevention of type 2 diabetes for the pre-

diabetes and high risk population. 4. Focus on research efforts as key priorities for people with diabetes.

The assessment of progress against the specified objectives of Diabetes Victoria is reviewed as part of an ongoing process. This process is driven by the Executive team and contributed by senior staff, ensuring that a commitment to performance measurement and management is a feature of the organisational culture. Principal activities and Performance The principal activities of the company during the year were to provide assistance to members and people with diabetes through the provision of a range of services, including diabetes self-management, education, group education, telephone helpline support, diabetes awareness and prevention programs.

We develop programs that build the capacity of all people with diabetes for self-management through all stages, all phases and all ages. In addition, we develop programs for health professionals and the health system to support self-management for people with diabetes.

The company’s general fundraising activities together with donations through the collection business continue to provide a valuable source of funds to support the main objectives of the company. The National Diabetes Services Scheme (NDSS), both in terms of the subsidised cost and particularly the provision of Registrant Support Services, is one of our cornerstone programs. We work collaboratively to retain the role of Diabetes Australia (national and Victoria) in the NDSS. Through the administration of the NDSS, which is an initiative of the Australian Government, we provided practical assistance, information and subsidised products to approximately 314,000 Victorians diagnosed with diabetes.

The company also manages the Victoria State-based diabetes prevention program (Life! Program) for those identified at high risk. In prevention of type 2 diabetes for the high risk population (pre-diabetes), Diabetes Victoria is recognised as a national leader in implementing an effective prevention program on a large scale. The past year has seen the Life! Program perform strongly with over 11,000 Victorians at high risk participating in introductory visits, group and telephone health coaching courses. In addition, we have been very successful in developing effective, low cost/high impact programs and activities through strong coalitions. This includes our role in the management of the Obesity Policy Coalition and Parents Jury programs with other leading partner organisations.


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The company, in partnership with Deakin University, established the Australian Centre for Behavioural Research in Diabetes in 2010 with the appointment of a Professor/Director. The centre was officially launched in August 2010 and has already had significant impact in Victoria and nationally. During the year the centre focused on the social, psychosocial and behavioural aspects of diabetes and on improving integration and the quality of diabetes care.

Review of operations The net result was a surplus of $392,712 (2014: $14,861). This net surplus was after accounting for bequest income of $1,587,856 (2014: $852,564). National Diabetes Services Scheme transaction fee income was $10,475,062 per income statement (2014: $9,986,606) representing an increase of 5% compared to the previous year. Life! Program funding added an additional $4,995,407 (2014: $5,790,893) of income to the operations. The company’s commitment to the Diabetes Australia Research Trust was $1,300,000 (2014: $1,200,000). In addition, contribution to the Australian Centre for Behavioural Research was $461,000 (2014: $369,056) taking the total contribution for research to $1,761,000 (2014: $1,569,056). Cash assets which comprise the company’s Business Money Management Account and Business Investment Account decreased to $5,298,477 (30 June 2014: $6,042,527). Other financial assets in ASX20 listed equities and permitted investments increased to $4,483,244 (2014: $2,479,946). The decrease in cash held is mainly due to additional investments made during the year. Changes in state of affairs During the financial year there were no significant changes to the state of affairs of the company, other than that referred to in the financial statements or notes thereto. Future developments The Board of Directors are not aware of any developments in the operations of the company in future financial years which are likely to result in material adverse effect to the company.

Environmental regulations

The company's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a State or Territory.


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Corporate Governance The Board of Directors are responsible for the good governance of Diabetes Victoria. The Board’s principal activities have been to:

- adopt and monitor the annual business plan, goals and objectives aligned to the strategic plan; - ensure compliance and risk management programs are operating effectively; - provide overall guidance and support to the senior management.

Board Composition All Directors of Diabetes Victoria are non-executive Directors. The Board comprises Directors with a range of qualifications and skills including medical, government relations, finance, business, law, research and marketing. Directors act in a voluntary capacity. No Director has received or become entitled to receive a benefit because of a contract made by the company or any related party of the company with the Director or any related party of the Director. Board Responsibilities The Board acts on behalf of and is accountable to the members. The Board makes every endeavour to meet the expectations of members and monitors changes in the external environment including government policy and legislation and community expectations. The responsibility for leadership, management and operation is delegated by the Board to the Chief Executive Officer. The Chief Executive Officer and Management Team are held accountable for the achievement of business plans and operating budgets. The Board, Chief Executive Officer and Management Team jointly develop the strategic directions and the annual business plan and operating budget. The Board meets ten times a year and monitors the achievements of programs & services and objective financial targets against budget. Board Committees To maximise its effectiveness and efficiency the Board has formed a number of sub-committees. Executive Committee The Executive Committee is a forum in which the Chief Executive Officer and a sub-group of Board Directors can discuss issues of significance in a timely manner. Some of these issues will be resolved at Executive Committee meetings, while others will require further discussion at Board meetings. Audit and Risk Committee

The primary role of the Audit and Risk Committee is to review the annual financial statements. The Committee also ensures that all statutory obligations in financial management and reporting are properly addressed and a comprehensive risk management program is maintained. Commercial Committee The Commercial Committee oversees the financial performance of Diabetes Victoria, promotes good governance in the organisation and provides appropriate advice on these and related matters.


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Programs and Services Committee The Programs and Services Committee considers matters relating to diabetes programs and services provided to the Victorian community, including diabetes education and awareness, self-management and support programs, as well as information on healthy living. Clinical Advisory Committee The Clinical Advisory Committee promotes close links between Diabetes Victoria, key clinicians and health services that provide services to people with diabetes in Victoria, with the aim of improving outcomes for these people.

Subsequent events

There has not been any matter or circumstances occurring subsequent to the end of the financial year that has 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 apart from normal operating contracts associated with the company’s objectives. Indemnification of officers and auditors

The company has not, during or since the financial year, in respect of any person who is or has been an officer or auditor of the company or a related body corporate: indemnified against a liability, including costs and expenses in successfully defending legal proceedings; or paid or agreed to pay a premium in respect of a contract insuring against a liability for the costs or expenses to defend legal proceedings with the exception of the following matters.

During the financial year, the Department of Human Services has paid premiums to indemnify the Directors of the company (as named above) and officers against third party legal proceedings arising out of their lawful conduct while acting in the capacity of director or officer of the company. The contract of insurance does not allow for the disclosure of the premium.

Proceedings on behalf of the company

No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year. Members’ guarantee The company is limited by guarantee. If the company is wound up, the Constitution states that each member is required to contribute a maximum of $50 each towards meeting any outstanding obligations of the company. At 30 June 2015, the number of members was 40,626 (2014: 49,398).

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Independent Auditor’s Report to the Members of Diabetes Victoria

We have audited the accompanying concise financial report of Diabetes Victoria which comprises the statement of financial position as at 30 June 2015, the statement of profit or loss and other comprehensive income, statement of changes in equity, statement of cash flows for the year then ended, and related notes, derived from the audited financial report of Diabetes Victoria for the year ended 30 June 2015 and the discussion and analysis. The concise financial report does not contain all the disclosures required by the Australian Accounting Standards and accordingly, reading the concise financial report is not a substitute for reading the audited financial report. Directors’ Responsibility for the Concise Financial Report The Board of Directors are responsible for the preparation of the concise financial report in accordance with Accounting Standard AASB 1039 Concise Financial Reports, and for such internal control as the Board of Directors determine are necessary to enable the preparation of the concise financial report. Auditor’s Responsibility Our responsibility is to express an opinion on the concise financial report based on our procedures which were conducted in accordance with Auditing Standard ASA 810 Engagements to Report on Summary Financial Statements. We have conducted an independent audit, in accordance with Australian Auditing Standards, of the financial report of Diabetes Victoria for the year ended 30 June 2015. We expressed an unmodified audit opinion on that financial report in our report dated 27 July 2015. The Australian Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial report for the year is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the concise financial report. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the concise 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 concise financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

Deloitte Touché Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 (03) 9671 7000 Fax: +61 (03) 9671 7001 www.deloitte.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

Member of Deloitte Touche Tohmatsu Limited

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Statement of profit or loss and other comprehensive income for the financial year ended 30 June 2015

2015 2014Note $ $

RevenueNDSS Revenue 10,475,062 9,986,606 Life! Program 4,995,407 5,790,893 PARS 146,596 181,182 Member subscriptions 1,397,738 1,442,904 Bequests 1,587,856 852,564 Donations and appeals 1,697,818 1,528,428 Clothing collection 3,617,237 3,806,553 Sale of goods 315,693 410,593 Interest received 128,696 287,639 Program & other income 1,750,740 3,140,166

Total Revenue 2 26,112,843 27,427,528

Expenses

Picking and packing (1,341,340) (1,557,379) Office related expenditure (2,049,436) (1,728,836) Postage (733,383) (836,743) Computer maintenance & telephone (450,808) (463,121) Life! Program course delivery (2,704,925) (4,280,856) Projects & programmes (943,494) (749,926) Advertising (110,224) (238,505) Materials purchased (1,348,235) (1,269,010) Employee benefits (10,640,491) (10,743,641) Consultancy & recruitment (312,704) (323,950) Events (1,057,270) (803,430) Occupancy costs (986,973) (947,732) Depreciation and amortisation expense (495,192) (425,262) Motor vehicle expenses (547,369) (740,576) Subscription - Diabetes Australia (103,181) (130,270) Marketing & other expenses (595,106) (973,430)

Total Expenses (24,420,131) (26,212,667)

Less Donation to Diabetes Research (1,300,000) (1,200,000) Income tax expense - -

Surplus for the year attributable to members 392,712 14,861

Other comprehensive income

Items that may be reclassified subsequently to profit or lossNet fair value loss on available-for-sale financial assets (47,723) (20,351)

Total comprehensive income/(loss) for the year 344,989 (5,490)

Discussion and analysis of statement of profit or loss and other comprehensive income The company’s commitment to the Diabetes Australia Research Trust was $1,300,000 (2014: $1,200,000). In addition, contribution to the Australian Centre for Behavioural and Social Research was $461,000 (2014: $369,056) taking the total contribution for research to $1,761,000 (2014: $1,569,056).

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2015 2014

$ $

Current Assets

Cash and cash equivalents 5,298,477 6,042,527

Other financial assets 4,483,244 2,479,946

Trade and other receivables 726,734 1,046,235

Inventories 428,500 294,052

Other 294,207 292,226

Total Current Assets 11,231,162 10,154,986

Non-Current Assets

Property, plant and equipment 3,843,727 3,922,747

Total Non-Current Assets 3,843,727 3,922,747

Total Assets 15,074,889 14,077,733

Current Liabilities

Trade and other payables 4,281,229 4,518,449

Provisions 1,276,148 1,207,047

Other 1,179,480 350,713

Total Current Liabilities 6,736,857 6,076,209

Non-Current Liabilities

Provisions 168,169 176,650

Total Non-Current Liabilities 168,169 176,650

Total Liabilities 6,905,026 6,252,859

Net Assets 8,169,863 7,824,874

Equity

Development Reserve 5,000,000 5,000,000

Asset Revaluation Reserve (68,074) (20,351)

Accumulated Funds 3,237,937 2,845,225

Total Equity 8,169,863 7,824,874

Statement of financial position as at 30 June 2015

Discussion and analysis of statement of financial position The net result was a surplus of $392,712 (2014: $14,861). This net surplus was after accounting for bequest income of $1,587,856 (2014: $852,564). National Diabetes Services Scheme transaction fee income was $10,475,062 per income statement (2014: $9,986,606) representing an increase of 5% compared to the previous year. Life! Program funding added an additional $4,995,407 (2014: $5,790,893) of income to the operations.

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Statement of changes in equity for the financial year ended 30 June 2015

Accumulated Funds

Development Reserve

Asset Revaluation

Reserve Total

Retained Earnings $ $ $ $

Balance at 1 July 2013 2,830,364 5,000,000 - 7,830,364

Surplus for the year 14,861 - - 14,861

Other comprehensive income/(loss) for the year - - (20,351) (20,351)

Total comprehensive income 14,861 - (20,351) (5,490)

Balance at 30 June 2014 2,845,225 5,000,000 (20,351) 7,824,874

Balance at 1 July 2014 2,845,225 5,000,000 (20,351) 7,824,874

Surplus/(loss) for the year 392,712 - - 392,712

Other comprehensive income/(loss) for the year - - (47,723) (47,723)

Total comprehensive income/(loss) for the year 392,712 - (47,723) 344,989

Balance at 30 June 2015 3,237,937 5,000,000 (68,074) 8,169,863

Statement of cash flows for the financial year ended 30 June 2015

2015 2014

$ $

Cash Flows From Operating ActivitiesReceipts from customers 26,121,624 27,501,385 Payments to suppliers and employees (24,497,131) (29,137,157) Interest received 128,696 287,639 Net cash generated by / (used in) operating activities 1,753,189 (1,348,133)

Cash Flows From Investing ActivitiesPayment for property, plant and equipment (540,499) (943,632) Investments in Available For Sale assets (2,051,020) (2,500,299) Proceeds from sale of property, plant and equipment 94,280 48,995 Net cash generated by / (used in) investing activities (2,497,239) (3,394,936)

Net (decrease)/increase in cash and cash equivalents (744,050) (4,743,069)

Cash and cash equivalents at the beginning of the financial year 6,042,527 10,785,596

Cash and cash equivalent at the end of the financial year 5,298,477 6,042,527

Discussion and analysis of cash flow statement Cash assets which comprise the company’s Business Money Management Account and Business Investment Account decreased to $5,298,477 (30 June 2014: $6,042,527). Other financial assets in ASX20 listed equities and permitted investments increased to $4,483,284 (2014: $2,479,946). The decrease in cash held is mainly due to additional investments made during the year.

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Notes to the financial statements for the year ended 30 June 2015

1. Summary of accounting policies

Basis of preparation The concise financial report has been prepared in accordance with the company’s constitution and Accounting Standard AASB 1039 ‘Concise Financial Reports’. The concise financial report, including the financial statements and specific disclosures included in the concise financial report, has been derived from the full financial report of Diabetes Victoria. All amounts are presented in Australian dollars. A full description of the accounting policies adopted by the company is provided in the notes to the financial statements which form part of the full financial report. Adoption of new and revised Accounting Standards New and revised AASBs affecting amounts reported and/or disclosures in the financial statements In the current year, Diabetes Victoria has applied a number of new and revised AASBs issued by the Australian Standards Board (AASB) that are mandatorily effective for an accounting period that begins on or after 1 January 2014. Standards affecting presentation and disclosure AASB 2012-3 ‘Amendments to Australian Accounting Standards – Offsetting Financial Assets and Financial Liabilities’

The amendments to AASB 132 clarify the requirements relating to the offset of financial assets and financial liabilities. Specifically, the amendments clarify the meaning of ‘currently has a legally enforceable right to set-off’ and ‘simultaneous realization and settlement’. The amendments have been applied retrospectively. As the company does not have any financial assets and financial liabilities that qualify for offset, the application of the amendments does not have any material impact on the disclosures or on the amounts recognised in the financial statements.

AASB 2013-3 ‘Amendments to AASB 136 – Recoverable Amount Disclosures for Non-Financial Assets’

The amendments to AASB 136 remove the requirement to disclosethe recoverable amount of a cash-generating unit (CGU) to which goodwill or other intangible assets with indefinite useful lives had beenallocated when there has been no impairment or reversal ofimpairment of the related CGU. Furthermore, the amendmentsintroduce additional disclosure requirements applicable to when the recoverable amount of an asset or a CGU is measured at fair valueless costs of disposal. These new disclosures include the fair valuehierarchy, key assumptions and valuation techniques used which arein line with the disclosure required by AASB 13 ‘Fair ValueMeasurements’. The application of these amendments does not have any materialimpact on the disclosures in the financial statements.

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AASB 2014-1 ‘Amendments to Australian Accounting Standards’ (Part A: Annual Improvements 2010–2012 and 2011–2013 Cycles)

The Annual Improvements 2010-2012 has made a number of amendments to various AASBs, which are summarised below.

The amendments to AASB 2 (i) change the definitions of‘vesting condition’ and ‘market condition’; and (ii) add definitions for ‘performance condition’ and ‘service condition’which were previously included within the definition of ‘vestingcondition’. The amendments to AASB 2 are effective for share-based payment transactions for which the grant date is on or after 1 July 2014.

The amendments to AASB 3 clarify that contingentconsideration that is classified as an asset or a liability shouldbe measured at fair value at each reporting date, irrespectiveof whether the contingent consideration is a financial instrument within the scope of AASB 9 or AASB 139 or a non-financial asset or liability. Changes in fair value (other thanmeasurement period adjustments) should be recognised inprofit and loss. The amendments to AASB 3 are effective forbusiness combinations for which the acquisition date is on orafter 1 July 2014.

The amendments to AASB 8 (i) require an entity to disclose

the judgements made by management in applying theaggregation criteria to operating segments, including adescription of the operating segments aggregated and the economic indicators assessed in determining whether theoperating segments have ‘similar economic characteristics’;and (ii) clarify that a reconciliation of the total of the reportablesegments’ assets to the entity’s assets should only be provided if the segment assets are regularly provided to thechief operating decision-maker.

The amendments to the basis for conclusions of AASB 13

clarify that the issue of AASB 13 and consequentialamendments to AASB 139 and AASB 9 did not remove theability to measure short-term receivables and payables with no stated interest rate at their invoice amounts withoutdiscounting, if the effect of discounting is immaterial.

The amendments to AASB 116 and AASB 138 remove

perceived inconsistencies in the accounting for accumulateddepreciation/amortisation when an item of property, plant andequipment or an intangible asset is revalued. The amendedstandards clarify that the gross carrying amount is adjusted ina manner consistent with the revaluation of the carrying amount of the asset and that accumulated depreciation/amortisation is the difference between the grosscarrying amount and the carrying amount after taking intoaccount accumulated impairment losses.

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The amendments to AASB 124 clarify that a management entity providing key management personnel services to areporting entity is a related party of the reporting entity.Consequently, the reporting entity should disclose as relatedparty transactions the amounts incurred for the service paid or payable to the management entity for the provision of keymanagement personnel services. However, disclosure of thecomponents of such compensation is not required.

AASB 2014-1 ‘Amendments to Australian Accounting Standards’ (Part A: Annual Improvements 2010–2012 and 2011–2013 Cycles) (cont’d)

The Annual Improvements 2011-2013 has made number of amendments to various AASBs, which are summarised below. The amendments to AASB 3 clarify that the standard does not

apply to the accounting for the formation of all types of joint arrangements in the financial statements of the joint arrangement itself.

The amendments to AASB 13 clarify that the scope of the

portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis includes all contracts that are within the scope of, and accounted for in accordance with, AASB 139 or AASB 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within AASB 132.

The amendments to AASB 140 clarify that AASB 140 and

AASB 3 are not mutually exclusive and application of both standards may be required. Consequently, an entity acquiring investment property must determine whether:

the property meets the definition of investment property in terms of AASB 140; and the transaction meets the definition of a business combination under AASB 3.

The application of these amendments does not have any material impact on the disclosures or on the amounts recognised in the financial statements.

AASB 1031 ‘Materiality’, AASB 2013-9 ‘Amendments to Australian Accounting Standards’ – Conceptual Framework, Materiality and Financial Instruments’ (Part B: Materiality), AASB 2014-1 ‘Amendments to Australian Accounting Standards’ (Part C: Materiality)

The revised AASB 1031 is an interim standard that cross-references to other Standards and the ‘Framework for the Preparation and Presentation of Financial Statements’ (issued December 2013) that contain guidance on materiality. The AASB is progressively removing references to AASB 1031 in all Standards and Interpretations. Once all of these references have been removed, AASB 1031 will be withdrawn. The adoption of AASB 1031, AASB 2013-9 (Part B) and AASB 2014-1 (Part C) does not have any material impact on the disclosures or the amounts recognised in the financial statements.

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Standards and Interpretations in issue not yet adopted At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective. The company has not considered in detail the impact of these Standards and Interpretations at the date of this report. Standard/Interpretation

Effective for annual reporting periods

beginning on or after

Expected to be initially applied in the financial year

ending

AASB 9 ‘Financial Instruments’, and the relevant amending standards

1 January 2018 30 June 2019

AASB 15 ‘Revenue from Contracts with Customers’ and AASB 2014-5 ‘Amendments to Australian Accounting Standards arising from AASB 15’


AASB 2014-4 ‘Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation’


AASB 2014-9 ‘Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements’


AASB 2015-1 ‘Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012-2014 Cycle’


AASB 2015-2 ‘Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101’


AASB 2015-3 ‘Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality’

1 July 2015 30 June 2016

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2015 2014$ $

2. Surplus from operations(a) Revenue

Revenue from the sale of goods and services rendered 14,554,588 14,384,935 Interest revenue 128,696 287,639 Government grants received 4,995,407 5,790,893 Member subscription income 1,397,738 1,442,904 Donations and other income 5,036,414 5,521,157

26,112,843 27,427,528 (b) Surplus for the yearSurplus has been arrived at after charging the following(profit)/losses from operations:

Loss on disposal of property, plant and equipment 11,756 13,902

Operating lease expense 949,994 980,063

Superannuation 987,196 842,035

Revenue from operations consisted of the following items:

3. Segment information

The company operates in Australia and its major activities are the provision of services and information to people with diabetes. As these activities are considered to be interrelated and comprise of one industry, the business consists of one reporting segment.

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