CANBERRA CHRISTIAN RADIO LIMITED - 1WAY · CANBERRA CHRISTIAN RADIO LIMITED ABN: 94 051 127 792...

CANBERRA CHRISTIAN RADIO LIMITED

ABN: 94 051 127 792

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2016


ABN: 94 051 127 792


CONTENTS

PAGE

FINANCIAL STATEMENTS

Directors' Report 3

Directors' Declaration 11

Statement of Comprehensive Income 12

Statement of Financial Position 13

Statement of Changes in Equity 14

Statement of Cash Flows 15

Notes to the Financial Statements 16

Auditors Independence Declaration 28

Independent Auditor’s Report 29


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

3

Your directors present their report on the company for the financial year ended 30 June 2016.

1. General Information

a) Directors:

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

Names Appointed / Resigned

Chairman of the Board of Directors:

Brett Shaw Anderson B.IT CISA Continuing

Vice-Chairman of the Board of Directors:

John Timermanis, BBus, MBA, CICM RPM MAIPM GAICD MACS CP Continuing

Company Secretary:

Janice Yvonne Webb, Dip Secretarial Studies, Adv Dip. Business (Acct.),

MAICD Continuing

Ordinary Directors:

Sharon Anne Babyack, B.A (Political Science), Certificate IV in Celebrancy Ceased 7 November 2015

Michael John Estreich, Licenced finance broker, and Commissioner for declarations. Ceased 7 November 2015

Darren Laudenbach Diploma in Financial Planning, Certificate IV (Finance/Mortgage Broking), Advanced Diploma in Business Management,

Certificate IV in Life Coaching. Member, Financial Planning Association (FPA) Continuing

Monique Lanham Certificate in Web Design, Desktop Publishing & Microsoft Office 2003 Appointed 7 November 2015

Kenneth Wayne Mullens, Grad Dip Foreign Affairs & Trade (ANU), B.A. Admin (CCAE), Reg. Nurse Certificate (RCH), Assoc Dip Applied Science, Geology (CCAE), Continuing

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


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

4

b) Objectives, Principal Activities and Strategy The short and long term objective of Canberra Christian Radio Limited is to provide Canberra residents and the surrounding region with a radio station that presents the Good News of Jesus Christ.

The principal activities of Canberra Christian Radio Limited are related to the running of the radio station to meet these objectives.

The organisation employs a number of strategies to achieve its objectives. These strategies include:

Maintaining equipment and licenses necessary to operate as a Community Radio station;

Employing staff in the key areas of programming and administration; and

Engaging the community as volunteers in all aspects of the organisation.

There are a number of ways that the organisation is able to measure performance these include:

Financial performance;

Membership numbers; and

Listener estimates through periodic independent surveys.

There has been no significant change in the nature of Canberra Christian Radio Limited activities during the year.

2. BUSINESS REVIEW a) Operating results The surplus of Canberra Christian Radio Limited amounted to $7,338 (2015: deficit $9,756). b) Review of operations

A review of the operations of Canberra Christian Radio Limited during the financial year and the results of those operations found that during the year the company continued to engage in its principal activity, the results of which are disclosed in the attached financial statements. 3. OTHER ITEMS a) Significant changes in state of affairs No significant changes in Canberra Christian Radio Limited's state of affairs occurred during the financial year.

b) After balance date events No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of Canberra Christian Radio Limited, the results of those operations or the state of affairs of Canberra Christian Radio Limited in future financial years.


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

5

c) Auditors’ independence declaration A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out in this report.

d) Rounding of amounts Amounts in the financial statements and directors' report have been rounded to the nearest $1 dollar. e) Future developments The company expects to maintain the present status and level of operations and hence there are no likely developments in the company's operations. f) Environmental Issues The company's operations are not regulated by any significant environmental regulation under a law of the Commonwealth or of a state or territory 4. INDEMNIFYING OFFICERS OR AUDITORS There have been no indemnity or insurance claims made during, or since the end of, the financial year for any person who is or has been an officer or auditor of Canberra Christian Radio Limited. 5. OPTIONS

No options over issued shares or interests in the company were granted during or since the end of the financial year and there were no options outstanding at the date of this report.

6. PROCEEDINGS ON BEHALF OF 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.

7. MEMBERS’ GUARANTEE

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is wound up, the constitution states that each member is required to contribute a maximum of $10 each, towards meeting any outstanding obligations of the entity. As at 30 June 2016 the number of members was 522 (2015: 455).


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

6

8. DIRECTOR INFORMATION Information on Directors

Mr Brett Anderson Director and Chairman

Qualifications BIT CISA

Experience - Company Director with more than 11 years’ experience in commercial and not-for-profit organisations

- Management Consultant, Information Systems

- Executive Officer for World Youth Day 2008 (WYD08) Activities in Canberra

Mr John Timermanis Director and Vice-Chairman

Qualifications BBus, MBA, CICM RPM MAIPM GAICD MACS CP

Experience - - 30 years’ experience within the Australian Defence

Force as both an actively serving member and a

reservist.

- - 11 years as both a consultant to Department of Defence

and also as an Executive Level public servant within both

Defence, Australian Customs and Border Protection

Service and Bureau of Meteorology

- Former Directorships with JDT Consulting Pty Ltd and

insitec Pty Ltd

Mrs Janice Webb Director and Company Secretary

Qualifications Dip Secretarial Studies, Adv Dip Business (Accounting) MAICD

Experience - Retired Public Servant (former Department of Administrative Services)

- Over fifteen years involvement with the community radio sector in the ACT.

Mrs Sharon Anne Babyack Director

Qualifications B.A (Political Science), Certificate IV in Celebrancy

Experience Adviser, Department of the Prime Minister and Cabinet; Senior Research Officer, Department of the Senate, Committee and Procedure Offices

Mr Michael John Estreich Director

Qualifications - Licenced finance broker and - Commissioner for Declarations.

Experience - All Type Batteries


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

7

Information on Directors (continued)

Monique Lanham Director

Qualifications - Certificate in Web Design, Desktop Publishing & Microsoft Office

2003 (Pathway College, London)

- Currently studying: Bachelor of Contemporary Ministries

(Alphacrucis, Parramatta)

Experience

- Payroll Office and Office Manager, Third Horizon Consulting

- Executive Assistant and Group Coordinator, KPMG

- Senior Secretary, Deutsche Bank

- Business Development Administrator – PricewaterhouseCoopers

- Pension Administrator, NM Rothschild & Sons

- Personal Assistant, Goldman Sachs International

Darren Laudenbach Director

Qualifications - Diploma in Financial Planning,

- Certificate IV (Finance/Mortgage Broking),

- Advanced Diploma in Business Management,

- Certificate IV in Life Coaching.

- Member, Financial Planning Association (FPA)

Experience - is a Certified Financial Planner (CFP)

- Advisor in Finance and Investment industry since 1987.

- Since 1999, Partner in Milestone Financial Services

- Presently develops teaching and education workshops for God’s

Money Matters

Mr Kenneth Wayne Mullens Director

Qualifications - Grad Dip Foreign Affairs & Trade (ANU), B.A. Admin (CCAE),

Reg. Nurse Certificate (RCH), Assoc Dip Applied Science, Geology

(CCAE).

Experience - Public service administration and finance roles in the Department

of Foreign Affairs and Trade since March 1984


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

8

9. MEETINGS OF DIRECTORS

During the 2015/2016 financial year, 9 full Board Meetings of Directors (not including committees of Directors – which are listed separately) were held. Attendances by each Director during the year were as follows:

Directors' Board Meetings

Number Number

eligible to attended

attend

Brett Shaw Anderson, B.IT CISA 9 9

Sharon Anne Babyack, B.A (Political Science),

Certificate IV in Celebrancy

4

4

Michael John Estreich, Licenced finance broker, Commissioner

for Declarations 4 0

Monique Lanham, Certificate in Web Design, Desktop Publishing

& Microsoft Office 2003 (Pathway College, London) 5 1

Darren Laudenbach, Diploma in Financial Planning, Certificate IV (Finance/Mortgage Broking) Advanced Diploma in Business Management, Certificate IV in Life Coaching, Member, Financial Planning Association (FPA)

9 7

Kenneth Wayne Mullens, Grad Dip Foreign Affairs & Trade (ANU), B.A. Admin (CCAE), Reg. Nurse Certificate (RCH), Assoc Dip Applied Science, Geology (CCAE).

9 7

John Timermanis, BBus, MBA, CICM RPM MAIPM GAICD

MACS CP 9 9

Janice Yvonne Webb, Dip Secretarial Studies, Adv Dip. Business

(Acct.), MAICD 9 7


ABN: 94 051 127 792

DIRECTORS' REPORT

30 JUNE 2016

9

Attendances by each Director during the year at the Strategic Workshop Day on the 10th of October 2015 were as follows:

Brett Shaw Anderson, B.IT CISA

Sharon Babyack, B.A (Political Science), Certificate IV in Celebrancy

Darren Laudenbach, - Diploma in Financial Planning, Certificate IV (Finance/Mortgage Broking), Advanced Diploma in Business Management, - Certificate IV in Life Coaching, Member, Financial Planning Association (FPA)

Wayne Mullens, Grad Dip Foreign Affairs & Trade (ANU), B.A. Admin (CCAE), Reg. Nurse Certificate (RCH), Assoc Dip Applied Science, Geology (CCAE).

John Timermanis, BBus, MBA, CICM RPM MAIPM GAICD MACS

Janice Yvonne Webb, Dip Secretarial Studies, Adv Dip. Business (Acct.), MAICD

The following are the details of Directors who have been involved in Board Committees:

Finance and Risk Committee Meetings

Number Number


attend

Kenneth Wayne Mullens, Grad Dip Foreign Affairs & Trade (ANU),

B.A. Admin (CCAE), Reg. Nurse Certificate (RCH),

Assoc Dip Applied Science, Geology (CCAE).

n/a n/a

John Timermanis, BBus, MBA, CICM RPM MAIPM GAICD MACS n/a n/a

The Finance and Risk Committee only discussed issues by email.

Governance Committee Meetings

Number Number


attend Sharon Anne Babyack, B.A (Political Science),

Certificate IV in Celebrancy

n/a n/a

Janice Yvonne Webb, Dip Secretarial Studies, Adv Dip. Business

(Acct.), MAICD n/a n/a


ABN: 94 051 127 792

12 The accompanying notes form part of these financial statements.

STATEMENT OF COMPREHENSIVE INCOME


2016

2015

Note $ $

Revenue 2 347,645

264,613

Employee benefit expense

(175,881)

(169,180)

Depreciation and amortisation expense 8 (12,329)

(17,810)

Rental expense 3 (34,099)

(28,657)

Administration costs

(89,675)

(76,867)

Program, news and music

(9,851)

(12,218)

Insurance costs

(4,500)

(5,718)

Fees and Subscription

(13,972)

(10,705)

Surplus / (Deficit) attributable to the members

7,338

(56,542)

Other comprehensive income

-

-

Total comprehensive income attributed to the members

7,338

(56,542)


ABN: 94 051 127 792


STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2016

2016

2015

Note $ $

ASSETS Current assets Cash and cash equivalents 5 164,161

141,417

Trade and other receivables 6 19,484

20,082

Other current assets 7 4,444

4,793

Total current assets

188,089

166,292

Non-current assets Property, plant and equipment 8 58,335

66,928

Total non-current assets

58,335

66,928

TOTAL ASSETS

246,424

233,220

LIABILITIES Current liabilities Trade and other payables 9 31,859

30,885

Provisions 10 17,071

18,078

Total current liabilities

48,930

48,963

Non-current liabilities Provisions 10 5,899

-

Total non-current liabilities

5,899

-

TOTAL LIABILITIES

54,829

48,963

NET ASSETS

191,595

184,257

EQUITY Retained earnings

191,595

184,257

TOTAL EQUITY

191,595

184,257


ABN: 94 051 127 792


STATEMENT OF CHANGES IN EQUITY


Retained surplus

Total

$ $

Balance at 30 June 2014

240,799 240,799

Deficit attributable to members

(56,542) (56,542)


184,257 184,257

Surplus attributable to members

7,338 7,338


191,595 191,595


ABN: 94 051 127 792


STATEMENT OF CASH FOWS


2016

2015

Note $

$

Cash from operating activities: Receipts from members and customers

176,273

89,757

Donations received

184,369

178,824

Interest received

1,588

3,239

Payment to suppliers and employees

(335,750)

(304,302)

Net cash provided by / (used in) operating activities

26,480

(32,482)

Cash flows from investing activities: Payments to acquire property, plant and equipment

(3,736)

(12,065)

Net cash provided used in investing activities

(3,736)

(12,065)

Net increase / (decreases) in cash held

22,744

(44,544)

Cash at beginning of financial year

141,417

185,961

Cash at end of financial year

164,161

141,417


ABN: 94 051 127 792

16

NOTES TO THE FINANCIAL STATEMENTS


NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

This financial report is for Canberra Christian Radio Limited as an individual entity, incorporated and domiciled in Australia. Canberra Christian Radio Limited is a company limited by guarantee.

Basis of preparation

The financial report is a general purpose financial report that has been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001. The company is a not-for-profit entity for financial reporting purposes under the Australian Accounting Standards. Material accounting policies adopted in the preparation of these financial statements are presented below and have been consistently applied unless stated otherwise.

The financial statements, except for the cash flow information, have been prepared on an accruals basis and are based on historical costs, modified, where applicable, by the measurement at fair value of selected non-current assets, financial assets and financial liabilities. The amounts presented in the financial statements have been rounded to the nearest dollar.

(a) Income Tax

The company is exempt from income tax.

(b) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated depreciation and impairment losses.

Plant and equipment

Plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Plant and equipment that have been contributed at no cost, or for nominal cost, are valued at the fair value of the asset at the date it is acquired.

Depreciation and amortisation

The depreciable amount of all fixed assets is depreciated using diminishing value method from the time the asset is held ready for use.


ABN: 94 051 127 792

17



NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(b) Property, Plant and Equipment (continued)

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

Class of Fixed Asset Depreciation Rate

Plant and Equipment 10 – 40 %

Office Equipment 20%

Improvements 20 %

(c) Impairment of Assets

At each reporting date, the entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the assets, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the assets carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of comprehensive income.

Impairment testing is performed annually for goodwill and intangible assets with indefinite lives.

Where it is not possible to estimate the recoverable amount of an individual asset, the entity estimates the recoverable amount of the cash-generating unit to which the assets belongs.

( d ) Provisions

Provisions are recognised when the entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

(e) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

( f ) Revenue

Revenue from the sale of goods and services is recognised upon the delivery of goods and rendering of services to customers. All revenue is stated net of the amount of goods and services tax (GST).

Donations and bequests are recognised as revenue when it is determined that a commitment has been made and it is likely that the funds will be received.

Interest revenue is recognised using the effective interest rate method.

18


ABN: 94 051 127 792




(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 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 expense. Receivables and payables in the Statement of financial position are shown inclusive of GST.

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

(h) Comparative figures

When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

( i ) Rounding of amounts

Amounts in the financial report and directors' report have been rounded off to the nearest $1.

( j ) Critical accounting estimates and judgments

The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and based on current trends and economic data, obtained both externally and within the entity.

Key estimates – impairment

The entity assesses impairment at each reporting date by evaluating conditions specific to the entity that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculation performed in assessing recoverable amounts incorporate a number of key estimates.

(k) Financial instruments

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual

provisions to the instrument. For financial assets, this is equivalent to the date that the company commits itself to

either purchase or sell the asset (i.e. trade date accounting is adopted).

Financial instruments are initially measured at fair value plus transaction costs except where the instrument is

classified ‘at fair value through profit or loss in which case transaction costs are expensed to profit or loss

immediately.

Classification and subsequent measurement

Finance instruments are subsequently measured at fair value, amortised cost using the effective interest rate

method or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled,

between knowledgeable, willing parties. Where available, quoted prices in an active market are used to

determine fair value. In other circumstances, valuation techniques are adopted.


ABN: 94 051 127 792

19



1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(k) Financial instruments (continued)

Amortised cost is calculated as: (i) the amount at which the financial asset or financial liability is measured at

initial recognition; (ii) less principal repayments; (iii) plus or minus the cumulative amortisation of the difference, if

any, between the amount initially recognised and the maturity amount calculated using the effective interest

method; and (iv) less any reduction for impairment.

The effective interest method is used to allocate interest income or interest expense over the relevant period and

is equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees,

transaction costs and other premiums or discounts) through the expected life (or when this cannot be reliably

predicted, the contractual term) of the financial instrument to the net carrying amount of the financial asset or

financial liability. Revisions to expected future net cash flows will necessitate an adjustment to the carrying value

with a consequential recognition of an income or expense in profit or loss.

(i) Financial assets at fair value through profit or loss

Financial assets are classified at ‘fair value through profit or loss’ when they are held for trading for the purpose of

short-term profit taking. Such assets are subsequently measured at fair value with changes in carrying value

being included in profit or loss. The company has not held any financial assets at fair value through profit or loss

in the current or comparative financial year.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not

quoted in an active market and are subsequently measured at amortised cost.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets that have fixed maturities and fixed or

determinable payments, and it is the company’s intention to hold these investments to maturity. They are

subsequently measured at amortised cost using the effective interest rate method.

The company has not held any held-to-maturity investments in the current or comparative financial year.

(iv) Available-for-sale financial assets

Available-for-sale financial assets are non-derivative financial assets that are either not capable of being

classified into other categories of financial assets due to their nature, or they are designated as such by

management. They comprise investments in the equity of other entities where there is neither a fixed maturity nor

fixed or determinable payments.

(v) Financial liabilities

Non-derivative financial liabilities (excluding financial guarantees) are subsequently measured at amortised cost Impairment At each reporting date, the company assesses whether there is objective evidence that a financial instrument has

been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the

instrument is considered to determine whether impairment has arisen. Impairment losses are recognised in the

statement of comprehensive income.


ABN: 94 051 127 792

20




(k) Financial instruments (continued)

Derecognition

Financial assets are derecognised where the contractual right to receipt of cash flows expires or the asset is

transferred to another party whereby the entity no longer has any significant continuing involvement in the risks

and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are

either discharged, cancelled or expire. The difference between the carrying value of the financial liability

extinguished or transferred to another party and the fair value of consideration paid, including the transfer of non-

cash assets or liabilities assumed, is recognised in profit or loss.

(l) Leases

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the statement of comprehensive income on a straight-line basis over the period of the lease. (m) New, revised or amending Accounting Standards and Interpretations adopted

The company has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. Any new, revised or amending Accounting Standards or Interpretations that are not yet mandatory have not been early adopted. New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the company for the annual reporting period ended 30 June 2016. The company's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the company, are set out below.

AASB 9 Financial Instruments

This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard replaces all previous versions of AASB 9 and completes the project to replace IAS 39 'Financial Instruments: Recognition and Measurement'. AASB 9 introduces new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading) in other comprehensive income ('OCI'). For financial liabilities, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment will be measured under a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. The standard introduces additional new disclosures. The company will adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the company.


ABN: 94 051 127 792

21



(n) New, revised or amending Accounting Standards and Interpretations adopted (continued)

AASB 15 Revenue from Contracts with Customers

This standard is applicable to annual reporting periods beginning on or after 1 January 2018. The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will require: contracts (either written, verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted to revenue. For goods, the performance obligation would be satisfied when the customer obtains control of the goods. For services, the performance obligation is satisfied when the service has been provided, typically for promises to transfer services to customers. For performance obligations satisfied over time, an entity would select an appropriate measure of progress to determine how much revenue should be recognised as the performance obligation is satisfied. Contracts with customers will be presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Sufficient quantitative and qualitative disclosure is required to enable users to understand the contracts with customers; the significant judgments made in applying the guidance to those contracts; and any assets recognised from the costs to obtain or fulfil a contract with a customer. The company will adopt this standard from 1 July 2018 but the impact of its adoption is yet to be assessed by the company.

AASB 16 Leases

This standard is applicable to annual reporting periods beginning on or after 1 January 2019. The standard replaces AASB 117 'Leases' and for lessees will eliminate the classifications of operating leases and finance leases. Subject to exceptions, a 'right-of-use' asset will be capitalised in the statement of financial position, measured as the present value of the unavoidable future lease payments to be made over the lease term. The exceptions relate to short-term leases of 12 months or less and leases of low-value assets (such as personal computers and small office furniture) where an accounting policy choice exists whereby either a 'right-of-use' asset is recognised or lease payments are expensed to profit or loss as incurred. A liability corresponding to the capitalised lease will also be recognised, adjusted for lease prepayments, lease incentives received, initial direct costs incurred and an estimate of any future restoration, removal or dismantling costs. Straight-line operating lease expense recognition will be replaced with a depreciation charge for the leased asset (included in operating costs) and an interest expense on the recognised lease liability (included in finance costs). In the earlier periods of the lease, the expenses associated with the lease under AASB 16 will be higher when compared to lease expenses under AASB 117. For classification within the statement of cash flows, the lease payments will be separated into both a principal (financing activities) and interest (either operating or financing activities) component. For lessor accounting, the standard does not substantially change how a lessor accounts for leases. The company will adopt this standard from 1 July 2019 but the impact of its adoption is yet to be assessed by the company.


ABN: 94 051 127 792

22


FOR THE YEAR ENDED 30 JUNE 2016 NOTE 2. REVENUE

2016

2015

$

$

Operating activities: - sponsorship

84,750

63,478

- interest received

1,588

3,239

- operating grants

42,663

6,725

- donations

184,369

178,827

- member subscriptions

7,461

7,417

- other revenue

26,814

4,927

347,645

264,613

NOTE 3. PROFIT FOR THE YEAR DETERMINED AFTER THE FOLLOWING ITEMS:

Rental expense on broadcasting towers

21,631

16,189

Premises - contractual amounts

12,468

12,468

34,099

28,657

NOTE 4. AUDITORS’ REMUNERATION

Remuneration of the auditor for:

- Auditing or reviewing the financial report

6,400

6,210

6,400

6,210

NOTE 5. CASH AND CASH EQUIVALENTS

Cash at bank

164,111

141,367

Petty cash

50

50

164,161

141,417

NOTE 6. TRADE AND OTHER RECEIVABLES

CURRENT Trade receivables

20,001

21,366

Less: Provision for doubtful debts

(517)

(1,284)

19,484

20,082


ABN: 94 051 127 792

23



NOTE 7. OTHER ASSETS

2016

2015

$

$

CURRENT Prepayments

4,444

4,793

4,444

4,793

NOTE 8. PROPERTY, PLANT AND EQUIPMENT

(a) Carrying amount of property, plant and equipment:

Plant and equipment At cost

241,526

237,790

Less accumulated depreciation

(185,795)

(174,185)

55,731

63,605

Office equipment At cost

9,989

9,989


(9,974)

(9,901)

15

88

Improvements At cost

24,324

24,323


(21,735)

(21,088)

2,589

3,235

Total property, plant and equipment

58,335

66,928

(b) Movements in carrying amount:

Plant and

equipment Office

equipment Improvements Total

$ $ $ $

Balance at the beginning of the year 63,605 88 3,235 66,928

Additions 3,736 (0) 0 3,736

Depreciation (11,610) (72) (647) (12,329)

Carrying amount at the end of the year 55,731 16 2,588 58,335


ABN: 94 051 127 792

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NOTE 9. TRADE AND OTHER PAYABLES

2016

2015

$

$

CURRENT

Trade payables 4,114

7,178

Accrued expense 10,589

9,008

Income received in advance 6,183

721

GST payable 2,234

934

PAYG/superannuation payable 8,739

13,044

31,859

30,885

NOTE 10. PROVISIONS

CURRENT Provision for annual leave

17,071

18,078

NONCURRENT Provision for long service leave

5,899

-

17,071

18,078

NOTE 11. CASH FLOW INFORMATION

(a) Reconciliation of cash flow from operations with surplus/(deficit)

Net surplus/(deficit) for the year

7,338

(56,542)

Cash flows excluded from profit attributable to operating activities

Non-cash flows in profit Depreciation

12,329

17,810

Changes in assets and liabilities (Increase) / decrease in trade and term receivables

598

(9,168)

Decrease in other current assets

349

7,410

Increase in trade payables and accruals

974

3,555

Increase in provisions

4,892

4,456

26,480

(32,479)


ABN: 94 051 127 792

25



NOTE 12. FINANCIAL INSTRUMENTS

(a) Financial Risk Management Policies

The company’s financial instruments consist mainly of deposits with banks, accounts receivable and

payable.

The entity does not have any derivate instruments at 30 June 2016.

i. Treasury Risk Management

The Directors meet on a regular basis to analyse financial risk exposure and to evaluate treasury

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

ii. Financial Risk Exposures and Management

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

and credit risk.

Foreign currency risk

The entity is not exposed to fluctuations in foreign currencies.

Liquidity risk

The entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised

borrowing facilities are maintained.

Credit risk

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. The entity does not

have any material credit risk exposure to any single receivable or group of receivables under financial

instruments entered into by the entity.

There are no material amounts of collateral held as security at 30 June 2016.

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

customers as well as through deposits with financial institutions.

The trade receivables balances at 30 June 2016 and 30 June 2015 do not include any counterparties with

external credit ratings. Customers are assessed for credit worthiness using the criteria detailed above.

Price risk

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


ABN: 94 051 127 792

26



NOTE 12. FINANCIAL INSTRUMENTS (CONTINUED)

(b) Financial Instruments Composition and Maturity Analysis

The table below reflects the undiscounted contractual settlement terms for financial instruments of a fixed

period of maturity, as well as management’s expectations of the settlement period for all other financial

instruments. As such, the amounts may not reconcile to the statement of financial position.

Floating Interest

Rate Non-interest

Bearing Total

2016 2015 2016 2015 2016 2015

$ $ $ $ $ $

Financial Assets Cash 164,161 141,417 - - 164,161 141,417

Trade receivables - - 19,484 20,082 19,484 20,082

Total Financial Assets 164,161 141,417 19,484 20,082 183,645 161,499

Financial Liabilities Trade and sundry payables - - 14,703 16,186 14,703 16,186

Total Financial Liabilities - - 14,703 16,186 14,703 16,186

NOTE 13. KEY MANAGEMENT PERSONNEL COMPENSATION

Short-term benefits

Post- employment

benefits Total

2016

Total compensation

78,380 7,446

85,826

2015

Total compensation

78,395

10,093

88,488


ABN: 94 051 127 792

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NOTE 14. COMPANY DETAILS

The registered office and principal place of business of the company is:

Canberra Christian Radio Limited

Level 1, 1 Lithgow Street

FSYCHWICK ACT 2609

NOTE 15. MEMBERS’ GUARANTEE

The entity is incorporated under the Corporations Act 2001 and is an entity limited by guarantee. If the entity is

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

meeting any outstanding obligations of the entity. As at 30 June 2016 the number of members was 522

(2015:455).

AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the audit of the financial report of Canberra Christian Radio Limited for the year ended 30 June 2016, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

(i) the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(ii) any applicable code of professional conduct in relation to the audit.

RSM Australia Partners

Canberra, Australian Capital Territory Dated: 27 September 2016

Rodney Miller Partner

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INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF


We have audited the accompanying financial report of Canberra Christian Radio Limited (“the company”), which comprises the statement of financial position as at 30 June 2016, and the statement of comprehensive income, statement of changes in equity and cash flow statement 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. These Auditing 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 and fair presentation of the 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. 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 Canberra Christian Radio Limited, would be in the same terms if given to the directors as at the time of this auditor's report.

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Opinion In our opinion the financial report of Canberra Christian Radio 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 2016 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

RSM Australia Partners Canberra, Australian Capital Territory Rodney Miller Dated: 27 September 2016 Partner

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CANBERRA CHRISTIAN RADIO LIMITED - 1WAY · CANBERRA CHRISTIAN RADIO LIMITED ABN: 94 051 127 792...

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