AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
ABN 58 065 260 095
FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2012
PAGE
Directors' Report 1 - 3
Auditor's Independence Declaration 4
Statement of Comprehensive Income 5
Statement of Financial Position 6
Statement of Changes in Equity 7
Statement of Cash Flows 8
Notes to the Financial Statements 9 - 20
Directors' Declaration 21
Independent Auditor's Report 22 - 23
ABN 58 065 260 095
CONTENTS
FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2012
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Directors
Ramy Filo Craig WoodBarry Robinson Charisse Cox
Jennifer Burns Stephanie Kewming
Carole Smith Joseph Hickman
Ivan Hill Kevin Sharp (appointed 11/9/2011)
Martyn Rix Stuart Ockendon (resigned 11/9/2011)
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
Charisse Cox was the appointed Company Secretary for the year. Details of her 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.
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
ABN 58 065 260 095
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 2012, and report in
accordance with a resolution of the directors as follows:
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Laura Duesbury (Alternate Director for
Craig Wood)
Andrew Shields (Alternate Director for
Barry Robinson)
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.
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.
Positive relationships with Regulators and a new Code of Practice agreed with ASIC; 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.
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
Page 1
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
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
Carole Smith, Treasurer
Charisse Cox, Company Secretary
Ivan Hill
Joseph Hickman
Jennifer Burns
Craig Wood
Executive Director Asia-Pacific for Interval International. 28 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 the last 10 years, Interval.
There were no significant changes in the state of affairs of the company during the financial year.
Martyn Rix
CEO and Managing Director of Wyndham Vacation Resorts Asia Pacific - with Club Resorts in 23 locations and
almost 30 years in Hotel Management and Timeshare in Australia, Asia, New Zealand and China.
Stephanie Kewming
Principal of Monad Pacific Management, a New Zealand timeshare management company.
Chairman and founding member of the New Zealand Holiday Ownership Council. Over 25 years experience in
resort, hotel and timeshare management.
Manager and director Eastcoast Vacations Pty Ltd. 20 years industry experience with a certificate 3 in business
management.
Managing Director Korora Bay Village Ltd with over 20 years industry experience in timeshare exchange and
resort management.
CEO of Accor Vacation Club. Over 20 years experience in the vacation ownership industry at the most senior
level. Over the last 16 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.
The profit of the company for the year ended 30 June 2012 after providing for income tax amounted to $27,803
(2011 loss: ($1,989)).
No 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.
Particulars of Directors’ qualifications, experience and special responsibilities as at the date of this report, are as
follows:
Barry Robinson, President
ABN 58 065 260 095
DIRECTORS' REPORT (CONTINUED)
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 overseas 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 for the ATHOC Foundation Limited.
Bachelor of Mechanical Engineering. Fellow of the Australian Institute of Company Directors. CEO of the
Classic Group of Companies and director of nine timeshare resorts/clubs. Involved in all aspects of timeshare
including sales, exchange and resort management. Past president of ATHOC for 8 years. Director of ATHOC
Foundation Limited.
JP (qualified), Diploma Hospitality Management & Tourism Operations Management. Fellow of the Australian
Institute of Company Directors. Over 25 years timeshare management experience. Managing Director of
Classic Leisure Pty Ltd trading as Classic Holidays. Responsible for managing the day to day operations of 16
resorts/clubs within the group.
Managing Director - Group RCI Pacific. Vice Chairman of New Zealand Holiday Ownership Council.
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.
Page 2
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Information about the Directors (cont)
Stuart Ockendon (resigned 11/9/2011)
Kevin Sharp (Appointed 11/9/2011)
Andrew Shields (Alternate Director for Barry Robinson)
Laura Duesbury, (Alternate Director for Craig Wood)
Meetings of Directors
Name
Barry Robinson
Carole Smith
Charisse Cox
Ramy FiloMartyn Rix
Ivan Hill
Stephanie Kewming
Joseph Hickman
Jennifer Burns
Craig WoodKevin Sharp
Auditors Independence Declaration
BARRY ROBINSONPresident
Signed at Cairns, September 2012
6
7
Signed in accordance with a resolution of the Board of Directors of Austraian Timeshare and Holiday Ownership
Council Ltd.
Laura Duesbury (Alternate Director for Craig Wood)
Senior Council Compliance (BA,LLB & MA) - with Wyndham Vacation Resorts South Pacific Ltd. Wyndham has
resorts in 23 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.
During the financial year, 7 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
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.
The Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 is set out on
page 4 and forms part of the directors' report for the year ended 30 June 2012.
Andrew Shields (Alternate Director for Barry Robinson)
6
7
7
7
6
6 6
7
6 5
7 7
6
5
3
7
6
7
DIRECTORS' REPORT (CONTINUED)
7
5
ABN 58 065 260 095
Has worked in the Timeshare Industry since 1988 throughout Australia, Europe and Asia and has spent the past
8 years with ICE Asia Pacific.
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 11 years.
Stuart Ockenden 1 0
Number of Meetings
Held while a Director
6
4
7
6
Page 3
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein (Crowe Horwath). Each member firm of Crowe Horwath is a separate and independent legal entity. Crowe Horwath Brisbane and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or any other Crowe Horwath member. © 2011 Crowe Horwath Brisbane 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
A WHK Group Firm
Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 to the directors of Australian Timeshare & Holiday Ownership Council Limited
I declare that to the best of my knowledge and belief during the year ended 30 June 2012 there have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations Act
2001 in relation to the audit; and
ii. no contraventions of any applicable code of professional conduct in relation to the audit.
Crowe Horwath Brisbane
Vanessa de Waal
Partner
Signed at Brisbane, September 2012
Page 4
NOTE 2012 2011
$ $
REVENUE
Membership fees 165,642 156,211
Training income 9,328 4,508
Conference and function income 155,932 130,627
Interest received 27,802 26,756
Other income - 2,084
TOTAL REVENUE 358,704 320,186
EXPENSES
Admin and other expenses 50,216 36,710
Conference and Function Costs 62,166 61,795
Depreciation expenses 3,328 3,549
Employee benefits expenses 156,054 164,318
Leasing and premises costs 36,205 34,634
Professional Services 20,303 15,477
RG 146 training and compliance costs 2,629 1,147
Research expenses - 4,545
TOTAL EXPENSES 330,901 322,175
Surplus/(Loss) before income tax 2 27,803 (1,989)
Income tax expense 3 - -
SURPLUS/(LOSS) FOR THE YEAR ATTRIBUTABLE TO MEMBERS 27,803 (1,989)
Other comprehensive income for the year - -
27,803 (1,989)
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2012
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR
ATTRIBUTABLE TO MEMBERS
Page 5
NOTE 2012 2011
CURRENT ASSETS $ $
Cash and cash equivalents 4 50,239 120,023
Trade and other receivables 5 27,970 52,951
Financial assets 6 450,000 380,000
Other current assets 7 27,375 15,154
TOTAL CURRENT ASSETS 555,584 568,128
NON-CURRENT ASSETS
Property, plant and equipment 8 9,133 12,777
TOTAL NON-CURRENT ASSETS 9,133 12,777
TOTAL ASSETS 564,717 580,905
CURRENT LIABILITIES
Trade and other payables 9 51,383 99,495
Professional Services 10 10,958 9,517
TOTAL CURRENT LIABILITIES 62,341 109,012
NON-CURRENT LIABILITIES
Long-term provisions 10 15,064 12,383
TOTAL NON-CURRENT LIABILITIES 15,064 12,383
TOTAL LIABILITIES 77,405 121,395
NET ASSETS 487,313 459,510
EQUITY
Retained earnings 487,313 459,510
TOTAL EQUITY 487,313 459,510
The above statement of financial position should be read in conjunction with the accompanying notes.
AS AT 30 JUNE 2012
STATEMENT OF FINANCIAL POSITION
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Page 6
STATEMENT OF CHANGES IN EQUITY
Retained
Earnings Total
$ $
Balance at 1 July 2010 461,499 461,499
Total comprehensive income:
Loss for the year (1,989) (1,989)
Other comprehensive income - -
Total comprehensive income/(loss) for the year (1,989) (1,989)
Transactions with owners in their capacity as owners - -
Balance at 30 June 2011 459,510 459,510
Balance at 1 July 2011 459,510 459,510
Total comprehensive income:
Surplus for the year 27,803 27,803
Conference and Function Costs
Total comprehensive income for the year 27,803 27,803
Transactions with owners in their capacity as owners - -
Professional ServicesBalance at 30 June 2012 487,313 487,313
The above statement of changes in equity should be read in conjunction with the accompanying notes.
FOR THE YEAR ENDED 30 JUNE 2012
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Page 7
STATEMENT OF CASH FLOWS
NOTE 2012 2011
Inflows Inflows
(Outflows) (Outflows)
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 348,799 360,484
Interest received 40,112 18,080
Payments to suppliers and employees (375,894) (310,676)
GST paid (12,801) (12,537)
NET CASH FROM OPERATING ACTIVITIES 11 216 55,351
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in available-for-sale financial assets (70,000) (80,000)
Payments for property, plant and equipment - (3,178)
NET CASH FLOWS USED IN INVESTING ACTIVITIES (70,000) (83,178)
NET CASH FLOWS FROM FINANCING ACTIVITIES - -
Net decrease in cash and cash equivalents held (69,784) (27,827)
Cash and cash equivalents at the beginning of the year 120,023 147,850
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 4 50,239 120,023
The above statement of cash flows should be read in conjunction with the accompanying notes.
FOR THE YEAR ENDED 30 JUNE 2012
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Page 8
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
●
Statement of Compliance
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
Reporting Entity
The financial report is presented in Australian dollars.
Reporting Basis and Conventions
The financial report of Australian Timeshare & Holiday Ownership Council Limited (the company) for the year
ended 30 June 2012 was authorised for issue in accordance with a resolution of the directors on September
2012. The Board of Directors have the power to amend the financial report after issue.
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.
The financial report complies with International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board.
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.
Basis of Preparation
Critical Accounting Estimates and Judgements
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
The preparation of the financial report in conformity with Australian Accounting Standards requires management
to make judgements, estimates and assumptions that effect the application of policies and the reported amounts
of assets, liablities, revenue and expenses.
● Key Estimates — Impairment
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 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 effects 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.
Page 9
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
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:
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 material accounting policies adopted by the company in the preparation of the
financial statements. The accounting policies have been consistently applied, unless otherwise stated.
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.
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 depreciation rates used for each class of depreciable assets are:
Class of Asset Depreciation Rate
Furniture & Equipment 7.5% - 75%
(b) Income tax
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.
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 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 income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that
no adverse change will occur in income taxation legislation and the anticipation that the company will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by law.
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 profit/(loss) for the year adjusted for any non-
assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively
enacted at the reporting date.
Page 10
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Income tax (continued)
(c) Employee entitlements
(d) Cash and cash equivalents
(e) Financial instrumentsRecognition
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.
Contributions are made by the company to employee superannuation funds and are charged as expenses when
incurred.
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
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.
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.
Financial assets at fair value through profit and loss
Loans and receivables
Held-to-maturity investments
Available-for-sale financial assets
Financial liabilities
Fair value
Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-
sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are
taken directly to equity.
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal
payments and amortisation.
Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied
to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to
similar instruments and option pricing models.
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.
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.
A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if
so designated by management and within the requirements of AASB 139: Recognition and Measurement of
Financial Instruments. Realised and unrealised gains and losses arising from changes in the fair value of these
assets are included in the statement of comprehensive income in the period in which they arise.
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e) Financial instruments (continued)Impairment
(f) Impairment of assets
(g) Revenue
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
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.
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 an impairment has arisen. 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.
Sponsorship fees are recognised when the commitment to received the fees have 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.
All revenue is stated net of the amount of goods and services tax.
(h) Goods and Services Tax (GST)
(i) Trade and other receivables
(j) Leases
(k) Provisions
(l) Trade creditors and accruals
(m) Comparative figures
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.
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.
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in
presentation for the current financial year.
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.
Page 12
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(n) New Accounting Standards and Interpretations
•
• AASB 13: Fair value measurement: AASB 13 replaces the existing IFRS guidance on fair value
measurement and disclosure (applicable for annual reporting periods commencing 1 January 2013). 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 mandatory for
January 2012 reporting periods. 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 2013). AASB 9:
Financial Instruments addresses the classification and measurement of financial assets. The standard is
not applicable until 1 January 2013 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.
Page 13
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
2012 2011
NOTE 2 - PROFIT/(LOSS) BEFORE INCOME TAX $ $
Loss before income tax has been determined after:
Expenses
Depreciation expenses 3,328 3,549
Rental expense on operating leases
- minimum lease payments 33,005 30,677
Auditors' Remuneration
- Audit or review of financial report 3,317 3,440
- Assistance with financial report preparation 1,950 1,950
Superannuation expense 12,336 12,373
NOTE 3 - INCOME TAX
8,341 (597)
Adjustment for tax effect of:
- Amounts excluded under principal of mutuality (4,743) (4,096)
- Deferred tax assets not brought to account (3,598) 4,693 - -
The prima facie tax on surplus/(loss) before income tax is reconciled to the income
tax expense is as follows:
Prima facie tax payable on surplus/(loss) before income tax at 30%:
Tax losses 62,152 49,728
Potential tax benefit 18,645 14,918
Temporary differences
Provisions 26,022 21,900
Potential tax benefit 7,807 6,570 Total deferred tax benefits not brought to account 26,452 21,488
NOTE 4 - CASH AND CASH EQUIVALENTS
Cash on hand 250 250
Cash at bank 49,989 119,773
50,239 120,023
Reconciliation of cash
Cash and cash equivalents 50,239 120,023
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:
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% (2011: 30%).
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.
Page 14
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
2012 2011
NOTE 5 - TRADE AND OTHER RECEIVABLES $ $
Current
Trade debtors 23,738 30,477
Other receivables 4,232 22,474
27,970 52,951
NOTE 6 - FINANCIAL ASSETS
Current
Held to maturity investments- Term deposits 450,000 380,000
NOTE 7 - OTHER ASSETS
Current
Prepayments and deposits 27,375 15,154
NOTE 8 - PROPERTY, PLANT AND EQUIPMENT
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
associated with the timeshare industry.
Plant and Equipment, at cost 45,218 47,483
Less accumulated depreciation (36,085) (34,706)
9,133 12,777
Total property, plant and equipment 9,133 12,777
Movements in carrying amounts
At 30 June 2012
Furniture &
Equipment Total
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
At 30 June 2011
Balance at the start of the year 13,148 13,148
Additions 3,178 3,178
Depreciation expense (3,549) (3,549)
Carrying amount at end of the year 12,777 12,777
Movement in the carrying amounts for each class of property, plant and equipment
between the beginning and end of the current financial year:
Page 15
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
2012 2011
NOTE 9 - TRADE AND OTHER PAYABLES $ $
Current
Trade creditors 6,044 11,425
Sundry creditors and accruals 12,608 24,720
Income received in advance 30,441 12,150
Advanced memberships received in advance 2,290 51,200 51,383 99,495
NOTE 10 - PROVISIONS
Current
Employee benefits 10,958 9,517
Non-Current
Employee benefits 15,064 12,383
26,022 21,900
Number of employees at year end 2 2
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
NOTE 11 - CASH FLOW INFORMATION
Surplus/(loss) after income tax 27,803 (1,989)
Non-cash flows
- Depreciation expense 3,328 3,549
- Loss on disposal of non-current assets 316 -
Changes in assets and liabilities
- Trade and other receivables 25,996 (27,339)
- Other current assets (12,221) 11,125
- Trade and other payables (18,509) 6
- Unearned income (30,619) 57,393
- Provision for employee benefits 4,122 12,606
Net cash from operating activities 216 55,351
measurement and recognition criteria for employee entitlements has been included
in Note 1.
Reconciliation of net cash from operating activities to operating loss after income
tax.
Page 16
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 12 - RELATED PARTIES
Transactions with directors and director related entities:
(a)
(b)
(c)
NOTE 13 - FINANCIAL RISK MANAGEMENT
Treasury Risk management
Entities associated with directors are members of the company and are entitled to the same benefits as all
other members.
The company’s financial instruments consist mainly of deposits with banks, short-term investments, accounts
receivable and accounts payable.
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 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.
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.
Fees for services totalling $7,069 (2011: $6,728) 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 $2,703 (2010: $1,781) 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 company does not have any derivative instruments at 30 June 2012.
i. Interest rate risk
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 company's exposure to interest rate risk, which is the risk that an 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:
30 June 2012
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
management strategies in the context of the most recent economic conditions and forecasts.
Financial Risk exposures and management
Trade and other receivables
Trade and other payables
Other financial assets
Total Financial Assets
Page 17
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
Effective
interest rate
Floating
Interest
Rate
Non
Interest
Bearing
Fixed
Interest
Rate Total
% $ $ $ $
3.24 119,773 250 - 120,023
- - 46,665 - 52,951
5.80 - - 380,000 380,000 119,773 46,915 380,000 552,974
- - 36,145 - 36,145
Total Financial Liabilities - 36,145 - 36,145
The companies interest rate risk policies remain unchanged from the prior year.
Cash flow sensitivity analysis for variable rate instruments
Trade and other receivables
Cash and cash equivalents
Trade and other payables
Total Financial Assets
30 June 2011
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.
At 30 June 2012, 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 $2,453 (2011: $1,252)
lower/higher mainly as a result of lower/higher interest interest income on cash and cash equivalents and other
Other financial assets
ii. Foreign currency risk
iii Liquidity risk
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 - -
Carrying
amount
Contractual
cash flows
Less than
one year 1-5 years over 5 years
$ $ $ $ $Trade and other payables 36,145 36,145 36,145 - -
Trade payables are short term in nature.
The liquidity risk policies remain unchanged from the previous year.
The following are contractual maturities of financial liabilities:
30 June 2012
30 June 2011
lower/higher mainly as a result of lower/higher interest interest income on cash and cash equivalents and other
current financial assets.
The company is not exposed to fluctuations in foreign currencies.
The company is not exposed to any significant liquidity risk.
The company manages liquidity risk by monitoring forecast and actual cash flows and ensuring that adequate
cash reserves are maintained.
Page 18
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
iv Credit risk
Gross Impairment Gross Impairment$ $ $ $
Not Past due (current) 26,532 - 42,572 -
Past due 0-30 days ( 30 day ageing) - - - -
Past due 31-60 days ( 60 day ageing) - - 3,475 -
1,258 - 6,904 - 27,790 - 52,951 -
None of the past due receivables at 30 June 2012 were impaired. These receivables relate to a number of
Past due over 60 days (+90 day ageing)
Credit risk refers to the risk that 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.
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.
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 2012.
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.
2012 2011
v Price risk
The company is not exposed to any material commodity price risk.
vi Capital risk management
None of the past due receivables at 30 June 2012 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.
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.
Capital risk management policies remain unchanged from the prior year.
The credit risk policies remain unchanged from the previous year.
The board reviews this structure and the risks associated with each class of capital on a regular basis.
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 capital structure of the company consists of cash and cash equivalents and equity comprising retained
earnings.
Page 19
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2012
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
Net Fair Values
NOTE 14 - KEY MANAGEMENT PERSONNEL REMUNERATION
NOTE 15 - FUTURE COMMITMENTS
2012 2011
Operating lease commitments $ $
Payable - minimum lease payments:
- Within one year 30,136 27,397
- Later than one year but not later than 5 years 7,624 36,044
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 directors act in an honorary capacity and did not receive any remuneration during the 2012 year (2011: $nil).
Non-cancellable operating leases contracted for but not capitalised in the financial
statements.
- Later than one year but not later than 5 years 7,624 36,044 - Minimum lease payments 37,760 63,441
NOTE 16 - CONTINGENT LIABILITIES
NOTE 17 - EVENTS AFTER THE REPORTING DATE
NOTE 18 - COMPANY DETAILS
Level 2 HWC Accountants
2 Holden Place Suite 101 Bermuda Point
Bundall QLD 4217 20 Lake Orr Drive
Varsity Lakes QLD 4227
The registered office of the company is:
The option to renew the lease that came to an end on 12 September 2010 was taken up and the lease renewed
for a further period of three years, terminating on 12 September 2014.
Australian Timeshare & Holiday
Ownership Council Limited
Australian Timeshare &
Holiday Ownership Council
The principal place of business is:
No 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.
The company is currently the defendant in a Supreme Court Proceeding. The claim brought against the company
is in an early phase and it is presently too difficult to estimate the Company's liability to the Plaintiff including costs
(if any). The claim against the Company is for $130,406 plus interest and costs.
The Company maintains a Management Liability Policy of Insurance and has made a claim for indemnity pursuant
to the Policy in relation to the claim brought against it in the Proceeding. The Insurer has not formally advised the
Company of the response of the Policy to the claim for indemnity and indemnity is presently reserved.
Page 20
The directors of the company declare that:
1
a.
b.
2
BARRY ROBINSON
President
This declaration is made in accordance with a resolution of the Board of Directors of Australian Timeshare
and Holiday Ownership Council Ltd.
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
DIRECTORS' DECLARATION
ABN 58 065 260 095
give a true and fair view of the company’s financial position as at 30 June 2012 and of its
performance for the year ended on that date;
comply with Accounting Standards, which, as stated in Note 1 to the financial report, constitutes
explicit and unreserved compliance with International Financial Reporting Standards (IFRS); and
the financial statements and notes, as set out on pages 5 to 20 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.
Page 21
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein (Crowe Horwath). Each member firm of Crowe Horwath is a separate and independent legal entity. Crowe Horwath Brisbane and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath or any other member of Crowe Horwath and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath or any other Crowe Horwath member. © 2011 Crowe Horwath Brisbane
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
A WHK Group Firm
Page 22
Independent Auditor’s Report
To the members of Australian Timeshare & Holiday Ownership Council Limited
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 2012 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 Statements
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. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement 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.
Page 23
Auditor's Opinion
1. In our opinion:
a) the financial report of Australian Timeshare & Holiday Ownership Council 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 2012 and of
its performance for the year ended on that date; and ii. complying with Australian Accounting Standards and the Corporations Regulations 2001;
and
b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1.
Crowe Horwath Brisbane Vanessa de Waal Partner Signed at Brisbane, September 2012
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