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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
ACN 065 260 095
FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2013
PAGE
Directors' Report 1
Auditor's Independence Declaration 5
Statement of Comprehensive Income 6
Statement of Financial Position 7
Statement of Changes in Equity 8
Statement of Cash Flows 9
Notes to the Financial Statements 10
Directors' Declaration 24
Independent Auditor's Report 25
ACN 065 260 095
CONTENTS
FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2013
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Directors
Ramy Filo Craig Wood Kevin Sharp
Barry Robinson Charisse Cox
Stephanie Kewming Jennifer Burns (resigned 9/9/2012)
Carole Smith Joseph Hickman
Ivan Hill
Martyn Rix
Principal Activities
Strategy and Objectives
Mission Statement-
-
-
Short and long term objectives of the entity
Strategy for achieving our objectives
How our activities assisted in achieving the entity’s objectives
Positive relationships with Regulators and currently updating the Code of Practice with ASIC in line with changes
due to the FOFA reform; Continued reduced cooling off period; Resale benefits for sold out resorts; Annual
compliance report provided; Good attendance for conference/training provisions provided; ATHOC Board
members and GM on Tourism Body Committees increasing profile of industry sector.
Foster a high standard of ethics and adherence to industry best practice amongst our Members and to
maintain good standing with all stakeholders.
Continually promote the benefits of the industry and to protect the goodwill of Members and consumers.
Assist all Members to achieve growth and profitability in an ever-changing business environment.
To be the leading voice for the Timeshare and Holiday Ownership Industry in the region with Governments
(local, state and federal), consumers and the general public.
To represent, unite and advance the timeshare and holiday ownership industry in Australia through the provision
of professional services, advocacy and lobbying programs thereby increasing industry and public awareness of
the timeshare and holiday ownership product and promoting a positive community understanding of the industry
as a whole. To ensure that members abide by the Industry Code of Practice and work within the parameters of
the regulatory environment.
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
ACN 065 260 095
The names of the directors in office at any time during or since the end of the year are:
DIRECTORS' REPORT
The directors present their report on the company for the financial year ended 30 June 2013, and report in
accordance with a resolution of the directors as follows:
Working closely with the membership to identify specific issues; Regular meetings with Regulatory bodies;
Monitor industry compliance; Conferences, seminars and training day to help educate industry staff and board;
Promote the industry through various Tourism Bodies Nationally; Lobby Government at all levels; Profile the
industry in media at all opportunities.
Directors have been in office since the start of the financial year to the date of this report unless otherwise
stated.
Charisse Cox was the appointed Company Secretary until resignation on 9/9/2012 after which Stephanie
Kewming was appointed Company Secretary for the rest of the year. Details of their professional qualifications
are listed below in the Information about Directors.
The principal activity of the company in the course of the financial year was to unite the timeshare industry and
advocate the needs and interests of the timeshare industry. No significant change in the nature of these
activities occurred during the year.
Laura Duesbury (Alternate Director for
Craig Wood) (resigned 16/1/2013)
Andrew Shields (Alternate Director for
Barry Robinson)
Kate Cunningham (Alternate Director for
Craig Wood) (appointed 16/1/2013)
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Strategy for achieving our objectives (continued)
Review of Operations
Significant Changes in the State of Affairs
Matters Subsequent to the End of the Financial Year
Information about the Directors
Ramy Filo, Vice President
Prior to the year end the lessor of the current premises went into receivership and the building was sold. ATHOC
was given the opportunity to relocate to the 5th floor of the current premises at the same annual rental or
alternately given the opportunity to leave the building prior to the end of the lease without the need to make good
of the said premises. Due to the high rental costs and not required to incur the cost associated with making
good the premises, ATHOC elected to move and reduce costs. A new lease was entered into on 26 July 2013,
effective on 1 August 2013 for a three year period.
Particulars of Directors’ qualifications, experience and special responsibilities as at the date of this report, are as
follows:
Barry Robinson, President
With more than 30 year’s hospitality experience, Barry has a vast knowledge of the hotel and resort industry –
from development to branding, management, franchising and operations. During his career Barry has held a
number of senior leadership positions with some of the world’s largest hospitality companies including Swiss-
Belhotel International, Swissôtel Worldwide Partner Hotels and Choice Hotels International.
BE (Mech), Fellow of the Australian Institute of Company Directors.
CEO of Classic Holidays and Director of eight timeshare resort/clubs. Involved in all aspects of timeshare
including sales, marketing and resort management. Currently Responsible Manager for three Responsible
Entities, managing Timesharing Schemes. Chairman of the Board of DAE Global, a timeshare exchange
company with 12 international offices. Vice President of ATHOC and involved in industry regulatory compliance
discussions, policy and future wellbeing of the industry. Chairman of GATE (the international association of
Timesharing), representing all global associations.
Through issues raised by the regulators and the outcome of those issues as well as feedback from Regulators;
Number of complaints attracted by the industry overall; attendance numbers for events; member feedback;
timing of events versus planned; number of media articles and increase profile of industry; Value proposition for
members.
How the entity measures its performance, including any key performance indicators used by the entity
ACN 065 260 095
DIRECTORS' REPORT (CONTINUED)
There were no significant changes in the state of affairs of the company during the financial year.
CEO and Managing Director of Wyndham Vacation Resorts Asia Pacific since September 2003. Director and
chairperson for ATHOC Foundation Limited. In 2009, Barry launched the Wyndham Hotel Group in the South
Pacific as Managing Director. Under his supervision, both Wyndham Vacation Resorts Asia Pacific and
Wyndham Hotel Group in the South Pacific have expanded their portfolios in the Australian, New Zealand and
South Pacific regions and are to actively expand into new Asian markets.
The profit of the company for the year ended 30 June 2013 after providing for income tax amounted to $16,306
(2012: $27,803).
No other matters or circumstances have arisen since the end of the financial year that have significantly affected
or may significantly affect the operations of the company, the results of those operations or the state of affairs of
the company in the years subsequent to this financial year.
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Information about the Directors (continued)
Carole Smith, Treasurer
Stephanie Kewming, Company Secretary from 9/9/2012)
Charisse Cox, Company Secretary until 9/9/2012
Ivan Hill
Joseph Hickman
Jennifer Burns (Resigned 9/9/2012)
Craig Wood
Kevin Sharp
Andrew Shields (Alternate Director for Barry Robinson)
Laura Duesbury (Alternate Director for Craig Wood) (resigned 16/1/2013)
Legal Counsel, BA LLB.
Admitted as a solicitor to the Supreme Court of NSW and High Court of Australia. With Accor since 2010,
previously with Clayton Utz in Sydney.
Managing Director of Korora Bay Village Limited with over 24 years industry experience in timeshare, resort
management and yield management which includes 9 years service with RCI Australia. Former Director of
Coffs Coast Tourism and Company Secretary for Korora Bay Village Limited.
Manager and director Eastcoast Vacations Pty Ltd. Over 20 years industry experience with a certificate 3 in
business management.
Came from the hotel industry to holiday ownership some 25 years ago. Has managed several resorts and held
multiple executive positions in both Australia and Indonesia within the industry. CEO of ICE vacations for the
past 12 years.
Member of Silver Sands Resort committee since 1989 and served as chairperson for seven years. Now serves
as the General Manager of the Silver Sands Timeshare Club and oversees the total running of this independent
Resort. Ivan has been on the ATHOC committee for more than ten years and was involved with the committee
that originally formed the ATHOC organisation. Director of ATHOC Foundation Limited.
Principal of Monad Pacific Management, a New Zealand timeshare management company.
Chairman and founding member of the New Zealand Holiday Ownership Council. Over 30 years experience in
resort, hotel and timeshare management.
Senior Council Compliance (BA,LLB & MA) - with Wyndham Vacation Resorts South Pacific Ltd. Wyndham has
resorts in 24 locations in Australia, New Zealand and Fiji. Admitted as a Barrister to the High Court of Australia
since 1997 and Solicitor in Queensland since 2000.
JP (qualified), Diploma Hospitality Management & Tourism Operations Management, Fellow of the Australian
Institute of Company Directors, Licenced Real Estate Agent and Licenced Commercial Agent. Over 25 years
timeshare management experience. Chief Operating Officer of Classic Holidays and responsible for managing
the day to day operations of 17 resorts/clubs.
Managing Director of RCI Pacific. Vice Chairperson of New Zealand Holiday Ownership Council. Over
25 years experience in the timeshare industry in Australia, New Zealand and Fiji. Member of the original
steering committee for the formation of ATHOC. Director of ATHOC Foundation Limited.
CEO of Accor Vacation Club. 24 years experience in the vacation ownership industry at the most senior level.
Over the last 17 years has been exclusively involved in branded vacation clubs, managing operations in 8
countries across Asia, including 13 years for Marriott Vacation Club and over 4 years with Accor.
Martyn Rix
Executive Director Asia-Pacific for Interval International. Almost 30 years experience in Asia-Pacific in the
hospitality industry holding senior management positions with Shangri-La, Westin and Conrad Hotels in Asia.
Over 20 years in the vacation ownership industry with Hilton Grand Vacations, RCI and for over 10 years,
Interval.
ACN 065 260 095
DIRECTORS' REPORT (CONTINUED)
3
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
Information about the Directors (continued)
Kate Cunningham (Alternate Director for Craig Wood) (Appointed 16/1/2013)
Meetings of Directors
Name
Barry Robinson
Carole Smith
Charisse Cox
Ramy FiloMartyn Rix
Ivan Hill
Stephanie Kewming
Joseph Hickman
Jennifer Burns
Craig WoodKevin Sharp
Andrew Shields (Alternate Director for Barry Robinson)
Members Guarantee
Auditors Independence Declaration
BARRY ROBINSONPresident
Signed at Surfers Paradise, 2 September 2013
DIRECTORS' REPORT (CONTINUED)
7
Number of Meetings
Held while a Director
6
4
ACN 065 260 095
9
Australian Timeshare & Holiday Ownership Council Limited is incorporated under the Corporations Act 2001
and is a company limited by guarantee. The Constitution states that if upon the winding up of the dissolution of
the Company there remains after satisfaction of all its debts and liabilities any property whatsoever, such
property will not be paid to or distributed among Members but will be given or transferred to some institution or
institutions having objects similar or in part similar to the objects of the Company and which shall prohibit the
distribution of its or their income and property amount its or their members to an extent at least as great as that
imposed on the Company under the Constitution.
7
6
11
9
3 2
9 8
8
6
6
Legal counsel (BBuss LLB) for Accor Vacation Club since 2012, based in Sydney at Accor’s head office. Prior to
joining Accor, Kate was a senior associate in a commercial practice of a national law firm.
Signed in accordance with a resolution of the Board of Directors of Austraian Timeshare & Holiday Ownership
Council Limited.
Kate Cunningham (Alternate Director for Craig Wood)
Laura Duesbury (Alternate Director for Craig Wood)
8
8
9
9
5
9
8
7
9
8
3
7
During the financial year, 9 meetings of the company's directors were held. The number of meetings each
director of the company attended is as follows:
Number of Meetings
Attended
The Lead Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 is set out on
page 5 and forms part of the directors' report for the year ended 30 June 2013.
4
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.
Crowe Horwath Brisbane ABN 79 981 227 862 Member Crowe Horwath International
Level 16 120 Edward Street Brisbane QLD 4000 Australia GPO Box 736 Brisbane QLD 4001 Australia Tel +61 7 3233 3555 Fax +61 7 3233 3567 www.crowehorwath.com.au
5
Auditor’s Independence Declaration
As auditor of Australian Timeshare & Holiday Ownership Council Limited for the year ended 30 June 2013, I declare that, to the best of my knowledge and belief, there have been:
i. no contraventions of the auditor independence requirements as set out in the Corporations
Act 2001 in relation to the review; and
ii. no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Australian Timeshare & Holiday Ownership Council Limited during the year.
CROWE HORWATH BRISBANE
Valerie Main
Partner
Signed at Brisbane, September 2013
NOTE 2013 2012
$ $
REVENUE
Membership fees 176,479 165,642
Training income 18,185 9,328
Conference and function income 174,825 155,932
Interest received 22,739 27,802
TOTAL REVENUE 392,228 358,704
EXPENSES
Administration and other expenses 37,458 50,216
Conference and function costs 90,640 62,166
Depreciation expenses 1,919 3,328
Employee benefits expenses 155,857 156,054
Leasing and premises costs 37,582 36,205
Professional services 16,420 20,303
RG 146 training and compliance costs 12,087 2,629
Research expenses 23,959 -
TOTAL EXPENSES 375,922 330,901
Surplus before income tax 2 16,306 27,803
Income tax expense 3 - -
SURPLUS FOR THE YEAR ATTRIBUTABLE TO MEMBERS 16,306 27,803
Other comprehensive income for the year - -
16,306 27,803
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2013
TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE
TO MEMBERS
6
NOTE 2013 2012
CURRENT ASSETS $ $
Cash and cash equivalents 4 510,942 50,239
Trade and other receivables 5 13,750 27,970
Financial assets 6 80,000 450,000
Other current assets 7 21,267 27,375
TOTAL CURRENT ASSETS 625,959 555,584
NON-CURRENT ASSETS
Property, plant and equipment 8 7,214 9,133
TOTAL NON-CURRENT ASSETS 7,214 9,133
TOTAL ASSETS 633,173 564,717
CURRENT LIABILITIES
Trade and other payables 9 112,429 62,341
TOTAL CURRENT LIABILITIES 112,429 62,341
NON-CURRENT LIABILITIES
Provisions 10 17,125 15,063
TOTAL NON-CURRENT LIABILITIES 17,125 15,063
TOTAL LIABILITIES 129,554 77,404
NET ASSETS 503,619 487,313
EQUITY
Retained earnings 503,619 487,313
TOTAL EQUITY 503,619 487,313
The above statement of financial position should be read in conjunction with the accompanying notes.
AS AT 30 JUNE 2013
STATEMENT OF FINANCIAL POSITION
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
7
STATEMENT OF CHANGES IN EQUITY
Retained
Earnings Total
$ $
Balance at 1 July 2011 459,510 459,510
Total comprehensive income:
Surplus for the year 27,803 27,803
Other comprehensive income - -
Total comprehensive income for the year 27,803 27,803
Transactions with owners in their capacity as owners - -
Balance at 30 June 2012 487,313 487,313
Balance at 1 July 2012 487,313 487,313
Total comprehensive income:
Surplus for the year 16,306 16,306
Other comprehensive income - -
Total comprehensive income for the year 16,306 16,306
Transactions with owners in their capacity as owners - -
Balance at 30 June 2013 503,619 503,619
The above statement of changes in equity should be read in conjunction with the accompanying notes.
FOR THE YEAR ENDED 30 JUNE 2013
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
8
STATEMENT OF CASH FLOWS
NOTE 2013 2012
Inflows Inflows
(Outflows) (Outflows)
$ $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 445,991 348,799
Payments to suppliers and employees (363,066) (375,894)
Interest received 25,324 40,112
GST paid (17,546) (12,801)
NET CASH FROM OPERATING ACTIVITIES 11 90,703 216
CASH FLOWS FROM INVESTING ACTIVITIES
Withdrawals from/(investment in) held-to-maturity financial assets 370,000 (70,000)
NET CASH FLOWS FROM/(USED IN) INVESTING ACTIVITIES 370,000 (70,000)
NET CASH FLOWS FROM FINANCING ACTIVITIES - -
Net increase/(decrease) in cash and cash equivalents held 460,703 (69,784)
Cash and cash equivalents at the beginning of the year 50,239 120,023
CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 4 510,942 50,239
The above statement of cash flows should be read in conjunction with the accompanying notes.
FOR THE YEAR ENDED 30 JUNE 2013
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
9
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
●
The financial report of Australian Timeshare & Holiday Ownership Council Limited (the company) for the year
ended 30 June 2013 was authorised for issue in accordance with a resolution of the directors on 2 September
2013. The Board of Directors have the power to amend the financial report after issue.
The estimates and judgements incorporated into the financial report are based on historical experiences
and the best available current information on current trends and economic data, obtained both externally
and within the company. The estimates and judgements made assume a reasonable expectation of future
events but actual results may differ from these estimates.
The preparation of the financial report in conformity with Australian Accounting Standards requires management
to make judgements, estimates and assumptions that affect the application of policies and the reported amounts
of assets, liablities, revenue and expenses.
The financial report is a general purpose financial report, which has been prepared in accordance with the
requirements of the Corporations Act 2001 , Australian Accounting Standards and other authoritative
pronouncements of the Australian Accounting Standards Board.
Basis of Preparation
Critical Accounting Estimates and Judgements
Reporting Basis and Conventions
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
Reporting Entity
The financial report is presented in Australian dollars.
The company is an unlisted public company limited by guarantee incorporated and domiciled in Australia. The
financial report covers the company as an individual entity.
The company primarily represents and acts as an advocate for the timeshare industry in Australia.
Statement of Compliance
● Key Estimates - Long service leave provision
● Key Estimates — Impairment
The liability for long service leave is recognised and measured at the present value of the estimated future
cash flows to be made in respect of all employees at the reporting date. In determining the present value of
the liability, estimates of the attrition rates and pay increases through inflation and promotion have been
taken into account.
events but actual results may differ from these estimates.
The company assesses impairment at each reporting date by evaluating conditions specific to the company
that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the
asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a
number of key estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or
in the period of the revision and future periods if the revision affects both current and future periods. There were
no key adjustments during the year which required accounting estimates and judgements.
The financial statements have been prepared on an accruals basis and are based on historical costs modified by
the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value
basis of accounting has been applied.
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(a) Property, plant and equipment
Plant and equipment
Plant and equipment are measured on the cost basis.
Subsequent costs
Depreciation
The depreciation rates used for each class of depreciable assets are:
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as
appropriate, only when it is probable that future economic benefits associated with the item will flow to the
company and the cost of the item can be measured reliably. All other repairs and maintenance are charged to
the statement of comprehensive income during the financial period in which they are incurred.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net
cash flows which will be received from the assets employment and subsequent disposal. The expected net cash
flows have not been discounted to their present values in determining recoverable amounts.
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
The depreciable amount of all fixed assets including building and capitalised lease assets, but excluding freehold
land, is depreciated on a straight-line basis over their useful lives to the company commencing from the time the
asset is held ready for use.
The following is a summary of the significant accounting policies adopted by the company in the preparation of
the financial statements. The accounting policies have been consistently applied, unless otherwise stated.
Class of Asset Depreciation Rate
Furniture & Equipment 7.5% - 75%
(b) Income tax
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or
losses are included in the statement of comprehensive income in the period in which they arise.
The charge for current income tax expense is based on the surplus or loss for the year adjusted for any non-
assessable or disallowed items. It is calculated using tax rates that have been enacted or are substantively
enacted at the reporting date.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the statement of comprehensive income except where it relates to
items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the financial report. No deferred income tax will
be recognised from the initial recognition of an asset or liability, excluding a business combination, where there
is no effect on accounting or taxable profit or loss.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised.
The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An
asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is
greater than its estimated recoverable amount.
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b) Income tax (continued)
(c) Employee entitlements
(d) Cash and cash equivalents
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the company will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by law.
Cash and cash equivalents includes cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts.
Contributions are made by the company to employee superannuation funds and are charged as expenses when
incurred.
Provision is made for the company’s liability for employee entitlements arising from services rendered by
employees to reporting date. Employee benefits expected to be settled within one year together with entitlements
arising from wages and salaries, annual leave and sick leave which will be settled after one year, have been
measured at the amounts expected to be paid when the liability is settled, plus related on-costs. Other employee
benefits payable later than one year have been measured at the present value of the estimated future cash
outflows to be made for those benefits.
No provision for employee's entitlements to sick leave has been made or considered necessary, as the amount
expected to be taken in future periods will not be greater than entitlements which are expected to accrue in
those periods.
Because of the principal of mutuality, only income arising from non-member activities is subject to income tax.
The company is able to identify all non-member income.
(e) Financial instrumentsRecognition
Loans and receivables
Held-to-maturity investments
Financial liabilities
investments with original maturities of three months or less, and bank overdrafts.
These investments have fixed maturities, and it is the company’s intention to hold these investments to maturity.
Any held-to-maturity investments held by the company are stated at amortised cost using the effective interest
rate method.
Financial instruments are initially measured at fair value on trade date, which includes transaction costs, when
the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are
measured as set out below.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and are stated at amortised cost using the effective interest rate method.
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal
payments and amortisation.
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(e) Financial instruments (continued)Impairment
(f) Impairment of assets
(g) Revenue
All revenue is stated net of the amount of goods and services tax.
(h) Goods and Services Tax (GST)
Sponsorship fees are recognised when the commitment to receive the fees has been established.
Revenue is measured at the fair value of consideration received or receivable, and is recognised when the
amount of revenue is reliably measured and it is probably that economic benefits will flow to the company.
Revenue from the rendering of a service is recognised upon the delivery of the service to the customers.
At each reporting date, the company assesses whether there is objective evidence that a financial instrument
has been impaired. Impairment losses are recognised in the statement of comprehensive income in the period
in which they arise. Where it is not possible to estimate the recoverable amount of an individual asset, the
company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
At each reporting date, the company reviews the carrying value of tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the asset's fair value less costs to sell and value in use, is
compared to the asset's carrying value. Any excess of the asset's carrying value over its recoverable amount is
expensed to the statement of comprehensive income.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
(h) Goods and Services Tax (GST)
(i) Trade and other receivables
(j) Leases
(k) Provisions
(l) Trade and other payables
Lease payments for operating leases, where substantially all risks and benefits remain with the lessor, are
charged as expenses in the periods in which they are incurred as this represents the pattern of benefits derived
from the leased assets. Lease incentives under operating leases are recognised as a liability and amortised on
a straight-line basis over the life of the lease term.
Trade receivables, which generally have 31 day terms, are recognised at fair value. Collectability of trade
receivables is reviewed on an ongoing basis.
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Tax Office. In these circumstances the GST is recognised as part
of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the
statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
A liability is recorded for goods and services received prior to reporting date, whether invoiced or not. Trade
creditors are settled in accordance with supplier payment terms.
Provisions are recognised when the company has a legal or constructive obligation, as a result of past events,
for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
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AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 1 - STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(m) Comparative figures
(n) New Accounting Standards and Interpretations
•
•
• AASB2011-4: Amendments to Australian Accounting Standards to Remove Individual Key Management
AASB 13: Fair value measurement: This standard replaces the existing IFRS guidance on fair value
measurement and disclosure (applicable for annual reporting periods commencing 1 January 2015). It
applies whenever another standard permits or requires the use of fair value measurements. It sets out
a fair value hierarchy for such measurements: Level 1 – quoted prices in active markets for identical
assets and liabilities, which can be accessed at the measurement date. Level 2 – inputs other than
quoted market prices included within Level 1, which are observable for the asset or liability, either
directly or indirectly. Level 3 – unobservable inputs for the asset or liability. There are also extensive
disclosure requirements relating to each of the three levels within the hierarchy.
Certain new accounting standards and interpretations have been published that are not yet effective. The
company's assessment of the impact of the relevant new standards and interpretations is set out below.
AASB 9 Financial Instruments and AASB 2009-11 Amendments to Australian Accounting Standards
arising from AASB 9 (applicable for annual reporting periods commencing 1 January 2015). AASB9
addresses the classification and measurement of financial assets and is not applicable until 1 January
2015 but is available for early adoption. The company is yet to assess the full impact of the new
standard however, initial indications are that the standard is not expected to have any impact on the
company's financial statements.
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in
presentation for the current financial year.
• AASB2011-4: Amendments to Australian Accounting Standards to Remove Individual Key Management
Personnel Disclosure Requirements. AASB 124 has been amended to remove the Australian specific
requirement for Key Management Personnel Disclosures (applicable for annual reporting periods
commencing on or after 1 July 2013). The company is yet to assess the full impact of the new
standard, however, initial indications are that the standard is not expected to have any impact on the
company's financial statements.
14
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
NOTE 2 - SURPLUS/(LOSS) BEFORE INCOME TAX $ $
Surplus before income tax has been determined after:
Expenses
Depreciation expenses 1,919 3,328
Rental expense on operating leases
- minimum lease payments 34,236 33,005
Auditor's remuneration
- Audit of financial report 3,465 3,317
- Other services 2,035 1,950
Superannuation expense 12,591 12,336
NOTE 3 - INCOME TAX
Prima facie tax payable on surplus before income tax at 30% (2012: 30%) 4,892 8,341
Adjustment for tax effect of:
- Amounts excluded under principal of mutuality (5,165) (13,304)
- Deferred tax assets not brought to account 273 4,963 - -
The prior year comparative disclosures were amended to better reflect the
comparative position of the current year tax disclosures.
The prima facie tax on surplus before income tax is reconciled to the income tax
expense is as follows:
Unused tax losses for which no deferred tax asset has been recognised 85,741 62,152
Potential tax benefit 25,722 18,646
(4,508) (26,022)
Potential tax benefit (1,352) (7,807) Total deferred tax benefits not brought to account 24,370 10,839
Unrecognised temporary differences for which deferred tax liabilities have not been
recognised
comparative position of the current year tax disclosures.
Deferred Tax Assets not brought to account, the benefits of which will only be
realised if the conditions for deductibility of tax losses set out in Note 1 occur
based on corporate tax rate of 30% (2012: 30%).
15
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
NOTE 4 - CASH AND CASH EQUIVALENTS $ $
Cash on hand 250 250
Cash at bank 510,692 49,989
510,942 50,239
Reconciliation of cash and cash equivalents
Cash and cash equivalents 510,942 50,239
NOTE 5 - TRADE AND OTHER RECEIVABLES
Current
Trade debtors 12,609 23,738
Other receivables 1,141 4,232
13,750 27,970
Cash at the end of the financial year as shown in the statement of cash flows is
reconciled to items in the statement of financial position as follows:
Cash at bank and cash on deposit earns interest at the current variable and short-
term deposit rates. The company holds all funds with Westpac Banking
Corporation.
The company by its nature and location has a concentration of credit risk in that
the majority of its trade debtors are due from customers in Australia operating in or
NOTE 6 - FINANCIAL ASSETS
Current
Held to maturity investments- Term deposits 80,000 450,000
NOTE 7 - OTHER ASSETS
Current
Prepayments and deposits 21,267 27,375
the majority of its trade debtors are due from customers in Australia operating in or
associated with the timeshare industry.
16
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
NOTE 8 - PROPERTY, PLANT AND EQUIPMENT $ $
Plant and equipment, at cost 45,218 45,218
Less accumulated depreciation (38,004) (36,085)
7,214 9,133
Total property, plant and equipment 7,214 9,133
Movements in carrying amounts
At 30 June 2013
Furniture &
Equipment Total
Balance at the start of the year 9,133 9,133
Depreciation expense (1,919) (1,919)
Carrying amount at end of the year 7,214 7,214
At 30 June 2012
Balance at the start of the year 12,777 12,777
Disposals (316) (316)
Depreciation expense (3,328) (3,328)
Carrying amount at end of the year 9,133 9,133
Movement in the carrying amounts for each class of property, plant and equipment
between the beginning and end of the current financial year:
NOTE 9 - TRADE AND OTHER PAYABLES
Current
Trade creditors 16,188 6,044
Sundry creditors and accruals 23,532 12,608
Income received in advance 62,898 32,731
Annual leave accrual 9,811 10,958 112,429 62,341
NOTE 10 - PROVISIONS
Non-Current
Provision for long service leave 17,125 15,063
Provision for Long-term Employee Entitlements
A provision has been recognised for non-current employee entitlements relating to
long service leave for employees.
In calculating the present value of future cash flows in respect of long service
leave, the probability of long service leave being taken is based upon historical
data. The measurement and recognition criteria for employee entitlements has
been included in Note 1.
17
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
2013 2012
NOTE 11 - CASH FLOW INFORMATION $ $
Surplus after income tax 16,306 27,803
Non-cash flows
- Depreciation expense 1,919 3,328
- Loss on disposal of non-current assets - 316
Changes in assets and liabilities
- Trade and other receivables 14,220 25,996
- Other current assets 6,108 (12,221)
- Trade and other payables 50,088 (49,128)
- Provision for employee benefits 2,062 4,122
Net cash from operating activities 90,703 216
NOTE 12 - RELATED PARTIES
Transactions with directors and director related entities:
(a)
(b)
Entities associated with directors are members of the company and are entitled to the same benefits as all
other members and pay fees to the company for member services at arm's length.
Fees for services totalling $7,020 (2012: $7,069) were paid in the ordinary course of business to Classic
Reconciliation of net cash from operating activities to surplus after income tax.
(b)
(c)
NOTE 13 - FINANCIAL RISK MANAGEMENT
Risk management policies are approved and reviewed by the Board of Directors on a regular basis. These
include the credit risk policies and future cash flow requirements.
The company’s financial instruments consist mainly of deposits with banks, short-term investments, accounts
receivable and accounts payable.
Fees for services totalling $7,020 (2012: $7,069) were paid in the ordinary course of business to Classic
Leisure Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
RG146 commission totalling $3,548 (2012: $2,703) was received in the ordinary course of business from
One Step Further Pty Ltd, a company of which Ramy Filo and Carole Smith are directors.
The directors’ overall risk management strategy seeks to assist the company in meeting its financial targets,
whilst minimising potential adverse effects on financial performance.
The company does not have any derivative instruments at 30 June 2013.
18
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
Treasury Risk management
i. Interest rate risk
Effective
interest rate
Floating
Interest
Rate
Non Interest
Bearing
Fixed
Interest
Rate Total
% $ $ $ $
2.90 510,692 250 - 510,942
- - 13,750 - 13,750
3.70 - - 80,000 80,000 510,692 14,000 80,000 604,692
- - 39,720 - 39,720
The directors of the company meet on a regular basis to review interest rates and to evaluate treasury
management strategies in the context of the most recent economic conditions and forecasts.
Financial Risk exposures and management
Trade and other receivables
The company's exposure to interest rate risk, which is the risk that a financial instrument's value will fluctuate as
a result of changes in market interest rates and the effective average interest rates on those financial assets and
financial liabilities, is as follows:
Other financial assets
Trade and other payables
30 June 2013
The main risks the company is exposed to through its financial instruments are interest rate risk, liquidity risk
and credit risk.
Interest rate risk is managed through floating rate bank accounts.
Cash and cash equivalents
Total Financial Assets
- - 39,720 - 39,720
Total Financial Liabilities - 39,720 - 39,720
Effective
interest rate
Floating
Interest
Rate
Non Interest
Bearing
Fixed
Interest
Rate Total
% $ $ $ $
1.60 49,989 250 - 50,239
- - 27,970 - 27,970
4.70 - - 450,000 450,000 49,989 28,220 450,000 528,209
- - 18,652 - 18,652
Total Financial Liabilities - 18,652 - 18,652
The companies interest rate risk policies remain unchanged from the prior year.
Total Financial Assets
Cash and cash equivalents
Trade and other payables
Other financial assets
Trade and other payables
30 June 2012
Trade and other receivables
19
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
Cash flow sensitivity analysis for variable rate instruments
ii. Foreign currency risk
iii Liquidity risk
The sensitivity analysis has been determined based on the exposure of the company to interest rates for non-
derivative financial instruments at the reporting date and the stipulated change taking place at the beginning of
the financial year and held constant throughout the reporting period. A 100 basis point increase or decrease is
used when reporting interest rates internally to key management personnel and represents management’s
assessment of the possible change in interest rates.
The following are contractual maturities of financial liabilities:
Trade payables are short term in nature.
At 30 June 2013, if the interest rates had changed by 100 basis points from the period-end rates with all other
variables held constant, post-tax profit for the year for the company would have been $2,478 (2012: $2,453)
lower/higher mainly as a result of lower/higher interest income on cash and cash equivalents and other current
financial assets.
The company is not exposed to fluctuations in foreign currencies.
The company manages liquidity risk by monitoring forecast and actual cash flows and ensuring that adequate
cash reserves are maintained.
The company is not exposed to any significant liquidity risk.
30 June 2013
Carrying
amount
Contractual
cash flows
Less than
one year 1-5 years over 5 years
$ $ $ $ $Trade and other payables 39,720 39,720 39,720 - -
Carrying
amount
Contractual
cash flows
Less than
one year 1-5 years over 5 years
$ $ $ $ $Trade and other payables 18,652 18,652 18,652 - -
The liquidity risk policies remain unchanged from the previous year.
30 June 2012
20
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
iv Credit risk
Gross Impairment Gross$ $ $
Not Past due (current) 10,548 - 26,532
Past due 0-30 days (30 day ageing) 2,450 - -
Past due 31-60 days (60 day ageing) - - -
752 - 1,258 13,750 - 27,790
-
-
-
-
$Impairment
The company does not have any material credit risk exposure to any single receivable or group of receivables.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as
disclosed in the statement of financial position and notes to the financial statements.
20122013
-
The ageing of the company's receivables at the reporting date was:
There are no material amounts of collateral held as security at 30 June 2013.
Credit risk refers to the risk that the counterparty will default on its contractual obligations resulting in financial
loss to the company. The company does not have any significant credit risk exposure to any single counterparty
or any group of counterparties having similar characteristics.
None of the past due receivables at 30 June 2013 were impaired. These receivables relate to a number of
Past due over 60 days (+90 day ageing)
Credit risk is managed and reviewed regularly by the Board of Directors. It arises from exposures to customers
as well as through deposits with financial institutions.
v Price risk
The company is not exposed to any material commodity price risk.
vi Capital risk management
The credit risk policies remain unchanged from the previous year.
The capital structure of the company consists of cash and cash equivalents and equity comprising retained
earnings.
The directors manage the capital to ensure that the company will be able to continue as a going concern and to
be able to satisfy future capital needs of the company, through the optimisation of debt and equity balances.
The other classes of other receivables do not contain impaired assets and are not past due. Based on the credit
history of the receivables, it is expected that these amounts will be received when due.
None of the past due receivables at 30 June 2013 were impaired. These receivables relate to a number of
independent members for whom there is no recent history of default. It is expected that these amounts will be
received in full.
21
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 13 - FINANCIAL RISK MANAGEMENT (CONTINUED)
Net Fair Values
NOTE 14 - KEY MANAGEMENT PERSONNEL REMUNERATION
NOTE 15 - COMMITMENTS
2013 2012
Operating lease commitments $ $
Payable - minimum lease payments:
- Within one year 2,977 30,136
The net fair values of financial assets and liabilities approximate their carrying value. No financial assets and
financial liabilities are readily traded on organised markets in standardised form.
The aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosed in
the statement of financial position and in the notes to the financial statements.
The directors of the company are directly accountable and responsible for the strategic direction and operational
management of the company. Refer to the Directors' Report for information about the Directors and their
qualifications.
During the year there were no executives of the company.
The board reviews this structure and the risks associated with each class of capital on a regular basis.
The directors act in an honorary capacity and did not receive any remuneration during the 2013 year (2012:$nil).
Non-cancellable operating leases contracted for but not capitalised in the financial
statements.
Capital risk management policies remain unchanged from the prior year.
Payable - minimum lease payments:
- Within one year 2,977 30,136
- Later than one year but not later than 5 years - 7,624 - Minimum lease payments 2,977 37,760
NOTE 16 - CONTINGENT LIABILITIES
NOTE 17 - EVENTS AFTER THE REPORTING DATE
No other events have occurred subsequent to reporting date and up to the date of this report that will have a
material effect on the financial position or performance of the company.
There are no contingent liabilities that will have a material effect on the financial position or performance of the
company.
The premises lease which was up for renewal from 1 September 2013 was cancelled by the lessor with effect
from 31 July 2013.
Prior to the year end the lessor of the current premises went into receivership and the building was sold. ATHOC
was given the opportunity to relocate to the 5th floor of the current premises at the same annual rental or
alternately given the opportunity to leave the building prior to the end of the lease without the need to make good
of the said premises. Due to the high rental costs and not required to incur the cost associated with making good
the premises, ATHOC elected to move and reduce costs. A new lease was entered into on 26 July 2013,
effective on 1 August 2013 for a three year period. The first annual rental equates to $19,000 with an annual
escalation clause of 4%.
22
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2013
NOTE 18 - COMPANY DETAILS
Suite 8 c/- HWC Accountants
37 Bundall Road Suite 101 Bermuda Point
Surfers Paradise QLD 4217 20 Lake Orr Drive
Varsity Lakes QLD 4227
The registered office of the company is:
Australian Timeshare & Holiday Ownership
Council Limited
The principal place of business is:
Australian Timeshare & Holiday
Ownership Council Limited
23
The directors of the company declare that:
1
a.
b.
2
BARRY ROBINSON
President
Signed at Surfers Paradise, 2 September 2013
This declaration is made in accordance with a resolution of the Board of Directors of Australian Timeshare &
Holiday Ownership Council Limited.
AUSTRALIAN TIMESHARE & HOLIDAY OWNERSHIP COUNCIL LIMITED
DIRECTORS' DECLARATION
ACN 065 260 095
give a true and fair view of the company’s financial position as at 30 June 2013 and of its
performance for the year ended on that date.
comply with Australian Accounting Standards; and
the financial statements and notes, as set out on pages 5 to 23 are in accordance with the Corporations
Act 2001 and:
in the directors’ opinion, there are reasonable grounds to believe that the company will be able to pay its
debts as and when they become due and payable.
24
Crowe Horwath Brisbane is a member of Crowe Horwath International, a Swiss verein. Each member of Crowe Horwath is a separate and independent legal entity. Liability limited by a scheme approved under Professional Standards Legislation other than for the acts or omissions of financial services licensees.
Crowe Horwath Brisbane ABN 79 981 227 862 Member Crowe Horwath International Level 16 120 Edward Street Brisbane QLD 4000 Australia GPO Box 736 Brisbane QLD 4001 Australia Tel +61 7 3233 3555 Fax +61 7 3233 3567 www.crowehorwath.com.au
25
Independent Auditor’s Report
To the members of Australian Timeshare & Holiday Ownership Council Limited
Report on the Financial Statements
We have audited the accompanying financial report of the Australian Timeshare & Holiday Ownership Council Limited (the company), which comprises the statement of financial position as at 30 June 2013 and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration. Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Independence
In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Australian Timeshare & Holiday Ownership Council Limited, would be in the same terms if provided to the directors as at the date of this auditor’s report.
26
Auditor’ Opinion
In our opinion the financial report of Australian Timeshare & Holiday Ownership Council Limited is in accordance with the Corporations Act 2001, including: a) giving a true and fair view of the company’s financial position as at 30 June 2013 and of its performance for the year ended on that date; and b) complying with Australian Accounting Standards and the Corporations Regulations 2001. CROWE HORWATH BRISBANE VALERIE MAIN Partner Signed at Brisbane, September 2013