Creative Industries Precinct Pty Ltd trading as QUT ......Creative Industries Precinct Pty ltd 2013...

Creative Industries Precinct Pty Ltd trading as QUT Creative Enterprise Australia

Financial Statements

For the Year Ended 31 December 2013

ABN: 82 099110 924

Principal place of business and registered office:

Creative Industries Precinct z1 The Works Building 34 Parer Place via Musk Ave Kelvin Grove OLD 4059

Creative Industries Precinct Pty ltd 2013 Financial Report

Table of Contents For the Year Ended 31 December 2013

Directors Report Auditor's Independence Declaration

Statement of Profit or Loss and Other Comprehensive Income

Statement of Financial Position

Statement of Cash Flows

Statement of Changes in Equity

Notes to the Financial Statements

Directors Declaration Independent Auditor's Report

Page

1 4

5

6

7

8

9

16

17

Creative Industries Precinct Pty Ltd 2013 Financial Report

Directors Report For the Year Ended 31 December 2013

Your directors present their report on the company for the financial year ended 31 December 2013.

Directors

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

Mr Michael Smellie Mr Clayton Cooke (term expired 11 November 2013) Ms Ruth Drinkwater Mr Brian Richards (term expired 11 November 2013) Professor Scott Sheppard Professor Rod Wissler Ms Kylie Lamprecht (appointed 11 November 2013) Mr Gavan Ranger (appointed 11 November 2013)

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

Company Secretary

The name of the company secretary in office from 1st to 281h January was Mr Colin Melvin. Ms Amanda

Boland-Curran was appointed on 281h January 2013 for the rest of the financial year.

Registered Office and Principal Place of Business

Level2, Z1 the works, 34 Parer Place via Musk Avenue, Kelvin Grove Qld 4059.

Directors' Meetings

The number of meetings of directors held during the year and the number of meetings attended by each director were as follows:

2013 2012 Director No. Meetings Meetings No. Meetings Meetings

to be attended attended to be attended attended -Michael Smellie 7 7 6 6 Brian Richards 6 6 6 6

· Clayton Cooke 6 4 6 6 Prof Rod Wissler 7 7 6 5 Prof Scott Sheppard 7 3 6 4 Ruth Drinkwater 7 7 6 5 Gavan Ranger 2 2 - -Kylie LamQrecht 2 2 - -

At the November meeting, Clayton Cooke and Brian Richards attended and stepped down during the meeting . Whilst Gavan Ranger and Kylie Lamprecht attended the meeting and were appointed Directors at the end of that meeting.

1



Operating Results

The loss of the company for the financial year after providing for income tax amounted to $901,329 (2012: $509,811).

Review of Operations

A review of the operations of the company during the financial year found that during the period the company continued to develop key business services and operations that are targeted at developing creative industries. The results of this period are disclosed in the attached financial statements.

Significant Changes in State of Affairs

No significant changes in the state of affairs of the company occurred during the financial year.

Principal Activity

The principal activity of the company during the financial year was to manage creative business development services and incubator facilities based at the Creative Industries Precinct at Kelvin Grove. The company has developed support services and events that it has delivered nationally, building on work undertaken in 2012 particularly in enabling creative ventures to build more robust commercial and financial models. The company continued to develop its signature event, the Creative3 forum for a fourth year to expand reach of services. This year continued the new model model for the CEA Fashion & Design Incubator to expand a more cost effective delivery structure for technical and business services. This included expanding into other aspects of design as well fashion based services.

The company has also continued strategic development work during 2013 to launch a 'proof of concept' investment fund for early stage creative businesses with a view to generate future long term revenues. The Creative Enterprise Fund launched in July 2013 and the company has been assessing prospective investment opportunities in line with the framework agreed by its Board and shareholder via a new Investment Sub Committee. No investments have been made during the financial year.

No other significant change in the nature of activities occurred during the year.

Matters Subsequent to the End of the Financial Year

No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the company, the results of those operations, or the state of affairs of the company in future financial years.

Likely Developments

Likely developments in the operations of the company and the expected results of those operations have not been included in this report as the directors believe, on reasonable grounds, that they are unable to determine such a result.

2



Environmental Issues

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

Dividends Paid or Recommended

No dividends were paid or declared since the start of the financial year. No recommendation for payment of dividends has been made.

Options

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

Indemnification of Officer or Auditor

No indemnities have been given or insurance premiums paid, during or since the end of the financial year, for any person who is or has been an officer or auditor of the company.

Auditor's Independence Declaration

The auditor's independence declaration can be found on page 4.

Proceedings on Behalf of the Company

No person has applied for leave of Court to bring proceedings on behalf of the company or intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those proceedings. The company was not a party to any such proceedings during the year.

Signed in accordance with a resolution of the Board of Directors:

····1;"'"" \

Dated this 291h day of January 2014.

3

Creative Industries Precinct pty Ltd 2013 Financial Report

Auditor's Independence Declaration

To the Directors of Creative Industries Precinct Pty Ltd (t/a QUT Creative Enterprise Australia)

This auditor's independence declaration has been provided pursuant to s.307C of the Corporations Act 2001 .

Independence Declaration

As lead auditor for the audit of Creative Industries Precinct Pty ltd for the year ended 31 December 2013, I declare that, to the best of my knowledge and belief, there have been -

a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b) no contraventions of any applicable code of professional conduct in relation to the audit.

1fJ.dd-J F WELSH FCPA Queensland Audit Office as Delegate of the Auditor-General of Queensland Brisbane

Dated in Brisbane this 291h day of January 2014.

4


Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2013

Revenue

Incubator Membership, Rent & Recoveries

Facilities hire

Grants

Interest received

Creative 3 Forum

Fashion Incubator

Other

Total Revenues

Expenses

Employee benefits expense

Superannuation costs

Financial Management Costs

Contractors

Enterprise Outgoings Communication and IT Costs

Materials and Services

Industry Development and Marketing

Creative 3 Forum

Grant Costs

Fashion Incubator

Loss on Disposal of Property, Plant and Equipment

Depreciation and Amortisation

Total Expenses

Profit/(Loss) before related income tax

Income tax expense

Net Profiti(Loss) after tax attributable to members of the Company

Other comprehensive income

Total comprehensive lncome/(Loss) attributable to members of the Company

Note

2

2013 $

133,540

14,721

16,179

112,445

132,831

14,970

424,686

715,578

55,776

4,425

66,561

138,427

19,641

42,946

84,129

94,522

63,062

5,967

34,981

1,326,015

(901,329)

(901,329)

(901,329)

2012 $

254,897

14,755

132,993

19,356

130,239

162,675

14,535

729,450

600,495

45,868

44,190

106,358

18,061

38,408

44,733

116,128

99,145

76,302

4,412

45,161

1,239,261

(509,811)

(509,811)

(509,811)

The above Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with acco~m~a!.l..4"~~~. 5 QAO

cerltfted slatements


Statement of Financial Position As at 31 December 2013

2013 2012 Note $ $

ASSETS

CURRENT ASSETS Cash and cash equivalents 3 907,049 607,570 Trade and other receivables 4 29,756 78,689 Other assets 5 11,867 14,490 TOTAL CURRENT ASSETS

948,672 700 749 NON-CURRENT ASSETS

Trade and other receivables 4 6,440 7,000 Property, plant and equipment 6 22,535 35,912 Intangible assets 7 35,367 8,502 TOTAL NON-CURRENT ASSETS

64,342 51,414 TOTAL ASSETS

1,013,014 752,163

LIABILITIES CURRENT LIABILITIES

Trade and other payables 8 117,340 41,373 Other liabilities 9 29,320 38,993 Provisions 10 38,815 33,575 TOTAL CURRENT LIABILITIES

185,475 113,941 NON-CURRENT LIABILITIES

Provisions 10 21,082 14,292 TOTAL NON-CURRENT LIABILITIES

21,082 14,292 TOTAL LIABILITIES

206,557 128,233 NET ASSETS

806,457 623,930

EQUITY Contributed Equity 11 4,344,321 3,260,465 Retained Losses (3,537,864) (2,636,535)

806,457 623,930 TOTAL EQUITY

806,457 623,930

The above Slalemenl of Financial Position is to be read in conjunction wilh the accompanying notes.

6 --------


Statement of Cash Flows For the Year Ended 31 December 2013

2013 2012 Note $ $

CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts in the course of operations 461,283 681,852 Cash payments in the course of operations (1, 196, 724) (1,208,704) Interest received 16,179 19,356 GST collected on sales 37,721 73,487 GST paid on purchases (48,401) (72,036) Net cash provided by (used in) operating activities 12(b) (729,942) (506,045)

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for property, plant and equipment (54,435) (5,000)

Net cash provided by/(used in) investing activities (54,435) {5,000)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issue of shares 1,083,856 392,568

Net cash provided by/(used in) investing activities 1,083,856 392,568

Net increase (decrease) in cash and cash equivalents held 299,479 (118,477)

Cash and cash equivalents at the beginning of the financial year 607,570 726,047

Cash and cash equivalents at end of financial year 12{a) 907,049 607,570

The above Statement of Cash Flows is to be read in conjunction with the accompanying -~ 7 ~ ~~~& rt ,rle{~l~tements

------~----


Statement of Changes in Equity For the Year Ended 31 December 2013

2013

Balance at 1 January 2013

Total Comprehensive Income for the year

Transactions with owners in their capacity as owners: Proceeds from issue of Capital

Balance at 31 December 2013 attributable to members of the Company

2012

Balance at 1 January 2012

Total Comprehensive Income for the year

Transactions with owners in their capacity as owners: Proceeds from issue of capital

Balance at 31 December 2012 attributable to members of the Company

Note

Note

Contributed Retained Equity Losses

$ $

3,260,465 (2,636,535}

(901,329)

1,083,856

4,344,321 {3,537 ,864}

Contributed Retained Equity Losses

$ $

2,867,897 (2, 126, 724) (509,811)

392,568

3,260,465 (2,636,535}

The above Statement of Changes in Equity is to be read in conjunction with the accompanyin 8

Total $

623,930

(901,329)

1,083,856

806,457

Total $

741,173 (509,811)

392,568

623,930


Notes to the Financial Statements For the Year Ended 31 December 2013

1 Summary of Significant Accounting Policies

(a) Basis of Preparation

The financial statements are special purpose financial statements that have been prepared in accordance with the Corporations Act 2001, and the following applicable Australian Accounting Standards:

AASB 101: AASB 107: AASB 108: AASB 1031: AASB 1048:

Presentation of Financial Statements Cash Flow Statements Accounting Policies, Changes in Accounting Estimates and Errors Materiality Interpretation and Application of Standards

No other Accounting Standard, Urgent Issues Group Interpretations or other authoritative pronouncements or the Australian Accounting Standards Board have mandatory application in respect of disclosure requirements. The Company has however applied the measurement and recognition criteria of all accounting standards.

The directors have prepared the financial statements on the basis that the for-profit Company is a non-reporting entity because there are no users dependent on general purpose financial reports. This financial report is therefore a special purpose financial report that has been prepared in order to meet the needs of the business.

Creative Industries Precinct Ply Ltd is a company limited by shares, incorporated and domiciled in Australia, which also operates under the trading name QUT Creative Enterprise Australia.

Creative Industries Precinct Ply Ltd is a controlled entity of QUT Enterprise Holdings Trust which is consolidated into the annual financial statements of the Queensland University of Technology (QUT as the ultimate parent entity).

The financial report has been prepared on an accrual basis and is based on historical costs. It does nol take into account changing money values or, except where stated, current valuations of non-current assets.

The following is a summary of the material accounting policies adopted by the economic entity in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

The financial report was authorised for issue on 30 January 2014.

(b) Property, Plant and Equipment

Property, plant and equipment are carried at costs. All assets are depreciated over their useful lives to the Company. Creative JndiJ.c;tries Precinct Pty Lid recognises nil rlant and equipment with a purchase ~t of $5,000 ~greater as fixGc! assets. The depreciation rates used for each class of assets are:

Class of fixed assets

Office equipment Computer equipment Building & leasehold improvements

(c) Intangible Assets

Useful life

4 years 2.5 years 5 years

Software- Software is recorded at costs. Software has a finite life and ts carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of 2.5 years.

(d) Cash and cash equivalents

For the purposes of the Statement of Cash Flows, cash includes cash on hand and at call deposits with banks or financial inslitutions.

9 QAO .. _s:ert1fied stalements ------~



1 Summary of Significant Accounting Policies (cont.)

(e) Employee benefits

Provision is made for the company's liability for employee benefits arising from services rendered by employees to the end of the reporting year. Employee benefits have been measured at the amounts expected to be paid when the liability is settled, plus related on-costs.

(f) Receivables

Collectability of debtors is reviewed on an ongoing basis. A provision for impairment is raised where doubt as to collection exists. Debts, which are known to be uncollectible, are written off.

(g) Trade & Sundry Creditors

Trade and sundry creditors represent liabilities for goods and services provided to the company prior to the end of the financial year, which are unpaid. The amounts are unsecured and usually paid within 30 days of recognition.

(h) Goods and services tax

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GSD, except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of GST.

The net amount of GST recoverable from, or payable to, the ATO is included as part of receivables or payables in the Statement of Financial Position.

Cash flows in the statement of cash flows are included on a gross basis and the GST component of cash flows arising from investing and financing activities which are recoverable from, or payable to, the taxation authority is classified as operating cash flows.

(i) Comparative figures

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

(j) Revenue and other income

The company's main source of revenue this year was derived from incubator membership services including business development, Stitchlab services, event income and rents. Grants received from government agencies are recogmsed in the period that these monies are received to the extent that the grant monies have been consumed .

Membership fees, rent, recoveries, facilities hire, event income and other revenues are recognised in the period that these monies are earned.

All revenue is stated net of the amount of Goods and Services Tax.

(k) Unearned revenue

Grant revenue is recognised to the extent that the services required to be performed by the grantee have been performed or the grant eligibility criteria have been satisfied. Where grant monies are paid in advance of performance or eligibility, unearned revenue is recognised.

10 OAO '~ed statements



Summary of Significant Accounting Policies (cont.)

(I) Income Tax

Temporary differences, which arise due to the different accounting periods in which items of revenue and expenses are included In the determination of accounting profit and taxable Income are brought to account either as a deferred tax asset or liability at the rate of income tax applicable to the period in which the benefit will be received or the liability will become payable.

Deferred tax assets are only carried forward as an asset where realisation of the benefit can be regarded as probable.

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 economic entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

(m) Currency

The financial report is presented in Australian dollars and rounded to the nearest one dollar.

(n) Critical Accounting Estimates and Judgments

The directors' evaluation, estimates and judgements incorporated into the financial report are based on historical knowledge and best available current information. Estimates assume a reasonable expectation offuture events and are based on current trends and economic data, obtained both externally and within the trust. There were no key adjustments during the year which required accounting estimates or judgements.

These estimates and judgements are based on the best infonnation available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates .

(o) Application of New Accounting Standards and Interpretations

There are no new and revised Standards and Interpretations adopted in these financial statements affecting the reporting results or financial position.

AI the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective.

AASB 9 'Financial Instruments'. This is one of a series of amendments that are expected to eventually completely replace AASB 139. It simplifies the classifications of financial assets into those to be carried at amortised cost and those to be carried at fair value. This amendment will be applicable to periods beginning on or after 1 Jan 2015. It is expected that this will not have a material !mpact on the entity.

It is expected that the amendments will not have a material impact on the entity.

11



1 Summary of Significant Accounting Policies (cont.)

(p) Financiallnstruments

Recognition

Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contracted rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below:

Loans and Receivables

Loans and receivables are non derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cosl using the effective interest rate method.

Financial Liabilities

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

(q) Capital Risk Management

The Directors manage the capital to ensure that the company is able to continue as a going concern 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 of share capital and retained earnings.

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

Capital risk management policies remain unchanged from the prior year.

2 Enterprise Centre Outgoings

Electricity Cleaning

Rates

Car parking

Water

Statutory maintenance

Security

Repairs and maintenance

3 Cash and cash equivalents Petty Cash

Cash at bank

12

2013 $

24,391

18,727 6,200

62,707 12,332

7,005

2,928

4,137

138,427

500 906,549

907,049

2012 $

24,391 20,480 10,399

29.459

8,459

7,005

3,150

3,015

106,358

300

607,270

607,570

QAO certified statements



4 Trade and Other Receivables

Current

Trade debtors Less provision ror impairment

GST refund due

Loans Receivable

Non-Current

Loan receivable

2013 $

22,946 (6,838)

13,648

29,756

6,440

6,440

2012 $

75,721 (19,191)

2,968 19,191

78,689

7,000

7,000

The company has one loan outstanding which is due for repayment in 2015. A repayment plan has been commenced.

5 Other Assets Current Prepayments

6 Property, Plant and Equipment

Office Equipment

Office equipment - at cost Less accumulated depreciation

Computer Equipment

Computer equipment - at cost Less accumulated depreciation

Building and Leasehold Improvements

Building and leasehold improvements - at cost

Less accumulated depreciation

Plant and Equipment Plant and EqUlpm~nt- at cost Less accumulated depreciation

7 Intangible Assets

Website development - at cost Less accumulated amortisation

13

11,867

11,867

81,661 {81,661)

33,555 (27,944)

5,611

111,295 {98,683)

12,612

11,948 (7,636)

4,312

22,535

46,880 (11,513)

14,490

14,490

97,948

(96,451)

1,497

26,000 (26,000)

111,294

(83,581)

27,713

11,948

(5.246)

6,702

35,912

19,400

(10,898)

35,367 8,502



8 Trade and Other Payables

Current

Trade creditors

PAYG withholding

Accrued expenses

Superannuation payable

NAB Credit Card

9 Other Liabilities

Current

Unearned revenue

Customers deposits

10 Provisions Current

Provision for annual leave entitlements

Non-Current

Provision for long service leave entitlements

11 Contributed Equity 4,344,321 {2012: 3,260,465) fully paid ordinary shares held by OUT Enterprise Holdings Trust

Total These shares have no par value.

Movement in share capital

Balance at the beginning of the financial year

Ordinary shares issued

Balance at the end of the financial year

12 Cash Flow Information

(a) Reconciliation of cash Cash at the end of the financial year as shown in the Statement of Cash Flows reconciled to items in the Statement of Financial Position as follows:

NAB Business cheque account

NAB Business Loan fund account

Petty cash

14

is

2013 $

60,227 10,744 27,792 14,117 4,460

117,340

18,835 10,485

29,320

38,815

38,815

21,082

21,082

4,344,321

4,344,321

3,260,465 1,083,856

4,344,321

811,862

94,687 500

907,049

2012 $

3,718 11,248 26,407

41,373

15,000 23,993

38,993

33,575

33,575

14.292

14,292

3,260,465

3,260.465

2,867,897 392,568

3,260,465

528,531 78,739

300 607,570

QAO <';111fler:! statements _______....



12 Cash Flow Information (cont.)

(b) Reconciliation of Joss after related income tax expense to net cash

Reconciliation of net income to net cash provided by operating activities:

ProfiV(Ioss) for the year

Non-cash items included in changes to net assets:

Depreciation

Provision for doubtful debts

Write down of property, plant and equipment

Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:

(lncrease)/decrease in receivables

(lncrease)/decrease in other assets

lncrease/(decrease) in trade and other payables

lncrease/(decrease) in other liabilities

lncrease/(decrease) in provisions

Cash flows from operating activities

13 Contingencies

The company has no known contingent assets or liabilities as at 31 December 2013.

14 Economic Dependence

2013 2012 $ $

(901,329) (509,811)

34,980 45,161 (12,353) 13,532

5,967 4,411

52,775 (28,242)

22,373 10,802

66,295 2,922

12,030 (50,813)

(10,680) 5,993

(729,942) (506,045)

During the last financial year, the company has been reliant on generating new forms of revenue from client services and investment in key areas such as Creative 3 forum and the CEA Fashion Incubator. This has included securing funds from the private sector.

The company Is also reliant on funding from its parent entity through capital contributions to enable ilto carry out its operations and meet its objectives. Similarly, the parent company is substantially reliant on funding from Queensland University of Technology, which adopts a budget framework on a triennial basis to facilitate the alignment with organisational areas' strategic plans reflecting the University methodologies and policies relating to the distribution of revenue and capital inflows

A new triennial budget framework methodology and policies for the 2014 to 2016 period has been completed and provides for the future funding needs of the company and QEH Trust and during that period.

15 Post Balance Date Events

The company is not aware of any significant post-balance date events.

16 Commitments

The company has no significant capital commitments as at 31 December 2013.

15

Directors Declaration

The directors of the company declare that:

1. The financial statements and notes, as set out on pages 5 to 15 are in accordance with the Corporations Act 2001:

(a) comply with Accounting Standards and the Corporations Regulations 2001; and

(b) give a true and fair view of the company's financial position as at 31 December 2013 and of the performance for the financial year ended on that date.

2. In the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and ~hen they become due and payable.

This declaration is made in accordance with a resolution of the directors.

Dated this 291h day of January 2014.

16

Independent Auditors Report

To the Members of Creative Industries Precinct Pty Ltd

Report on the Financial Report

I have audited the accompanying financial report, being a special purpose financial report of Creative Industries Precinct Pty Ltd, which comprises the statement of financial position as at 31 December 2013, the statement of profit or loss and other 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 and have determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the Corporations Act 2001 and is appropriate to meet the needs of the members. The directors' responsibility also includes such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

My responsibility is to express an opinion on the financial report based on the audit. The audit was conducted in accordance with the Auditor-General of Queensland Auditing Standards, which incorporate the Australian Auditing Standards. Those standards require compliance with relevant ethical requirements relating to audit engagements and that the audit is planned and performed 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 company'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 company'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.

1 believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.

17

Independence

The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of alf Queensland public sector entities and can be removed only by Parliament.

The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General's opinion are significant.

In conducting the audit the independence requirements of the Corporations Act 2001 have been complied with. I confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Creative Industries Precinct Pty Ltd, would be in the same terms if given to the directors as at the time of the auditor's report.

Opinion

In my opinion, the financial report of Creative Industries Precinct Pty Ltd is in accordance with the Corporations Act 2001, including -

(a) giving a true and fair view of the company's financial position as at 31 December 2013 and of its performance for the year ended on that date; and

(b) complying with Australian Accounting Standards to the extent described in Note 1 and the Corporations Regulations 2001.

Emphasis of Matter- Basis of Accounting

Without modifying my opinion, attention is drawn to Note 1 to the financial report, which describes the basis of accounting. The financial report has been prepared for the purpose of fulfilling the directors' financial reporting responsibilities under the Corporations Act 2001 . As a result, the financial report may not be suitable for another purpose.

J F Welsh FCPA (as Delegate of the Auditor-General of Queensland) Queensland Audit Office

Dated in Brisbane this 4 day of reB~I./fi~Y 2014

18

Creative Industries Precinct Pty Ltd trading as QUT ......Creative Industries Precinct Pty ltd 2013...

Documents

Transcript of Creative Industries Precinct Pty Ltd trading as QUT ......Creative Industries Precinct Pty ltd 2013...