ANDREW THYNE REID CHARITABLE TRUST …...The Trustees Andrew Thyne Reid Charitable Trust Level 1, 9-13 Bronte Road, Bondi Junction, NSW 2022 Dear Trustees, Auditor's Independence Declaration

ANDREW THYNE REID CHARITABLE TRUST

FINANCIAL REPORT

FOR THE YEAR ENDED

30 JUNE 2019

1

FINANCIAL REPORT

FOR THE YEAR ENDED

30 JUNE 2019

CONTENTS

Page

Trustees’ Report 2

Auditor’s Independence Declaration 4

Independent Auditor’s Report 5

Declaration By The Trustees 7

Financial Report

Statement Of Profit Or Loss And Other Comprehensive Income 8

Statement Of Financial Position 9

Statement Of Cash Flows 10

Statement Of Changes In Trust Fund 11

Notes To The Financial Statements 12

The financial report covers the Andrew Thyne Reid Charitable Trust (‘the trust’) as an individual entity.

The financial report is presented in the Australian currency.

The financial report was authorised for issue by the Trustees of the Trust on 29 October 2019.

The trustees’ have the power to amend and reissue the financial report.


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TRUSTEES’ REPORT

The trustees of Andrew Thyne Reid Charitable Trust (“the trust”) present their report together with the

financial report of Andrew Thyne Reid Charitable Trust for the financial year ended 30 June 2019 and the

auditors’ report thereon.

1 Trustees

The trustees of the trust at any time during or since the end of the financial year are:

Islay Mackenzie (Chairman) (appointed 30 October 2018)

Airlie MacLachlan

George T Reid

Stirling McGregor

Tom Reid

2 Principal Activity The principal activity of the trust during the financial year was investment.

There was no significant change in the nature of this activity during the financial year.

3 Operating and Financial Review

The trust continued to engage in its principal activity during the financial year.

The deficit of the trust for the year ended 30 June 2019 was $27,925,187 (2018 surplus:

$40,339,018).

4 State of Affairs

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

5 Events Subsequent to Reporting Date

There has not arisen in the interval between the end of the financial year and the date of this report

any item, transaction or event of a material and unusual nature likely, in the opinion of the

directors, to affect significantly the operations of the trust, the results of those operations, or the

state of affairs of the trust, in future financial years.

6 Likely Developments

The trust will continue to pursue its principal activities at a surplus. It is not expected that the

results in future years will be adversely affected by the continuation of these operations.

Further information about likely developments in the operations of the trust and the expected

results of those operations in future financial years has not been included in this report because

disclosure of the information would be likely to result in unreasonable prejudice to the trust.

The Trustees Andrew Thyne Reid Charitable Trust Level 1, 9-13 Bronte Road, Bondi Junction, NSW 2022 Dear Trustees,

Auditor's Independence Declaration under Subdivision 60-40 of the Australian Charities and Not-for-profits Commission Act 2012

In accordance with Subdivision 60-40 of the Australian Charities and Not-for-profits Commission Act 2012, I am pleased to provide the following declaration of independence to the trustees of the Andrew Thyne Reid Trust.

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2019 there have been no contraventions of the auditor independence requirements as set out in any applicable code of professional conduct in relation to the audit. Yours sincerely

Nexia Sydney Partnership

Joseph Santangelo Partner

Dated: 29 October 2019 Sydney

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Independent Auditor’s Report to the Trustees of Andrew Thyne Reid Charitable Trust

Report on the Audit of the Financial Report

Opinion

We have audited the financial report, being a special purpose financial report, of Andrew Thyne Reid

Charitable Trust (“the Trust”), which comprises the statement of financial position as at 30 June 2019, 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, and notes to the financial statements, including a summary of

significant accounting policies, and the Trustees’ declaration.

In our opinion, the accompanying financial report of the Trust is in accordance with the Australian Charities and Not-for-profits Commission Act 2012, including:

i) giving a true and fair view of the Trust’s financial position as at 30 June 2019 and of its financial

performance for the year then ended; and

ii) complying with Australian Accounting Standards to the extent described in Note 1, and Division 60 of the Australian Charities and Not-for-profits Commission Regulation 2013.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the ‘auditor’s responsibilities for the audit of the financial report’ section

of our report. We are independent of the entity in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the financial report in Australia. We have also

fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Emphasis of matter regarding basis of accounting

Without modifying our opinion, we draw attention 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 Trustees’

financial reporting responsibilities under the Australian Charities and Not-for-profits Commission Act 2012 and the Trust Deed referred to below. As a result, the financial report may not be suitable for another

purpose. Our opinion is not modified in respect of this matter.

Trustees’ responsibility for the financial report

The Trustees of the Trust 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 statements

is appropriate to meet the requirements of the Australian Charities and Not-for-profits Commission Act 2012 and the Trust Deed and is appropriate to meet the needs of the members. The Trustees are also

responsible for such internal control as the Trustees 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.

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In preparing the financial report, the Trustees are responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern

basis of accounting unless the Trustees either intend to liquidate the entity or to cease operations, or have

no realistic alternative but to do so.

Auditor’s responsibility for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes

our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit

conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or

in the aggregate, they could reasonably be expected to influence the economic decisions of users taken

on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at The Australian

Auditing and Assurance Standards Board website at: www.auasb.gov.au/auditors_responsibilities/ar4.pdf.

This description forms part of our auditor’s report.

We also provide the Trustees with a statement that we have complied with relevant ethical requirements

regarding independence, and to communicate with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where applicable, related safeguards.

Nexia Sydney Partnership

Joseph Santangelo Partner

Dated: 29 October 2019

Sydney


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STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 30 June 2019

2019 2018

$ ‘000 $ ‘000

REVENUE Income from investments - 40,315 Interest income 452 446

TOTAL REVENUE 452 40,761

EXPENSES

Loss from investments 27,322 - Management fees 856 260 Employee benefits expense 96 74 Other expenses 103 88

TOTAL EXPENSES 28,377 422

(DEFICIT)/SURPLUS FOR YEAR (27,925) 40,339

OTHER COMPREHENSIVE INCOME

Other comprehensive income - (5,203)

TOTAL COMPREHENSIVE INCOME (27,925) 35,136

The above statement of profit or loss and other comprehensive income should be read in

conjunction with the accompanying notes.


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STATEMENT OF FINANCIAL POSITION

As at 30 June 2019

Note 2019 2018

$ ‘000 $ ‘000

CURRENT ASSETS Cash and cash equivalents 2 14,286 18,004 Trade and other receivables 3 3,325 2,313

TOTAL CURRENT ASSETS 17,611 20,317

NON-CURRENT ASSETS

Plant and equipment 2 1 Financial assets 4 136,757 167,219

TOTAL NON-CURRENT ASSETS 136,759 167,220

TOTAL ASSETS 154,370 187,537

CURRENT LIABILITIES

Trade and other payables 5 885 43 Employee entitlements 6 14 7

TOTAL CURRENT LIABILITIES 899 50

TOTAL LIABILITIES 899 50

NET ASSETS 153,471 187,487

TRUST FUNDS

Capital funds 3,989 3,989 Reserves 23,162 59,328 Accumulated surplus 126,320 124,170

TOTAL TRUST FUNDS 153,471 187,487

The above statement of financial position should be read in conjunction with the accompanying

notes.


10

STATEMENT OF CASH FLOWS


Note 2019 2018

$ ‘000 $ ‘000

Cash flows from operating activities

Cash receipts from operations 1,696 2,926

Cash paid to suppliers and employees (187) (169)

Interest received 691 531

Distributions by Trustees (6,091) (6,412)

Net cash used in operating activities 7(b) (3,891) (3,124)

Cash flows from investing activities

Proceeds from investments 175 4,105

Equipment purchase (2)

-

Net cash provided by investing activities 173 4,105

Net (decrease)/increase in cash and cash

equivalents held (3,718) 981

Cash and cash equivalents at beginning of

financial year 18,004 17,023

Cash and cash equivalents at end of

financial year 2 14,286 18,004

The above statement of cash flows should be read in conjunction with the accompanying note.


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STATEMENT OF CHANGES IN TRUST FUND


Capital

Funds Capital

Profits

Reserve

Asset

Revaluation

Reserve

Accumulated

Surplus Total

$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000

Balance at 30 June 2018 3,989 24,733 34,595 124,170 187,487 (Deficit) for the year - - - (27,925) (27,925) Distributions for year - - - (6,091) (6,091)

Transfer to Asset

Revaluation Reserve - - (36,166) 36,166 -

Balance at 30 June 2019 3,989 24,733.00 (1,571) 126,320 153,471


Capital

Funds Capital

Profits

Reserve

Asset

Revaluation

Reserve

Accumulated

Surplus Total

$ ‘000 $ ‘000 $ ‘000 $ ‘000 $ ‘000

Balance at 30 June 2017 3,989 24,733 39,798 90,243 158,763 Surplus for the year - - - 40,339 40,339 Distributions for year - - - (6,412) (6,412) Unrealised (losses) - - (5,203) - (5,203)

Balance at 30 June 2018 3,989 24,733 34,595 124,170 187,487


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NOTES TO THE FINANCIAL STATEMENTS


1 STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

a Reporting basis and conventions

The trustees of Andrew Thyne Reid Charitable Trust have prepared the financial statements on

the basis that the trust 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 requirements of its Trust Deed.

The report has been prepared in accordance with the requirements of the Australian Charities

and Not-for-Profits Commission Act 2012 and the following Australian Accounting Standards

to the extent that they are relevant:

AASB 101: Presentation of Financial Statements

AASB 107: Cash Flow Statements

AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors

AASB 1048: Interpretation of Standards

AASB 1054: Australian Additional Disclosures

Accounting policies The following is a summary of the material accounting policies adopted by the company in the

preparation of the financial report.

b Functional and presentation currency These financial statements are presented in Australian dollars, which is the trust’s presentation

and functional currency.

c Use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and

assumptions that affect the application of accounting policies and the reported amounts of assets,

liabilities, income and expenses. Actual results may differ from these estimates.

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 and in any future periods

affected.


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d Portfolio valuation

The net asset value of the trust is calculated by deducting from the value of the trust’s gross assets

the value of the liabilities of the trust.

Investments are stated at net fair value which equates to market value. The basis used to value particular classes of investments are as follows:

Financial assets Net fair value of shares listed on a stock exchange is determined at the last available bid price

on the exchange on which such shares are traded as of the close of business on the day the shares

are being valued. Values of the managed fund are calculated at the net asset value of the funds at year end.

Fixed interest securities Fixed interest securities are marked to market.

e Cash and cash equivalents Cash and cash equivalents includes cash at bank, deposits held at call and fixed interest securities

held with a financial institution.

f Income and expenses Dividends are recognised as income on the date the shares are quoted ex-dividend. Distributions from trusts are recognised on the date of present entitlement. Income on fixed interest securities is recognised when the investment is quoted ex-interest. Expenses are brought to account on an accruals basis. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Realised net gains / losses in portfolio assets are recognised at the date of contract on an accruals

basis.

g Capital profits reserve

The capital profits reserve has historically been used to record capital gains and losses made

from the investments of the trust. Due to a change in accounting policy in 2007 realised

gains/losses are now taken to the statement of profit or loss and other comprehensive income

and the reserve balance remains at its historical balance.


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h Asset revaluation reserve

Changes in the fair value on investments are recognised through profit and loss in accordance with AASB 9. The unrealised amount is subsequently transferred from accumulated surplus and disclosed separately in the Asset Revaluation Reserve.

i Taxation

Under current legislation the trust is not subject to income tax.

j Goods and services tax Revenues, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the Australian Taxation Office (ATO). 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 are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability on the Balance Sheet.

k Assets transferred between investment managers are valued at market value on the date of

transfer.

l Employee entitlements The provision arises from services rendered by employees to the end of the reporting period. Employee benefits that are expected to be settled within one year have been measured at the amounts expected to be paid when the liability is settled.

m New or amended Accounting Standards and interpretations adopted

The Trust has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The following Accounting Standards and Interpretations are most relevant to the Trust: AASB 9 Financial Instruments AASB 9 includes requirements for the classification and measurement of financial assets and incorporates amendments to the accounting for financial liabilities and hedge accounting rules to remove the quantitative hedge effectiveness tests and have been replaced with a business model test. AASB 9 improves and simplifies the approach for classification and measurement of financial assets compared with the requirements of AASB 139 as follows:

a) Financial assets that are debt instruments will be classified based on (1) the objective of the entity's business model for managing the financial assets; (2) the characteristics of the contractual cash flows.

b) Allows an irrevocable election on initial recognition to present gains and losses on investments in equity instruments that are not held for trading in other comprehensive income.


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c) Financial assets can be designated and measured at fair value through profit or loss at

initial recognition if doing so eliminates or significantly reduces a measurement or recognition inconsistency that would arise from measuring assets or liabilities, or recognising the gains and losses on them, on different bases.

AASB 2012-6 also modifies the relief from restating prior periods by amending AASB 7 to require additional disclosures on transition to AASB 9 in some circumstances. Consequential amendments were made to other standards as a result of AASB 9 by AASB 2014-7 and AASB 2014-8. As a result of adopting this Standard, the Trust now recognises movement in fair value of its investments through profit or loss. The cumulative loss previously recognised in other comprehensive income has been reclassified from equity to profit and loss as at 1 July 2018.

n New Accounting Standards and Interpretations not yet mandatory or early adopted

Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the Trust for the annual reporting period ended 30 June 2019. The Trust has not yet assessed the impact of these new or amended Accounting Standards and Interpretations. AASB 16 Leases AASB 16 replaces AASB 117 Leases and sets out the principles for the recognition, measurement, presentation and disclosure of leases. AASB 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligations to make lease payments. A lessee measures right-of-use assets similarly to other non-financial assets (such as property, plant and equipment) and lease liabilities similarly to other financial liabilities. As a consequence, a lessee recognises depreciation of the right-of-use asset and interest on the lease liability, and also classifies cash repayments of the lease liability into a principal portion and an interest portion and presents them in the statement of cash flows applying AASB 107 Statement of Cash Flows. AASB 16 substantially carries forward the lessor accounting requirements in AASB 117 Leases. Accordingly, a lessor continues to classify its leases as operating leases or finance leases.


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2019 2018

$ ‘000 $ ‘000

2 CASH AND CASH EQUIVALENTS

Cash at bank 14,255 17,986

Funds held in Accountant's Trust Account 31 18

14,286 18,004

3 TRADE AND OTHER RECEIVABLES

Investment income receivable 2,915 1,957

Related party receivables 350 350

Other receivables 60 6

3,325 2,313

4 FINANCIAL ASSETS

Direct investments 21,055 20,082

Funds under management - 27,080

Units in Unit Trusts 115,702 120,057

136,757 167,219

5 TRADE AND OTHER PAYABLES

Other payables 885 43

6 EMPLOYEE ENTITLEMENTS

Provision for employee entitlements 14 7


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2019 2018

$ ‘000 $ ‘000

7 STATEMENT OF CASHFLOWS

INFORMATION

a Reconciliation of Cash

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:

Cash and cash equivalents 14,286 18,004

b Reconciliation of Cash Flow from Operations

with

Net (Deficit)/Surplus

Net (deficit)/surplus for the year (27,925) 40,339

Distributions by Trustees (6,091) (6,412)

Transfer to Asset Realisation Reserve 36,166

Non-cash flows in profit

Depreciation 1 1

Realised gains on investments - (36,509)

Income reinvested (5,880) (1,834)

(3,729) (4,415)

Changes in assets and liabilities

(Increase)/decrease in trade and other

Receivables (1,011) 1,288

Increase in payables 849 3

(3,891) (3,124)

Documents

ANDREW THYNE REID CHARITABLE TRUST …...The Trustees Andrew Thyne Reid Charitable Trust Level 1, 9-13 Bronte Road, Bondi Junction, NSW 2022 Dear Trustees, Auditor's Independence Declaration