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QUT Enterprise Holdings Trust Financial Statements
For the Year Ended 31 December 2015
Principal place of business and registered office:
QUT Enterprise Holdings Level 2, Z1, 'the works, 34 Parer Place Kelvin Grove Q 4059
QUT Enterprise Holdings Trust
Contents For the Year Ended 31 December 2015
Financial Statements
Statement of Profit or Loss and Other Comprehensive Income Statement
Statement of Financial Position
Statement of Cash Flows
Statement of Changes in Trust Capital
Notes to the Financial Statements Directors' Declaration
Independent Audit Report
Page
1
2
3
4
6 20 21
QUT Enterprise Holdings Trust
Statement of Profit or Loss and Other Comprehensive Income For the Year Ended 31 December 2015
Revenue
Expenses Employee benefits expense
Superannuation contributions
Operational costs Impairment expense
Creative Enterprise Rent expense
Total operating expenses Income tax expense
Net Profit/(Loss) after income tax for the year attributable to beneficiaries of the Trust
Other comprehensive income Available for sale financial assets fair value movement
Total comprehensive Income/( loss) for the year attributable to beneficiaries of the Trust
Note
2
3
Consolidated
2015 2014 $ $
1,323,554 1,199,198
2,872,009 2,554,214 221,230 201,135
3,143,213 3,001,052
497,926 486,881
6,734,378 6,243,282
(5,410,824) (5,044,084)
318,997
(5,410,824) ( 4, 725,087)
The accompanying notes form part of these financial statements.
Parent
2015 $
16,323
244,111 18,022
96,377 4,570,711
497,926
5,427,147
(5,41 0,824)
(5,410,824)
2014 $
29,980
235,417 21,456
121,743 3,889,570
486,881
4,755,067
( 4, 725,087)
(4,725,087)
1
QUT Enterprise Holdings Trust
Statement of Financial Position As at 31 December 2015
Consolidated Parent
2015 2014 2015 2014 Note $ $ $ $
ASSETS
CURRENT ASSETS Cash and cash equivalents 4 3,606,762 4,817,240 55,565 1,902,107 Trade and other receivables 5 120,979 358,509 20,451 25,470 Other assets 7 98,971 135,566 41,788 41,200
TOTAL CURRENT ASSETS 3,826,712 5,311,315 117,804 1,968,777 NON-CURRENT ASSETS
Other assets 7 2,800
Investments in controlled entities 15 3,106,071 2,935,865 Financial assets 6 770,002 978,680
Property, plant and equipment 8 22,323 39,829
Intangible assets 9 16,631
TOTAL NON-CURRENT ASSETS 792,325 1,037,940 3,106,071 2,935,865 TOTAL ASSETS 4,619,037 6,349,255 3,223,875 4,904,642
LIABILITIES CURRENT LIABILITIES
Trade and other payables 10 1,084.440 877,040 19,742 52,874 Provisions 12 145,735 100,091
Other liabilities 11 84,015 79,321
TOTAL CURRENT LIABILITIES 1,314,190 1,056,452 19,742 52,874 NON-CURRENT LIABILITIES
Trade and other payables 10 352,709
Provisions 12 100,714 88,326
TOTAL NON-CURRENT LIABILITIES 100,714 441,035 TOTAL LIABILITIES 1,414,904 1,497,487 19,742 52,874 NET ASSETS 3,204,133 4,851,768 3,204,133 4,851,768
TRUST CAPITAL Trust capital 13 35,166,208 31,403,019 35,166,208 31,403,019 Available for sale financial assets reserve 300,343
Accumulated Surplus/(Deficit) (31 ,962,075) (26,851 ,594) (31 ,962,075) (26,551 ,251)
Total equity attributable to equity holders of the economic entity 3,204,133 4,851,768 3,204,133 4,851,768 TOTAL TRUST CAPITAL 3,204,133 4,851,768 3,204,133 4,851,768
The accompanying notes form part of these financial statements. 2
QUT Enterprise Holdings Trust
Statement of Cash Flows For the Year Ended 31 December 2015
Consolidated Parent
2015 2014 2015 2014 Note $ $ $ $
CASH FLOWS FROM OPERATING ACTIVITIES: Cash receipts in the course of operations 1,053,114 1,173,134 456 2,265 Cash payments in the course of operations (6,441 ,885) (6,085,891) (890, 154) (900,356) Interest received I (paid) 68,928 90,427 15,867 27,715 GST collected on sales 68,896 47,621 46 253 GST paid on purchases (345,547) (45,827) (81,860) (6,234) GST ATO refund I (remitted) 277,209 147,177 86,832
Net cash provided byl(used in) operating activities 14 (5,319,285) ( 4,673,359) (868,813) (876,357)
CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (6,500) (45,770)
Proceeds from available-for-sale investments 647,118
Payments for investments (295,000) (475,007) (4,740,918) (4,561 ,200)
Net cash provided byl(used in) investing activities 345,618 (520,777) (4,740,918) (4,561 ,200)
CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from trust capital raised 3,763,189 5,500,001 3,763,189 5,500,001
Net cash provided byl(used in) financing activities 3,763,189 5,500,001 3,763,189 5,500,001
Net increase (decrease) in cash and cash equivalents (1 ,21 0,478) 305,865 (1,846,542) 62,444 Cash and cash equivalents at beginning of year 4,817,240 4,511,375 1,902,107 1,839,663
Cash and cash equivalents at end of financial year 4 3,606,762 4,817,240 55,565 1,902,107
The accompanying notes form part of these financial statements. 3
QUT Enterprise Holdings Trust
Statement of Changes in Trust Capital For the Year Ended 31 December 2015
2015
Balance at 1 January 2015
Total Comprehensive lncome/(Loss) for the year
Transactions with owners in their capacity as owners
Contribution to Trust Capital
Balance at 31 December 2015
2014
Balance at 1 January 2014
Total Comprehensive lncome/(Loss) for the year
Transactions with owners in their capacity as owners
Contribution to Trust Capital
Balance at 31 December 2014
Trust Capital $
31,403,019
3,763,189
35,166,208
Trust Capital $
25,903,018
5,500,001
31,403,019
The accompanying notes form part of these financial statements.
Parent
Available for sale financial
assets reserve
$
Accumulated Surplus/(Deficit)
$
(26,551,251)
(5,410,824)
(31,962,075)
Parent
Available for sale financial
assets Accumulated reserve Surplus/(Deficit)
$ $
(21,826,164)
( 4, 725,087)
(26,551 ,251)
Total $
4,851,768
(5,410,824)
3,763,189
3,204,133
Total $
4,076,854
(4,725,087)
5,500,001
4,851,768
4
QUT Enterprise Holdings Trust
Statement of Changes in Trust Capital For the Year Ended 31 December 2015
2015
Balance at 1 January 2015
Total Comprehensive lncome/(Loss) for the year
Available for sale financial asset reserve transferred to retained losses
Transactions with owners in their capacity as owners Contribution to Trust Capital
Balance at 31 December 2015
2014
Balance at 1 January 2014
Total Comprehensive lncome/(Loss) for the year
Transactions with owners in their capacity as owners
Contribution to Trust Capital
Balance at 31 December 2014
Trust Capital $
31,403,019
3,763,189
35,166,208
Trust Capital $
25,903,018
5,500,001
31,403,019
The accompanying notes form part of these financial statements.
Consolidated
Available for sale financial
assets Accumulated reserve Surplus/(Deficit) Total
$ $ $ 300,343 (26,851 ,594) 4,851,768
(5,410,824) (5,410,824)
(300,343) 300,343
3,763,189
(31,962,075) 3,204,133
Consolidated
Available for sale financial
assets Accumulated reserve Surplus/(Deficit) Total
$ $ $
(18,654) (21,807,510) 4,076,854
318,997 (5,044,084) (4,725,087)
5,500,001
300,343 !26,851 ,594) 4,851,768
5
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
The financial report includes the consolidated financial statements and notes of OUT Enterprise Holdings Trust consolidation and controlled entities (the Group) and the separate financial statements and notes of OUT Enterprise Holdings Trust consolidation as an individual parent entity (Parent).
Each of the entities within the Group prepare their financial statements based on the currency of the primary economic environment in which the entity operates (functional currency). The consolidated financial statements are presented in Australian dollars which is the parent entity's functional and presentation currency.
1. Summary of Significant Accounting Policies
(a) Basis of Preparation
These financial statements are special purpose financial statements that have been prepared in accordance with the following applicable Australian Accounting Standards: AASB 101: Presentation of Financial Statements AASB 107: Cash Flow Statements AASB 108: Accounting Policies, Changes in Accounting Estimates and Errors AASB 1031: Materiality AASB 1048: Interpretation and Application of Standards
No other Accounting Standard, Urgent Issues Group Interpretations or other authoritative pronouncements of the Australian Accounting Standards Board have mandatory application in respect of disclosure requirements. The Trust has however applied the measurement and recognition criteria of all accounting standards.
The financial report covers the for profit economic entity of OUT Enterprise Holdings Trust and controlled entities ('the Trust') and OUT Enterprise Holdings Trust as an individual parent entity. OUT Enterprise Holdings Trust is a fixed trust established and domiciled in Australia.
The financial report has been prepared on an accrual basis and is based on historical costs. It does not 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.
(b) Principles of Consolidation
A controlled entity is any entity controlled by OUT Enterprise Holdings Trust. Control exists where OUT Enterprise Holdings Trust has the capacity to dominate the decision-making in relation to the financial and operating policies of another entity so that the other entity operates with OUT Enterprise Holdings Trust to achieve the objectives of OUT Enterprise Holdings Trust. A list of controlled entities is contained in Note 15 to the financial report. All inter-company balances and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated in full on consolidation. Where controlled entities have entered or left the economic entity during the year, their operating results have been included from the date control was obtained or until the date control ceased.
(c) Income Tax
The economic entity adopts the liability method under which temporary differences are identified for each asset and liability.
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.
6
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
1. Summary of Significant Accounting Policies (cont'd)
(c) Income Tax (cont'd)
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.
The taxable entities within the group are Creative Industries Precinct Pty ltd and qutbluebox Pty ltd. A trust that is not a public trading trust (such as the qutbluebox trust and the OUT Enterprise Holdings Trust) is a flow through Trust for taxation purposes.
(d) Cash and cash equivalents
Cash on hand, in banks and short term deposits are stated at nominal value. For the purposes of the Statement of Cash Flows, cash includes cash on hand and at call deposits with banks or financial institutions, investment in money market instruments maturing within less than two months and net of bank overdrafts.
(e) Goods and Services Tax (GST)
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 expense.
Receivables and payables in the Statement of Financial Position are stated inclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included in receivables or payables in the Statement of Financial Position.
(f) Comparative Figures
Where required by Accounting Standards comparative figures have been adjusted to conform with changes in presentation for the current financial year.
(g) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured.
The following specific recognition criteria must be met before revenue is recognised:
Sale of goods
Control of the goods has passed to the buyer.
Interest
Control of the right to receive the interest payment has been attained.
7
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
1. Summary of Significant Accounting Policies (cont'd)
(g) Revenue Recognition (cont'd)
Research and Licence Fees
Revenue is recognised when the research or project is completed to the extent that the client is legally required to pay the economic entity through qutbluebox under the terms of the contract. Licence Fees are recognised when the economic entity through qutbluebox has an absolute entitlement to the licence fee or payment.
Royalties
Royalties are recognised at the time of invoice when the client is legally required to pay certain royalties to the economic entity through qutbluebox under the terms of the contract.
Grants
Grant revenue is recognised to the extent that the services required to be performed by the grantee have been performed or the grant eligibility have been satisfied. Where grant monies are paid in advance of performance or eligibility, unearned revenue is recognised.
Rent, recoveries and facilities hire and other revenues are recognised in the period that these monies are earned.
(h) Employee benefits
Provision is made for the consolidated entity's liability for employee benefits arising from services rendered by employees to balance date. 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, plus related on-costs. 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.
(i) Unearned Revenue
Unearned revenue is recognised to the extent that the services required to be performed by the provider have been performed or the service eligibility criteria have been satisfied. Where monies are paid in advance of performance or eligibility, unearned revenue is recognised.
(j) Trade and Other Receivables
Collectability of debtors is reviewed on an ongoing basis. A provision for impairment is raised where doubt as to collection exists and debts, which are known to be uncollectible, are written off.
(k) Trade and Other Payables
Trade and sundry creditors represent liabilities for goods and services provided to the economic entity prior to the end of the financial year, which are unpaid. The amounts are unsecured and usually paid within 30 days of recognition.
8
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
1. Summary of Significant Accounting Policies (cont'd)
(I) Property, Plant and Equipment
Property, plant and equipment are measured at historical cost less depreciation. Historical cost includes expenditure directly attributable to the initial acquisition of these items. In accordance with the asset guidelines set by Queensland Treasury & Trade, all assets below the $5,000 threshold are expensed in the year of acquisition to the Statement of Profit or Loss and Other Comprehensive Income.
Depreciation
Depreciation is calculated on the straight-line basis on all property, plant and equipment. The depreciation rates used for each class of assets are:
Fixed asset class
Office equipment
Computer equipment
Leasehold improvements
Plant & equipment
(m) Impairment of Assets
Useful Life
4-5 years
2.5 years
2.5-5 years
4-5 years
At each reporting date the trust reviews the carrying values of its tangible and intangible assets (excluding financial assets referred in note (p)), to determine whether there is any indication that those assets have been impaired. If such impairment 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 Profit or Loss and Other Comprehensive income.
(n) Foreign Currency
All foreign currency transactions during the financial year are brought to account using the exchange rates in effect at the date of the transaction. Foreign currency monetary items at reporting date are translated at the exchange rate existing at that date. Exchange differences are brought to account in the Statement of Profit or Loss and Other Comprehensive Income in the period in which they arise.
(o) Financial Instruments
The trust classifies its financial assets in the following categories: loans and receivables, available-for-sale financial assets, held-to-maturity investments and financial assets at fair value through profit or loss. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition.
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 cost us1ng the effective interest rate method.
9
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
1. Summary of Significant Accounting Policies (cont'd)
(o) Financial Instruments (cont'd)
Available-for-sale financial assets
Available-for-sale financial assets, comprising principally marketable securities, are non derivatives that are either designated in this category or not classified in any other categories. They are included in non-current assets unless management intends to dispose of this investment within 12 months of the reporting date. Investments are designated as available for sale if they do not have fixed maturities and fixed or determinable payments and management intends to hold them for the medium to long term.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity. Investments are classified as held-to-maturity if it is the intention of the Trust's management to hold them until maturity.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss are financial assets held for trading. A financial asset is classified in this category if acquired principally for the purpose of selling in the short term. They are included in non-current assets unless management intends to dispose of the investments within 12 months from the reporting date.
Recognition and Derecognition
In accordance with AASB 139 Financial Instruments: Recognition and Measurement, investments in other entities are classified as "Available for Sale" financial assets as the Trust does not trade in these investments as a principal activitiy.
Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Trust has transferred substantially all the risks and rewards of ownership.
When securities classified as available for sale are sold, the accumulated fair value adjustments recognised in equity are included in the Statement of Profit or Loss and Other Comprehensive Income as gain and losses from investment securities.
Measurement and Impairment of assets available for sale
In accordance with AI FRS, financial assets shall be measured at their fair value. The fair value of financial instruments traded in active markets is based on quoted market prices at the statement of financial position date. Previously these were valued based on an average of the quoted closing list price for five trading days prior to year end date. This change in valuation policy has had no impact on the prior year's figures. However under AASB 139.46 investment in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured shall be measured at cost. Management has therefore chosen to measure their investments in other entities at cost as the shares of these entities are not publicly traded.
Any impairment loss is recognised directly to equity. Any subsequent increases in fair value after an impairment loss are recognised directly in equity.
10
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
1. Summary of Significant Accounting Policies (cont'd)
(p) Intangible Assets
Software is recorded at cost. Software has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of 2.5 years. Costs incurred with respect to the establishment and maintenance of patents are expensed as incurred.
(q) Critical Accounting Estimates and Judgments
The directors' evaluation, estimates and judgments incorporated into the financial report are based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future 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 information available at the time of preparing the financial statements, however as additional information is known then the actual results may differ from the estimates.
(r) Adoption of New and Revised Accounting Policies
The AASB has issued new and amended Accounting Standards and Interpretations that have mandatory application dates for future reporting periods. The Trust has decided against early adoption of these standards. A discussion of those future requirements and their impact on the Trust follows:
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 January 2018. It is expected that this will not have a material impact on the entity.
AASB 2014-1 "Amendments to Australian Accounting Standards" relating to amendments to AASB 1031 "Materiality". This amendment is applicable to periods beginning on or after 1 July 2014. There is not expected to be any changes to the reported financial position, performance or cash fiows of the Company.
(s) Capital Risk Management
The directors manage the capital to ensure that the Trust is able to continue as a going concern to be able to satisfy future capital needs of the Trust, through the commercialisation of debt and equity balances.
The capital structure of the Trust consists of cash and cash equivalents and equity comprising of Trust 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.
(t) Third Party Interests
Consistent with Queensland University ofTechnology policy, once an investment in shares and securities is sold, the net revenues received are to be split three equal ways as follows:
1. Inventors;
2. The central University fund;
3. The Trust.
II
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
1. Summary of Significant Accounting Policies (cont'd)
(t) Third Party Interest (cont'd)
Therefore, two thirds of each investment represents a liability. These liabilities are recorded at cost as they cannot be reliably measured in accordance with AASB 139.
In respect to other commercialisation revenue (e.g. milestone payments, royalties, etc) the subject of Queensland University of Technology policy, third party interests are expensed in the current year and recognized as Cost of Sales in the Statement of Profit or Loss and Other Comprehensive Income.
(u) Leases
The Trust only holds operating leases. The cost of improvements to or on leasehold property is capitalized, disclosed as leasehold improvements and depreciated over the estimated useful lives of the improvements.
The economic entity is not party to any finance leases.
12
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
2 Revenue
Consolidated Parent 2015 2014 2015 2014
$ $ $ $
Operating Activities Incubator membership, rent and recoveries 224,547 167,887
Sale of goods & other income 461,035 19,671
Facilities hire 975 4,050
Interest 70,949 89,002 15,867 27,715
Licence fees & royalties 162,120 228,223
Research and development fees 22,984 281,060
Creative 3 Forum 151,802 124,283
Fashion Incubator 153,247 147,036
Pre Commercialisation income 48,850 128,717
Other 27,045 9,269 456 2,265
1,323,554 1,199,198 16,323 29,980
3 Operational Costs
Consolidated Parent
2015 2014 2015 2014 $ $ $ $
Licence fee costs 15,177 54,916
Third party interest in financial assets 187,515 223,381
Consulting and project management costs 83,919 102,100
Research and development fees 17,984 284,677
Finance expense 69,938 50,927 9,687 8,344
Doubtful debts expense (795) (1 ,344)
Materials and services 1,086,126 960,948 80,690 107,399 Intellectual property costs 452,879 208,710
Proof of concepts costs 696,762 546,058
Pre Commercialisation COS 48,850 128,717
Other programs & initiatives 186,006 149,173
Depreciation and impairment 40,637 64,377
Forum 131,802 114,620
Sponsorship 6,000 6,000 Fashion Incubator 55,739 53,853
Travel and accommodation 70,674 59,939
3,143,213 3,001,052 96,377 121,743
13
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
4 Cash and cash equivalents
5
6
Cash on hand
Cash at bank Short-term bank deposits
Trade & Other Receivables
Trade receivables Less provision for impairment GST receivable
Financial Assets
Non-Current
Available for sale financial assets- shares in listed corporations
Available for sale financial assets- shares in unlisted corporations
Consolidated
2015 2014 $ $
2,071 1,529
3,104,691 4,135,711
500,000 680,000
3,606,762 4,817,240
Consolidated
2015 2014 $ $
44,398 282,165
(4,700) (5,495) 81,281 81,839
120,979 358,509
Consolidated
2015 $
770,002
770,002
2014 $
503,679
475,001
978,680
Parent
2015 $
55,565
55,565
2015 $
Parent
20,451
20,451
2015 $
Parent
2014 $
1,902,107
1,902,107
2014 $
25,470
25,470
2014 $
14
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015 6 Financial Assets (con!' d)
Investment
2015 2014 Country of $ $ Incorporation
Adalia Pty Ltd - ordinary shares Australia
Rail Innovation Australia Pty Ltd -ordinary shares Australia Leaf Energy Ltd -ordinary shares 503,679 Australia Fame & Partners Pty Ltd- ordinary shares 150,000 150,000 Australia Vald Performance Pty Ltd - ordinary shares 150,000 150,000 Australia See Out Pty Ltd - preference shares 100,001 100,001 Australia Metaverse Makeovers Pty Ltd- preference shares 150,000 75,000 Australia
Handkrafted Pty Ltd - Class 'A' preference shares 25,000 Australia Gigged In Pty Ltd- ordinary shares 120,001 Australia Hypometer Technologies Pty Ltd- ordinary shares 75,000 Australia
770,002 978,680
2015 2014 Volume Volume
Adalta Pty Ltd - ordinary shares 153,215 153,215 Rail Innovation Australia Pty Ltd -ordinary shares 569 569 Leaf Energy Ltd -ordinary shares 4,197,328 Fame & Partners Pty Ltd- ordinary shares 76,400 76,400 Vald Performance Pty Ltd- ordinary shares 150,000 150,000 See Out Pty Ltd - preference shares 13,109 13,109 Metaverse Makeovers Pty Ltd - preference shares 21,146 10,573 Handkrafted Pty Ltd -Class 'A' preference shares 250,000 Gigged In Pty Ltd- ordinary shares 19,737
Hypometer Technologies Pty Ltd- ordinary shares 750
7 Other Assets
Consolidated
2015 2014 Current $ $
Prepaid Expenses 65,300 70,614
FBT Instalments
Other Debtors 33,671 64,952
98,971 135,566
Non-Current
Loan receivable 2,800
2,800
Percentage Held
2015
2015 $
% 3.02
2.63
4.17 23.08
6.60
7.81
1.92
5.56
10.00
Parent
41,788
41,788
2014
% 3.02
2.63 3.70
6.89 37.50
2014 $
6.60
4.42
41,200
41,200
15
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
8 Property, Plant and Equipment
Consolidated Parent
2015 2014 2015 2014 Office Equipment $ $ $ $ Office equipment- at cost 94,945 94,945
Less accumulated depreciation (94,945) (94,945)
Computer Equipment
Computer equipment- at cost 46,781 46,781
Less accumulated depreciation (46,781) (46,781)
Leasehold Improvements
Office fitout - at cost 339,977 339,977
Less accumulated depreciation (323,655) (300,148)
16,322 39,829
Plant & Equipment
Plant & equipment- at cost 18,448 11,948
Less accumulated depreciation (12,447) (11,948)
6,001
22,323 39,829
9 Intangible Assets
Consolidated Parent
2015 2014 2015 2014 Website Development $ $ $ $ Website development- at cost 46,880 46,880
Less accumulated amortisation (46,880) (30,249)
16,631
10 Trade & Other Payables
Consolidated Parent
2015 2014 2015 2014 Current $ $ $ $ Trade payables 218,144 150,122 8,679 19,191
PAYG Withholding 56,206 44,293 3,068 2,002
Superannuation payable 34,745 14,847
Accrued expenses including project expenses 370,788 669,172 7,995 31,681
Other creditors 404,557 (1,394)
1,084,440 877,040 19,742 52,874
16
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
10 Trade & Other Payables (cont'd)
11
12
Non~Current
Other creditors
Other Liabilities
Current
Customer deposits
Unearned revenue
Provisions
Current
Provision for annual leave entitlements
Non-Current
Provision for long service leave entitlements
13 Trust Capital
Trust contributions from OUT- Ordinary shares
Consolidated
2015 $
2014 $
352,709
352,709
Consolidated
2015 2014 $ $
17,367 13,892
66,648 65,429
84,015 79,321
Consolidated
2015 2014 $ $
145,735 100,091
145,735 100,091
100,714 88,326
100,714 88,326
Consolidated
2015 2014 $ $
35,166,208 31,403,019
35,166,208 31,403,019
2015 $
2015 $
2015 $
2015 $
Parent
Parent
Parent
Parent
35,166,208
35,166,208
2014 $
2014 $
2014 $
2014 $
31,403,019
31,403,019
17
QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
14 Cash Flow Information
Reconciliation of result for the year to cashflows from operating activities
Reconciliation of net income to net cash provided by operating activities:
Profit I (loss) for the year
Cash flows excluded from profit attributable to operating activities
depreciation
provision for doubtful debts
profitl(loss) on disposal of fixed assets
profitl(loss) on sale of available for sale financial assets
available for sale financial asset reserve transferred to retained losses
Non-cash flows in profit: Impairment expense
Changes in assets and liabilities, net of the effects of purchase and disposal of subsidiaries:
(increase )/decrease in receivables
(increase/decrease in other assets
increase/( decrease) in trade and other payables
increase/( decrease) in other liabilities
increase/( decrease) in provisions
Cashflow from operations
15 Investments in Controlled Entities
Subsidiaries of OUT Enterprise Holdings Trust:
Creative Industries
2015
$
Investment
2014
$
Precinct Pty Ltd 1,549,758 1 ,270, 108
qutbluebox Pty Ltd 2 2
qutbluebox Trust 1,556,313 1,665,755
3,106,073 2,935,865
Impairment Expense
Consolidated
2015 2014 $ $
(5,410,824) (5,044,084)
40,636 64,376
(795) (1 ,344)
(461,035)
300,343
239,969 39,420
41,418 (97,435)
(123,364) 344,113
(3,666) 1,795
58,033 19,800
(5,319,285) (4,673,359)
Country of Incorporation
Australia
Australia
Australia
Parent
2014 $
(5,410,824)
4,570,711
(587))
(33,131)
5,018
(868,813)
2014 $
( 4, 725,087)
3,889,570
(41,200)
6,341
(5,981)
(876,357)
Percentage Held
% %
100 100
100 100
100 100
The impairment expense of $4.5m (2014: $3.8m) relates to the impairment loss of investing in the subsidiary organisations and is recorded at the net asset or net Statement of Financial Position value of each entity. The Boards believe this in an appropriate measure of value for each entity as it represents a fair value.
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QUT Enterprise Holdings Trust
Notes to the Financial Statements For the Year Ended 31 December 2015
16 Auditors' Remuneration
Queensland Audit Office
Audit and review of financial statements
17 Contingencies
Consolidated
2015 $
34,500
2014 $
33,800
The economic entity has no known contingent assets or liabilities as at 31 December 2015.
18 Economic Dependence
2015 $
6,500
Parent
2014 $
6,000
During the last financial year, the economic entity has been reliant on funding from the Queensland University of Technology to enable it to carry out its operations and meet its objectives. The entity adopts a budget framework on a triennial basis to facilitate the alignment with organisation areas' strategic plans reflecting the University's methodologies and policies relating to the distribution of revenue and capital inflows.
A new triennial budget framework methodology and policies has been completed during 2015 and provides for the future needs of the economic entity for the period 2016-18. The approved budget for the economic entity during the time frame is $16.5 million.
19 Subsequent Events
The economic entity has no known subsequent events as at 31 December 2015.
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QUT Enterprise Holdings Trust
Directors' Declaration
DIRECTORS' OF QUT ENTERPRISE HOLDINGS PTY LTD AS TRUSTEE OF THE QUT ENTERPRSE HOLDINGS TRUST
DECLARATION
The directors of the trustee company declare that:
1. The financial statements and notes, as set out on pages 1 to 1 9:
(a) Comply with OUT Enterprise Holding Trust Deed, Accounting Standards; and
(b) Give a true and fair view of the financial position as at 31 December 2015 and of the performance for the financial year ended on that date of the trust and economic entity.
2. In the Trustee's opinion there are reasonable grounds to believe that the trust will be able to pay its debts as and when they become due and payable.
This declaration is made in accordance with a resolution of the directors of the trustee company.
DkectoruuL Uuu c/~euu uu u
Dr.Jenny Harry
Dated this \ 1(-..H-_ day of February 2016.
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INDEPENDENT AUDITOR'S REPORT
To the Trustee and Members of QUT Enterprise Holdings Trust
Report on the Financial Report
I have audited the accompanying financial report, being a special purpose financial report, of QUT Enterprise Holdings Trust, which comprises the statement of financial position as at 31 December 2015, 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 certificates given by the directors of QUT Enterprise Holdings Pty Ltd as trustee of the QUT Enterprise Holdings Trust which is the consolidated entity comprising the trust and the entities it controlled at the year's end or from time to time during the financial year.
The Trustee's Responsibility for the Financial Report
The trustee is responsible for the preparation and fair presentation of the financial report and has determined that the basis of preparation described in Note 1 to the financial report is appropriate to meet the requirements of the trust deed of the QUT Enterprise Holdings Trust dated 7 August 2002 and is appropriate to meet the needs of the members. The trustee's responsibility also includes such internal control as the trustee determines is necessary to enable the preparation and fair presentation of the financial report that 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 entity's preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the trustee, as well as evaluating the overall presentation of the financial report.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit opinion.
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Independence
The Auditor-General Act 2009 promotes the independence of the Auditor-General and all authorised auditors. The Auditor-General is the auditor of all 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.
Opinion
In accordance with the provisions of the trust deed of OUT Enterprise Holdings Trust dated 7 August 2002, I have audited the financial report of OUT Enterprise Holdings Trust, and-
(a) I have received all the information and explanations which I have required; and
(b) in my opinion, the financial report presents fairly, in all material respects, the financial position of OUT Enterprise Holdings Trust as at 31 December 2015, and its financial performance and cash flows for the year then ended in accordance with the accounting policies described in Note 1.
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 trustee's financial reporting responsibil ities under the trust deed. As a result, the financial report may not be suitable for another purpose.
'Jff)~~ J F Welsh FCPA 4Uo \C~ (as Delegate of the Auditor-General o GlutfeHU'am:f
Queensland Audit Office Brisbane
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