ANNUAL REPORT 2015aim-drupal-files.s3.amazonaws.com/s3fs-public/AIMGroup_AnnualRe… · 6 ANNUAL REPORT 2015 AUSTRALIAN INSTITUTE OF MANAGEMENT AUSTRALIAN INSTITUTE OF MANAGEMENT

ANNUAL REPORT2015

ANNUAL REPORT 2015 AUSTRALIAN INSTITUTE OF MANAGEMENT2

BETTER MANAGERS. BETTER LEADERS. FOR A BETTER SOCIETY. For 75 years The Australian Institute of Management has been helping people become better managers, and managers become great leaders.

As the peak body for managers and leaders, we believe that leadership matters. This belief lies at the heart of everything we do.

With more than 12,000 individual and corporate Members – and a further 5000 organisations that purchase our diverse range of management and leadership products and tools – AIM is the go-to organisation for professional managers and leaders.

Whether you work in a large multinational, a small local business, your own business or the public sector, AIM represents you in promoting sound management and leadership practice. We believe that great managers and leaders make decisions that impact people’s lives and that this impact is felt well beyond the workplace.

With the right tools, resources, networks and focus, these decisions have a positive impact on society. This view is captured in AIM’s Vision: Better Managers. Better Leaders. For a better Society.

04FROM THE CHAIR

12DIRECTORS’ REPORT

08HIGHLIGHTS OF 2015

12OPERATING AND FINANCIAL REVIEW

07FROM THE CHAIR OF THE MEMBERSHIP & STRATEGY COMMITTEE

23CONSOLIDATED STATEMENT OF FINANCIAL POSITION

27NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

17DIRECTORS’ PROFILES

24CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

50INDEPENDENT AUDITOR’S REPORT

15DIRECTORS

25CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY

26CONSOLIDATED STATEMENT OF CASH FLOWS

CONTENTS

ANNUAL REPORT 2015 AUSTRALIAN INSTITUTE OF MANAGEMENT 5 ANNUAL REPORT 2015 AUSTRALIAN INSTITUTE OF MANAGEMENT4

I am delighted to present the detailed annual report for 2015 for the Australian Institute of Management.

This year has been a year of momentous change at the Institute. In 2014, four out of the five state based

“divisions” of AIM merged to form the AIM Group, effectively dissolving the previously federated structure.

After a detailed analysis and review of the underlying businesses within the AIM Group, a decision was

made to divest of AIM’s Education & Training (AIMET) business. The subsequent transaction with CHAMP

Ventures means AIM can now focus solely on our core business – Membership.

Although AIM and AIMET continue to work collaboratively, the businesses are diverging perhaps more rapidly than some commentators

had expected. This reflects the differences between our respective businesses and, particularly, the differences between our target

markets. The important constant is that AIM retains ownership and control of the AIM brand and AIM Members will continue to enjoy

what they have always had: discounted access to market-leading education and training products.

Whilst it’s comforting to reaffirm the previous Board’s decision to divest of AIMET, it’s the ensuing transformation of the business that

has proven to be really powerful. Everything we do is focused on our Members and being the Membership organisation our Members

want and demand.

This report illustrates the progress we have made in 2015 towards re-establishing AIM as YOUR Membership organisation and as the go-

to professional body for managers and leaders.

Financial Results

Given the trading losses of recent years, of course one of our primary objectives has been to achieve an operating surplus. On this front,

I’m very pleased to report that the turnaround continues:

This summary of AIM’s financial results illustrates what we have done to secure Member equity, preserve the balance sheet and turn

a poorly performing business focused on education and training into a vibrant Member organisation. These results provide a secure

financial platform for the future of AIM.

As a Member organisation, Member numbers and corresponding Membership revenue are the backbone of our business. Over the past

five years our Member numbers nationally have been declining. The real challenge for us now is to recover lost Members and build a new

and expanded Membership base.

We now have the team in place to fulfil the task before us. Over the past year we’ve rebuilt the AIM team and done considerable work

on the AIM culture. As I travel around the country meeting staff and Members, I’m getting a very strong sense that we’re building the

Member-centric culture we need to succeed. It’s my hope that Members and potential Members are starting to feel that too!

Leadership Matters. A new leadership team, a new vision and a new Member engagement strategy.

Our focus in 2015 was to create a solid platform on which we could build a professional Membership body, one which we can all be

proud of. This required a new leadership team, a new vision and a new strategy. You can find out more about the progress we have made

in the Report from the Membership & Strategy Committee Chair.

AIM’s new Chief Executive – David Pich

In August 2015, after a lengthy national search, the Board appointed David Pich as the first Chief Executive

of AIM, the national Membership organisation. David joined AIM with a deep understanding of Member-

focused organisations gleaned from almost 15 years in the sector. Prior to his appointment at AIM, David

was the Head of Australia and New Zealand at the Association of Chartered Certified Accountants (ACCA),

one of the world’s largest Membership bodies.

In addition to his experience in the Membership sector, David brought with him a passion for sound leadership and an understanding of

engagement from both an external (Member) and an internal (Culture) perspective.

A new leadership team and organisational structure

Appointing the Chief Executive was only the first step. This quickly led to the Board approving a management structure reflecting AIM’s

role to provide value to Members at every stage of their career journey as the go-to professional body for managers and leaders.

The new AIM management structure is focused on Member engagement and Membership growth. At the heart of this is our

commitment to offering a broad range of management and leadership products and services to Members in as many locations around

Australia as possible.

AIM’s new leadership team is structured around the four central elements of our new strategy:

Membership Operations. Ensuring that the administrative service our Members receive from the Institute is both seamless and efficient,

with a locally based Member Services Team that can be easily reached on 1300 661 061.

Member Engagement. Responsible for delivering programs and events to Members in all State capitals as well as in regional Australia,

the Member engagement team will continue to build on the number and quality of AIM’s events and programs that have increased

significantly over the past 12-months. See pages 8-10 for more about some of the specific events and programs that AIM offers.

Policy, Advocacy & Research. As ‘the go-to professional body for managers and leaders’ it’s up to AIM to set the agenda on leadership

matters. Our newly established team will achieve this through the monthly Insight Edge Newsletter, our National Salary Survey and our

newly established Press Office.

Commercial, Partnerships & Sponsorships. Collaboration is the key to growth. So we’ve developed a team responsible for new product

launches and forming partnerships that foster sound management and leadership. Most recently, we launched AIMs – a new offering to

the undergraduate student market.

AIM’s Vision - Better managers. Better leaders. For a better society.

Following the reinvigoration of AIM as a Membership organisation, the Board embarked on a process to re-define the long term vision of

the business. This landmark exercise would provide the framework for the new strategy and direction of the organisation developed by

our new Chief Executive in conjunction with the leadership team.

AIM’s vision – Better managers. Better leaders. For a better society – is a bold statement about the importance of sound management

and leadership practice and its far-reaching impact. I believe that the Vision truly embodies the sentiment of our Members. Certainly,

I have heard very clearly – formally through our annual Member Survey and anecdotally at Member events and functions – that AIM’s

Members recognise the importance of leadership both within the workplace and throughout society in general.

From my own perspective, I joined AIM 30 years ago as an under-graduate Student Member because I wanted to equip myself as a

better manager and a better leader. I also hoped that AIM Membership would help me get a job when I graduated – and it did! Like so

many Australians, I lived and worked overseas for an extended period. I studied some more. My career took various twists and turns. I

studied something else. I took time out of the workforce when I decided to become more involved day-to-day in raising my children.

My interest in and involvement with AIM waxed and waned. My Membership lapsed for a time. But at the end of the day, I wanted

to better understand leadership and hone my own leadership skills so that I could make a contribution both within and outside the

FROM THE BOARD CHAIR

2015 2014

Revenue 6,894,724 5,433,874

Operating Expenses 7,119,731 6,088,118

Operating Loss (225,007) (654,244)

Training Business Loss - (25,798,145)

Net Loss (225,007) (26,452,389)


As Chair of the Membership & Strategy Committee, 2015 saw a period of great change, yet great

opportunity at AIM. The transition to becoming a dedicated Membership body once again, saw AIM

returning to our roots, enabling us to deliver products and services with much more clarity.

For this reason, our focus has become razor sharp on delivering value to you, our Members, via a broad

range of Member programs and events. We have teams on the ground to deliver events and provide

initiatives of relevance to you, in order to develop your networks, develop yourself or develop your team.

Whether you are starting out in your career and looking for career guidance, you may have signed up for AIM’s mentoring

program, Member Exchange, or whether you are developing yourself with resources and tools, EBSCO or the Library may have

been of use to you, or you may have nominated a colleague for AIM’s Excellence Awards.

AIM has strong regional representation via our Regional Advisory Committees, drawing on local experience and insights from

these Members. In 2015 we had 7 Regional Advisory Committees, the number of which will double in 2016 – a key part of our

strategy to grow Member numbers in 2016 beyond.

The 2015 Membership numbers as at 31 Dec 2015 are:

workplace and that’s what really led me back to AIM. Life is a journey and I firmly believe that AIM is an organisation that has a role to

play in supporting each of us both personally and professionally, throughout our journey.

AIM’s Vision “Better managers. Better leaders. For a better society.” captures something very powerful for me. It places that important

link between the impact of sound management and leadership both inside the workplace and beyond at the heart of our organisation.

Leadership Matters – AIM’s 3 year strategy

With the Vision in mind, next came the development of AIM’s 3 year strategy. This strategy was approved by the Board in

November 2015 before being presented to the entire AIM Staff in December 2015. You will be aware of some of the detail

of the strategy as it has been implemented through the recent Leadership Outlook events and in your new Membership

magazine – also called Leadership Matters.

The strategy is comprehensive and wide ranging. It is an engagement-based strategy that places our Members and Member services at

the heart of the organisation.

Leadership Matters is built on one simple premise, that you as a Member want to see AIM add value to your leadership journey –

something you have told us over the past two years. I believe that our Strategy has already started to deliver this value. For example,

AIM’s Leadership Outlook Series in February 2016 was delivered across 15 locations to more than 650 Members.

We are really just beginning this journey, but the signs are already very encouraging.

Our partnership with AIM Education & Training (AIMET)

Although AIM no longer directly provides education and training services, we recognise the need for formal courses and educational

pathways. These are still available to you as AIM Members through our sister organisation AIM Education & Training.

Other than the majority ownership of this business, little has changed. As an AIM Member you can still access an attractive Member

discount for all of these courses and the formal training available is still of the highest quality and relevance. In most locations, training is

still delivered on AIM Campuses as we continue to share premises with our education colleagues.

AIM focuses on the broader aspects of the rich and diverse journey that is management and leadership, leaving the more formal training

and education piece to the experts – AIM Education & Training.

Looking ahead – 2016 and beyond

After a period of significant change and consolidation, AIM has embarked on an exciting new journey, but in many ways it’s “back to the

future”. The Institute was established in 1941 as the Membership body for professional managers and leaders.

The vision of the original founders was to create an organisation that could accompany its Members throughout their careers. An

organisation that offered a place for like-minded managers and leaders to get together and learn from each other – and from others –

about sound management and leadership practice. AIM was an organisation where managers and leaders could gather to network and

share their experiences.

That was the old AIM and I’m delighted to say that it is also the new AIM. As Chief Executive David Pich said at a recent Member event:

“AIM is back and we are more focused, bigger and stronger than ever before.”

On behalf of the Board of the Australian Institute of Management, I would like to thank you for your continued Membership. Without

our Members there would be no AIM and without AIM there would be no professional body to advocate for better managers and better

leaders for a better society.

By State

ACT 456

NSW 2910

NT 112

QLD 2443

SA 621

TAS 143

VIC 2195

WA 87

Overseas 233

TOTAL 9200

As the peak body for managers and leaders, our reason for being is to support you in your management and leadership journey.

As Chair of the Membership & Strategy Committee, I am delighted to recap an exciting year, as we re-defined what Membership

of AIM means, which is essentially what we always were – the preeminent Membership body for managers and leaders.

Ann Messenger FAIM Chair, AIM Group

FROM THE MEMBERSHIP STRATEGY & COMMITTEE CHAIR

16 ANNUAL REPORT 2013 AUSTRALIAN INSTITUTE OF MANAGEMENT

Directors’ Profiles

Julie Boyd FAIM, DirectorJulie Boyd was elected as the first female Mayor of the City of Mackay and retained that role for 11 years from 1997 to 2008. Julie was involved in Local Government for 16 years during which time Mackay was one of the fastest growing cities in Australia. Julie oversaw a number of large infrastructure and lifestyle projects that were instrumental in improving the quality of life for the city’s residents.

Julie originally trained as a Registered Nurse having completed her studies in Brisbane at the Mater Hospital and undertook Midwifery studies in Scotland. She studied Politics, South East Asian Religions and History at the University of Queensland. From 2008 to 2010 Julie represented the Queensland Government as the Special Trade Representative to Japan, Republic of Korea and the Philippines and was then appointed as the Trade Representative for Queensland to Africa until 2012.

Julie sits on a number of Boards both in Brisbane and Mackay and undertakes consultancy work in the area of Corporate Governance. Julie is a Fellow of the Australian Institute of Management and a Graduate of the Australian Institute of Company Directors.

Chris Burns FAIM, DirectorChris Burns enlisted in the Australian Army as an apprentice electrician in 1975. On completion of his trade training, he undertook officer training and graduated into Armour as a tank commander. Chris’ early career saw him serving in a number of operational armoured units and as an instructor of recruits and officer cadets.In 1988 Chris was seconded to the United Nations as a military observer where he saw service on the Golan Heights in Syria, in Iran for the establishment of the ceasefire between Iran and Iraq and in the Gaza Strip during the first Palestinian uprising. In subsequent postings, Chris served with the US Army in Hawaii as the Commanding Officer of the 2nd/14th Light Horse Regiment and in the Defence Science and Technology Organisation.

On promotion to Colonel, Chris was appointed as the Director of Operations in Army Headquarters where he oversaw Army’s global operations including Afghanistan, East Timor and Iraq. Following this, Chris was appointed as the Australian Defence Attaché in the Philippines and the Micronesian nations based out of the Australian Embassy in Manila.

On returning to Australia, Chris transferred to the Army Reserve and established his own consultancy company. Chris served as the Director – Land in Defence, South Australia from July 2008 until May 2010. He assumed the appointment of Chief Executive Officer of the Defence Teaming Centre in May 2010. Chris was awarded the Conspicuous Service Cross in 2003 Australia Day Honours List. Chris is also the recipient of the US Meritorious Service Medal and the Philippine Legion of Honour.

Julie Boyd FAIM

Chair, AIM Membership & Strategy Committee

By Grade

Fellows (FAIM) 2465

Associate Fellows (AFAIM) 1737

Members (AIMM) 4660

Emerging Managers (AIMe) 134

Student Access 204

TOTAL 9200


Emerging Leaders Board Emerging leaders are the future of AIM.

AIM’s Emerging Leaders Board (previously named Young

Managers Advisory Board) once again recognised stand

out emerging leaders and managers in the AIM30 Under

30 program, such as Stephanie Lorenzo, Founder and CEO

of PROJECT FUTURES Ltd and Ryan Dillon, Founder of

Websters Group.

Acknowledging that AIM has a vast opportunity to grow

our Member base for emerging managers and leaders, the

Emerging Leaders Board has a renewed focus to engage with

managers and leaders under the age of 35. We collectively

encourage Members to advocate for AIM Membership for your

networks of emerging leaders. The Emerging Leaders Board

firmly believe that Membership with AIM will support you to

grow yourself, grow your profile and grow your tribe.

AIM would like to thank the Emerging Leaders Board for their

involvement in 2015.

Outstanding Women’s Series In its 21st year the AIM Outstanding Women’s Series shared

the stories of Mel Greig and Jo Cavanagh, women who both

experienced hardship and success in their professional and

personal lives.

Jo Cavanagh OAM FAIM, the CEO of Family Life presented

at the second Outstanding Women’s Series in 2015. As a

passionate advocate for vulnerable children and families, Jo

was recognised for her services to the community with an

Order of Australia in 2013. Her inspirational leadership also

saw her acknowledged as one of Australian Financial Review

and Westpac’s 100 Women of Influence in 2014.

In front of a crowd of 150 attendees at Peninsula in

Melbourne she spoke about her extensive experience at

Board level in the not for profit sector, challenges she has

faced in both work and life and the ways in which she has

overcome obstacles.

Outstanding Women’s Series was also delivered in Sydney

and was attended by 150 at Sydney’s Doltone House – Hyde

Park and was live screened to our Adelaide Office at a

simultaneous breakfast.

AIM’s Outstanding Women’s Series will expand its focus in

2016 to include Leaders of all types, so keep an eye out for

AIM’s Outstanding Leaders Series.

International Women’s Day As part of our Diversity Matters series, AIM celebrated

International Women’s Day (IWD) in 2015 in Brisbane,

Melbourne and Sydney to sold-out crowds. Across these three

events AIM hosted around 2,250 attendees.

2015 marked the latest in a long line of successful IWD events

delivered by AIM in Brisbane, and the launch of the Sydney

and Melbourne debates. These events are held as a debate

format – taking a serious topic and tackling it in a witty way.

This topic discussed, ‘Do women need to make hard

choices to get ahead?, provided much food for thought

and well-known personalities such as author Jane Caro and

NBC correspondent Sara Jane brought the topic to life in

Melbourne. Meanwhile, Sydney was entertained by MC Gretel

Killeen and Mamamia writer, Rosie Waterland. Brisbane’s

long-standing event, once again showcased local talent and

boasted MC Leisa Barry-Smith for the eleventh year.

These events raise funds for grass roots charities – $58,330 in

total, with Brisbane raising a staggering $52,825!

Over the last 3 years, AIM has engaged with almost 6,000

people on International Women’s Day. Gender diversity is high

on AIM’s agenda and events such as these provide a strong

platform for debate.

HIGHLIGHTS OF 2015

National Salary Survey For over fifty years, the AIM National Salary Survey (NSS) has

been one of the leading remuneration benchmarking tools on

the market.

2015 was a big year for the National Salary Survey as AIM

invested a significant amount of resources to improving the

Survey. After an extensive market research campaign in 2014

(with NSS clients), AIM brought about the following changes:

> Merged the Large and Small company editions. Prior to

2015, there was a Large and a Small company edition of

the Survey. By merging the two, it not only simplified the

production of the survey, but also gave a wider range of

position titles to all NSS clients.

> Implemented a salary spreadsheet for easier uploading.

Contributing organisations can now download a

spreadsheet template, enter their data and easily upload

into the Survey.

> Combined the drill-down and benchmarking (online) tools.

> New look and feel to match the AIM brand.

The National Salary Survey will continue to deliver unbiased

and up-to-date remuneration information to AIM Members

and clients. With data from 25,000 employees for over 270

jobs, across a variety of industries, the NSS is your answer to

salary certainty.


Member Exchange For two years now, AIM has been delivering a free mentoring

program to our Members. Whether you are starting out in

your career and seeking an unbiased view from someone

who has paved the way before you, or whether you are

more experienced and hoping to give back, AIMs mentoring

program is a great way to ‘get involved’.

AIM’s Mentoring Program, Member Exchange, is exactly

that – an exchange. An exchange of views, experience and

networks.

This six month program had some key enhancements in 2015,

including:

> An enhanced resource booklet, with mentoring

program guidance and planning tools

> A webinar to ‘kick off’ the program

> Monthly articles on topics relating to career

development and personal development

Excellence Awards For over 20 years AIM has celebrated management and

leadership excellence with our flagship awards program. The

Excellence Awards launched nationally in 2014 and 2015 saw

the events go from strength to strength, attracting over 500

nominations across Australia. With representation in all states

and territories, it was great to see that three out of the four

winners of the National Final were from regional areas in

Tasmania and Queensland and the fourth from Perth.

Winners included: Rebecca McSwiney, Young Manager

of the Year, for her work with the University of Southern

Queensland’s (USQ) social media portfolio, online content

strategy and launching the USQ Social Hub. Marcus Stafford,

Not-for-Profit Manager of the Year for the growth he has

overseen at The Multiple Sclerosis Society in WA, SA and NT.

Kirk Pinner was named the Owner Manager of the Year, for

the outstanding success of his training organisation Outside

the Square. Finally, Joe Rea was presented the honour of

winning Manager of the Year for his leadership of over 1,200

employees and his commitment to driving cultural shift when

it comes to workplace safety at Boyne Smelters Limited (BSL).

The Excellence Awards represents an unparalleled opportunity

for AIM to profile and celebrate management and leadership

excellence. To all of the nominees, winners (regional, state and

national) and judges – we thank you for being a part of the

Awards program in 2015.

CONSOLIDATED FINANCIAL REPORT FOR THE YEAR ENDED31 DEC 2015


The Directors have pleasure in presenting their report

together with the consolidated financial statements of the

Australian Institute of Management (Group) Limited (the

Company) and the entities it controlled at the end of, or

during, the year ended 31 December 2015, and the Auditors’

report thereon. Throughout the report, the consolidated

entity is referred to as the Group.

Corporate informationThe Australian Institute of Management (Group) Limited is

a company limited by guarantee, incorporated in Australia

under the Corporations Act 2001 and domiciled in Brisbane.

Operating and financial reviewReview of operationsAs the peak professional association for managers and

leaders, the Group offers services to its Members to meet

their needs for career development, resource access,

professional recognition and networking opportunities.

The Group supports the development of management and

leadership capability in the broader community through

mentoring, the AIM Leadership Excellence Awards and

through the awarding of scholarships for professional

development.

Principal activitiesThe principal activities of the Company and its subsidiaries

entities (the Group) are to provide a professional association

for managers and leaders and to conduct management

development activities and consulting. Other than disposal

of the Training business as outlined below, there was no

significant change during the year in the principal activities of

the Group.

Disposal of Training businessOn 10 February 2015, the Group’s subsidiary entity Australian

Institute of Management Education & Training (AIMET) (the

Training business) issued Exchangeable Notes to Castle

Harlan Australian Mezzanine Partners (CHAMP Ventures) and

entered into an Exchangeable Notes Subscription Deed that

allowed CHAMP Ventures to effectively manage the Training

business of the Group from 1 March 2015. These Notes were

subsequently exchanged with ordinary shares upon AIMET

changing its status on 16 October 2015 from a Limited by

Guarantee Company to a Company Limited by Shares.

The effect of this is that, by agreement dated 10 February

2015, the Group agreed to dispose of the Training business

(the disposal group). The disposal group was reported in

the 2014 financial statements as a discontinued operation.

The disposal group was recorded in the balance sheet at

31 December 2014 at the fair value of the consideration

received which was $ nil. As a result, the net assets of the

disposal group at a pre-transaction carrying amount of

$12,694,219 were classified as assets/liabilities held for sale

and an impairment charge was recorded to value them at sale

consideration of $ nil.

Given the control over AIMET was effectively passed onto

CHAMP Ventures on 1 March 2015, the operating results of the

disposal group for the period ended 28 February 2015 have

been consolidated into the operating results of the Group

and are recorded as income and expenses from discontinued

operations. To close the disposal of discontinued operations,

net assets of the disposal group as at 28 February 2015

carrying an amount of $1,088,617 were fully provided for

impairment to value them at sale consideration of $ nil.

In addition to the Exchangeable Notes Subscription Deed, on

10 February 2015, the Group and CHAMP Ventures entered

into Transitional Services Agreement and an Investment Deed

which govern the ongoing relationship between the Company

and AIMET.

The Directors believe that the group’s ongoing services

relationship with CHAMP Ventures is providing a platform

for capital investment and growth in the highly competitive

Vocational Education & Training (VET) and Higher Education

(HE) sectors. In addition this venture will create revenue

streams for the Group in the form of royalty fees for the

use of AIM brand and growth in membership numbers/

subscriptions. The agreement with CHAMP Ventures will

avoid the need and associated risk of investing AIM Members’

equity and cash in the Training business, instead preserving

the Group balance sheet for executing the Institute’s mission

for the benefit of all Members.

A new Board of AIMET was established on 1 March 2015

initially with three Directors each from CHAMP Ventures and

AIM Group Limited for a period of 12 months and then three

Directors from Champ Venture and one Director from AIM

Group Limited thereafter. The Chairman of the new AIMET

Board is from CHAMP Ventures.

Corporate Governance StatementThe Directors review and approve strategies and action

plans for the continuing development of the Company and

its controlled entities. Management and the Board monitor

the Group’s overall performance, from implementation of

the strategic plan through to the performance of the Group

against operating plans and financial budgets.

Short and long term objectives and strategies to achieve the objectivesThrough a cluster of interrelated business units and

subsidiaries, the Group provides research & advocacy, learning,

publishing and information services to the leadership and

management markets. In doing so the Group will:

a. Develop, support, promote and practise the

profession of management at all levels by being the

preeminent voice of management and leadership in

Australia

b. Provide opportunities for Australian managers to

AIM and achieve an outstanding career through

mentoring, professional development, networking

and interventions

c. Undertake commercially viable endeavours in the

management and leadership space to support

its not-for-profit mission and objects and for the

benefits of Members

d. Ensure benefits derived from all activities of all

entities are directed to the benefit of AIM Members

and the objects described in the Constitution of AIM

Group and its subsidiary entities

e. Manage the reputation and growth of AIM through

continuous improvement across systems, processes

and culture across the AIM Group

f. Further develop a share of the voice in the

management space through targeted and

measurable research, advocacy and public relations

built on the AIM Group’s purpose “Better Managers,

Better Leaders, For a Better Society”

g. Continue to manage and develop AIM competencies

and infrastructure to become effective and more

agile in the marketplace through better coordination

of its Membership communication tools a strategic

asset.

Results for the yearThe consolidated loss for the Group before providing for

income tax was $225,007 (2014: loss $26,452,389). 2014 loss

included $25,798,145 loss from discontinued operations and

loss of $654,244 from continued operations.

DividendsUnder the Company’s Constitution no dividends may be paid.

Performance measuresThe Group measures its performance against the Board

approved strategies objectives and key performance

indicators. Each objective and KPI has its own financial and

operational charter that is monitored and reviewed regularly

to ensure it is aligned with the Group’s objectives.

DIRECTORS’ REPORT


Significant post balance date eventsThe Company entered into sale agreement for the following

building assets:

> Freehold land and building located in Spring Hill Qld

was contracted to sell on 22 December 2015 for $7.1

million. The settlement is due on 30 September 2016;

> Freehold land and building located in Hindmarsh

SA was contracted to sell on 26 February 2016 for

$7.625 million. The settlement is due on 28 March

2016; and

> A strata unit located in Barton ACT was contracted

to sell on 24 November 2015 for $700,000. The

settlement occurred on 24 January 2016.

Other than the sale of building assets, there has been no

matter or circumstance that has significantly affected or may

significantly affect:

a. The operations;

b. The results of those operations; or

c. The state of affairs of the Company.

State of affairsOther than the disposal of Training business on 1 March

2015, there has been no significant change in the state of

affairs of the Group during the financial year under review

not otherwise disclosed in this report or in the consolidated

financial report.

Environmental regulationsThe Group is not subject to any significant environmental

regulations under Australian Commonwealth or State law.

Review of financial conditionsThe financial position of the continuing Group is relatively

strong with excellent liquidity and a large asset base.

Composition of the BoardUp until the 2015 Annual General Meeting (AGM) there were 14 positions on the Board as per the Company’s Constitution, 12

of which were filled by four Directors from former Qld/NT, three from NSW/ACT, three from Vic/Tas divisions and two from SA

division of AIM. These 12 Directors were also Directors of the Company’s controlled entities and their subsidiaries.

As per the Company’s Constitution, the number of the Company Directors reduced to seven from the 2015 AGM. All Directors

of AIM Group Limited retired at the 2015 AGM, seven of those stood for re-election and were re-elected. Equal representation

from former AIM divisions was maintained.

The Directors who held office during the year ended 31 December 2015 and up to the date of this report are:

Ann Messenger FAIM

(Chair from 23 March 2015,

re-elected on 28 April 2015)

Company Director

Andrew McFarlane FAIM

(Deputy Chairman to 28 April 2015,


Principal Consultant,

MOMENTUM Business Advisors Pty Ltd

Geoffrey Fary FAIM

(Deputy Chair from 28 April 2015,


Chairman

Federal Government’s Asbestos Safety & Eradication Council

John Withers FAIM

(Re-elected on 28 April 2015)

Company Director

Mike Zissler FAIM


Chief Executive Officer,

The Australian Property Institute

Julie Boyd FAIM


Company Director

David Conry FAIM


Managing Director,

Damarcon

John Cotter FAIM

(Retired as Director and appointed independent Chair of

Audit Risk & Governance Committee on 28 April 2015)

Chairman,

Initiative Capital

Grant Dearlove FAIM

(Chair to 23 March 2015, retired on 28 April 2015)

National Legal Partner and General Manager SPA,

Shine Lawyers

Chris Westworth FAIM

(Retired on 28 April 2015)

Company Director

Prof Danny Samson FAIM

(retired on 28 April 2015)

Professor,

University of Melbourne

Chris Burns FAIM

(retired on 28 April 2015)

Company Director

Company Secretary

Faisal Mukhtar FAIM, FGIA

CA, Grad Dip AppCorpGov

DIRECTORS


Directors’ Meetings

BOARD MEETINGS

HELD ATTENDED

A Messenger 13 13

J Boyd 13 10

D Conry 13 11

M Zissler 13 12

G Fary 13 13

J Withers 13 12

A McFarlane 13 13

J Cotter (as Director until April 2015 then as independent Chair Audit Risk & Governance Committee thereafter) 13 9

G Dearlove (until April 2015) 5 5

C Westworth (until April 2015) 5 4

D Samson (until April 2015) 5 4

C Burns (until April 2015) 5 3

F Mukhtar (Company Secretary) 13 13

DIRECTORS’ PROFILES

Julie Boyd FAIMJulie is an experienced company director with expertise in corporate governance,

strategy and the not for profit sector.

Julie originally trained as a Registered Nurse in Brisbane and as a Midwife in Scotland.

She studied politics at the University of Queensland prior to moving to Mackay. She

was elected to the Mackay City Council within 2 years of moving to the City. She spent

16 years as an elected Councillor, with 11 of those as Mayor and was the first female

Mayor of Mackay.

On leaving Local Government in 2008, she was appointed as the Queensland

Governments Special Trade Representative to Japan, Republic of Korea and the

Philippines. In 2010 she was appointed as the Special Trade Representative to Africa.

Julie has held a number of Board directorships over the past 15 years and currently is

a non-member Director of the Real Estate Institute of Queensland and Non-Executive

Director of YWCA Qld and RACQ Rescue Helicopter Service.

Julie is a Level 2 accredited Executive Coach and accredited in the Leadership Circle

360 Executive Performance. Julie also contracts to the Stephenson Mansell group as an

Executive Mentor.

Julie is a Fellow of the Australian Institute of Management.

David Conry FAIMDavid is the Managing Director of Damarcon and also holds several directorships that

along with AIM, include the Chair of The Queensland Museum Network, Chair of the

Brisbane Powerhouse Arts, Charlton Brown, Primary Health Network and the Australian

Institute of Health and Welfare.

David Conry was honoured in 2007 as Queensland’s Australian of the Year,

Queensland’s Social Entrepreneur of the Year, as well as several other community and

business awards and has been recognised as one of Queensland’s most influential

people for his founding of the national group Youngcare. David continues to remain

an active and passionate supporter of organisations in the area of human rights, youth

indigenous affairs, disability and is an in demand public speaker, mentor and disability

advocate.

David is a Fellow of the Australian Institute of Management.

16 ANNUAL REPORT 2013 AUSTRALIAN INSTITUTE OF MANAGEMENT


Julie Boyd FAIM, DirectorJulie Boyd was elected as the first female Mayor of the City of Mackay and retained that role for 11 years from 1997 to 2008. Julie was involved in Local Government for 16 years during which time Mackay was one of the fastest growing cities in Australia. Julie oversaw a number of large infrastructure and lifestyle projects that were instrumental in improving the quality of life for the city’s residents.

Julie originally trained as a Registered Nurse having completed her studies in Brisbane at the Mater Hospital and undertook Midwifery studies in Scotland. She studied Politics, South East Asian Religions and History at the University of Queensland. From 2008 to 2010 Julie represented the Queensland Government as the Special Trade Representative to Japan, Republic of Korea and the Philippines and was then appointed as the Trade Representative for Queensland to Africa until 2012.

Julie sits on a number of Boards both in Brisbane and Mackay and undertakes consultancy work in the area of Corporate Governance. Julie is a Fellow of the Australian Institute of Management and a Graduate of the Australian Institute of Company Directors.

Chris Burns FAIM, DirectorChris Burns enlisted in the Australian Army as an apprentice electrician in 1975. On completion of his trade training, he undertook officer training and graduated into Armour as a tank commander. Chris’ early career saw him serving in a number of operational armoured units and as an instructor of recruits and officer cadets.In 1988 Chris was seconded to the United Nations as a military observer where he saw service on the Golan Heights in Syria, in Iran for the establishment of the ceasefire between Iran and Iraq and in the Gaza Strip during the first Palestinian uprising. In subsequent postings, Chris served with the US Army in Hawaii as the Commanding Officer of the 2nd/14th Light Horse Regiment and in the Defence Science and Technology Organisation.

On promotion to Colonel, Chris was appointed as the Director of Operations in Army Headquarters where he oversaw Army’s global operations including Afghanistan, East Timor and Iraq. Following this, Chris was appointed as the Australian Defence Attaché in the Philippines and the Micronesian nations based out of the Australian Embassy in Manila.

On returning to Australia, Chris transferred to the Army Reserve and established his own consultancy company. Chris served as the Director – Land in Defence, South Australia from July 2008 until May 2010. He assumed the appointment of Chief Executive Officer of the Defence Teaming Centre in May 2010. Chris was awarded the Conspicuous Service Cross in 2003 Australia Day Honours List. Chris is also the recipient of the US Meritorious Service Medal and the Philippine Legion of Honour.

AUSTRALIAN INSTITUTE OF MANAGEMENT ANNUAL REPORT 2013 17

Prof Emeritus Roger Collins FAIM, DirectorRoger Collins is a Professor Emeritus at the University of New South Wales, Deputy Chairman of Inenco Pty Ltd and the Australian Institute of Management QLD NSW ACT NT. Roger is the Board Director that provides special support for the Octant Foundation, an AIM QNAN business committed to innovative and high impact leadership development initiatives. Roger also served as Foundation Chairman of the Board of Grant Thornton Australia and oversaw the integration of GTAL as a national firm and then the integration of partners and staff of BDO NSW and Victoria. Roger’s academic career is complemented by earlier experience in the private sector, the armed services, the public sector and in tertiary education.

Roger has degrees from the University of New South Wales (in Applied Psychology), and from Macquarie University (in Management). Roger is a regular contributor to national and international management conferences and is a faculty member on a number of Australian and Asian executive development programs. He has twice received the Alumni prize for Outstanding Contribution to Teaching at AGSM and was awarded the Vice Chancellor’s Award for Teaching Excellence.

In January 2004, Roger was appointed as a Member in the General Division of the Order of Australia for his services to teaching and was awarded the Australian Human Resources Award for Career Long Achievement in HR in 2005.

David Conry FAIM, DirectorDavid Conry was Queensland’s Australian of the Year in 2007, Queensland’s Social Entrepreneur of the Year, honoured with QUT’s Golden Key and MS Society’s John Study Award, and named as one of Brisbane’s most 50 influential people for his work in founding the national disability group Youngcare.

David is the Managing Director of Damarcon, with business interests in Communications and International Students Services and provides advisory services in the area of B2B strategies, new market development and government. David also holds several directorships and board positions within the private sector, Queensland and Commonwealth Governments.


John Cotter FAIM, DirectorJohn is a qualified town and regional planner and has 15 years’ experience in major property and infrastructure projects. He has led major project teams across Australia through concept, business case and delivery phases.

In 2008 John founded the Flinders Group, a project services company following roles in government, private and a publicly companies. John holds qualifications from the University of Queensland (Bachelor of Regional & Town Planning), Certified Practicing Planner and a Graduate of the Australian Institute of Company Directors. He is a Non-executive Director of Queensland Urban Utilities, Chairman of Phosphate International and the Flinders Group, and Chair of the Fortitude Valley Economic Development Board.

Geoff Fary FAIM, DirectorGeoff Fary is Chair of the Federal Government’s Asbestos Safety & Eradication Council and is a former assistant secretary of the ACTU, ex-chief of staff to a Federal Government cabinet minister and was a senior executive at George Weston Foods Ltd and Nestle Australia.

Geoff’s working life has been devoted to Human Resource Management and Industrial Relations and his career moves have given him the unusual perspective of corporate, government and union experiences.


Geoff Fary FAIMGeoff Fary is Chair of the Federal Government’s Asbestos Safety & Eradication

Council and is a former Assistant Secretary of the ACTU, Ex-Chief of Staff to a Federal

Government cabinet minister and was a senior executive at George Weston Foods Ltd

and Nestle Australia.

Geoff’s working life has been devoted to Human Resource Management and Industrial

Relations and his career moves have given him the unusual perspective of corporate,

government and union experiences.

Geoff is a Fellow of the Australian Institute of Management.

Andrew McFarlane FAIMAfter gaining invaluable consulting experience in organisations such as Hungerfords,

and KPMG, Andrew established his own consulting company MOMENTUM Business

Advisors Pty Ltd in 1988 where he is Principal Consultant. Andrew is a Director of

multiple companies in the Momentum Property Group, Member of the Women’s and

Children’s Health Network – Audit and Risk Committee, Director of AIM ET, the CEO

of Bene Aged Care (Aged Care Provider with over 650 staff and volunteers), and was

previously a Director of Nepenthe Wine Group.

MOMENTUM Business Advisors Pty Ltd provides a range of professional consulting

services including accounting advice, taxation, financial management information

systems, business advisory, executive outsourcing, business re-engineering and

systems solutions.

Andrew has an extensive history in the provision of professional management and

business consulting services to a diverse range of not for profit, commercial and

private clients. Andrew specialises in the SME, finance, wine industry, aged care

and welfare service industries. His particular field of expertise includes strategic

planning, business planning, management consulting, systems reviews, and financial

management information systems.

Andrew has a Bachelor of Economics and is a member of the Certified Practicing

Accountants, a Registered Tax Agent, Certified Professional Manager and a Life

Member of the Australian Institute of Management.

Ann Messenger FAIMAnn Messenger is a Chartered Accountant who studied marketing and operations

management before specialising in accounting and finance. Ann began her career

in banking and has had a range of commercial experiences both in Australia and

overseas, including six years in Latin America where, as an equities analyst, she

covered emerging markets during the mid-1990s.

In Australia, Ann has worked in corporate finance and middle market advisory roles

with accounting firms KPMG and HLB Mann Judd in the early 2000s before moving

into Chief Financial Officer and Chief Operating Officer roles with organisations

including the Sydney Chamber of Commerce. In recent years Ann has developed a

strong interest in the not-for-profit and education sectors. Ann worked as General

Manager of St John’s College (within the University of Sydney) from 2009-10 with

responsibility for the financial and commercial management of the College. In 2011,

Ann was appointed to the Mosman Council’s Development Assessment Panel.

Ann is a Fellow of the Australian Institute of Management.

John Withers FAIMJohn Withers has extensive experience as a leader and manager in Defence, and more

recently in the private and public sectors. After completing his schooling in Melbourne,

John entered the Royal Military College and served as an officer in the Australian

Regular Army for 25 years in the Infantry and the Special Air Service Regiment. After

leaving the Regular Army in 1998, John moved to Hobart where he has worked in the

private and public sectors.

John is currently a HR specialist with the Tasmanian State Government holding

a number of positions in the Department of Education and more recently the

Department of Justice.

For the past 15 years, he has been an active member of AIM in Tasmania serving as a

member of the local committee of management, implementing and facilitating on the

Aspiring Manager Program, and the AIM Business Leadership Awards.

John is a Fellow member of the Australian Institute of Management.


Prof Emeritus Roger Collins FAIM, DirectorRoger Collins is a Professor Emeritus at the University of New South Wales, Deputy Chairman of Inenco Pty Ltd and the Australian Institute of Management QLD NSW ACT NT. Roger is the Board Director that provides special support for the Octant Foundation, an AIM QNAN business committed to innovative and high impact leadership development initiatives. Roger also served as Foundation Chairman of the Board of Grant Thornton Australia and oversaw the integration of GTAL as a national firm and then the integration of partners and staff of BDO NSW and Victoria. Roger’s academic career is complemented by earlier experience in the private sector, the armed services, the public sector and in tertiary education.

Roger has degrees from the University of New South Wales (in Applied Psychology), and from Macquarie University (in Management). Roger is a regular contributor to national and international management conferences and is a faculty member on a number of Australian and Asian executive development programs. He has twice received the Alumni prize for Outstanding Contribution to Teaching at AGSM and was awarded the Vice Chancellor’s Award for Teaching Excellence.

In January 2004, Roger was appointed as a Member in the General Division of the Order of Australia for his services to teaching and was awarded the Australian Human Resources Award for Career Long Achievement in HR in 2005.

David Conry FAIM, DirectorDavid Conry was Queensland’s Australian of the Year in 2007, Queensland’s Social Entrepreneur of the Year, honoured with QUT’s Golden Key and MS Society’s John Study Award, and named as one of Brisbane’s most 50 influential people for his work in founding the national disability group Youngcare.

David is the Managing Director of Damarcon, with business interests in Communications and International Students Services and provides advisory services in the area of B2B strategies, new market development and government. David also holds several directorships and board positions within the private sector, Queensland and Commonwealth Governments.


John Cotter FAIM, DirectorJohn is a qualified town and regional planner and has 15 years’ experience in major property and infrastructure projects. He has led major project teams across Australia through concept, business case and delivery phases.

In 2008 John founded the Flinders Group, a project services company following roles in government, private and a publicly companies. John holds qualifications from the University of Queensland (Bachelor of Regional & Town Planning), Certified Practicing Planner and a Graduate of the Australian Institute of Company Directors. He is a Non-executive Director of Queensland Urban Utilities, Chairman of Phosphate International and the Flinders Group, and Chair of the Fortitude Valley Economic Development Board.

Geoff Fary FAIM, DirectorGeoff Fary is Chair of the Federal Government’s Asbestos Safety & Eradication Council and is a former assistant secretary of the ACTU, ex-chief of staff to a Federal Government cabinet minister and was a senior executive at George Weston Foods Ltd and Nestle Australia.

Geoff’s working life has been devoted to Human Resource Management and Industrial Relations and his career moves have given him the unusual perspective of corporate, government and union experiences.



Grant Dearlove FAIM, DirectorGrant Dearlove is a Lawyer and Company Director. Across his career Grant has owned, worked for, and consulted to Professional Service firms in disciplines spanning property, franchising, risk, insurance, M&A, funds management, and legal.

Grant has held the positions of Managing Director of Colliers International Residential for Australia, Managing Director of PRDnationwide, and CEO of Verifact. Grant is currently a National Partner with Shine Lawyers. Grant is also a Non-executive Director of Oliver Hume Australia (Australia’s leading residential property agency), Chairman of Oliver Hume SEQ, Chairman of Oliver Hume Apartments Victoria and Deputy Chairman of Invest Logan (the economic development arm of the Logan City Council).

Grant is a Director of the Centre for Public Management and a trustee of the John Story Memorial Trust. Grant was formerly a Non-executive Director of Sunshine Coast Destination Limited (Sunshine Coast Tourism), Sunshine Cooperative Housing Society Limited, Countrywide Cooperative Housing Society Limited, National Director of Colliers International and related companies, a Director of Arete Executive and Partner with McInnes Wilson Lawyers.

Grant has a Bachelor of Laws, a Master of Laws, a Master of Business Administration, and a Graduate Diploma in Applied Corporate Governance. Grant is a Fellow of the Australian Institute of Management and has spent his life in the Professional Services arena and studied leadership of professional service organisations at Harvard University.

Andrew McFarlane FAIM, DirectorAfter gaining invaluable consulting experience in organisations such as Hungerfords, and KPMG, Andrew established his own consulting company MOMENTUM Business Advisors Pty Ltd in 1988 where he is principal consultant. Andrew is a director of multiple companies in the Momentum Property Group, Member of the Women’s and Children’s Health Network – Audit and Risk Committee, the CEO of the Italian Benevolent Foundation SA Inc (Aged Care Provider with over 550 staff) and was previously a director of Nepenthe Wine Group.

MOMENTUM Business Advisors Pty Ltd provides a range of professional consulting services including accounting advice, taxation, financial management information systems, business advisory, executive outsourcing, business re-engineering and systems solutions.

Andrew has an extensive history in the provision of professional management and business consulting services to a diverse range of not for profit, commercial and private clients. Andrew specialises in the SME, finance, wine industry, aged care and welfare service industries. His particular field of expertise includes strategic planning, business planning, management consulting, systems reviews, and financial management information systems.

Andrew has a Bachelor of Economics and is a member of the Certified Practicing Accountants, a Registered Tax Agent, Certified Professional Manager and a Fellow of the Australian Institute of Management.



Chris Westworth FAIM, DirectorChris Westworth was a senior audit partner with Ernst & Young until June 2010 with responsibilities for clients and risk management in the audit division. As a senior audit partner with over 30 years of experience, his work with Ernst & Young’s clients in the UK, Europe and Australia covered a wide range of industries including the property industry, financial services, media and healthcare. Major clients included News Corporation, Westfield Holdings Limited and Sydney Airports Corporation.

Chris is a qualified Chartered Accountant and holds a Bachelor’s of Laws. Chris is a fellow of the Australian Institute of Company Directors and Fellow of the Australian Institute of Management.

Chris is a principal of Westworth Kemp Consultants which provides accounting and governance advice and expert witness services. Christopher is a director of the Bulk Water NSW and Viscopy Ltd. Chris is also on the Audit and Risk Committee of University of Technology Sydney and an advisor to the Audit and Risk Management Committee of NRMA.

John Withers FAIM, DirectorJohn Withers has extensive experience as a leader and manager in Defence, and more recently in the private and public sectors.

After completing schooling in Melbourne, John entered the Royal Military College and served as an officer in the Australian Regular Army for 25 years in the infantry and the Special Air Service Regiment. After leaving the Regular Army in 1998, John moved to Hobart where he has worked in the private and public sectors.

John is currently a HR specialist with the Tasmanian State Government holding a number of positions in the Department of Education and more recently the Department of Justice.

For the past 12 years has been an active member of AIM in Tasmania serving as a member of the local committee of management, implementing and facilitating on the Aspiring Manager Program, and the AIM Business Leadership Awards.

Mike Zissler FAIM, DirectorMike Zissler is the Chief Executive of Lifeline Canberra having been in that role since January 2010. Prior to this appointment Mike was the Commander of the Northern Territory Emergency Intervention and the Chief Executive Officer of a large ACT Government Department. He has extensive public sector experience having been in senior roles with a number of State and Territory Government agencies.

Mike trained as a Registered Nurse and specialised in Paediatrics before undertaking a Bachelor degree in Health Administration and a Masters of Business Administration. Mike is a Fellow of the Australian Institute of Management, a Fellow of the Australasian College of Health Service Management, a Member of the Institute of Company Directors and is currently the Deputy Chair of the ACT & Region Chamber of Commerce and Industry.


Mike Zissler FAIMMike Zissler is the Chief Executive of The Australian Property Institute having been in

that role since October 2014. Prior appointments include the Chief Executive Officer of

Lifeline Canberra, the Commander of the Northern Territory Emergency Intervention

and the Chief Executive Officer of a large ACT Government Department. He has

extensive public sector experience having been in senior roles with a number of State

and Territory Government agencies.

Mike trained as a Registered Nurse and specialised in Paediatrics before undertaking a

Bachelor’s degree in Health Administration and a Masters of Business Administration.

Mike is a Fellow of the Australian Institute of Management, a Fellow of the Chartered

Management Institute, a Fellow of the Australasian College of Health Service

Management and a Member of the Australian Institute of Company Directors.

Directors’ remuneration The Company pays $25,000 annual fees to its Directors, $27,500 annual fees to Directors who chair a Board Sub-committee

and $50,000 annual fees to the Chairman.

Indemnity and insurance of officersThe Company has indemnified the Directors and Executives for costs incurred, in their capacity as a Director or Executive, for

which they may be held personally liable, except where there is a lack of good faith.

During the financial year, the Company paid a premium in respect of a contract to insure the Directors of the Company and

Executives of the Group against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance

prohibits disclosure of the nature of liability and the amount of the premium.

Members’ liabilityThe Australian Institute of Management (Group) Limited is a company limited by guarantee and the liability of its Members is

limited.

Member of AIM Group Limited undertakes to contribute to the assets of the Company if it is wound up while the Member is a

Member, or within one year after the Member ceases to be a Member, for:

> the payment of the debts and liabilities of the Company, contracted before the Member ceases to be a Member;

> the expenses of winding up the Company; and

> the adjustment of the rights of the contributories among themselves.

The amount of the contribution must not exceed $2.00 in any circumstances.

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out

on page 8.

Non-audit servicesPricewaterhouseCoopers (PwC) is the auditor of the Company, its controlled entities and subsidiaries.

During the period PwC provided the following non-audit services to the Company and its controlled entities. Directors are

satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors

imposed by the Corporations Act 2001. The nature and scope of non-audit services provided means that auditors’

independence was not compromised.

PwC received or is due to receive the following amounts for the provision of non-audit services:

AUDITOR INDEPENDENCE

Ann Messenger FAIM Director Brisbane 16 March 2016

Andrew McFarlane FAIM Director Brisbane 16 March 2016

31 December 2015 $

31 December 2014 $

Accounting and tax services 45,321 7,854

Legal and corporate advisory services (non-recurring) 155,720 263,725

Total non-audit services 201,041 271,579

This report is made and signed in accordance with a resolution of Directors.


NoteConsolidated

2015 $

Consolidated 2014

$

CURRENT ASSETS

Cash and cash equivalents 7 541,113 1,991,722

Assets classified as held for sale - continued operations 9 13,902,417 690,000

Assets classified as held for sale - discontinued operations 10 - 12,694,219

Receivables 11 951,160 126,372

Prepayments & other current assets 12 268,692 34,281

Total current assets 15,663,382 15,536,594

NON-CURRENT ASSETS

Property, plant and equipment 13 - 14,462,600

Investment in an associate 14 50,000 -

Intangible assets 15 277,365 241,296

Available for sale financial assets 16 19,218,830 18,059,844

Other deposits 8 - 16,706

Total non-current assets 19,546,195 32,780,446

Total assets 35,209,577 48,317,040

CURRENT LIABILITIES

Payables 17 1,595,105 1,350,789

Other current liabilities 18 1,361,010 1,377,708

Provisions 19 61,350 54,303

Liabilities directly associated with assets classified as held for sale

10 - 12,694,219

Total current liabilities 3,017,465 15,477,019

NON-CURRENT LIABILITIES

Provisions 19 6,105 3,579

Total non-current liabilities 6,105 3,579

Total liabilities 3,023,570 15,480,598

Net assets 32,186,007 32,836,442

EQUITY

Reserves 20 6,617,769 48,011,628

Retained earnings/(accumulated losses) 21 25,568,238 (15,175,186)

Total equity 32,186,007 32,836,442

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

The financial information of the parent entity is summarised under note 28.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2015


NoteConsolidated

2015 $

Consolidated 2014

$

CONTINUED OPERATIONS

Revenue 4 6,894,724 5,433,874

Expenses 5 (7,119,731) (6,088,118)

Loss before income tax from continued operations (225,007) (654,244)

Income tax expense 6 - -

Loss for the year from continued operations (225,007) (654,244)

DISCONTINUED OPERATIONS

Loss for the year from discontinued operations 10 - (25,798,145)

Net loss for the year (225,007) (26,452,389)

OTHER COMPREHENSIVE INCOME / (LOSS)

Gain on revaluation of available for sale financial assets 16 580,107 175,550

Loss on revaluation of property, plant and equipment 13 (358,875) (193,583)

221,232 (18,033)

Total comprehensive income for the year (3,775) (26,470,422)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 December 2015

NoteRetained earnings

$Reserves

$Total

$

Balance at 1 January 2014 11,277,203 21,542,016 32,819,219

Total comprehensive loss for the year (26,452,389) - (26,452,389)

Business combination reserve 20 - 26,487,645 26,487,645

Available for sale financial assets reserve - 175,550 175,550

Fair value revaluation of land and buildings - (193,583) (193,583)

Balance at 31 December 2014 20 & 21 (15,175,186) 48,011,628 32,836,442

Total comprehensive income for the year (225,007) - (225,007)

Business combination reserve related to

discontinued operations reclassified to

retained earnings

20 39,939,653 (39,939,653) -

Adjustment to business combination reserve

related to continued operations- (646,660) (646,660)

Available for sale financial asset reserve - 580,107 580,107

Building revaluation reserve reclassified to

retained earnings1,028,778 (1,028,778) -

Fair value revaluation of land and buildings - (358,875) (358,875)

Balance at 31 December 2015 20 & 21 25,568,238 6,617,769 32,186,007

The above consolidated statement of changes in Members’ equity should be read in conjunction with the attached notes.

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY For the year ended 31 December 2015


NoteConsolidated

2015 $

Consolidated 2014

$

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from members and customers (inclusive of GST) 5,715,627 49,427,743

Payments to suppliers and employees (inclusive of GST) (7,655,482) (58,520,893)

Interest received 4 384,170 877,694

Net cash outflows from operating activities (1,555,685) (8,215,456)

CASH FLOWS FROM INVESTING ACTIVITIES

Net proceeds from disposal of property, plant and equipment 757,255 17,150,000

Net cash received from merger of AIM entities - 7,200,541

Payments for intangible assets 15 (90,006) (2,213,373)

Payments for property, plant and equipment 13 - (1,536,557)

Proceeds from short-term and other deposits 8 16,706 6,554,628

Investment in available for sale financial assets (578,879) (17,884,294)

Net cash inflows from investing activities 105,076 9,270,945

CASH FLOWS USED IN FINANCING ACTIVITIES

Repayment of borrowings (acquired from AIM SA) - (2,418,964)

Net cash outflows from financing activities - (2,418,964)

Net decrease in cash and cash equivalents (1,450,609) (1,363,475)

Net cash of discontinued operations 10 - (5,483,826)


Cash and cash equivalents at the beginning of the financial year 1,991,722 8,839,023

Cash and cash equivalents at the end of the financial year 7 541,113 1,991,722

The cash flow of discontinued operations is disclosed in note 10.

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

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2015

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2015

Note 1: Corporate informationThe Australian Institute of Management (Group) Limited is

a company limited by guarantee, incorporated in Australia

under the Corporations Act 2001 and domiciled in Brisbane.

The Company’s registered office and principal place of

business is at 369 Boundary Street Spring Hill Qld 4000.

The consolidated financial report of the Australian Institute

of Management (Group) Limited for the year ended 31

December 2015 was authorised for issue in accordance with a

resolution of the Directors dated 16 March 2016. The nature of

the operations and principal activities of the Company and its

controlled entities are described in the Directors’ report.

Note 2: Summary of significant accounting policiesThe principal accounting policies adopted in the preparation

of these consolidated financial statements are set out below.

These policies have been consistently applied to all the years

presented, unless otherwise stated. The financial statements

are for the consolidated entity consisting of Australian

Institute of Management (Group) Limited and its controlled

entities (the Group).

(a) Basis of preparation

These general purpose financial statements have been

prepared in accordance with Australian Accounting

Standards – Reduced Disclosure Requirements, other

authoritative pronouncements of the Australian Accounting

Standards Board, Urgent Issues Group Interpretations

and the Corporations Act 2001. The Australian Institute of

Management (Group) Limited is a not-for-profit entity for the

purpose of preparing the financial statements.

Business combination

The first merger of AIM NSW/ACT and AIM Qld/NT in 2013

and second merger of AIM Vic/Tas, AIM SA and AIM National

in 2014 (the acquirees) and formation of Australian Institute

of Management (Group) Limited (the acquirer) satisfied the

definition of a business combination in accordance with the

Accounting Standard AASB 3 Business Combinations.

These mergers were all accounted for by recognising the fair

value of the acquirees’ identifiable net assets at acquisition

date as a direct addition to equity of the Company through

a business combination reserve. As a result the net book

value of identifiable assets and liabilities of AIM NSW/ACT,

AIM Qld/NT, AIM Vic/Tas, AIM SA and AIM National were

reviewed against their fair value as at the date of acquisition.

The difference between the net book value and fair value of

identifiable assets and liabilities was insignificant. Directors of

the Company were satisfied to record identifiable assets and

liabilities at book value.

The disposal of the Training business on 1 March 2015

effectively resulted in discontinuation of the business

that was acquired through these mergers and as a result,

the balance related to the disposal group in the business

combination reserve as at 28 February 2015 was reclassified

to retained earnings.

A summary of acquisition in 2014 and reclassification of

business combination reserve in 2015 is set out in note 20.

i) Compliance with Australian Accounting Standards –

Reduced Requirements

The consolidated financial statements of Australian Institute

of Management (Group) Limited and its controlled entities

comply with Australian Accounting Standards – Reduced

Disclosure Requirements as issued by the Australian

Accounting Standards Board (AASB).

ii) New and amended standards adopted by the Group

The Group has adopted all of the new, revised or amending

Accounting Standards and Interpretations issued by the

Australian Accounting Standards Board (‘AASB’) that are

mandatory for the current reporting period. Any new, revised

or amending Accounting Standards or Interpretations that

are not yet mandatory have not been early adopted. New and

amended standards that are applicable for the first time for

the December 2015 annual year report include:

> AASB9 - Financial Instruments

> AASB115 - Revenue from Contracts with Customers


The adoption of these Accounting Standards and

Interpretations did not affect the Group’s accounting policies

or any of the amounts recognised in the financial statements.

iii) Early adoption of standards

The Company has not elected to adopt any

pronouncements early.

iv) Historical Cost convention

These financial statements have been prepared under the

historical cost convention as modified by the revaluation

of available-for-sale financial assets, financial assets and

liabilities (including derivative instruments) at fair value

through profit or loss, certain classes of property, plant and

equipment and investment property.

The consolidated entity has a policy of independently

revaluing its freehold land and buildings other than held for

sale, based on periodic, but at least triennial valuations by

external independent valuers.

The consolidated financial statements are presented in

Australian dollars, which is the Australian Institute of

Management (Group) Limited’s functional and presentation

currency.

(b) Principles of consolidation

The consolidated financial statements of the consolidated

entity incorporate the assets and liabilities of the Company

and its controlled entities at the end of the financial year, and

the results of the Company and its controlled entities during

the financial year. This control is by virtue of the fact that

all Directors of the controlled entities are appointed by the

Company. The Company and its controlled entities together

are referred to in this financial report as the AIM Group.

The effect of all transactions between entities in the

consolidated entity and inter-entity balances are eliminated in

full in preparing the consolidated financial statements.

(c) Income tax

The consolidated entity adopts the liability method of tax-

effect accounting. Under present legislation income derived

by the Group from Members is not assessable for income

tax. Income tax liabilities arise in respect of income derived

from non-Members and investments less certain allowable

deductions.

The controlled entities of the Company have been advised

by the Australian Taxation Office that they are exempt from

Income Tax pursuant to the Income Tax Assessment Act 1997

except the Australian Institute of Management NSW/ACT

Limited which is a taxable entity.

(d) Foreign currency

Transactions denominated in a foreign currency are

recorded at the exchange rates prevailing at the date of the

transactions. Foreign currency payables at balance date

are translated at exchange rates current at the balance

date. Exchange gains and losses are brought to account in

determining the profit or loss for the financial year.

(e) Revenue

Revenue of the Group includes personal and corporate

membership subscriptions to the Group, the provision of

related services including Member and signature events and

research service income (net of discounts). Subscription

revenue is recognised progressively over the subscription

period and events and research services income is recognised

when the service is provided.

Revenue from the controlled entities including the

discontinued operations up until the disposal date is earned

from the provision of management training courses, the

sale of management educational material and the hiring

of facilities. Course and other training related revenue is

recognised when the service is provided.

Convention revenue and expenses are recognised in

accordance with the percentage of completion method unless

the outcome of the convention cannot be reliably estimated.

Where it is probable that a loss will arise from a convention,

the excess of total cost over revenue is recognised as an

expense. Other revenue including property lease rental and

interest income is recognised on an accruals basis.

(f) Receivables

All trade debtors are recognised at the amounts receivable as

they are due for settlement at no more than 30 days.

Collectability of trade debtors is reviewed on an ongoing

basis. Bad debts which are known to be uncollectible are

written off during the year in which they are identified. A

provision for doubtful debts is established where there is

objective evidence that the consolidated entity will not be

able to collect all amounts due according to the original terms

of receivables. The movement in provision is recognised in

the income statement.

(g) Investment in Financial Instruments

Investments in financial instruments are designated as

available for sale financial assets if they do not have fixed

maturities and fixed or determinable payments, and

management intends to hold them for medium to long term.

The financial assets are presented as non-current assets

unless they mature, or management intends to dispose of

them within 12 months of the end of reporting period.

Changes in the fair value and exchange differences arising on

translation of investments that are classified as available for

sale financial assets (for example equities), are recognised

in other comprehensive income accumulated in a separate

reserve with equity. Amounts are reclassified to profit and

loss when the associated assets are sold or impaired.

(h) Property, plant and equipment

Land and buildings are shown at fair value, based on periodic,

but at least triennial valuations by external independent

valuers, less subsequent depreciation for buildings. Any

accumulated depreciation at the date of revaluation is

eliminated against the gross carrying amount of the asset

and the net amount is restated to the revalued amount of

the asset. All other property, plant and equipment are stated

at historical cost less depreciation. Historical cost includes

expenditure that is directly attributable to the acquisition of

the items.

Increases in the carrying amounts arising on revaluation

of land and buildings are credited to the asset revaluation

reserve in equity.

Property, plant and equipment, other than freehold land, are

depreciated over their expected useful lives using the straight

line method. The expected useful lives are as follows:

Buildings 40 years

Leasehold improvements 5-15 years

Plant and equipment 3-10 years

The assets’ residual values and useful lives are reviewed and

adjusted if appropriate at each balance sheet date.

Gains and losses on disposal of property, plant and

equipment are taken into account in determining the profit

for the financial year.

(i) Leased assets

Leases under which all the risks and benefits of ownership are

effectively retained by the lessor are classified as operating

leases. Operating lease payments are charged to expenses in

the financial periods in which they occur.

(j) Trade and other creditors

The amounts represent liabilities for goods and services

provided to the consolidated entity prior to the end of the

financial year and which are unpaid. The amounts are usually

paid within 30 days of recognition.


(k) Employee entitlements

i) Wages, salaries and annual leave

Liabilities for wages and salaries and annual leave expected

to be settled within 12 months of the reporting date are

recognised in respect of employees’ services up to the

reporting date and are measured at the amounts expected to

be paid when the liabilities are settled.

ii) Long service leave

The liability for long service leave expected to be settled

within 12 months of the reporting date is measured in

accordance with (i) above. The liability for long service

leave expected to be settled more than 12 months from the

reporting date is measured as the present value of expected

future payments to be made in respect of services provided

by the employees up to the reporting date. Consideration is

given to expected future wage and salary levels, experience

of employee departures and periods of service. Expected

future payments are discounted to match as closely as

possible, the estimated future cash outflows.

iii) Superannuation

Contributions to external employee superannuation plans are

charged as an expense when the contributions are paid or

become payable.

iv) Employee benefits on-costs

Employee benefits on-costs, including payroll tax, are

recognised and included in employee benefits costs and in

liabilities when the employee benefits to which they relate are

recognised as liabilities.

(l) Cash and cash equivalents

For the purpose of the cash flow statement, cash includes

cash on hand and deposits held with banks, net of any bank

overdrafts.

Cash and cash equivalents include cash on hand, deposits

held at call with financial institutions, other short-term, highly

liquid investments that are readily convertible to known

amounts of cash.

(m) Assets classified as held for sale

Assets are classified as held for sale and stated at the lower

of their carrying amount and fair value less costs to sell if

their carrying amount will be recovered principally through a

sale transaction rather than through continuing use.

An impairment loss is recognised for any initial or subsequent

write down of the asset to fair value less costs to sell. A gain

is recognised for any subsequent increases in fair value less

costs to sell of an asset, but not in excess of any cumulative

impairment loss previously recognised. A gain or loss not

previously recognised by the date of the sale of the non-

current asset is recognised at the date of de-recognition.

Assets classified as held for sale are presented separately

from the other assets in the statement of financial position,

and are not depreciated or amortised while they are classified

as held for sale.

(n) Intangible assets

Website and other IT development

Website and other IT development costs are recognised as

intangible assets only when it is probable that the expected

economic benefits that are attributable to them flow to the

Group and the costs can be measured reliably. Expenditure

relating to the planning stage of website and other IT

developments are expensed when incurred.

Capitalised web and other IT development expenditure is

stated at cost less accumulated amortisation. Website and

other IT development is amortised over five to seven years

using the straight line method.

Training course development

The disposal group develops training course curriculum to

be used in a wide range of specific and tailored training

programmes for both members and non-members.

Capitalised development expenditure is stated at cost less

accumulated amortisation. Training course development is

amortised over three to five years using the straight line method.

Work in progress

Website, other IT and training course development costs are

initially accounted for as work in progress before recognised

as intangible assets. Work in progress is stated at the lower of

cost and net realisable value.

(o) Provisions

Provisions are recognised when: the consolidated entity has

a present legal or constructive obligation as a result of past

events; it is more likely than not that an outflow of resources

will be required to settle the obligation; and the amount of

the obligation can be reliably estimated. Provisions are not

recognised for future operating losses.

(p) Critical estimates, judgments and errors

The preparation of financial statements requires the use of

accounting estimates, which, by definition, will seldom equal

the actual results. Management has exercised its judgements

in applying the group’s accounting policies.

(q) Parent entity financial information

The financial information for the parent entity, Australian

Institute of Management (Group) Limited disclosed in note

30 has been prepared on the same basis as the consolidated

financial statements.


Note 3: Financial risk management objectives and policiesThe Group’s principal financial instruments comprise

receivables, payables, cash and short-term deposits.

The Group manages its exposure to key financial risks in

accordance with the AIM Risk Management Framework. The

objective of the Framework is to support the delivery of the

Group’s financial targets while protecting future financial

security.

The main risks arising from the Group’s financial instruments

are credit risk and liquidity risk. The Group uses different

methods to measure and manage different types of risks to

which it is exposed.

These include aging analysis and monitoring of specific credit

allowances undertaken to manage credit risk. Liquidity risk

is monitored through the development of future rolling cash

flow forecasts. The Board reviews and agrees policies for

managing each of these risks.

(a) Credit risk

Credit risk arises from the financial assets of the Group,

which comprise cash and cash equivalents, trade and other

receivables. The Group’s exposure to credit risk arises from

potential default of the counter party, with a maximum

exposure equal to the carrying amount of these instruments.

Exposure at balance date is addressed in each applicable note.

The Group trades only with recognised, creditworthy third

parties, and as such collateral is not requested nor is it the

Group’s policy to securitise its trade and other receivables.

It is the Group’s policy that all customers who wish to trade

on credit terms are subject to credit verification procedures

including an assessment of their independent credit rating,

financial position, past experience and industry reputation.

In addition, receivable balances are monitored on an ongoing

basis with the result that the Group’s exposure to bad debts

is not significant. There are no significant concentrations of

credit risk within the Group.

(b) Liquidity risk

Liquidity risk arises from the timing differences between

cash inflows and cash outflows. The Group’s objective is

to maintain a balance between continuity of funding and

flexibility. The Board has in place working capital and

reinvestment targets and regularly monitors forward cash

flow forecasts.

(c) Fair value

Due to short term nature of these financial assets and

liabilities, their carrying amounts are assumed to approximate

their fair values.

Note 5: Operating expenses

Consolidated 2015

$

Consolidated 2014

$

Expenses

Employee costs 2,524,834 1,496,859

Consultants 183,845 94,506

Cost of sales 1,787,927 981,761

Depreciation and amortisation 223,496 47,564

Marketing and promotion 366,502 672,506

Maintenance costs 5,450 1,005

Electricity 4,779 -

Provision for settlement adjustment of the disposal group - 762,651

Impairment of assets classified as held for sale - continued operations 9,250 84,614

Travel and accommodation 175,196 143,695

Other expenses of operating activities 1,838,452 1,802,957

7,119,731 6,088,118

Included within other expenses are:

Doubtful debts - (16,974)

Employee entitlements – superannuation 143,685 100,613

All expenses related to the Training business for 2014 are included in the expenses of discontinued operations disclosed in

note 10.

Note 6: TaxationThe amount of income tax attributable to the financial year differs from the amount prima facie payable on the profit before

income tax. The differences are reconciled as follows:

Consolidated 2015

$

Consolidated 2014

$

Loss from continuing operations before income tax expense (225,007) (654,244)

Loss from discontinuing operation before income tax expense - (25,798,145)

(225,007) (26,452,389)

Prima facie income tax on profit before income tax at 30% (2014: 30%) (67,502) (7,935,717)

Tax effect of permanent differences which reduce tax payable

Non-assessable profits and losses 247,368 8,001,018

Prima facie tax adjusted for permanent differences 179,866 65,301

Tax effect of temporary differences (14,825) (61,876)

Tax losses not (recouped)/booked (165,041) (3,425)

Income tax attributable to profit before income tax - -

Note 4: Revenue from continuing operations

Consolidated 2015

$

Consolidated 2014

$

Revenue from continuing operations

Events, sponsorship and other revenue 1,063,521 351,769

Book revenue 6,252 -

Membership revenue 3,177,585 3,196,822

Research revenue 1,241,221 1,001,028

Investment income 611,749 -

Royalty fees 300,471 -

Rent 65,000 6,561

Gain on disposal of assets 44,755 -

Interest revenue 384,170 877,694

6,894,724 5,433,874


Note 7: Cash and cash equivalents

Consolidated 2015

$

Consolidated 2014

$

Cash at bank and in hand 541,113 1,991,722

Note 8: Other deposits

Consolidated 2015

$

Consolidated 2014

$

Short-term deposits (restricted) – non current - 16,706

Note 9: Assets classified as held for sale – continued operations

Consolidated 2014

$

Consolidated 2013

$

Freehold land and buildings 13,902,417 774,614

Less: Provision for impairment - (84,614)

13,902,417 690,000

The freehold land and buildings held for sale as at 31 December 2015 include:

> Freehold land and building located at 369 Boundary Street, Spring Hill Qld (Building 1) listed on 1 October 2015;

> Freehold land and building located at 180 Port Road, Hindmarsh SA (Building 2) listed on 1 October 2015; and

> A strata unit located in Barton ACT (unit 1) held for sale since 2013.

Building 1 was contracted to sell on 22 December 2015 for $7.1 million. The settlement is due on 30 September 2016.|

Building 2 was contracted to sell on 26 February 2016 for $7.625 million. The settlement is due on 28 March 2016.

Unit 1 was contracted to sell on 24 November 2015 for $700,000. The settlement occurred on 24 January 2016.

The amount represents the lower of carrying amount and fair value less costs to sell.

Liabilities directly associated with assets classified as held for sale

Payables - 8,367,284

Other current liabilities - 3,024,052

Provisions - 1,302,883

Total liabilities directly associated with assets classified as held for sale - 12,694,219

Note 10: Discontinued operationsBy agreement dated 10 February 2015, the Group disposed its Training business (the disposal group) through the Group

entering into an Exchangeable Note Subscription Deed which transferred control of the disposal group to CHAMP Ventures on

1 March 2015. The disposal group is reported in the current and previous periods as discontinued operation.

The effect of this presentation is as follows:

> The assets and liabilities of the disposal group as at 31 Dec 2014 were classified as held for sale in the balance sheet.

> The loss on discontinued operations is separately classified in the statement of comprehensive income for the year

ended 31 December 2014 and 31 December 2015.

> The net assets of the disposal group as at 28 February 2015 were reduced to $ nil by providing full amount for impairment.

The current and prior period cash flow statement includes both continuing and discontinued operations.

Financial performance and cash flow information of discontinued operations

Consolidated 2015

$

Consolidated 2014

$

Financial performance

Revenue 5,099,499 42,967,805

Expenses:

Operating expenses (6,188,116) (54,082,783)

(Provision for)/reversal of impairment of assets* 1,088,617 (14,683,167)

Loss from discontinued operations - (25,798,145)

* Provision for impairment of assets is to record the disposal group at fair value less cost to sell.

Cash flow information

Net cash outflows used in operating activities (5,483,826) (8,438,907)

Net cash outflows from investing activities - 6,070,785

Net cash outflows from financing activity - (2,418,964)


Assets classified as held for sale – discontinued operations

Cash and cash equivalents - 5,483,826

Receivables - 4,293,117

Inventories - 126,821

Prepayments and other current assets - 1,209,648

Property, plant and equipment - 8,240,844

Investment in an associate - 186,035

Intangible assets - 4,818,819

Other deposits - 239,863

Goodwill - 2,778,413

Less: provision for impairment of assets** - (14,683,167)

Total assets classified as held for sale - 12,694,219 ** The provision of impairment of assets is firstly applied against goodwill and then pro rata based on carrying value to the other non-financial assets of the disposal group.


Note 11: Receivables

Consolidated 2015

$

Consolidated 2014

$

Trade debtors 627,114 74,868

Other debtors 336,534 63,992

963,648 138,860

Less: Provision for doubtful debts (12,488) (12,488)

951,160 126,372

Trade receivables

Trade receivables of the Training business are classified as training assets held for sale under discontinued operations.

Trade receivables are non-interest bearing and are generally on 30 day terms. A provision for impairment loss is recognised

when there is objective evidence that an individual trade receivable is impaired. Collectability of trade receivables is reviewed on

an ongoing basis at an operating unit level. Individual debts that are known to be uncollectible are written off when identified.

An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable.

Financial difficulties of the debtor and default payments are considered objective evidence of impairment. The amount of the

impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at

the original effective interest rate.

Trade receivables of continued operations past due and considered impaired for the financial year ended 31 December 2015 are

$12,488 (2014: $12,488).

Movements in the provision for impairment of receivables are as follows:Consolidated

2015 $

Consolidated 2014

$

At 1 January 12,488 262,448

Provision for impairment recognised during the year - (249,960)

At 31 December 12,488 12,488

The creation and release of the provision for impaired receivables has been included in ‘other expenses’ in the income statement.

Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash.

Fair value and credit risk

Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value. The maximum

exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it the Group’s policy to transfer (on-

sell) receivables to special purpose entities.

Note 12: Prepayments and other current assets

Consolidated 2015

$

Consolidated 2014

$

Prepayments and other current assets 268,692 34,281

Included within prepayments and other current assets were prepaid Sales Force and NetSuite license fees. Any prepayments

and other current assets related to the Training business were reclassified as assets held for sale disclosed in note 10.


Note 13: Property, plant and equipment

Freehold land & buildings

$

Leasehold improvements

$

Plant & equipment

$Total

$

Year ended 31 December 2014

Opening net book amount 7,575,000 6,432,768 1,715,004 15,722,772

Additions 133,805 706,331 696,421 1,536,557

Transfers from work in progress - - 66,449 66,449

Effect of merger between AIM Group, AIM VT & SA 24,384,536 800,717 226,108 25,411,361

Revaluation Adjustment - Cost (614,110) - - (614,110)

Revaluation Adjustment - Accumulated

Depreciation420,527 - - 420,527

Transfer to assets classified as held for sale - (6,356,151) (1,884,693) (8,240,844)

Disposals (17,149,056) - (57,140) (17,206,196)

Depreciation charge (295,702) (1,583,665) (754,549) (2,633,916)

Closing net book amount 14,455,000 - 7,600 14,462,600

At 31 December 2014

Cost - 3,383,555 3,413,146 6,796,701

Valuation 14,455,000 - - 14,455,000

Accumulated depreciation - (3,383,555) (3,405,546) (6,789,101)

Net book amount 14,455,000 - 7,600 14,462,600


Opening net book amount 14,455,000 - 7,600 14,462,600

Revaluation Adjustment (358,875) - - (358,875)

Transfer to assets classified as held for sale (13,221,667) - - (13,221,667)

Disposals (712,500) - - (712,500)

Depreciation charge (161,958) - (7,600) (169,558)

Closing net book amount - - - -

At 31 December 2015

Cost - 3,383,555 3,413,146 6,796,701

Accumulated depreciation - (3,383,555) (3,413,146) (6,796,701)

Net book amount - - - -

During the year, the Company did not make any investment

in plant or equipment. All plant and equipment including

furniture and fixtures were provided by AIMET under the

Transitional Services Agreement that was signed on 10

February 2015.

(a) Valuations

The fair values of all freehold land and buildings as at 31

December 2014 were determined by reference to a Directors’

valuation, based upon an independent valuation as at 9

October 2014. Such valuations were performed on an open

market basis, being the amounts for which the assets could

be exchanged between a knowledgeable willing buyer and a

knowledgeable willing seller in an arm’s length transaction at

the valuation date.

All land and building assets were transferred to asset held

for sale on 1 October 2015 and therefore no independent

valuation was obtained. The fair values of these assets held

for sale as at 31 December 2015 were determined by reference

to Directors’ valuation, based on selling agents’ appraisals for

assets that remain unsold as at 31 December 2015.

Note 14: Investment in associateThe Company holds a 5% equity interest in AIMET in the form

of 50,000 ordinary shares of $1 each. These shares were

fair valued as at the balance date based on net asset value

of AIMET as at 31 December 2015. The difference between

the actual cost of shares and fair value as at 31 December

2015 has been recorded as gain on fair valuation of invest in

associate.


Note 15: Intangibles

Website & IT development

$

Training course development

$

Work in-Progress

$Total

$


Opening net book amount 3,041,158 1,639,518 392,149 5,072,825

Additions 239,453 157,684 1,816,236 2,213,373

Effect of merger between AIM Group, AIM VT & SA 552,843 84,900 617,666 1,255,409

Transfer to assets classified as held for sale (2,821,048) (1,015,881) (981,891) (4,818,820)

Transfers in from WIP 976,556 516,719 - 1,493,275

Transfers out from WIP - - (1,559,723) (1,559,723)

Disposals (899,304) (749,440) (263,847) (1,912,591)

At 31 December 2014

Cost 1,338,942 2,105,627 20,590 3,465,159

Accumulated amortisation (1,118,236) (2,105,627) - (3,223,863)

Net book amount 220,706 - 20,590 241,296


Opening net book amount 220,706 - 20,590 241,296

Additions 66,047 - 23,959 90,006

Amortisation charge (53,937) - - (53,937)

Closing net book amount 232,816 - 44,549 277,365

At 31 December 2015

Cost 1,404,989 2,105,627 44,549 3,555,165

Accumulated amortisation (1,172,173) (2,105,627) - (3,277,800)

Net book amount 232,816 - 44,549 277,365

Note 16: Available for sale financial assets

Available for sale financial assets include the following classes of financial assets:

Consolidated 2015

$

Consolidated 2014

$

Non-current assets:

Cash 1,072,052 2,473,925

Listed securities:

Fixed interest 3,833,091 4,068,317

Equities 14,313,687 11,517,602

18,146,778 15,585,919

Total available for sale financial assets 19,218,830 18,059,844

Gain on revaluation of available for sale financial assets:

Changes in the fair value and exchange differences arising on translation of investments that are classified as available for sale

financial assets (for example equities), are recognised in other comprehensive income accumulated in a separate reserve with

equity. Amounts are reclassified to profit and loss when the associated assets are sold or impaired.

The gain on revaluation of available for sale assets for the year is $580,107 (2014: $175,550).

Note 17: Payables

Consolidated 2015

$

Consolidated 2014

$

Trade creditors 134,463 219,470

Other creditors and accruals 1,460,642 1,131,319

1,595,105 1,350,789

Fair value

Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.


Note 18: Other current liabilities

Consolidated 2015

$

Consolidated 2015

$

Member subscriptions in advance 1,361,010 1,377,708

Note 19: Provisions

Consolidated 2015

$

Consolidated 2014

$

Employee benefits and related on-cost liabilities

Current 61,350 54,303

Non-current 6,105 3,579

Aggregate employee benefits and related on-cost liabilities 67,455 57,882

The provision for employee benefits as at 31 December 2014 and 31 December 2015 relates to staff engaged with the continued

operations. The provision for employee benefits related to staff engaged with discontinued operations is included in the liabilities

of discontinued operations held for sale disclosed in note 10.

Note 20: Reserves

Note Consolidated

2015 $

Consolidated 2014

$

Asset revaluation reserve

Balance 1 January 1,585,120 1,778,703

Reclassification of building revaluation reserve to retained earnings (1,028,778) -

Fair value revaluation of land and building (358,875) (193,583)

Balance 31 December 197,467 1,585,120

Available for sale reserve

Balance 1 January 175,550 -

Net gain on available for sale financial assets 580,107 175,550

Balance 31 December 755,657 175,550

Business combination reserve

Balance 1 January 46,250,958 19,763,313

Effect of merger of AIM Group Limited, AIM Vic/Tas, AIM SA and AIM National

20(a) - 26,487,645

Adjustment to business combination reserve related to continued operations

(646,660) -

Reclassification of business combination reserve related to discontinued operations to retained earnings

20(b) (39,939,653) -

Balance 31 December 5,664,645 46,250,958

Total reserves 6,617,769 48,011,628


20 (a) Business combination reserve

As described in note 2 to the financial statements, the company merged AIM Vic/Tas, AIMSA and AIM National in 2014. This

merger was effected by changes in the constitution of respective entities and there was no issuance of shares or payment of

consideration.

Fair value of assets acquired at the respective date of the business combinations was as follows:

2015 $

2014$

AIM Vic/Tas - 20,823,000

AIM SA - 5,057,320

AIM National - 607,325

Total fair value of net assets acquired - 26,487,645

The fair value of net assets acquired has been consolidated as a direct addition to equity in the business combination reserve.

20 (b) Business combination reserve

Following the disposal of Training business on 1 March 2015, training net assets that were previously acquired through mergers

were fully provided for impairment. As a result of this, related business combination reserve was reclassified to retained earnings

leaving behind a business combination reserve balance related to continued business.

Note 21: Retained Earnings

Consolidated 2015

$

Consolidated 2014

$

Retained (deficit)/surplus at the beginning of the financial year (15,175,186) 11,277,203

Reclassification from business combination reserve 39,939,653 -

Reclassification from asset revaluation reserve 1,028,778 -

Deficit attributable to members of Australian Institute of Management (Group) Limited (225,007) (26,452,389)

Retained surplus/(deficit) at the end of the financial year 25,568,238 (15,175,186)

Note 22: Expenditure commitment

Operating Leases

Consolidated 2015

$

Consolidated 2014

$

Not later than one year - 3,488,831

Later than one year but not later than five years - 11,618,863

Later than five years but not later than ten years - 24,004,293

- 39,111,987

The operating leases in 2014 include lease premises in Sydney, Canberra, Melbourne, Hobart, Mackay, Brisbane, Emerald and

Moranbah. These leases were assigned to AIMET upon disposal of the Training business.

Note 23: Controlled entitiesThe following are controlled entities and their subsidiaries as at 31 December 2015 by virtue of the fact that all Directors are

appointed by the Company.

Controlled entities Subsidiaries of controlled entities

Australian Institute of Management NSW/ACT Limited Australian Institute of Management NSW/ACT Training Centre Limited (non-operating)

Australian Institute of Management Canberra Limited (non-operating)

The Octant Foundation (non-operating)

Centre for Public Management Pty Ltd (non-operating)

Australian Institute of Management Vic/Tas Limited Australian Institute of Management Vic/Tas College of Education and Training Nominee Limited

Australian Institute of Management Vic/Tas Training College Limited (non-operating)

Airdiaim Pty Ltd (formerly known as Idria Pty Ltd) (non-operating)

Australian Institute of Management South Australian Division Incorporation

Australian Institute of Management (AIM National)

The Company has no investment in the above noted controlled entities and the Constitutions of the controlled entities preclude

payment of any dividends to the Company.

Note 24: Deed of Cross GuaranteeA Deed of Cross Guarantee was signed in November 2014. By

entering into this deed, Australian Institute of Management

NSW/ACT Limited, Australian Institute of Management

Education and Training, LeaderSpace Limited, Australian

Institute of Management NSW/ACT Training Centre Limited,

Australian Institute of Management Canberra Limited,

Australian Institute of Management Vic/Tas Limited, Australian

Institute of Management Vic/Tas College of Education &

Training Nominee Limited, Australian Institute of Management

(AIM National) and The Octant Foundation were relieved from

the requirement to prepare a financial report and Directors’

report under Class Order 98/1418 (as amended) issued by the

Australian Securities and Investment Commission (ASIC).

Post disposal of Training business on 1 March 2015, a Deed

of Revocation was signed and lodged with ASIC releasing

Australian Institute of Management Education and Training

and LeaderSpace Limited from the deed and closed group.

The following entities are party to a Deed of Cross Guarantee

as at 31 December 2015 under which each company

guarantees the debts of the other:

> Australian Institute of Management (Group) Limited

(holding entity)

> Australian Institute of Management NSW/ACT Limited

> Australian Institute of Management NSW/ACT Training

Centre Limited

> Australian Institute of Management Canberra Limited

> Australian Institute of Management Vic/Tas Limited

> Australian Institute of Management Vic/Tas College of

Education & Training Nominee Limited

> Australian Institute of Management (AIM National)

> The Octant Foundation

The above companies represent a “Closed Group” for the

purpose of the Class Order and as there are no other parties

to the Deed of Cross Guarantee that are controlled by the

Company, they also represent the “Extended Closed Group”.


Note 24: Deed of Cross Guarantee (continued)

Set out below is a consolidated statement of comprehensive income and statement of financial position of the “Closed Group”.

Consolidated statement of financial position (Closed Group)

As at 31 December 2015

Closed Group 2015

$

Closed Group 2014

$

Current assets

Cash and cash equivalents 541,113 1,697,621

Assets classified as held for sale - continued operations 6,652,417 690,000

Assets classified as held for sale - discontinued operations - 12,190,096

Receivables 862,895 1,706,643

Prepayments & other current assets 268,692 34,281

Total current assets 8,325,117 16,318,641

Non-current assets

Property, plant and equipment - 6,827,600

Investment in an associate 50,000 186,035

Intangible assets 277,365 241,296

Available for sale financial assets 19,218,830 18,059,844

Other deposits - 16,706

Total non-current assets 19,546,195 25,331,481

Total assets 27,871,312 41,650,122

Current liabilities

Payables 1,579,805 1,350,789

Other current liabilities 1,361,010 1,377,708

Provisions 61,350 54,303

Liabilities directly associated with assets classified as held for sale - 12,190,096

Total current liabilities 3,002,165 14,972,896

Non-current liabilities

Provisions 6,105 3,579

Total non-current liabilities 6,105 3,579

Total liabilities 3,008,270 14,976,475

Net assets 24,863,042 26,673,647

Equity

Reserves 6,420,302 42,322,965

Retained earnings 18,442,740 (15,649,318)

Total equity 24,863,042 26,673,647

Note 24: Deed of Cross Guarantee (continued)

Consolidated statement of financial position (Closed Group)

As at 31 December 2015

Closed Group 2015

$

Closed Group 2014

$

Continued Operations

Revenue 6,894,724 5,409,642

Expenses (6,983,307) (6,015,200)

Profit before income tax from continued operations (88,583) (605,558)

Income tax expense - -

Total profit for the year (88,583) (605,558)

Discontinued operations

Loss for the year from discontinued operations - (26,320,963)

Net loss for the year (88,583) (26,926,521)

Other comprehensive income/(loss):

Gain on revaluation of available for sale financial assets 580,107 175,550

Loss on revaluation of property, plant and equipment (358,875) (749,926)

221,232 (574,376)

Total comprehensive income for the year 132,649 (27,500,897)

Note 25: Directors and key management personnel disclosure

Compensation

The aggregate compensation made to Directors and other members of key management personnel of the Group is set out

below:

Consolidated 2015

$

Consolidated 2014

$

Aggregate compensation 982,814 2,449,336

Note 26: Related party disclosures

Controlling entities

Australian Institute of Management (Group) Limited is the ultimate parent entity.

Directors and specified key management personnel

Disclosures relating to Directors and specified key management personnel are set out in note 25.

Loans to directors and director-related entities

There are no loans in existence at balance date that have been made, guaranteed or secured by the consolidated entity or any

related entity to directors of the consolidated entity, their spouses, their relatives or entities under their control or significant

influence.

Amounts receivable from and payable to entities in the controlled group and related parties

During the year, the Company received services from AIMET under the Transitional Services Agreement. The balance outstanding

which is no longer consolidated as at 31 December 2015 is $768,998. (31 December 2014: $ nil).


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2015

Note 27: Subsequent eventsThe Company entered into sale agreement for the following building assets:

> Freehold land and building located in Spring Hill Qld was sold on 22 December 2015 for $7.1 million.

The settlement is due on 30 September 2016;

> Freehold land and building located in Hindmarsh SA was sold on 26 February 2016 for $7.625 million.

The settlement is due on 28 March 2016; and

> A strata unit located in Barton ACT was sold on 24 November 2015 for $700,000.

The settlement occurred on 24 January 2016.

Other than the sale of building assets, there has been no matter or circumstance that has significantly affected or may

significantly affect:

a. The operations;

b. The results of those operations; or

c. The state of affairs of the Company.

Note 28: Parent entity financial information

(a) Summary financial information2015

$2014

$

Statement of financial position

Current assets 945,704 71,330

Non-current assets 229,266 215,704

Total assets 1,174,970 287,034

Current liabilities 7,675,871 4,700,924

Net liabilities (6,500,901) (4,413,890)

Members’ Fund:

Accumulated losses (6,500,901) (4,413,890)

Loss for the year (2,087,011) (2,389,385)

Total comprehensive income (2,087,011) (2,389,385)

(b) Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 31 December 2015.

In accordance with a resolution of the Directors of Australian Institute of Management (Group) Limited we state that:

In the opinion of the Directors:

(a) the consolidated financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company’s financial position as at 31 December 2015 and of the Company’s

performance for the year ended on that date; and

(ii) complying with Accounting Standards for Reduced Disclosure Requirements and Corporations Regulations 2001.

(b) there are reasonable grounds to believe that the Company and the consolidated entities will be able to pay their debts as and

when they become due and payable.

On behalf of the Board

DIRECTORS’ DECLARATION

Ann Messenger FAIM Director Brisbane 16 March 2016

Andrew McFarlane FAIM Director Brisbane 16 March 2016


Telephone: 1300 661 061www.aim.com.au

http://www.aim.com.au

Documents

ANNUAL REPORT 2015aim-drupal-files.s3.amazonaws.com/s3fs-public/AIMGroup_AnnualRe… · 6 ANNUAL REPORT 2015 AUSTRALIAN INSTITUTE OF MANAGEMENT AUSTRALIAN INSTITUTE OF MANAGEMENT