australian institute of quantity surveyors report 2011.pdfaustralian institute of quantity surveyors...

24
AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS ANNUAL REPORT FOR YEAR ENDING 30 JUNE 2011

Upload: others

Post on 19-Mar-2020

21 views

Category:

Documents


2 download

TRANSCRIPT

AUSTRALIAN INSTITUTE

OF

QUANTITY SURVEYORS

ANNUAL REPORT

FOR

YEAR ENDING

30 JUNE 2011

Page | 1

AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

ANNUAL REPORT 2011

CEO’s REPORT

As most of you know, I will be retiring as CEO of AIQS on 3rd February 2012 to take back my old

company Aulich & Co. I am looking forward to the challenge and the opportunity to meet many of

you as I become more involved in the provision of market research and strategic advice to

companies and organisations.

For AIQS, I am happy with the progress that has been made over the last two and a half years. AIQS

has a higher profile and more influence in decision making circles, it has a more professional

marketing strategy and materials that promote the profession and a new International Chapter to

give fair and proper recognition to our overseas members. Also a Chartered status grade and

Emerging Leader programs have taken us further on the road to excellence.

Marketing and Communications

In terms of marketing and information, the new MBR has been an effective way to promote the

services of quantity surveying companies to governments and commercial clients. Similarly, the

Building Economist has been revamped and its quality lifted. That new approach has also been taken

in our student application forms right through to the brochures, hand outs and websites that

promote the AIQS and the profession. This marketing is an important service for the benefit of all

our members.

Thanks to Simon Welsh and Anna Pappalardo from Andrews Consulting and Tim Roberts and Steve

McCoullough from the Vic Chapter for their assistance and drive in enabling the pilot and now the

real thing for National Awards which will happen in Melbourne this October.

Jason Suitor from our marketing company, Nose to Tail, has been invaluable in assisting marketing

strategy and for the high quality and impact of the marketing and communications material that you

will see everywhere from post cards to website to brochures and publications.

The BRIX survey is now undergoing another metamorphosis. The current survey of pricing and

sentiment has not had enough contributors to guarantee sample validity. A sub-committee of

National Council has been established to progress a new system which will be based on email or

Page | 2

phone calls to a broader data base of experienced respondents. This should make it easier to seek

sponsorship and funding for the BRIX and other cost management data. AIQS will need to progress

this aspect of its research activity, to lift its sophistication and involvement in the intellectual grunt

area of the construction industry; otherwise it will continue to miss out on significant funds and

project involvement.

Education and CPD

We have finally cracked the way Education and CPD should be delivered. The new online delivery

system was pioneered last year with Tax Depreciation and Report Writing that received highly

complementary responses from our members. This will be expanded in 2012 because it does seem

to meet the needs of our busy and time poor members.

The Emerging Leaders Program which was delivered in Melbourne and Brisbane in 2011 and in NSW

in 2010 certainly brought some talented young QS’ into a training program which will enhance their

own careers but will also provide the leadership of the AIQS in the near future. I am still of the

strong view that Young QS’ should have two national elected representatives on the National

Council to harness that talent and ensure that the AIQS is an open organisation with forward

thinking leaders.

The new co-operative higher education accreditation agreement (known as the Co-operative

Accreditation Agreement) which we negotiated before Christmas will help to develop a more

positive two way relationship between higher education institutes and the AIQS and its partner AIBS.

The idea has been hanging around since 2004 and it was time to act. In the Agreement, there is a

great deal of emphasis on the professions having input into the courses including the way valuable

joint research can be negotiated between all parties. It also marks a valuable partnership with AIBS

which also involves an alliance with them over the Energy Efficiency Project in NSW. We should

recognize the work of AUBEA Chair Tony Williams, Rick Best, Yvonne Miller from AIBS, AIQS

Education Chair Dennis Lenard, AIBS Education Chair Clay Anderson and AIBS CEO Kevin Skauge in

achieving that goal.

I visited and spoke at a number of University functions such as graduation ceremonies and forums

where I had the opportunity to speak directly with students and parents about careers as a Quantity

Surveyor. This advocacy for the profession’s value is a critical role for the CEO. This applied to my

speaking at the National Conference and other meetings of the Australasian Universities Building

Education Association (AUBEA) where I believed our main role was to build respectful and co-

operative relationships with Universities which, after all, are our main recruiting avenues and our

training and research partners.

Other programs like Energy Efficiency in NSW have been valuable ways to engage industry and

government in an area that is vital for AIQS. Thanks to the Chair of the AIQS Education Committee Dr

Dennis Lenard for the enormous amount of work, course development and presentations that he did

on the project. I also presented at those meetings and was able to see first-hand what solid

intellectual planning can do to position the profession for future relevance.

Page | 3

It is worth mentioning the transformation of the AJCEB, the academic journal owned by the AIQS

and the AIB but which is now jointly run by a committee of representatives from other associated

building institutes. The AJCEB has now been converted to an online journal only and, edited by

Goran Runeson, has grown its subscribers significantly and has become, like the Building Economist,

a broader more valuable resource for academics, students and the industry. Thanks to Rick Best and

the Committee of management for their perseverance and action.

Membership

Membership stands at 4326 as at January 24th 2012 which is a slight growth on previous years, good

considering the effects of the Global Financial Crisis which has exacted a toll with our overseas

numbers. However, the new push into China and other Asia Pacific nations such as the Philippines

will increase our reach and influence. Further work on this program will follow a proposedmeeting in

Bangkok in March where a number of key issues will bring our delegates together.

New membership grades have passed through National Council and I must thank Mark Hampson

and his team for pursuing these changes. Long ago, Mark and I were determined to simplify the

conditions and grades of membership which had grown like topsy over the years. This simplification

process must continue, including the push to recruit members form allied professions. The

President, Trevor Sanders, has been especially interested in this simplification process.

The Chartered status for AIQS members has been accepted by IPAustralia but is subject to a

temporary halt due to the request for extension of time to examine a possible objection by RICS.

When and if granted, the Chartered status will be an aspirational goal that will be sought by

committed and professional members of AIQS.

Thanks to Peter Clark, National Councillor Chris Leach and Pat Copping for their work on the

Overseas Membership Committee and their significant contributions to making the International

Chapter happen. A lot of detail and negotiating went into the process.

Thanks also to Peter Smith for his work on the ICEC bureau.

Finance

The transition to a financial year correlated to the ATO tax year went very smoothly, thanks to Harry

Hoang and Treasurer John Popplewell. This now means that membership fees and our accounting

systems are synchronized. Enabling members to pay directly on line led to significantly earlier

renewals from members.

The audited accounts for the half year ending June 30th 2011 show that, despite the global crisis and

extra expenditure on marketing, the budget surplus was $13, 232 and the retained surplus

increased by that amount on the previous year.

Page | 4

International Activities

I must also thank PAQS Treasurer Trevor Main, new International Chapter President Dato Isahak,

former ICEC President Peter Cox, John Popplewell and others for the vital work they have done to

ensure that AIQS has an international presence. I want to pay special tribute to my predecessor,

Terry Sanders who was very active in ensuring that parochialism was kept at bay. I bitterly regret not

being able to attend a PAQS Conference because it is that international connection that is AIQS’

future. International business, international co-operation, entry into places like China and India are

the future pathways for AIQS, our members and the firms that want to do business there.

The Skilled Migration Assessment system for AIQS has been rewritten and a panel of profession

experts led by life member Gerry Postmus, Michael Davies, Debbie Marsh and Kevin Windross now

provides objective assessments for those seeking to migrate to Australia. I must thank the panel for

the work they have done in turning around what, in some cases, is a complicated amount of

information.

Staff

I must thank those staff who did so much to provide a daily service to our members across the

world. Many members have made positive comments about the efficiency and courtesy of such

staffers as Betty Ferres in the overseas member section, Office Manager Keely Steward or Yanwen

Chen or Dale Philips or Harry Hoang who did such great work in providing a much more transparent

financial reporting system that made it much more possible for National Council to make informed

decisions.

The majority of the National Office staff have to be congratulated on their willingness to make

improvements and efficiencies; the staffing budget never went over, the online payment system was

introduced, new membership rules written, a new Skilled Migration Assessment system was written

and put in place, the MBR and publications and website plus the weekly e-bulletin were introduced

and are now part of AIQS life for its members.

National Council’s decision to relocate the National Offices to Sydney has been difficult but most

staff have displayed professionalism and have got on with the job of providing hand-over briefings,

whilst knowing that they would be redundant. After so many years of owning a national

headquarters in Canberra, the change will be a challenge for new CEO Michael Manikas and his new

staff in Sydney. We wish them well.

Officers

I also want to thank National Councillors and Chapter Officers for all the unpaid time and

commitment they put into helping keep the AIQS show on the road. Whether it is doing APC

interviews, organising CPD programs like Kal Jaulnalksnis in Victoria or running networking and

social functions, this volunteer contribution has been so valuable and helped to make membership

of AIQS attractive to members. I felt privileged to be part of that grass roots activity and I tried to

Page | 5

make sure I visited as many capital city and regions as I could. North Qld, Tasmania and others were

on my itinerary and the feedback and goodwill made the effort worthwhile. I especially like the

collegial atmosphere created at the Chapter annual dinners where people like John Popplewell and

others had been able to bring so many young people to the events.

One of the most important sections of the AIQS is Young Quantity Surveyors (YQS). I was impressed

with their organisation and the networking and social activities. They contribute so much to making

our profession a welcoming one; they are the future of the AIQS and need to be formally

represented on the National Council.

Industry and Professional Relationships

I visited all the states, usually seeing the Chapters, meeting QS directors through the frank

confidential MBR lunches that I attended on behalf of the National President Trevor Sanders.

I represented AIQS on the Board of Professions Australia, the Tax Practitioners Advisory Forum (with

John Lowry whose knowledge was invaluable), the board of the Australian Construction Industry

Forum (ACIF), the BER Consultation forums, the Board of NATSPEC.

The National Council has been wise to permit me to advocate and liaise with those other industry

bodies because we are but a small but influential part of an industry which employs nearly one

million people and accounts for about 11% of Australian GDP.

Thank you all for giving me a chance to make a difference.

Again, I would like to wish the new CEO Michael Manikas all the best, and thank all the people who

contributed to this report.

Hon Terry Aulich

CEO AIQS

Jan 2012

Page (i)

ABN 97 008 485 809 80901/25/1201/25/12

REPORT OF THE COUNCILLORS The Councillors of The Australian Institute of Quantity Surveyors (AIQS) present the financial statements for the period ended 30 June 2011 and report as follows: Name of Councillors The names and particulars of the Councillors of AIQS during or since the end of the financial period are: Mr P Cox, FAIQS Mr T E Main, FAIQS Mr J W Popplewell, FAIQS Mr G Brady, Mr M Manikas, AAIQS Mr M Hampson, Mr J A Deans, FAIQS Mr B McCloy Mr T Sanders, FAIQS Mr M de Jager, AAIQS Mr G McDonald, FAIQS Mr C Leach, FAIQS The Councillors have been in office since the start of the financial period to the date of this report unless otherwise stated. Objectives and Strategies a) Objectives The key objectives of AIQS have been to promote the standards and value of quantity surveying as a profession and the value of membership in the AIQS. b) Strategies for Achieving Objectives The following strategies have been undertaken in pursuit of the AIQS’ short and long term objectives:

Provide professional services and standards for the members of the quantity surveyors profession in both Australia and other regions of the world.

Provide continuing education opportunities for AIQS members.

Ensure that the value of using the quantity surveying profession is understood by key decision makers and the public.

Structure the services of the National Office and Chapters to provide support to the members.

Build electronic communications to promote the Quantity Surveying profession amongst the key decision makers and the public. This has been done through upgrading the website, weekly newsletters and making AIQS services more interactive.

Principal Activities The principal activities of AIQS during the financial period were:

Advancement of quantity surveying through the unifying of quantity surveyors on an Australia-wide and Asia Pacific regional basis.

Improvement and elevation of the technical knowledge of persons engaged in, or about to engage in, the profession of quantity surveying.

Securing uniformity in methods by quantity surveyors throughout Australia.

Upgrading of research and data collection through building specialist information networks in key areas such as Tax Depreciation and Building Information Modelling.

Involvement in partnerships and joint activities with key stakeholders and associated disciplines, including representation on professional and industry bodies.

Electronic communications improvements have been achieved through upgrading the website and weekly newsletters and making AIQS services such as the Members Business Register more interactive.

Our other principle activity is to improve the influence of the AIQS amongst the key decision makers and the industry. At a chapter and national level, CPD and Education offerings have been provided.

There has been no significant change in the nature of those activities during that period.

Page (ii)

ABN 97 008 485 809 80901/25/1201/25/12

REPORT OF THE COUNCILLORS Achievements of the AIQS Objectives During the period AIQS has:

Upgraded significantly its online services such as payment and fee systems, website, and e-weekly newsletters.

Restructured the physical and staffing components of the National Office and has involved itself more actively with other stakeholders in government and the construction industry.

Improved its marketing/communications activities to improve the image, profile and membership involvement.

AIQS is well advanced towards the creation of an International Chapter to represent overseas members of the AIQS. Measurement of Performance The achievements of the AIQS can be measured by such factors as:

Maintenance of membership numbers.

Strong take up of electronic services.

Greater involvement with other organisations and government.

Active participation by members in education/CPD events and other events in the Chapters.

Creation of the International Chapter. Operating Results and Review of Operations The surplus for the financial period ended 30 June 2011 was $13,232 (financial year ended 31 December 2010: deficit of $61,645). This is in line with the decision of the National Council to invest reserves in marketing and communications. Company Limited by Guarantee The liability of the members is limited. In the event AIQS is wound up, the Constitution states that each member is required to contribute a maximum of $10 each towards any outstanding obligations of AIQS. Councillors’ Attendance at Board Meetings During the financial period, 2 meetings of the Councillors were held. Attendances by each Councillor during the financial period were as follows:

Number of meetings attended

Number of meetings eligible to

attend Gavin Brady 2 2 Peter Cox 2 2 John Deans 2 2 Mark Hampson 2 2 Mark de Jager 2 2 Chris Leach 2 2 Trevor Main 2 2 Michael Manikas 2 2 Brian McCloy 2 2 Gary McDonald 2 2 John Popplewell 2 2 Trevor Sanders 2 2

Page (iii)

ABN 97 008 485 809 80901/25/1201/25/12

REPORT OF THE COUNCILLORS Councillors’ Information

Name

Qualifications, Experience and Special Responsibilities

Gavin Brady Quantity Surveyor, FAIQS

21 years professional experience 2 years experience as a Councillor

Peter W Cox Quantity Surveyor, FAIQS 41 years professional experience 10 years experience as a Councillor

John A Deans Quantity Surveyor, FAIQS 48 years professional experience 12 years experience as Councillor

Mark Hampson Quantity Surveyor, FAIQS 26 years professional experience 2 years experience as a Councillor

Mark de Jager Quantity Surveyor, AAIQS 40 years professional experience 6 years experience as Councillor

Chris Leach Quantity Surveyor, FAIQS 31 years professional experience 9 years experience as a Councillor

Trevor E Main Quantity Surveyor, FAIQS 44 years professional experience 15 years experience as a Councillor

Michael Manikas

Quantity Surveyor, AAIQS 13 years professional experience 3 years experience as a Councillor

Brian McCloy Quantity Surveyor, FAIQS 37 years professional experience 2 year experience as a Councillor

Gary McDonald

Quantity Surveyor, FAIQS 23 years professional experience 3 years experience as a Councillor

John W Popplewell Quantity Surveyor, FAIQS 36 years professional experience 11 years experience as a Councillor Immediate Past President

Trevor Sanders

Quantity Surveyor, FAIQS 36 years professional experience 8 years experience as a Councillor

Auditor’s Independence Declaration A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is attached to this Report of the Councillors. Signed in accordance with a resolution of Councillors.

Page (iv)

ABN 97 008 485 809 80901/25/1201/25/12

COUNCILLORS’ DECLARATION The Councillors declare that the financial statements comprising the Statement of Financial Position, Statement of Comprehensive Income, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements are in accordance with the Corporations Act 2001 and: (a) comply with Australian Accounting Standards - Reduced Disclosure Requirements; and

(b) give a true and fair view of the Australian Institute of Quantity Surveyors’ financial position as at

30 June 2011 and of its performance, as represented by the results of its operations and its cash flows, for the period ended on that date.

In the Councillors’ opinion there are reasonable grounds to believe that the AIQS will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of the Councillors.

Page (v)

AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001 TO THE MEMBERS OF THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS

I declare that, to the best of my knowledge and belief, during the period ended 30 June 2011 there has been:

i. no contraventions of the auditor independence requirements of the Corporations Act in relation to the audit; and

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

Page (vi)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS We have audited the accompanying financial statements of The Australian Institute of Quantity Surveyors (the Company), which comprise the statement of financial position as at 30 June 2011, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the period ended on that date, a summary of significant accounting policies, other explanatory notes and the Councillors’ declaration. COUNCILLORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Councillors are responsible for the preparation and fair presentation of the financial statements in accordance with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Act 2001, and for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Councillors, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Page (vii)

INDEPENDENCE In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. AUDITOR’S OPINION

In our opinion, the financial statements of Australian Institute of Quantity Surveyors are in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the Company’s financial position as at 30 June 2011 and of its

performance for the period ended on that date; and

(ii) complying with Australian Accounting Standards – Reduced Disclosure Requirements and the Corporations Regulations 2001.

Page (viii)

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 30 JUNE 2011

6 Months ended

30 June 2011

12 Months ended

31 December 2010

Note $ $ Revenue 2 858,255 1,405,054 Chapter general expenses (27,802) (131,878) Chapter services expenses (61,583) (67,272) Depreciation and amortisation expenses (18,735) (33,919) Inventory write-off (30,000) (16,266) Employee benefits expense (275,432) (539,332)

Superannuation (23,674) (46,448) Boardroom expenses (6,205) (23,157) Journal expenses (88,705) (73,133) Marketing expenses (111,257) (75,581) Membership expenses (85,424) (179,449) National services expenses (14,923) (45,765) National strategic expenses (10,868) (23,384) Overhead expenses (90,415) (211,115)

Surplus / (deficit) before income tax expense 13,232 (61,645) Income tax expense 1(a) - -

Net surplus / (deficit) for the period 13,232 (61,645)

Total comprehensive income/ (loss) for the period 13,232 (61,645)

Page (ix)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2011

As At 30 June

2011

As At 31 December

2010 Note $ $ Current Assets Cash and cash equivalents 3 230,879 144,467 Other financial assets 4 1,248,004 1,434,684 Trade and other receivables 22,764 11,651 Inventories - publications 11,914 42,035 Other current assets 5 78,249 112,017

Total Current Assets 1,591,810 1,744,854

Non Current Assets Other financial assets - Investments 20 20 Property, plant and equipment 6 329,941 342,425

Intangible assets 7 31,720 37,971

Total Non Current Asset 361,681 380,416

Total Assets 1,953,491 2,125,270

Current Liabilities Trade and other payables 8 460,841 626,518 Provisions 9 18,645 29,921

Total Current Liabilities 479,486 656,439

Non Current Liabilities Trade and other payables 8 40,290 48,348

Total Non Current Liabilities 40,290 48,348

Total Liabilities 519,776 704,787

Net Assets 1,433,715 1,420,483

Equity Retained surplus 1,433,715 1,420,483

Total Equity 1,433,715 1,420,483

Page (x)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 30 JUNE 2011

6 Months ended

30 June 2011

12 Months ended

31 December 2010

$ $ RETAINED SURPLUS Balance at beginning of the period 1,420,483 1,482,128 Total comprehensive income/ (loss) for the period 13,232 (61,645)

Balance at the end of the period 1,433,715 1,420,483

Page (xi)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS STATEMENT OF CASH FLOWS

FOR THE PERIOD ENDED 30 JUNE 2011

6 Months ended

30 June 2011

12 Months ended

31 December 2010

$ $

Cash Flows from Operating Activities Receipts from customers 724,505 1,498,189 Interest received 35,458 84,108 Payments to suppliers and employees (860,231) (1,530,235)

Net Cash Flows from Operating Activities (100,268) 52,062

Cash Flows from Investing Activities Receipts from short term investments 186,680 58,267 Payment for property, plant and equipment and intangible assets

-

(120,581)

Net Cash Flows from Investing Activities 186,680 (62,314)

Net increase/(decrease) in cash held 86,412 (10,252) Cash at the beginning of the period 144,467 154,719

Cash at the end of the period 230,879 144,467

Page (xii)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Preparation The Australian Institute of Quantity Surveyors has elected to early adopt AASB 1053: ‘Application of Tiers of Australian Accounting Standards’ and AASB 2010-2: ‘Amendments to Australian Accounting Standards arising from Reduced Disclosure Requirements’ to the annual reporting periods beginning on or after 1 January 2010. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (Reduced Disclosure Requirements of the Australian Accounting Standards Board) and the Corporations Act 2001. The Australian Institute of Quantity Surveyors (the Company) is a company limited by guarantee, incorporated and domiciled in Australia. The financial statements cover the Company as an individual entity. Since the previous financial statements, the Company changed its financial year end from 31 December to 30 June. The current reporting period is for six months from 1 January 2011 to 30 June 2011. The comparative reporting period is for the year from 1 January 2010 to 31 December 2010. The financial statements have been prepared on an accrual basis and are based on historical costs modified by the revaluation of selected non-current assets, and financial assets and financial liabilities for which the fair value basis of accounting has been applied. The following is a summary of the material accounting policies adopted in the preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated. Accounting Policies

(a) Income Tax The Company is a tax exempt body under relevant provisions of the Income Tax Assessment Act, 1997. (b) Inventories Inventories are measured at lower of cost or net realisable value. The cost includes direct materials, direct labour and an appropriate portion of variable and fixed overheads. Overheads are applied on the basis of normal operating capacity. Costs are assigned on the basis of weighted average costs. (c) Property, Plant and Equipment

Each class of property, plant and equipment is carried at cost or fair value less, where applicable any accumulated depreciation and impairment losses. Where a revaluation has been performed, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. The carrying amount of property, plant and equipment is reviewed at the end of the reporting period to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other costs (eg. repairs and maintenance) are charged to the statement of comprehensive income during the financial period in which they are incurred. Increases in the carrying amount arising on revaluation of assets are credited to a revaluation reserve and recognised in other comprehensive income. Decreases that offset previous increases of the same asset are charged against fair value reserves and recognised in other comprehensive income. All other decreases are charged to the profit or loss. The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of the reporting period. Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and losses are included in the profit or loss. When revalued assets are sold, amounts included in the revaluation reserve relating to that asset are transferred to retained earnings. (d) Depreciation

The depreciable amounts of all fixed assets including capitalised leased assets are depreciated on either a straight line or diminishing value basis over their estimated useful lives to the entity commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

Page (xiii)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (e) Leases

Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership, are transferred to the entity are classified as finance leases. Finance leases are capitalised, recording an asset and a liability at the lower of the amounts equal to the fair value of the leased asset or the present value of the minimum lease payments, including any guaranteed residual. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated over their estimated useful lives. Lease payments for operating leases, where substantially all the risks and benefits remain with the lessor, are charged as expenses in the periods in which they are incurred. Lease incentives under operating leases are recognised as a liability and amortised on a straight-line basis over the life of the lease term.

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

Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139 - Financial Instruments: Recognition and Measurement. Gains and losses arising from changes in the fair value of these assets are included in the profit or loss in the period in which they arise. Loans and trade and other receivables Loans and trade and other receivables are non-derivative financial assets with fixed or determinable payments and are stated at amortised cost using the effective interest rate method. Held-to-maturity investments These investments have fixed maturities, and it is the intention to hold these investments to maturity. Any held-to-maturity investments held are stated at amortised cost using the effective interest rate method. Available-for-sale financial assets Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the investment revaluation reserve. Financial liabilities Financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation. Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models. Impairment At the end of the reporting period, an assessment is made of whether there is objective evidence that a financial instrument has been impaired. In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the profit or loss. (g) Intangibles Expenditure incurred in the planning phase of website development or after the website is put into use is recognised as expenses when incurred. Development costs are capitalised only when it is probable that website development will deliver future economic benefits and these benefits can be measured reliably. Website development has a finite life and is carried at cost less any accumulated amortisation and impairment losses. It has an estimated useful life of three years and is amortised on a straight line basis. The intangible is assessed annually for impairment.

(h) Impairment of Assets

At the end of the reporting period, the carrying values of tangible and intangible assets are reviewed to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the profit or loss. Where it is not possible to estimate the recoverable amount of an individual asset, the recoverable amount of the cash generating unit (CGU) to which the asset belongs is estimated.

Page (xiv)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (i) Employee Benefits

Provision is made for the liability for employee benefits arising from services rendered by employees to balance date. The benefits expected to be settled within one year to employees for their entitlements have been measured at the amounts expected to be paid including on-costs and are disclosed as current liabilities. Employee benefits payable later than one year are measured at the present value of the estimated future cash outflows to be made in respect of those benefits. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. Contributions are made by the Company to an employee superannuation fund and are charged as expenses when incurred. (j) Provisions

Provisions are recognised when the Company has a legal or constructive obligation as a result of past events, for which it is probable that an outflow of economic benefits will result and that the outflow can be reliably measured. (k) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term highly liquid investment with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short term borrowings in current liabilities on the statement of financial position. (l) Revenue

Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. Revenue from the sale of goods is recognised upon the delivery of goods to customers. Grant revenue is recognised in the statement of comprehensive income when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before the entity is eligible to receive the contribution, the recognition of the grant as revenue is deferred until those conditions are satisfied.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statement of financial position as a liability until the service has been delivered, otherwise the grant is recognised as income on receipt. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. All revenue is stated net of the amount of goods and services tax (GST). (m) Goods and Services Tax (GST)

Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of the GST. Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. Receivables and payables in the statement of financial position are shown inclusive of the GST. (n) Comparatives

Where required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial period. Critical Accounting Estimates and Judgments

The Councillors evaluate estimates and judgments incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Company. The Councillors do not believe that there were any key estimates or key judgements used in the development of the financial statements that give rise to a significant risk of material adjustment in the future.

Page (xv)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 2 REVENUE 6 Months

ended 30 June

2011

12 Months ended

31 December 2010

$ $ (i) Revenue

Subscriptions 495,390 929,519 Services 113,945 140,396

(ii) Other operating revenue Chapter general 53,873 82,205 Marketing income 51,778 78,475 Other income 102,076 82,887

(iii) Interest income - other corporations 41,193 91,572

858,255 1,405,054

As At

30 June 2011

$

As At 31 December

2010 $

NOTE 3 CASH AND CASH EQUIVALENTS Cash at bank (on call) 227,252 133,829 Cash on hand 3,627 10,638

230,879 144,467

NOTE 4 OTHER FINANCIAL ASSETS Held-to-maturity investments 1,248,004 1,434,684

1,248,004 1,434,684

The held-to-maturity investments are made up of term deposits with initial terms of maturity of less than one year. NOTE 5 OTHER CURRENT ASSETS Accrued income 38,199 32,464 Prepayments 62,815 103,340 GST (22,765) (23,787)

78,249 112,017

NOTE 6 PROPERTY, PLANT AND EQUIPMENT Furniture, fittings and equipment at cost 215,069 215,069 Less: Accumulated depreciation (134,186) (124,842)

80,883 90,227

Land at cost 19,571 19,571 Buildings at cost 352,000 352,000 Less: Accumulated depreciation (126,630) (123,777)

244,941 247,794

Branch assets at cost 16,352 16,352 Less: Accumulated depreciation (12,235) (11,948)

4,117 4,404

329,941 342,425

Page (xvi)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 6 PROPERTY, PLANT AND EQUIPMENT (CONT’D) Movement in carrying amounts

Opening Written

Down Value

Additions Disposals / write offs

Depreciation Closing Written

Down Value $ $ $ $ $ Furniture, fittings and equipment 90,227 - - (9,344) 80,883 Interest in leasehold land 19,571 - - - 19,571 Interest in buildings 228,223 - - (2,853) 225,370 Branch assets 4,404 - - (287) 4,117

342,425 - - (12,484) 329,941

Depreciation is provided on property, plant and equipment on a diminishing value basis.

Class of asset Rate

Furniture, fittings and equipment 7.5% - 33% Interest in building 2.5% Branch assets 7.5% - 33%

NOTE 7 INTANGIBLE ASSETS As At

30 June 2011

As At 31 December

2010 $ $ Website development – at cost 49,863 49,863 Less accumulated amortisation (18,143) (11,892)

31,720 37,971

Movement in carrying amounts

Opening Written

Down Value

Additions Disposals / write offs

Amortisation Closing Written

Down Value $ $ $ $ $ Website development 37,971 - - (6,251) 31,720

37,971 - - (6,251) 31,720

Website development is amortised on a diminishing value basis at a rate of 33%. NOTE 8 TRADE AND OTHER PAYABLES Current ICEC Funds (2,269) - Accounts payable 14,329 29,451 Subscriptions received in advance 423,409 439,206 Other income in advance - 116,045 Payroll liabilities 6,683 23,416 Benevolent fund liability 18,689 18,400

460,841 626,518

Non-Current Subscriptions received in advance 40,290 48,348

As at 30 June 2011, a credit card facility of $40,000 (31 December 2010: $30,000) was in place. The unused facility amount was $40,000 (31 December 2010: $30,000). NOTE 9 PROVISIONS Current Provisions 18,645 29,921

18,645 29,921

Page (xvii)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 10 RELATED PARTY DISCLOSURES (a) Key management personnel transact with the Company from time to time on normal terms and conditions that are no more

favourable than those available to others. The types of transactions involved include those that are provided by the Company as part of its normal operations. The transactions are settled at the time of the transaction, and no amounts are owing to the Company at period end in respect of these transactions. The total value of these transactions is low and is considered by the Company to be immaterial.

With the exception of compensation of key management personnel, which is separately disclosed in these statements, there

were no other related party transactions during the financial period. (b) The company has paid premiums in respect of a contract insuring all the Councillors of the Company against a liability

incurred in their role as a director of the company, except where: (i) the liability arises out of conduct involving a wilful breach of duty; or (ii) there has been a contravention of Section 232(5) or (6) of the Corporations Act 2001.

The total amount of insurance contract premiums paid was $3,219 (2010: $3,519), which is included in key management personnel compensation below. No Councillor of the Company received or became entitled to receive any remuneration for services rendered, except for insurance premiums paid by the Company on behalf of Councillors. NOTE 11 CONTINGENT LIABILITIES AND CONTINGENT ASSETS There were no contingent liabilities or contingent assets at the end of the financial period. NOTE 12 LEASING COMMITMENTS There were no capital and leasing commitments at the end of the financial period. NOTE 13 FINANCIAL RISK MANAGEMENT The Company’s financial instruments consist mainly of deposits with banks, short-term investments, accounts receivable and payable. The totals for each category of financial instruments, measured in accordance with AASB 139 as detailed in the accounting policies to these financial statements, are as follows:

N N

Notes

As At 30 June

2011

As At 30 June

2010

Financial Assets $ $ Cash and cash equivalents 3 230,879 144,467 Loans and receivables 60,963 44,115 Held-to-maturity investments 5 1,248,004 1,434,,684

Total Financial Assets 1,539,846 1,623,266

Financial Liabilities Financial liabilities at amortised cost: Trade and other payables 8 39,701 71,267

Total Financial Liabilities 39,701 71,267

Net fair value Financial assets and financial liabilities are carried at their net fair value and the end of the reporting period. The carrying values of financial assets and financial liabilities approximate their net fair values due to their short terms to maturity or market interest rates. No financial assets or financial liabilities are traded on organised markets in standardised form.

Page (xviii)

ABN 97 008 485 809 80901/25/1201/25/12

THE AUSTRALIAN INSTITUTE OF QUANTITY SURVEYORS NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 JUNE 2011

NOTE 14 KEY MANAGEMENT PERSONNEL COMPENSATION Key management personnel is defined by AASB 124 “Related Party Disclosures” as those persons having authority and responsibility for planning, directing and controlling the activities of the entity, directly or indirectly, including any director of the entity.

The aggregate remuneration paid to key management personnel during the financial period is as follows:

6 Months ended

30 June 2011

12 Months ended

31 December 2010

$ $

Key management personnel compensation 101,528 194,269

NOTE 15 SEGMENT REPORTING The Company is the national body for the profession of quantity surveying throughout Australia. It is involved in the accreditation and promotion of quantity surveyors and the provision of services to its members. NOTE 16 EVENTS AFTER THE REPORTING DATE

These financial statements were authorised for issue by the Councillors on the date of signing the attached Councillors’ Declaration. The Councillors have the right to amend the financial statements after they have been issued.

There are no events after the reporting date that require amendment of, or further disclosure in, the financial statements. NOTE 17 ADDITIONAL INFORMATION The Company is incorporated under the Corporations Act 2001 as a company limited by guarantee. In the event of the Company being wound up, every member of the Company undertakes to contribute a maximum amount of $10. The principal place of business and registered company address is: National Surveyors House 27-29 Napier Close DEAKIN ACT 2600.