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CPA AUSTRALIA 19INTEGRATED REPORT CPA Australia Integrated Report 2019 William YoungWilliam CPA, Director Executive COSCapital –HeadofAustralia, Analyst,DeakinUniversity Shriya GuptaASA,BusinessInformation featured onfront cover: CPA Australiamembers CPA program andcertification ofCPAs nextgeneration anddevelopthe Attract NEXT GENERATION OFCPAS ATTRACT ANDDEVELOPTHE Professional developmentandknowledge CONTENT RESOURCESANDTOOLS PROVIDE RELEVANT LEARNINGANDDEVELOPMENT Our people Member trustandengagement Member demographics Member engagementandsatisfaction AND ENGAGINGEXPERIENCES PROVIDE MEMBERSWITHPERSONALISED futureLead the profession accounting ofthe ACCOUNTING PROFESSION LEAD THEFUTUREOF interestPublic andprofessional standards Brand andreputation Risks andopportunities Governance THE INTEGRITYOFDESIGNATION PROTECT, PROMOTEANDENHANCE Financial performance Performance summary Materiality Our businessmodel Member journey External environment Strategy Officer’sChief Executive report President’s report Who weare reportAbout this CONTENTS TABLE OF
64 62 58 54 50 46 44 40 33 31 29 26 22 20 16 14 12 11 10 60 56 42 38 24 8 6 2 1 Office locations Acronyms – scheduleofDirectors’ remuneration Independent Auditor’s report yearended31December2019for the Schedule ofdirectors’ remuneration Independent Auditor’s report Director’s declaration financialstatements Notes tothe Statement ofcash flows Statement ofchangesinmembers’funds Statement offinancialposition Statement ofprofit comprehensive orlossandother income 2019 financial Discussion andanalysisofthe results Overview offinancial results Auditor’s independencedeclaration BoardReport ofthe ofDirectors Councils andcommittees Board ofDirectors GOVERNANCE ANDFINANCIALREPORT assurancereportIndependent limited andadvocacy Policy COMMUNITY ADVOCACY IMPACT POLICYGLOBALLY ANDBEACTIVEIN
150 149 137 143 147 138 73 84 80 75 68 66 91 98 97 96 95 94 89 88 71 determination processdetermination (page16). through issues identified ourmateriality long-term and short, medium intend todosoforthe through ourbusinessmodeland howwe of howCPA hascreated Australia value readers acomprehensive with picture This report isstructured toprovide future.now andintothe picture ofhowwecreate value,both providing acompleteand transparent credibilitythe ofourreport andto isfundamentaltoenhancing we believe We are toassurance,which committed of corporatereporting. andreportingthinking evolution inthe for organisations tointegrated committed
with the
1 | CPA Australia Integrated Report 2019 2 | CPA Australia Integrated Report 2019 *Employee count is all employees (including part-time). Employee figure in the financial report differs as it reports on full time equivalent (FTE). equivalent time full on reports it as differs report financial the in figure Employee part-time). (including employees all is count *Employee Surplus: membership: Average years’ Revenue: Employees: Members: WHO WEARE UAE andVietnam. Macau SAR,Taiwan, Fiji,Indonesia,Malaysia,NewZealand, Singapore, UK, the Region(SAR), MainlandChina,HongKong SpecialAdministrative territories ofAustralia, Our sphere covers offices ofoperations and representative officesall statesand in standard generalpublic. industries,academiaandthe setters, to represent profession viewsandconcernsof the the togovernments,regulators, advocacy. bodies localandinternational with Employeesandmembers worktogether Our core training, technicalsupportand servicestomembersincludeeducation, 133than onourmemberscanbefoundpages46to49. information years.Further CPA world’s isoneofthe Australia largest ahistoryofmore with bodies accounting $4.4m $172.9m 166,166 554 15
* FIGURE 1:GOVERNANCESTRUCTUREANDHEADSOFPOWERDURING2019 ofmanagement. and activities organisation’s performance decisionsandoverseesthe The Board assessesthe andobjectively independently The Board ofDirectors governingbodyofCPA isthe Australia. GOVERNANCE ANDORGANISATIONAL STRUCTURE professionals communities. whoenhancetheir andbusiness Advancing trustedandvaluedaccounting OUR PURPOSE and tomorrow connectedworld. inaglobally memberstopreparePartnering with fortoday OUR VISION - FinanceandPolicy COUNCIL OF PRESIDENTS - Audit, Riskand - Audit, Engagement Compliance - Member COMPLIANCE COMMITTEES - Professional Qualifications ADVISORY COMMITTEES Board Committees Divisional Councils - Disciplinary Panel - Disciplinary - Quality Review - Quality - Public Practice - Public THE BOARD MEMBERS - People, Remuneration - People,Remuneration - IndependentReview APPOINTMENTS Implementation - Nomination and Culture COUNCIL is showninFigure 1. The governancestructure organisation ofthe during2019 • • • • • • The Board isresponsible foranumberofdecisionsincluding: Making and amending By-Laws. Making andamending CEO’s the Evaluating performance Approving financialstatements President the Appointing andDeputyPresidents organisation’s aspectsofthe Overseeing all performance and financial objectives andapprovingSetting organisation’s the strategy, direction evaluate andreview professional the conductofmembers. are committees Compliance created Board bythe and Boardand advisethe areas intheir ofexpertise. areAdvisory committees created Board bythe processes.and policy Board Board assistthe committees initsdecision-making andinternationally.Australia in statutoryauthorities Lawandother Corporations andensures wholeConstitution the with compliance organisation, performanceofthe full the implements The Board strategyandisresponsible executesthe for Councils andisresponsible Board. the for appointing CPA memberselectedfrom Australia Divisional The AppointmentsCouncilconsistsentirely of Boardadvise the onstrategicissuesandopportunities. CPA itssolepurposebeingto with Constitution Australia The CouncilofPresidents isacouncil underthe the CPAthe AustraliaConstitution. Divisional Councilsare under councils established through Board. AppointmentsCouncil,the the organisation. TheyelectDivisionalCouncilmembersand of CPA andBy-lawsofthe Constitution andthe Australia Members are professional governedby the requirements
3 | CPA Australia Integrated Report 2019 4 | CPA Australia Integrated Report 2019 FIGURE 2:ORGANISATIONAL STRUCTURE which received rate. a90percentparticipation In 2019, weundertookaculture ouremployees surveywith • • • Our organisational culture iscentred on three pillars: OUR CULTURE role. undereachexecutive equivalent)sitting time (full shown inFigure percentage 2andincludesthe ofFTE The organisational structure anditsresourcing are andadvocacy. andpolicy practice focused onpublic strategy. positions executive Thishasincludeddedicated new organisational structure ofour delivery tosupportthe Throughout 2019, toembedandrefine wecontinued the Notes: CIDO refers to Chief Information and Digital Officer. EGM refers to Executive General Manager. Manager. General Executive to refers EGM Officer. Digital and Information Chief to refers CIDO Learning-focused. members with Constructive eachother with Collaboration The percentage of FTE shown in Figure 2 reflects the headcount sitting under each executive role. CFO refers to Chief Financial Officer. Officer. Financial Chief to refers CFO role. executive each under sitting headcount the 2 reflects Figure in shown FTE of percentage The MY ND AH KH ET SE GP DL RB FJ ANDREW HUNTER–CEO,4%ofFTE MEG YEATES 14%ofFTE –EGMMarketing, KAREN HELLWIG –EGMMemberExperience,17%ofFTE ERICA TRAICOS–EGMPeopleandCulture, 2%ofFTE 12%ofFTE SIMON EASSOM–EGMEducation, NICHOLAS DISSCPA –CFO,9%ofFTE DEBORAH LEUNGFCPA 19%ofFTE –EGMInternational, Public Practice andProfessional Practice ROWENA BUDDEE–EGMPublic Standards, 9%ofFTE GARY PFLUGRATH CPA andAdvocacy, –EGMPolicy 3% ofFTE FARID JARRAR–CIDO,10%ofFTE THE BOARD our cultural pillars andvalues. pillars our cultural and Culture beundertakingareview will Committee of Board,In 2020,the through People,Remuneration the can befoundonpage52. More engagementprogram onourcultural information in howwedothings. involvedandconsistency employees feeling areas inthe experience, particularly of employee needs tobedoneenhancethe was astrong focusonmembers,more work people were clearaboutstrategyandthere whileour surveyshowedthat ofthis Results
to support our members in these importantregions.to supportourmembersinthese togrow activities toestablish and wecontinue ourprofile environmentmarkets weoperateinahighlycompetitive regions. inthese bodies Inemerging orlessestablished relationships standard with professional andother setters Kong SAR,MalaysiaandSingapore andastrong networkof change. We presence havealong-established inHong industryundergoes asenseofprideasthe deliver significant toengendertrustand andcontinue position support this toensureand NewZealandwecontinue ouractivities professionals. Ourbrandawareness isstrongest inAustralia represent andbusiness rangeoffinance,accounting adiverse operate inmore 100countriesacross than globeand the operate.Our166,166 inwhichthey communities members knowledge andare widelyregarded byemployersandthe breadthsoundness indepth, ofaccountancy andquality learning,ourmembersholda commitment tolifelong CPA Through designation. CPA the Program anda strongmember networkandthe brandawareness ofthe strength ofourmembers,the integrity andquality ofour CPA Australia’s advantage comesfrom competitive the externalenvironment.in the becomeredundant subsequently will through changes Additionally, products someofthe andservicesweoffer impactonfinancialcapital. positive such asfree donotreturn a CPDthat providing accesstoproducts andservices membership feepaidbymembers the financial capitalasawhole,with CPA impacton hasapositive Australia productionto digital anddocuments. forkeypublications increased useofvideoconferencing andanincreasing move WeCouncils andCommittees. through dothis will the travel byourstaff our andmemberswhoassistwith asthrough aswell information, materials andmarketing air CPA ofourpublications, printing have duetothe Program We are toreducing committed wedo impactthat the newtargetsto whether area. inthis shouldbeestablished current andimpactonnaturalcapital,havingregard position Board material.In2020,the consider this review will its impact onnaturalcapitalandourstakeholdersdonot CPA ithaslimited basisthat hasoperatedonthe Australia relationship. and social and natural, human, intellectual, manufactured, financial,
5 | CPA Australia Integrated Report 2019 6 | CPA Australia Integrated Report 2019 to be only the second to beonlythe Annual Reportisbelieved CPA Integrated Australia Framework in2020.The 2019
7 | CPA Australia Integrated Report 2019 8 | CPA Australia Integrated Report 2019 the outcomesyousetoutto achieve. the accomplish youwill you executeitwell, rightplanand ifyouhavethe that belief wanted.Itconfirmsmy told usthey our strategyisbasedonwhatmembers it. Thisshouldn’t beasurprisebecause plan inplaceandare on nowdelivering right wehavethe that This indicates service, valueandperformance. formetricsrelatedin memberratings to there were improvements alsopositive ourtarget.exceeding Encouragingly, fromsatisfaction ascore of6.23to6.63, formember rating successive yearinthe increasesubstantial second forthe engagement survey, the inparticular measured through member the across keyperformancemetrics the however, ongoingimprovement isthe our2019meeting target. Mostpleasing, member retention rateof98.1percent, qualified world. Thisincludesafully countries andregions around the members workinginmore 100 than membership hasgrown to166,166 As at31December2019, CPA Australia’s year. beginningofthe ourselves atthe key performancetargets weset for whilealsoachievingthe initiatives progress ourstrategic ondelivering We innovation. further havemade groundwork forfuture growth and in whichCPA laidthe Australia In manyrespects, 2019 wasayear OFFICER’S REPORT CHIEF EXECUTIVE increased traffic tointheblack.com and havecontributedtooverall downloads havealsoproven popular trends. Newfeatures suchas audio commentary oncurrent economic careerinformation, advancementand members, technicalaccounting sharper focusonstoriesfeaturing focus ofINTHEBLACKtoreflect a During July2019, wechangedthe • • • areas practice public including: guides across policy, the advocacyand we produced aseriesofmajor research central toCPA andin2019 Australia Providing leadershipremains thought asustainablepractice. building in as learningmodulestohelpthem regulatorywith requirements, aswell and resources tocomply toassistthem tools we developedarangeofdigital practice, For membersworkinginpublic content. the with themselves tofamiliarise time additional subjects, givingcandidates to studymaterialsacross selected we offered earlyenrolment andaccess core subjects.Forsemesterone2020, learningapp,Quitch,tocoverall digital successfulpilotofthe expanded the through KnowledgeEquityand we provided guidedlearningresources CPAFor membersstudyingthe Program, areas ofouroperations. stridesacrossmade positive different promise tomembers.Yet in2019 we our havemuchtodofulfill we still through three-year the strategy, so Of course,weare way notquitehalf profession interest. public andthe IPAthe ofthe toadvocateonbehalf CAANZand with coming together This report hasledtoCPA Australia providing advisoryservicesin Australia. burden onprofessional accountants measures regulatory impactof the the The RegulatoryBurden Reportwhich landscape accounting changing public offers analysisofthe anin-depth The MyFirm.Future guide which Asia-Pacific in the region access tofinanceacross 10markets technologyuptakeand sentiment, Business survey, measuring business annualAsia-PacificSmall The tenth
accounting andfinanceprofession.accounting and Torres StraitIslanderpeoplesinthe ofAboriginal participation advance the tohelpCPA pathway practical Australia reconciliation journeyandprovides a the firststageofour Reflect RAPis Australia’swith FirstPeoples.The our commitmenttoreconciliation andformalises Australia Reconciliation The ReflectRAPisendorsedby Reconciliation ActionPlan(RAP). CPA Australia’s inauguralReflect are mostproud launchof isthe ofwhichwe initiatives One ofthe robots. forthe money andaccounting futurekey topicssuchasthe ofdigital exploring ‘BusinessasUnusual’ theme and heard from 275speakersonthe More 7700delegatesattended than across13 locations sevencountries. development event,washeldin CPA Congress, ourflagshipprofessional initiatives that memberswant. that initiatives keystrategic onthe deliver and sustainable organisation we wanttobuildastrong, our underpinningsystemsif boost intechnologyand a significantinvestment members, wenowrequire years ofunderinvestmentin However,doing justthat. after weareon aboveshowthat The examplesI’vetouched improve memberexperience. in toolsandresources that made acommitmenttoinvest membership services”andI in expense ofinvesting asurplusatthe delivering hasprioritised organisation the “historically that, In my2018 report, Iwrote like CPAlike conductbusiness, Australia wayorganisationsuncertainty forthe andcreating dailylives go abouttheir affecting communities, all howpeople is havingasignificantimpact across outbreak coronavirus ofthe (COVID-19) bushfirethe disasters inAustralia, environment. recent tothe Inaddition We doso,however, inanuncertain prosperous future. growth andbuildtowards a groundworkto laythe for is aimingtodojustthat, landscape. CPA Australia new adapttothe them professional bodytohelp and membersexpecttheir is undergoingrapidchange professionThe accounting • • • • • funds, including: requirewill significantinvestmentof projectsexciting underwaywhich profession.of the There are several keep CPA forefront atthe Australia members, weare confidentwecan valueto clear commitmenttodeliver setgoalsanda planning, butwith and itrequires careful andprudent not territoryweenterintolightly delivered inprevious years.Thisis ofstrengthposition surpluses the with two tothree years.We from dothis a next overthe business operations operate adeficitonourcontinuing To needto end,weenvisagethe that and career development. forentry Exploring newpathways relevant organisation brand toreflect acontemporary, CPA the Reinvigorating Australia to learnnewpractices enablemembers that initiatives Improving ourCPDoffering with learning any deviceforanytime access totoolsandresources on givemembers will ecosystem that Introducing learning adigital experiences formembers provide more personalised Developing anewwebsiteto CEO Andrew Hunter prospects ahead. lie that so far, I’menergised exciting bythe from achievementswe’vemade the While Ideriveasenseofgratification drivingforcethe organisation. ofthe ofCPAall Australia’s membersforbeing tothank Iwouldlike Most importantly for excellence. tokeepstriving and willingness ourstaffall dedication fortheir managementteamand executive strategy.the the tothank I’dalsolike guidance andsupportaswedeliver and commitmentforproviding great with duties their executing skill Board the tothank I’d like for evolves. situation as the communicate regularly members with safety ofmembersandstaff andto operate. Ourpriorityistoensure the ineachregionauthorities inwhichwe relevantthe governmentandhealth inaccordanceacting advicefrom with are closelyand situation monitoringthe difficultthis stage,butwe at toquantify end-of-semester exams.Theimpactis deferralof causingthe and potentially memberevents scheduling including
9 | CPA Australia Integrated Report 2019 10 | CPA Australia Integrated Report 2019 FIGURE 3:CPA AUSTRALIASTRATEGY • • • • • • • • strategyputinplace2018,support the included: this In 2019, organisation the that focusedonkeyinitiatives STRATEGY Member interest (page68). andpolicy CPA Program (page64) Offering free guidedlearningaspartofthe Launching Quitch(page64) Launching anewlookINTHEBLACK(page58) and Malaysia(page51) Member JourneyMappingresearch inChina ReflectRAP(page40) Releasing the manual tools(page34) ControlRisk ManagementFrameworkandQuality Regulatory Burden Research Reportandproject (page33) the integrity of the designation integrityofthe the Protect, promote andenhance Provide relevant learningand Partnering with memberstopreparePartnering with fortoday and tomorrow connectedworld inaglobally development content, resources andtools 1 4 Vision: Vision: VALUE FORMEMBERS, SUPPORT FORTHECOMMUNITY next generation ofCPAsnext generation Attract and develop the anddevelopthe Attract accounting professionaccounting Lead the futureLead the ofthe GOALS communications tomembers. his communications President afterBoard CEOin andbythe meetings are communicatedtomembersviaanupdatefrom the the strategy The mostsignificantdevelopmentsunder businesstorealisethe andgoals. ourstrategicobjectives beingundertakenacross andinitiatives various activities website andfeatures up-to-dateprogress reports onthe strategyprogressA dedicated pageisavailableonour 2 5 business professionals communities who enhancetheir Advancing trusted and valued accounting and Advancing trustedandvaluedaccounting Provide personalised memberswith Purpose: active incommunityadvocacy active Impact policy globally andbe globally Impact policy and engagingexperiences 3 6 risks and opportunities wearerisks andopportunities facing.Keyimpactsandourresponse are tothem detailedbelow. The externalenvironment impactsourbusinessmodelandstrategyisasource formanyofthe ENVIRONMENT EXTERNAL key to their social licence to operate. to licence social their to key toincreasingly organisations important and both are Trust and transparency confidence. employee and customer thatsystems can deliver information that drives investor, reporting in play to role akey have accountants Additionally, them with consultation and advice on strategic matters. provide to accountants skilled on reliant more becoming – Organisations are advisors strategic as Accountants accountants. of work the impact to potential the has this and world, the around businesses economies is and impacting instability geopolitical environment in this region.the business Increasing many need to accountants increase of their knowledge Asia, towards power economic global in shift the With Demographic and change instability geopolitical changes. legal and regulatory with date to up be to members and organisations for important Regulatory and environment policy courses. long traditional for demand changing and learning personalised for demand increasing space, education the impacting also are changes Technology skills. soft and advisory analytical, on emphasis greater with for are accountants changingThis means opportunities tasks. complex more complete to time employee up free oroutsourcing automating manual and to repetitive tasks required skillcritical sets by Organisations accountants. are technology. are the and New systems processes shifting with interact and use accountants way the changing are Technology strategies (including strategies
against targets and targets theagainst remuneration of key personnel. performance member satisfaction, member demographics, our on information significant We include value. preserve and create we how to as picture complete amore provides it as Report Integrated this produce we organisation an As and Conduct Professional of Code By-Laws, and Constitution CPA in Australia’s detailed obligations the with comply to required are and interest public the in act to responsibility How we are responding profession. the of future the with otherand accounting partnering bodies to advance development of the profession in under-represented areas the supporting partners, with and ourselves by both profession the facing issues into research conducting How we are responding key markets. global understand growth better can members our that so Asia in advocacy and leadership How we are responding to the address challenging regulatory environment. work leadership thought and advocacy our increasing are we this, Alongside business. small and consumers to advice quality affordable, of provision the enable that frameworks regulatory efficient build to need the IPAthe advocate to and ANZ CA with working We are practice. members our where regions all in bodies industry and regulators with implementation, through engagement and consultation the profession, and promote their adoption and international and national relevant standards to How we are responding profession. accounting the on impact its and transformation digital and technology on focus increasing We are members. to offer we support the and service our enhance will that technologies in investments greater making We are employers. their and members of needs future the meets it ensure to CPA Program through changes these continually evolving the How we are responding applicable industry standards and regulations. standards industry applicable – CPA Australia members have a a have members –CPA Australia by this do to –We look thought our increasing –We are develop to –We help addressing is –CPA Australia
11 | CPA Australia Integrated Report 2019 12 | CPA Australia Integrated Report 2019 from professional their bodychangeovertime. members across career their needs journeyastheir valuetoour Our businessmodelneedstodeliver *Member quotes reflecting on their careers during Member Journey Mapping research. Mapping Journey Member during careers their on reflecting quotes *Member MEMBER JOURNEY PRE CAREER real worldexperience.” when youare startingis “The skillsthatyouneed potential internships. potential jobsearch,help startthe to Networking opportunities degrees need. they andskills howtopreparepaths, andwhat Wanting tounderstandcareer afirstjob. Studying andfinding * EARLY CAREER you are doing.” you understandwhat should havetodo,because that iswhateveryone was thebestthing.Ithink knowledge. Ifoundthat getting alotofpractical working, studyingand “I hadtheadvantageof balancing workandstudy. is adifficult asitinvolves time CPABeginning the Program mentoring relevant roles. totheir Wanting experienceand practical able toperformandcontribute. grow role statusintheir andbe tobeable Developing skills * MID CAREER balancing workandfamilylife. pressure additional is the of open.Forsome,there options top ofindustrychangestokeep through mid-level and stayon help maintaingrowth inseniority career, cementtheir help them to work.Experienceandskills to choosewhere want they under their belt with more flexibility CPAs havevaluableexperience trying tobuildacareer.” between family, work and roles, Ifeltsotimepoor “In themiddlemanagement *
RETIREMENT LATE CAREER technology advancements. industrytrendsdate with and tokeepup Needing others. to givebackandmentor industry orretiring. Wanting in career, ifchanging especially Wanting tounderstandnextsteps toretirement.or transitioning Searching foraseniorrole for change.” know thethreats tobeready businesses. You needto We needtoaddvalue that weare not just processing. up withit.We need toupskillso adapting ourpracticestokeep world andwehavetokeep technology changesinthe “You needtokeepabreast of *
13 | CPA Australia Integrated Report 2019 14 | CPA Australia Integrated Report 2019 MODEL OUR BUSINESS THE STRATEGIC GOALS SUPPORTING PLATFORM FORACHIEVING GOALS STRATEGIC financial performance Sustainable annual community advocacy in and be active globally Impact policy of CPAs nextgeneration the anddevelop Attract resources andtools development, content Provide learningand engaging experiences and personalised with Provide members professionaccounting futureLead the ofthe designation of the integrity enhance the Protect, promote and • • Manufactured capital • • • Financial capital • • • Human capital • • • • Intellectual capital • • • Social andrelationship capital INPUTS • • • • • ACTIVITIES IT systems 19 offices CPD fees$14m CPA Program fees$58m Membership fees$87m 554 employees(FTE) >800 volunteermembers 166,166 Members Thought leadership Member inputandexpertise CPD content CPA Program Program Practice andPublic Regulator relationships relationshipsSupplier Member relationships stage of their journey stage oftheir members, needsandgoalsthroughout each meets amemberexperience that Delivering CPAof the Program highstandardsMaintaining the andrelevance currenton the andfuture profession needsof the Developing content,products andservices based needsofcurrenton the and future members areDeveloping strategiesandplansthat based community,and the needsare sotheir understood members,employers,academia Engaging with • • • • • • • OUTPUTS • • • • • • • • • Input intostandard setting Management andinvestment ofmember funds strong internalgovernance and decision-makingframeworks toensure Reviewing internalcontrols, procedures, andhasalearningfocus constructive acultureBuilding iscollaborative, that and experience (ASAs) through contentoffer acompelling high-calibreAttracting Associate members andadvocacywork policy leadership, thought Develop anddeliver of being,oremploying,aCPA ensurethat benefits ofthe understanding plansandinitiatives Developing marketing materials and other publications materials andother Waste –overprintsofprogram assuranceprogramQuality andadvocacypositions Policy member experiences andengaging Personalised High professional standards Program Practice Public valued knowledge deliver that CPD andpublications Brand health CPAQuality Program OUTCOMES SOCIETAL IMPACT CPA designation whohold the those for opportunities Demand and community business Trust inthe financial system High functioning profession accounting the Self-regulation for workforce motivated Engaged and organisation Sustainable retention Membership professionals accounting High calibre interestpublic Protection ofthe
15 | CPA Australia Integrated Report 2019 16 | CPA Australia Integrated Report 2019 MATERIAL ISSUE Table 1:Materialissues new materialissues. year’sto makechangesthis report considering including isundertakenannually.feedback We feedback haveusedthis range ofinputacross Specific ourday-to-dayactivities. report To report informthis awide wegather andouroperations, impact andstakeholderpriority. ofbusiness Material issuesrankingisbasedonacombination MATERIAL ISSUES stakeholder input. list ofmaterialissuesafter final also havingoversightofthe committee that with Committee, RiskandCompliance Audit, ofmaterialissuesisagreed list An initial Board bythe viathe process. determination a materiality Countstoundertake Materiality independent consultancy report, developmentofthis As partofthe weworkedwith MATERIALITY M8 M6 M5 M2 M4 M3 M7 M1 processes governance of Quality CPAs of generation next the develop and Attract profession accounting the of Leading the future satisfaction and Member experience for members and knowledge development professional High quality designation and brand the of promotion and Reputation CPA High quality CPA Australia in trust Member Program Program
processes are transparent and represent leading practice. leading represent and transparent are processes organisation. that CPA expect Members Australia’s governance sustainable any of heart the at is governance Good aCPA. become to journey their content and them through experience, offer and supporting acompelling through globally ASAs calibre high Attracting changes. these through members support to tools and training strategies, provide to needs CPA Australia ofmeet community. the the business changing expectations must designation the careers sustainable have to members For value and satisfaction. member provide to important is this on Delivering choosing. their of manner the in CPA with Australia interact to them allows that approach personalised atailored, expect Members them. to relevant is that CPD accessible quality, high provide will CPA Australia professional. their As professional body, that expect members a being of heart the at is learning ongoing to A commitment the general public. and accounting with community the industry, wider business the in brand and CPA the of designation reputation the on predicated is CPA thus Australia and members of success The business the of expectations changing the meets designation the sure making to vital is CPA Program relevant and quality A high integrity. with operating is organisation the trust can they that and interests, best their in acts CPA Australia that know to need members body, professional their As DEFINITION community. in the tablebelowinorderin the issue. of prioritythe control CPA issue.Thisisdetailed hasoverthe Australia impactvaluecreation,over whichitwill levelof andthe orderthe the horizon issue,itsdefinition, ofprioritythe isgivento In lookingatourmaterialissues,consideration our valuecreation story. to review issueseachyeartoensure these bestreflect they a topthree issueforanystakeholdergroup. We continue have asignificantbusinessimpact;or routinely appearas removing donot:ratehighlyforstakeholders; issuesthat reportThe contentsofthis havebeendefinedby area workdoneinthis and the lasttwoyears. overthe processes’. Thisreflectsthis riskatBoardthe changein level processes’ ofgovernance hasbeenamendedto‘Quality Journey Mappingresearch. ‘Transparency ofgovernance career ofourMember findings basedonthe development’, A newissuehasbeenaddedin2019, members ‘Supporting
to long-term Medium long-term to Short to long-term Medium long-term to Short to long-term Medium to long-term Medium to long-term Medium long-term to Short VALUE CREATION IMPACT ON
* High Moderate Moderate High High Moderate High High CONTROL EXTENT OF Our stakeholdersare figure showninthe the keyissuesraisedbystakeholdersshownin belowwith Table 2onpages18to19. FIGURE 4:STAKEHOLDERS * MATERIAL ISSUE M10 M12 M13 M11 M9 Short-term impact is likely to occur in the next one to two years, medium-term within two to five years and long-term in five years or more. or years five in long-term and years five to two within medium-term years, two to one next the in occur to likely is impact Short-term members toeffectively Communicating members of behalf on thought leadership Advocacy and standards Professional development members’ career Supporting interest public the for Advocating inputs intoourbusinessmodel Stakeholders whoprovide Community members Potential Potential Media
relevant, tailored to them and transparent. that communications these should bewho timely, expect CPA Australia communicates extensively with members, for importance of areas key are profession the of future the on Advocating for and members providing thought leadership to upholding high and consumer protection. standards committed is CPA that Australia public the and community professional the clients, their members, to message astrong send must CPA body, Australia aprofessional As support. provide could CPA where Australia area an and progression career of aspect acritical was steps career next on guidance provided being that confirmed have Members do. we what of heart the at is interest public the of protection that ensure must members its and CPA body. Australia professional any of tenet akey is interest public the of Protection DEFINITION members. Employers ofCPA members Australia who can impact our ability tocreatewho canimpactourability value Stakeholders inourexternalenvironment Our Board, Committees OUR STAKEHOLDERS and Councils Employees Members Suppliers
Short-term long-term to Short long-term to Short long-term to Medium long-term to Short CREATION IMPACT ONVALUE
*
Academic institutions Academic institutions governments and and academics their agencies their professional Regulators, bodies Other Other High Moderate Moderate Moderate Moderate CONTROL EXTENT OF
17 | CPA Australia Integrated Report 2019 18 | CPA Australia Integrated Report 2019 Members Note: GROUP STAKEHOLDER Table 2:Stakeholderconcerns members Potential Employees Committees and Councils Board, Our members CPA Australia Employers of AFAANZ refers to the Accounting and Finance of Association Australia and New Zealand. • • • • • KEY ISSUES • • • • • • • • • • • • best interests inmembers’ Acting our CPDoffer CPA Program and ofthe Quality CPA designation The reputation ofthe professionthe Future for outlook Value ofmembership Value ofmembership CPA designation The reputation ofthe and integration Greater collaboration behaviours and values Consistency of Greater empowerment development Investment incapability CPA designation The reputation ofthe best interests inmembers’ Acting interestpublic Protecting the organisationthe best interests of inthe Acting our CPDoffer CPA Program and ofthe Quality of ourmembers Professional standards HOW WEENGAGE • • • • • • • • • • • • • • • • • • • Member research events member recognition networking and development, Professional face-to-face Email, phone, social media Website, INTHEBLACK, campus events Networking and Email, phone website, webinars Social media, content partnerships TV, outdoor advertising, and wellness events and wellness Development, culture weekly updates Intranet and leader events Town andsenior Hall teams within between and regular meetings Day-to-day activities, Culture survey General Meeting Annual forthe Meeting of Notice and the Governance Statement Corporate Charters, the amendments to including bodies of the Input intokeyactivities for papers agendas andfeedback and approval of include planning that Regular meetings campus events Networking and Email, phone website, webinars Social media, content partnerships advertising, digital Outdoor, printand QUALITY OFRELATIONSHIP survey (pages 44 to 45). to 44 (pages survey our annual member engagement through measured is relationships member our of quality The perception surveys (page 31). (page surveys perception measured through regular brand member relationships is potential our of quality The and our culture survey (page 54). (page survey culture our and measures, attrition exit surveys through measured is relationships employee our of quality The each year.each of end the at assessments bodies’ respective the in feedback from engagement and regular through measured is relationships our of quality The surveys (page 31). (page surveys through regular brand perception relationships is measured employer our of quality The
RESPONDING HOW WEARE 50 to 70. to 50 pages on is our response Information on 53 and 60 to 65. to 60 and 53 31 to pages on is response our Information on is on page 54. page on is our response Information on 26 to 28. to 26 pages on is our response Information on 35 and 56 to 65. to 56 and 35 31 to pages on is response our Information on
agencies and their governments Regulators, GROUP STAKEHOLDER academics and institutions Academic Suppliers community Wider Media bodies professional Other • • • KEY ISSUES • • • • • • • • • • • effective solutions and advancing for Advocating interestpublic Protecting the of our members Professional standards CPA Australia Support from professionto the degreesaccounting content of of the Ongoing relevance degreesaccounting Enrolment ratesin member value processes todeliver Future products and fordelivery Timelines issues Operational of our members Professional standards interestpublic Protecting the superannuation topics. superannuation regulatory burden and finance, accounting, has focusedontax, through coverage interestMedia shown Professional standards interestpublic Protecting the HOW WEENGAGE • • • • • • • • • • • • • • • • • • • • regulatory matters and policy public governmenton with Liaising directly and meetings industry forums regularAttending alongside government Act asco-regulator Academics Forum Annual Emerging grant funding AFAANZ andresearch Sponsorship of Heads of School with Annual meetings boards University advisory Conferences Trade events meetings Strategic supplier delivery supply Operational engagement processes Procurement market Media articles Media of our members services the Advertising our members received from have services they professionalthe customers regarding Contact servicefor based media TV andinternet- Interviews Briefings Press releases and forums groups, taskforces inworking Participating QUALITY OFRELATIONSHIP and regulatory matters. policy public on CPAof Australia advice and views the seeking regularly them by measured is andgovernments their agencies with relationship our of quality The research of benefit to members. to benefit of research produce to academics with students to profession the of work the promote to sector the across work to ability our through measured with academic institutions is relationships our of quality The and overall value for money. services member quality higher of delivery the including benefits andmany long-term short ensures this that aware are we as approach astrategic adopts CPA Australia suppliers, key with When partnering success. organisation’s our of part avital is A good relationship with suppliers low (pages 36 to 37). 37). to 36 (pages low remainmembers historically our against complaints of to Levels the standards. highest ensuring our are members held aco-regulator as role our on depends profession the in trust Maintaining levels of community to 13 industry sectors (page 68). 68). (page sectors 13to industry favourability rating compared including the organisation’s coverage media external We track (page 33) . 33) (page profession the to importance of matters on advocacy and skills of our through members recognition benefit mutually to arrangements working joint our by reflected is bodies professional other with relationships our of quality The and our partnerships and our partnerships
RESPONDING HOW WEARE 37 and 68 to 70. to 68 37 and to 33 pages on is response our Information on our our on available is sector academic the our in activities Information on our our on available is suppliers our with have we agreements the service and process procurement on our Information pages 33 to 37. to 33 pages on found be can our response Information on pages 68 to 70. to 68 pages on found be can our response Information on on page 33. page on found be can our response Information on website website . .
19 | CPA Australia Integrated Report 2019 20 | CPA Australia Integrated Report 2019 beyond 2020targets. research improving member engagement number ofmetricsfrom ourtargets,anda all achievementof KPIs, with performance across the This focushasseenstrong strategy. andfocusonthe alignment have brought business aboutbetter put inplacetomeasure progress to membersinlate2018. TheKPIs modelannounced and operating strategy the focused onimplementing 2019,financial performance.In wehave asagroupas well target measures that strategicgoals, against eachofthe of targets tomeasure performance CPA hasdevelopedaset Australia SUMMARY PERFORMANCE strategic initiatives that memberswant. that strategic initiatives organisation key onthe anddeliver systems tobuildastrong, sustainable technology andourunderpinning significant investmentboostin ustomakethe allow years will The surplusesdelivered inprevious and 62). ofASAs(refer pipeline the page49 CPA are in decline duetothe declining Targets foradvancementfrom ASAto fromchange significantly yeartoyear. figures these that not dogenerally are stableashistoricalevidenceshows Our future targets formemberretention area.in this members more required workisstill importanceofongoingCPDtoour the areas viewsofmembers.Given inthe remains poorest oneofthe performing putinplace2019,initiatives this CPD’ wasmet,reflectingthe someof KPIfor‘valuemoney the Although 2021 havebeenchangedtoreflectthis. 2019 targets, targets the for2020and Where 2019 results haveoutperformed • • • • • of funds,include: require significantinvestment to three years.Projects underwaythat nexttwo overthe business operations operate adeficitonourcontinuing To needto end,weenvisagethe that and career development. forentry Exploring newpathways relevant organisation brand toreflect acontemporary, CPA the Reinvigorating Australia learn newpractices enablemembersto that initiatives Improving ourCPDoffering with learning any deviceforanytime access totoolsandresources on givemembers will ecosystem that Introducing learning adigital experiences formembers provide more personalised Developing anewwebsiteto Table indicators 3:Keyperformance **Where a previous year is N/A, this information is not available due to a change in survey questions. survey in achange to due available not is information this N/A, is year aprevious **Where * current drivers of satisfaction, value and trust in CPA Australia. With a 5.7 per cent response rate, 8507 members responded to the survey. survey. the to responded members 8507 rate, response cent per a5.7 With CPA in Australia. determine and trust and value performance track to satisfaction, of Research drivers Forethought by current conducted was members CPA Australia with survey online A 20-minute experiences and engaging with personalised Provide members profession accounting the of future the Lead designation the of integrity the enhance and promote Protect, GOAL and tools content resources and development, Provide learning performance performance Group: financial advocacy community in active be and globally policy Impact CPAs of generation next the develop and Attract satisfaction Member with satisfaction Member leadership Thought fully – retention Member KPI money CPD CPD money Value for market) mark-to- FX, tax, before(budget performance annual financial Sustainable rating member advocacy and Policy annually to CPA status advancing ASAs ofNumber
contact qualified qualified
* * * * ACTUAL 98.3% $9.5m N/A N/A N/A N/A 2016 6110 5.96 ** ** ** ** ACTUAL $11.9m 98.1% 2017 5693 4.08 5.52 5.79 5.3 5.7 ACTUAL $5.5m 97.5% 2018 2018 5901 6.29 6.23 6.28 6.03 4.49 TARGET 98.1% 5600 2019 2019 6.60 6.48 6.39 6.45 $1m 5.12 ACTUAL $4.4m 98.1% 5653 2019 2019 6.46 6.63 5.34 6.69 6.59 +/- $3m +/- TARGET 98.1% 2020 5250 6.66 6.86 6.89 5.75 6.76 +/- $3m +/- TARGET 98.1%
2021 5100 6.00 6.84 6.90 . 0 7.0 . 6 7.0 MATERIAL RELATED M4 M6 M5 M9 M2 M2 M4 M1 M1 M1 ISSUES M10 M12 M12 M13 M11 M8 M6 M6 M6 M3 M3 M3 M7
21 | CPA Australia Integrated Report 2019 22 | CPA Australia Integrated Report 2019 Greater China (including Hong Kong SAR) *ASEAN Group comprises of Indonesia, Malaysia, Singapore and Vietnam. and Singapore Malaysia, Indonesia, of comprises Group *ASEAN location. each in regions to derived revenue groups re-allocated the of been have percentage Australia the in on based incurred Australia of development outside product and marketing services, corporate as such costs ‘Overhead TOTAL REVENUE ($’000s) $ ’000s Table 4:Financialperformance PERFORMANCE FINANCIAL Europe All locations overseasOther New Zealand Australia ASEAN group ASEAN 100,000 125,000 150,000 175,000 200,000 25,000 50,000 75,000 0
2012 $153,7 2 * 2013 $157,242
2014 $161,249
2015 $174,534
2016 $1 0,115
2017 $1 1,55
201 $175,620
2019 $172, 96 2019 TOTAL REVENUE identified under the strategy. under identified strategicinitiatives invest inmemberservicesandthe past10yearsprovidesover the anopportunitytofurther valueformoneyofCPDproducts.the Thesurplusesachieved increasingwithout membershipfeesandthrough improving members.Thesurpluswasalsodelivered with conjunction strategydevelopedin ofthe goalsandobjectives the with in newtoolsandresources tosupportmembers,consistent The surplusfor2019 wasdelivered toinvest whilecontinuing In 2019, surplusbefore ouroperating taxwas$4.4m. 172,896 121,178 22,644 19,601 5,547 2,969 957 2019 TOTAL EXPENSES 168,477 116,251 20,428 22,977 4,034 1,864 2,923 BEFORE TAX SURPLUS/ DEFICIT 4,419 2019 2019 4,927 1,513 (907) (333) (827) 46
BEFORE TAX SURPLUS/ DEFECIT 6,723 5,305 2018 2018 1,687 (733) (331) 264 531
TOTAL EXPENDITUREEXCLUDINGTAX ($’000s) EXPENDITURE BYACTIVITY 100,000 125,000 150,000 175,000 200,000 25,000 50,000 75,000 0
2012 $145,727
2013 $154,936
2014 $157,495
2015 $166,7 9
2016 $172,61
2017 $171,106
201 $16 , 97
2019 $16 ,477 of the SydneyCPAof the Congress. offer andhighercostsforeventsrelated reinstatement tothe introduction the with embeddedguidedlearning ofthe CPA andthe by higherexpensesineducation Program costs.Thereductionand amortisation offset waspartially andpromotionsadvertising expenseandlowerdepreciation previous year. Thedecrease tolower isprimarilyattributable Expenditure before taxdecreased by$0.4mfrom the 4% 1% 27% 3% 21% 19% 13% 1% 11%
taei projects Strategic
CPA Advice Australia Corporate servicesandgovernance incommunityadvocacy active andbe globally Impact policy and tools development content,resources Provide relevant learningand generation ofCPAsgeneration next anddevelopthe Attract and engagingexperiences Provide personalised memberswith Lead the futureLead the profession ofthe the integrity of the designation integrityofthe the Protect, promote andenhance
23 | CPA Australia Integrated Report 2019 | CPA Australia Integrated Report 2019
24 1 • • • OBJECTIVES DESIGNATION INTEGRITY OFTHE AND ENHANCETHE PROTECT, PROMOTE as an international designation as aninternational Strengthen CPA Australia’s position ensure integrityandtransparency assurance andriskframeworksto Strengthen internalquality trust, confidenceand respect toinspire continues designation CPA the brand,sothat Australia the toinvestinbuilding Continue with industry standards –7.08/10 standards industry with to up dateKeeping members –6.88/10 brand A trustworthy Board –6.34/10 communications PERFORMANCE Director, FocusConsultants Kerry HarrisFCPA, TRUSTED ADVISOR.” IT STANDS FOR MYSELF ASACPA. PROUD TOINTRODUCE “I’VE ALWAYS BEEN
25 | CPA Australia Integrated Report 2019 26 | CPA Australia Integrated Report 2019 • • • • • • • • • • • • • issues during2019, including: The Board considered anditscommittees awiderangeof provides layerofprotection anadditional tomembers. proposed Board byamemberand was supportedbythe asit emergency powerstoappoint directors. Thisresolution was three ofmemberswithin meeting ofexercising months its requiring Constitution, 60ofthe Article Board the a tocall toamend AnnualGeneralMeeting members votedatthe wasmadetoCPAA modification Australia’s after Constitution member engagementprogram. acomprehensive IRPandcontinuing of the controls, recommendations the implementing strengthening riskmanagement andinternal previousthe year, emphasison particular with hadbeenimplementedduring changes that governance the focus onconsolidating During 2019, Board the maintainedastrong an updateoncurrent matters. directly membersaftereachBoard with toprovide meeting The Board metonnineoccasionsin2019 andcommunicated BOARD FOCUS IN2019 GOVERNANCE Oversight oforganisational culture. Oversight ofriskmanagement Board outreach andCouncil elections Divisional Councilsincluding Oversight ofengagementwith Reflect RAP Approval ofCPA andimplementation Australia’s inaugural commencing inDecember2019 introduction PSCandthe the ofanewfive-yearScheme progressOverseeing the with Schemeapplication ofthe Credit Licence(ACL) FinancialServicesLicence(AFSL)andAustralian Australian ofCPA cancellation Council (ASIC)the Advice’s Australia andInvestment Securities Australian the with Formalising ofMeeting Notice included inthe ofmemberresolutions and consideration Meeting tobe proceduresEstablishing 2019 forthe AnnualGeneral Approval externalpartnersandsuppliers ofcontractswith Report andfinancialstatements Review andsign-off ofCPA Australia’s 2018 Integrated ofCPAConsideration Program initiatives education Oversight ofrecommendations from IRP the arisingfromOversight ofpriorities memberresearch industry standard setters governmentregulators with Ensuring compliance and the listed skills on the Board onthe skills listed the andeachofitsCommittees. Table numberofdirectors 5onpage27showsthe whohave three-year termon1October. August andelectedthree directors whocommencedtheir Appointments Council.TheCouncilmetin opportunitytorecordhad the avideo presentation forthe candidates hadbeeninterviewed.Short-listed they of whether mandatoryrequirements, whometthe candidate regardless righttoconsiderany andhadthe ofcandidates list full to the forsecondroundshortlisted interviews.Theyalsohadaccess processthe providing including tobe inputoncandidates The AppointmentsCouncilwere stepsof inall consulted recommended ofcandidates. shortlist who presented a AppointmentsCouncilwith the Committee, Nominations conducted byDerwentandthe wereApplications assessedandtworounds ofinterviewswere search toexternalexecutive submitted firm,Derwent. Asiaandthrough WomenJournal onBoards applications with Wall BusinessReview (NZ),the National Review, the Street made viaCPA Financial Australian Update,INTHEBLACK,the newBoardIn electing was fornominations members,acall directors.possessed bydeparting Board orknowledge skills membersandassess anyspecialist existing setsandexperienceofthe mix ofcomplementaryskill considerthe gaps.Indoingso,they skill anypotential identify required mixofskills to determinethe Board onthe andto Board the Council workswith Committee Nomination andthe from DivisionalCouncils.TheAppointments eachofthe CPA Australia’s Board andiscomprisedofarepresentative appointing The AppointmentsCouncilisresponsiblefor DIRECTOR SKILLS report.this areThese initiatives detailedthroughout onstrategy.business aspartofdelivering beingundertakenacrossand initiatives the variousprograms focusonthe an active The Board alsomaintain anditsCommittees
Metro Australia LOCATION *The Nomination Committee is comprised of two Board directors, two members of the Appointments Council and two independent non-members. non-members. only. independent two and directors Board the Council of profile the Appointments the of reflects table members This two directors, Board two of comprised is Committee Nomination *The Table 5:Board mix skills Regional Australia Regional International Academia SECTOR Public practice Public Government Large firm Large Large listed Large Not-for-profit Financial services Financial INDUSTRY Consumer Industrial Services technology Telecommunications/ Current executive EXECUTIVE/NON-EXECUTIVE Practising accountant Practising Non-executive director Board Chair Committee Chair Committee acumen Financial/commercial EXPERIENCE GENERAL Leadership Public relations/media Public Marketing/communications Human resources Legal/regulatory management Organisational Business development Business Project management Project Change management Change Risk management Risk Stakeholder management Policy development Advocacy organisation governance Member-based Government relations Corporate governance
BOARD 10 10 10 10 10 10 10 8 6 9 5 5 7 8 5 9 5 6 4 9 4 9 5 9 9 6 6 7 8 9 9 8 9 9 8 9 AUDIT RISK AND COMPLIANCE 4 3 5 3 3 4 4 2 4 2 3 2 4 2 4 3 5 5 5 5 5 3 3 4 5 5 4 5 5 5 5 5 5 5 5 5 FINANCE FINANCE POLICY AND AND 3 3 5 2 2 3 5 4 4 4 4 2 5 2 5 2 5 4 4 5 5 3 4 4 4 5 5 5 5 5 5 4 4 5 4 4 ENGAGEMENT MEMBER 5 4 4 3 3 4 4 2 5 3 2 3 5 1 5 3 5 5 5 5 5 3 2 3 4 5 4 5 5 4 5 4 5 4 4 5 NOMINATION 2 1 2 2 1 2 1 1 2 1 1 1 1 0 1 1 2 2 2 2 2 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2 * REMUNERATION AND CULTURE PEOPLE PEOPLE 4 3 4 2 2 3 4 2 5 2 3 1 5 3 5 2 5 4 4 5 5 3 3 3 3 5 5 5 5 4 5 3 4 4 3 4
27 | CPA Australia Integrated Report 2019 28 | CPA Australia Integrated Report 2019 it remains effective andreaches largest the possiblenumber Board forthe be established outreach program toensure that during2019.meetings will In2020,asetofformal guidelines RobynErskine, alsoundertook41 Engagement Committee, collectively.total of85meetings Member TheChairofthe andChinAikWongMerran Kelsall alsoundertakinga during2019,meetings twoDeputyPresidents, the with President andChair, undertook78separate PeterWilson inwebinarsandteleconferences.participating andeventsor meetings attending either membersandstakeholders, with interactions inmore participating collectively 310 than program in2019, Board with directors The Board itsextensiveoutreach continued (2018: 5.92/10 2017: 5.13/10) BOARD COMMUNICATIONS CONNECTING WITHMEMBERSAND STAKEHOLDERS Boardthe onstrategicissuesandopportunities. The CouncilofPresidents plays avaluablerole inadvising Board,Councils andthe viewsofmembers. drawingonthe of Presidents whoensure Divisional two-wayengagementwith Presidents Council toformthe ofeachCouncil cometogether Each CouncilelectsaPresident andDeputyPresident. The on 1January2020. CPA terms begantheir Update.Newlyelectedcouncillors results the 21 Octoberwith announcedon30Octobervia periodtookplacefromThe voting 30Septemberto were elections 59 newnominations, heldin11Divisions. 25renominations13 DivisionalCouncils,including and 84 membersnominatedfor47vacanciesacross the Division.In2019, isheldinthat vacant, anelection atotalof numberofpositions forCouncilexceedsthe of nominations each yearviaCPA website.Where Updateandthe number the toCouncilismadeinAugustof forelection for nominations DivisionalCouncil.Acall Members ineachDivisionelecttheir localarea.to membersintheir aredevelop bespokeeventsthat relevant andbeneficial increased to investmentinDivisionsandsupportedthem groundwork conductedbyDivisions,in2019 Board the Inrecognition institutions. and educational important ofthe employers,government community stakeholdersincluding CPAthe relationships bybuilding designation key with organisation asthe well more broadly, promote andthey Boardan importantconduitbetweenmembersandthe as Theyare designation. integrityofthe and maintainingthe localsupportforCPAengagement, generating Australia Divisional Councilsplayavitalrole infosteringmember Greater China,Malaysia,NewZealandandSingapore. asEurope, aswell each stateandterritoryinAustralia status. CPA nowhas13 Australia onein Divisions,including Territory,Northern NewZealandandEurope Divisional with CPA byaffording Australia branches ofthe existing the The Board brought structure consistencytothe of SUPPORTING DIVISIONALCOUNCILS 6.34/10
are 120 reported onpages 124. to disclosures ofdirector andkeymanagementpersonnel Detailed Constitution. pooled amountassetoutinthe Board tothe Remuneration in2019 remained the within BOARD REMUNERATION governance andare bestinterests inthe ofmembers. recommendationsthese whichstrengthen organisation’s the CPA workinassisting diligent for their toimplement Australia now ceased.TheBoard committee membersofthe the thanks released to members, the IRIC has fulfilled its function and has final As the report hasbeensignedoffthe Board by andnow IRIC’sand acceptedthe recommendation toconcludeitswork. business-as-usual workprograms. TheBoard hasreviewed required,action orare embeddedintomanagement’s recommendations are nofurther complete,with noweither report.the IRP’s of that all issatisfied Thecommittee 29 In October2019, IRICcompletedafinalupdate the members asnecessaryinregular statementsfrom Board. the from recommendations the havebeencommunicated to respective recommendations. elements individual Inaddition, showing CPA Australia’s progress the onimplementing In December2018, IRICreleased the anupdatereport recommendations.each ofthe organisation’sand monitoringthe progress inexecuting recommendation, plans helpingtodevelopimplementation recommending Board tothe appropriate foreach actions IRIChasbeenresponsible pasttwoyears,the Over the for needsofmembers. meetthe to better operations and enhance itsgovernancearrangements providedtogether aframeworkforCPA to Australia The final report contained29 which, recommendations 2017 andafinal that year.report on30Novemberof preliminaryhanded downtheir report on14September ofrecommendationsimplementation from IRPwho the tooverseethe acommittee October 2017wastoestablish firstactsofCPAOne ofthe Australia’s newBoard in INDEPENDENT REVIEWIMPLEMENTATION COMMITTEE our memberengagementsurvey. improvements area inthis asshownthrough results the of Boardand the tosee memberscontinue ispleasedthat members through announcementsaftereachBoard meeting of members. The Board alsocommunicatesregularly with • • • • including: andkeyelementsofCPAduties Australia’s strategy The Board tofocusonitsgovernance continue will MOVING FORWARD Member outreach Culture Brand strategy strategy Education
value members’ and needs that is relevant and meets professional development produce and education development Education and professional and pricing relevance quality, of terms in member CPA Australia a being of value the provide and demonstrate Member value member experience andconsistent positive a provide to Inability Member experience RISK • • risks.Thisincludes: forthese appetite remaining Board’s the within approved while achievement ofobjectives and treat risksrelated tothe management andtoidentify, assess CPA onrisk tobealigned Australia Boardthe andmanagementof statementenables The riskappetite meet riskappetite. approachstrategy andthe takento to acceptoravoidinpursuitofour amountofriskwearethe prepared articulates statementthat risk appetite CPA hasaBoard-approved Australia OPPORTUNITIES RISKS AND Table 6: and Risks opportunities reporting stakeholders onriskstoall Providing monitoringand timely right controls appropriate reward, leveragingthe takingofappropriatethe riskfor reflectMaking decisionsthat expectations – Failure to to –Failure – Failure to to –Failure
–
long-term to Medium long-term to Medium to Short TIME FRAME medium-term
• • • including: strategy andpractices itsriskmanagement consolidate enhanceand tofurther continued Throughout 2019, CPA has Australia • • • continuity tostrategicobjectives continuity Improved ofbusiness alignment implemented in2020 systemtobe and compliance Set upofanautomatedrisk in 2018 approved management framework risk ofthe Implementation regulatory requirements times. atall corporategovernanceand Satisfying managementofrisk the improvingContinually andmaturing organisationthe isembeddedthroughoutthat Creating asoundriskculture to members. content and learning deliver to ability our enhance New digital technologies that learning. of future the reflect to strategy education A new thought leadership. thought resources Increased advocacy divisional support. CPA Program and increased the through support greater offer, CPD free including an enhanced members to offer we value the increase to services and products in Investing OPPORTUNITY centred on member needs. strategy website A new member service. deliver to ability our enhance New digital technologies that member experience. toproject enhance the transformation Service to increase our
STRATEGIC GOAL GOAL STRATEGIC for the organisationfor the anditsmembers. tocreate riskonourability of that value consequences risk occurringandthe ofthe likelihood ofthe consideration order hasbeendeterminedby strategy inorder ofpriority. Priority enterprise risksmostrelevant to key The tablebelowshowsthe ENTERPRISE RISKS • new andemerging risks. formalassessmentofexisting, for the andanannualworkshop Committee RiskandCompliance Audit, to the isviaquarterlyreportingactivities Board oversightofriskmanagement ISSUES MATERIAL RELATED M11 M12 M2 M7 M1 M6 M3 M10 M13 M5 M4 M9 M4 M10 M6 M5
29 | CPA Australia Integrated Report 2019 30 | CPA Australia Integrated Report 2019 perception and reputation health, brand CPA Australia’s Failure to maintain Brand and reputation *Short-term impact is likely to occur in the next one to two years, medium-term within two to five years and long-term in five years or more. or years five in long-term and years five to two within medium-term years, two to one next the in occur to likely is impact *Short-term frameworks corporate governance to maintain appropriate Governance availability of data/systems –Loss systems and Data capability and culture CPA Australia to aligned talent develop and retain attract, to Failure People and culture – RISK Table 6: (continued) and Risks opportunities • • MOVING FORWARD and awareness planning Enhancing businesscontinuity including: management strategyandpractices ofanenhancedrisk implementation Continuing o o o o requirements Policy management. Policy Incident management management obligations Compliance monitoringand Risk identification, reporting – Inability – Inability
–
Short to to Short medium-term Short to to Short to Short TIME FRAME medium-term medium-term Short-term
risk, audit andrisk, compliance. as such governance of areas in key investment Continued markets. key in our strong brand perception thatactivities capitalise on in investment Continued CPA designation. the of value the highlight tonew brand strategy a in considering We are OPPORTUNITY with best practice. best with consistent and purpose for fit to ensureframeworks they are governance key our review We are continuing to critically to members. deliver content and learning to ability our enhance digital technologies that new in investing We are improvement. our people believe require areas the in investing be will we survey, culture our of results the Following
STRATEGIC GOAL GOAL STRATEGIC ISSUES MATERIAL RELATED M8 M5 M4 M3 M1 M11 M8 M5 M2 M9 BRAND PERCEPTION a mix ofstrategicandtargeted sponsorships. ourstakeholders,andundertaking channels toconnectwith andsocialmedia variouscommunication utilising institutions, organisations, studentsandeducational engagingwith relationships and bodies accounting international with employerandindustrysectorgroups,members with building through bringingtogether including arangeofactivities We reputation enhancethis ourbrandprofile bybuilding andreputation technicalexpertise by the ofourmembers. CPAThe valueofthe isgenerated designation Australia and advocacy work to enhance the CPAand advocacyworktoenhancethe designation. We havealsoinvestedconsiderable resources intoourpolicy of ourbrand. providewill the perception along-termplantoinfluence brandandwearethe consideringanewbrandstrategythat In 2019, wehaveundertakenworkonaproject totransform ENHANCING OURBRAND rising to 6.88. brandalsoimprovedMember trustinthe againin2019, marketplace. the Australian in first-choicedesignation the 2017and2018 with consistently andCPA remaining Australia strongly inkeytarget tracking brandhealth marketswith In2019,general public. CPA againperformed Australia perception members,employersandthe potential with survey. We alsoundertakeaseparatestudyonbrand research ourmembersthrough with memberengagement the To perception monitorthe ofourbrand,weundertake (2018: 2017: 6.34/10, 5.53/10) BRAND A TRUSTWORTHY REPUTATION BRAND AND 6.88/10 6.88/10 BERNARD POON FCPA BERNARD enjoy andconnect.” events.People wanttolearn, the whoattend those People seeCPA asabigfamily, Australia especially China. “Theeventshelpedme broaden mynetwork. brand andreputation inMainlandChinaandGreater have playedapivotalrole astrong inestablishing hiscareerin supporting events the andnotes that Bernard credits CPDeventsrunbyCPA Australia tolearn.” I needtokeepupandcontinue ofanaccountantisalsochangingso expectation profession isevolving.Thegeneralpublic’s research. accounting “Theworldischanging,andthe MemberJourneyMapping by membersinthe touchpoints ofaprofessional identified designation and professional development–twoparamount Bernard importance ofreputation touchesonthe he isencounteringinhiscurrent career stage, challenges Likewise, whenspeakingaboutthe support. for additional professionally andwere lookingtoCPA Australia were they that tokeepactive lookingtocontinue midandlatecareermembers inthe stageindicate Mapping research inChina.Theresearch saw 2019the of findings the with MemberJourney Bernard’s future professional are intentions aligned profession.” toserveinthe continue Hong Kongis60andIaminmyearly50s,butwill no signsofslowingdown.“Theretirement agein Bernard hascarvedouta commendable career, with Since firstcommencingatErnst& Young asanintern, Services Leader, &Young Ernst Partner andTransaction andAdvisory
31 | CPA Australia Integrated Report 2019 32 | CPA Australia Integrated Report 2019 practice campaign, sponsorship and other activities. activities. campaign,sponsorshipandother practice (FigureOur investmentinmarketing ofCPAs, nextgeneration anddevelopthe toattract 5)includesadvertising public the CPA Australia’s investmentfor2019 marketing compared was$9.8million, in2018 to$12.9million (refer Note6onpage105). MARKETING INVESTMENT FIGURE 5: INVESTMENT IN MARKETING • • MOVING FORWARD INTHEBLACK will be further enhanced to deliver content that aligns with memberneedsandinterests with aligns contentthat enhancedtodeliver befurther INTHEBLACK will CPA the investmentinourbrandstrategytoposition Continued future forthe designation MARKETING INVESTMENT 6% Other 2% Brandactivity 3% Businessdevelopmentactivity 4% Memberengagementactivity campaign practice 7% Public 20% Sponsorships 57% Advertising Ethics StandardsEthics Board forAccountants(IESBA). and AssuranceStandards Board International (IAASB)andthe StandardsAccounting Board Auditing International (IASB),the standard boards, setting International the including and regulations. We workofmanyinternational supportthe of Professional industrystandards Conductandapplicable detailed inCPA Australia’s andBy-Laws,Code Constitution interestpublic andare required obligations the tocomplywith CPA membershavearesponsibility Australia toactinthe 6.31/10 PUBLIC PRACTITIONER SATISFACTION STANDARDS AND PROFESSIONAL PUBLIC INTEREST clients, including small business clients. businessclients. small including clients, provision the impacting negatively ofadvisoryservicesto of increasing regulation requirements andcompliance are andregulatorylegislative framework. Nearlytwodecades services asadirect result increasingly ofthe complex considering nolongerproviding one ormore advisory athirdimpact, with ofprofessional accountantssurveyed Importantly, italso brought howitishavingan tolife associatedcosts. andtheir obligations compliance through clients advisory servicestotheir extensive significant impactonprofessional accountants providing The report regulatory confirmedthat burden ishavinga advice andservicesfrom accountants. experienceswhenseeking a separatesurveyabouttheir enterprises(SMEs)whorespondedto medium-sized to viewsofmoreand the 1000consumersandsmall than focusgroups in-depth practice, public 60 members, with completed bymore 600membersworkingin than The comprehensive report isbasedonasurvey interest. public andsupportsthe clients benefits their to provide affordable advicethat independent,quality planning advice,toenableprofessional accountants provision taxandfinancial ofadvisoryservices including review regulatory ofthe governthe frameworksthat Report. Thisreport needforaholistic the highlighted In September2019, wereleased RegulatoryBurden the > REGULATORY BURDENPROJECT SUMMARY OF REPORT MEMBERS VIEWED VIDEO3400
(2018: 5.85/10; 2017: 5.27/10) to trend upwards butremains members. ofother belowthat continues practitioners ofourpublic rating The satisfaction reviews.quality are certificate practice hold apublic subjecttoperiodic encourage aculture memberswho all ofcompliance, interest public ourcommitmenttoactinthe with andto regionsall where Inaccordance ourmemberspractise. regulators with and consultation in andindustrybodies throughand implementation, engagement,advocacy relevant profession, tothe andpromote adoption their We standards andnational helptodevelopinternational publications andregionalpublications papers. AccountantsDailyandseveraltrade The Australian, FinancialReview, Australian issues raisedincludedthe report coverageofthe posts.Media the liking andthe morewith sharingor 9200memberscommenting, than 30,875 uniquememberswere reached viasocialchannels, worktoourmembers, importanceofthis the Highlighting services to their clients. services totheir regulatorymultiple frameworkstoprovide advisory whereharmonise obligations membersoperateunder focus torevisit regimes licencing definitions, andto forchange.Thethreeadvocating haveaclear bodies in advisory servicesandpledgedtoworktogether formorecalling efficient regulatory frameworksfor threeThe CEOsofall organisations released avideo and policy-makers. government choice oftrustedadviserwith businessesfromconsumers andsmall their provision ofaffordable, adviceto quality regulatory enablethe frameworksthat needtobuildefficientto advocatethe havecome together associations and other report,the CPA IPA CAANZ,the Australia, by needforchangehighlighted Given the
33 | CPA Australia Integrated Report 2019 34 | CPA Australia Integrated Report 2019 focus on their main activity of running their practice.” ofrunningtheir mainactivity focus ontheir to beable practitioners make iteasieronthose burdenand ifsomeofthis canbereduced, itwill are are they enoughchallenges moment facingatthe “There practitioners. forpublic piece ofinformation profession, accounting on the viewingitasacritical CPA Australia’s RegulatoryBurden have Reportwill impactthat aboutthe isoptimistic Justin area.” particular manage that stagewhereto the employeeto wehavea full-time business. “Ourregulatory burden isquiteonerous, hashadabigimpactonhis andthis up todatewith regulations that noting have beendifficult tokeep Justin’s role doesn’t challenges, comewithout affairsin their life.” makesanimpactintheir that yougetwhenassistsomeone satisfaction is the areyour clients justasimportant.Thegreatest thing isdifferentclient relationships andthe youbuildwith youdotaxreturnsthink everyday, day, all butevery nature multifaceted the ofhisrole. “Peopleprobably highlighting practitioner He isapassionatepublic and professionally helpmegrow.” relationshipnot havehadthe ittopersonally with CPAthe Iwould brandanddesignation, Australia hehasbeenabletoaccess.“Without information throughmany opportunities networkingandthe CPA hascreated branchinBendigo Australia hislocal beinginvolvedwith He notesthat was doing.” It wasrecognition peoplewere that whatI noticing profession andacknowledgment ofwhatIwasdoing. career to date.“Itwasquiteabigmomentinmy wasakeymomentinhis Divisional Councillor beingvotedbyhispeersasaVictorian For Justin, Partner, Strategem JUSTIN GORDON FCPA QUALITY CONTROLMANUALTOOLS RISK MANAGEMENTFRAMEWORKAND date with industrystandardsdate with increasing. upto forkeepingthem ourrating toolsuseful,with these We are are practitioners public pleasedtoseethat finding comprehensive control quality documentation. creates then ofabutton aclick information, and compliant providing andprocedures. suggestedpolicies Usingthis through practitioner the requirements the standard, ofthe Framework Tool, process itisaneasy-to-follow guides that ControlQuality RiskManagement forFirms.Similartothe APES320: tocomplywith practice members workinginpublic ControlThe Quality ManualTool wasdesignedtoassist tool. used the from feedback positive have that practice membersinpublic DesignAwards Melbourne in the andhasreceived strong The RiskManagementFrameworktoolwasawarded Silver • • • by: their practice benefits management frameworkthat createsmember then andcomprehensive acompliant risk the tool,each Bycompleting their practice. within identified strategiesrelevantrisk mitigation nature tothe risks ofthe requirementsthe standards, ofthe providing suggested A step-by-stepprocess through practitioner guidesthe project.incorporated intothe memberswas with for Firms)andextensivetesting Board (i.e.APES325:RiskManagement (APESB)obligations Professional Australian comply with Standards andEthical to practice designed toassistmembersworkinginpublic created aRiskManagementFrameworktool.Thetoolwas resources CPA practitioners, availableforpublic Australia toolsand toenhancethe ourstrategicinitiative with In line STANDARDS KEEP ME UP TO DATE WITH INDUSTRY > Providing asimpleguidedprocess. Reducing riskforamember’s practice individual APES325easierandfaster with Making compliance 1600 MEMBERS1600 ACCESSING THE TOOLS 7.0 8/10 8/10 7.0 (2018: 6.77/10; 2017: 6.24/10) PROFESSIONAL STANDARDS SCHEME to help firms implement the help firmsimplement report findings. to guidesandrunaseriesofworkshops develop practical torelease continue In 2020,wewill eLearningmodules, • • the of findings to supportthe research including: We alsoreleased eLearningmodules twocomplimentary future.for the enablememberstobuildasustainablepractice will that profession accounting public andproposes fourthemes need tomeet.Thereport explores keyforces reshaping the ensure future the demandsthat weunderstandthe firmwill andmorepractitioners 1000consumersandSMEsto than The research involvedinsightsfrom more 500public than upforsuccess. practices strategic decisionstosettheir to provide adviceformembersonhowtomake practical My Firm.Future isaresearch-based project designed MY FIRM.FUTURE professional standards. professionaccounting encouragingimproved bycontinually consumers andprofessionals by preserving ofthe viability the The Scheme’s are objectives toprotect, improve andhelp ofregistration. orcondition PII aspartofastatutorylicence whoare practitioners for those required toholdadequate Accordingly,legislation. liability Schememaynotlimit the provision servicesifthere accounting ofpublic isnocontrary applytoaclaimrelating capwill liability A limited tothe servicesprovidedon the impediments. andanylegislative However, depend will liability limited ofthe application the toparticipate. certificate andhaveacurrentdesignation practice public orfull limited services,holdaCPA accounting conduct public orFCPA who practitioners public enableall The newSchemewill in accordance ourBy-Laws. with are practitioners public schemethat in the required tohold levelofprofessionalto the indemnityinsurance(PII)setout civilclaims maylimit The Schemeisalegalinstrumentthat across on23December2019. Australia forafive-yearSchemewhichcommenced application On 21June2019, PSCapproved the CPA Australia’s FIVE-YEAR SCHEMEAPPROVED Segmenting your client base. yourclient Segmenting Engaging clients • • • practitioners: support forpublic review report. offer Thistoolwill improved following the the quality minutesand the exitmeeting paper file,populate reviewer’s create tool.Thistoolwill reviewer’s the working digital quality the the developmentof be The finalphasewill member.the moreupdated with oncereceived accurateinformation from certain dataandenabledourdatabasetobeautomatically form reduced requirement the membertopopulate forthe reviewa quality from CPA ofthe Thedigitisation Australia. electronic formswhenmembersrespond toarequest for the developmentof The firstandsecondphasesinvolve paper-based existing the associated with archive system. memberexperienceandtoreducebetter significantcosts the review quality the has beendigitising program toenablea review system.Through aphasedapproach, CPA Australia We are reducing burden the ofourpaper-based quality DIGITISATION OFTHEQUALITYREVIEWPROGRAM consistent informandcontent. review minutesandquality exit meeting of the report are Ensurethe form the memberin to finaldeliverables the when changestostandards occur CPAAllow to makeamendmentsefficiently Australia andcorrectapplicable standards Ensure reviewers that review eachmemberagainstthe
35 | CPA Australia Integrated Report 2019 36 | CPA Australia Integrated Report 2019 TOTAL Total complaints resolved (including complaints from previous years) received were they year the in resolved Complaints Internal reprimand Internal TOTAL reports media external of aconsequence as initiated Complaints resolved without a formal investigation. The above note explains the increase in complaints which are initiated as a consequence of an ‘internal’ referral. ‘internal’ an of aconsequence as initiated are which complaints in increase the explains note above The Conduct. Professional to referred are any obligation CPD whereby their change breaching be to By-Law 2018 found January members the to due is 2019 to 2018 in investigated complaints relevant of number in increase The Notes: Table 8: Source of relevant complaint investigated Complaints resolved dispute. afee primarily is or evidence, member a not is available who the on person a supported concerns not is lodged, complaint, is the of date the complaint to the prior time the at years five than more occurred that amatter defined as concerns that one is complaint unviable By-Laws An the in ‘unviable’. considered not are they is, that investigated, formally complaints Relevant/viable all to complaints received refers phone or email. Total complaints received Notes: Relevant received complaints Total received complaints Table 7: Complaints Details oncomplaintsreceived outcomesare andtheir tablesbelow. detailedinthe members tobeheard, evaluatedand,where appropriate, has aformalprocess enablescomplaintsaboutits that To ensure standards, membersupholdthese all CPA Australia regulations.Accountants andapplicable forProfessionalBy-Laws, APES110CodeofEthics outinCPA spelt obligations Australia’s and Constitution Membership ofCPA tothe meanscommitting Australia PROFESSIONAL CONDUCT Determined by disciplinary tribunal (not restricted to 2018/2019 to complaints) restricted (not tribunal disciplinary by Determined Table 9: Resolution of complaints Complaints received from regulatory authorities External complaints from the public public the from complaints External units business CPA Australia other and review quality from complaints Internal Complaints concluded through formal professional investigation conduct refers to the viable complaints investigated and either closed or referred to a disciplinary tribunal for hearing, in addition to those those to addition in hearing, for tribunal adisciplinary to referred or closed either and investigated complaints viable the to refers refers to all complaints received (phone, email or complaint form), including those formally investigated and those dealt with by by with dealt those and investigated formally those including form), complaint or email (phone, received complaints all to refers against members *
acknowledging the public interest public acknowledging the concernofcomplainants. strivingtopreserve times at all rightsofmemberswhile the are thoroughly investigated mannerand timely inanimpartial, to ensurehas anobligation complaintsaboutmembers that CPA interest public hasundertakentoactinthe Australia and confidentiality,the righttoappeal. independence and rightforamembertoputforwardfairness (the case), their processes are principlesofprocedural guidedbythe anddisciplinary taken.Investigations action disciplinary 2017 2017 2017 223 667 196 568 186 673 196 124 64 37 0 8 -
2018 2018 2018 567 212 169 461 122 571 135 212 29 79 11 5 -
2019 2019 2019 300 331 578 300 623 106 134 274 471 44 30 27 16 TOTAL TOTAL Failure to comply with request/determination from CPA from Australia request/determination with comply to Failure court criminal or civil body, statutory any by finding Adverse Complete a quality review aquality Complete Undertaking Fine Become insolvent/bankrupt Become Admonishment Severe reprimand Training and development Conduct derogatory to or not in the best interests of CPA Australia or its members its or CPA of Australia interests best the in not or to derogatory Conduct Table 10: Complaints heard at tribunal a disciplinary Suspension of membership Table 11: ordered Sanctions by disciplinary/appeals tribunals * New data item introduced for 2019. for introduced etc. item data * New certificate, amedical of monies, repaid having of evidence provide to readmission. for undertakings application to any to limited prior not is but criteria include may certain This meet to required often are members imposed, penalties the to addition In Notes: Standard of professional care regulations applicable Conduct, Professional of Code By-laws, Constitution, of Breaches Forfeiture of membership • • • • • MOVING FORWARD practice reviewpractice andfuture state design reviewAn updatedquality program abest following for marketsbeyondAustralia MyFirm.FutureAdapting content localised with associatedproductthe suite MyFirm.Futurethe report andtocomplement insightsfrom the following clients, services totheir memberstoprovidesupporting more value-added A newseriesofadvisoryeLearningmodules from research the learnings the to supportmembersinimplementing My Firm.Future guides tobereleased practical on from ourregulatory burden work advocacyforreform forfurther foundation following isbeingdeveloped,formingthe platform A policy *
2017 2017 46 65 29 22 15 14 5 8 6 1 3 1 2 3 2 -
2018 2018 35 52 20 10 13 11 5 5 3 2 1 8 2 7 - - 2019 2019 60 33 10 19 12 13 5 3 1 5 8 2 7 3 5 -
37 | CPA Australia Integrated Report 2019 38 | CPA Australia Integrated Report 2019 2 • • • OBJECTIVES PROFESSION PROFESSION THE ACCOUNTING LEAD THEFUTUREOF professional standards while ensuringhigh employment options and skills develop their professionals to wanting forbusiness and pathways Provide opportunities profession accounting the through future the changes to and toolstosupportmembers Develop strategies,training futurefor membersinthe profession implications andthe accounting changes inthe emergingUnderstand the Thought leadership – 6.69/10 leadership Thought PERFORMANCE “GLOBALISATION HAS LED TO FAST AND COMPLEX CHANGE. IT’S IMPORTANT TO EVOLVE AND UNDERSTAND WHAT’S GOING ON OUTSIDE OF OUR INDUSTRY, AND TAKE LEARNINGS FROM BEST PRACTICE AROUND THE WORLD.” William Young CPA, Executive Director – Head of Australia, COS Capital CPA Australia Integrated Report 2019 CPA 39 | 40 | CPA Australia Integrated Report 2019 • • key components: The new program, availablefrom January2020,hastwo the future.successful firmof neededtooperatea management skills business asthe aswell practice to public requirementstechnical andethical specific streamlined andflexible.It provides the futurethe andismore accounting ofpublic Program Practice The newPublic focuseson grow asuccessfulbusiness. member’s career and goaltoestablish needsandtheir approach,been aone-size-fits-all toa oftennotaligned hastraditionally certification practice topublic The pathway A MODERNPUBLICPRACTICE PATHWAY inadata-drivenenvironment.for operating howtoprepare including forauditors, and implications insights , whichhasafocusongainingpractical auditing projectAnother inexternal tobefundedisDataanalytics measurementand deterSDGprioritisation, andreporting. framework. Theresearch facilitate factorsthat examinethe will SDG firms:Developinganinnovative in Australian reporting CPA fundprojects will Australia SDGgovernance including governments, regulators In2020, setters. and policy profession,wider accounting globalbusinesscommunity, the is relevant toCPA toourmembers,the instructive Australia, research applied encourage andsupportquality worldwide that annual research grantsprogram. TheProgram’s aimisto The GlobalResearch Program Perspectives isCPA Australia’s RESEARCH INTOTHEFUTUREOF THEPROFESSION (6.69/10)more ouractivity rating inprevious highlythan years. in2019leadership activity through andmembershavenotedthis futureadvance the profession. ofthe We increased ourthought professional other and partneringwith to bodies accounting profession developmentofthe the inunder-represented areas profession partners,supporting byourselvesandwith both research byconducting to dothis intoissuesfacingthe landscapewhichorganisationsand the operatein.We look community ofthe changingexpectations the inmeeting lies ofourmembersandCPA sustainability A keytothe Australia (2018: 6.29/10; 2017: 5.71/10) THOUGHT LEADERSHIP ACCOUNTING PROFESSION LEAD THEFUTUREOF members upfor success. andoutcomedriven focustohelpset apractical with Program Practice Public workshop–atailored workshop, requirements practitioner tobecome apublic greater flexibility. the technicalandethical Itfocuseson learning formatisstreamlined andon-demand,providing Program Practice Public newonline eLearning–the 6.69/10
from leaders’ career journeys. future their graduates discuss career andlearn aspirations business professionals, andisauniqueforumwhere andfinance graduateswith accounting for connecting business leaders.Theluncheon isdesignedasaplatform young professionals senior opportunitytonetworkwith the year,Now initsfourth Future the Leaders’Luncheonoffers 100guests. than LondonStockExchange,welcomingmoreLuncheon atthe In November, annualLondonFuture wehostedthe Leaders’ FINANCE LEADERSOFTHEFUTURE successful and compliant business. a successful andcompliant ensure systemsandprocesses their inrunning supportthem toundertakeapeerreview alsohaveanoption will tohelp they certificate, practice public Once membersobtaintheir to watchvialivestream. andmoreAustralia 130peopleregistered than morewith eventsin 350peopleattending than Successful launcheventswere heldacross Australia • • • • • areOur objectives to: cultures.Strait Islanderpeoplesandtheir for, of,AboriginalandTorres andunderstanding members todevelopandfosteragenuinerespect environment ouremployeesand andseekfor both We are tocreating committed aninclusive Australia. by Reconciliation Australia’swith FirstPeoplesandisendorsed our commitmenttoreconciliation formalises to launchourinauguralReflectRAPwhich inclusion anddiversity, CPA wasproud Australia Board’sAs partofthe tosupporting dedication RECONCILIATION ACTIONPLAN Reconciliation plan. Reconciliation inthe outlined initiatives to implementthe andmaintainaRAPworkinggroupEstablish awareness ofhistoriesand communities Torres StraitIslanderpeoples’calendarstopromote Celebrate significanteventsinAboriginaland profession accounting the for AboriginalandTorres StraitIslanderpeoplesin Educate, promote andsupport career opportunities and Torres StraitIslandermembersandemployees Promote ofourAboriginal inclusionanddiversity the and achievements Torres StraitIslanderpeoples,cultures, histories Build organisational awareness ofAboriginaland
PARTNERING WITHTHEPROFESSION Group.and OmniconMedia Sony MusicEntertainment,Adstream, Affinity Water, Emirates Group, Goldenberg HehmeyerLLP, HSBC,Huawei, This year, companiesrepresented includedBarclays, and a digitised mindset. and adigitised more strategicleadership businessleadersequippedwith eraandfoster digital inthe education blueprint ofaccounting explore jointly andcommunication, mutual cooperation the proceed will Institute Accounting Beijing National todeepen future, Inthe education. accounting CPA andthe Australia affect will transformation on howdigital professional wherein Melbourne, discussions tookpartinin-depth they visitedourheadoffice Institute Accounting Beijing National In November, agroup ofseniorrepresentatives from the • • • • • • • • • • • agreementspathway professional following the with organisations: In 2019, recognition weannouncedanumberofcollaboration, and broaderthe businesscommunity. representing bodies andother institutions interests the of Accredited firstforeign asthe CPDprovider. Professional – Commission ofPhilippines Regulation Memorandum of Understanding Accountants – Public ofCertified Sichuan Institute Memorandum of Understanding ofAccountants–Extensionthe Malaysian Institute of Understanding –RenewalofMemorandum ofVietnam State Audit agreementCooperation – UniversityofManagementinCambodia National agreementRenewal of cooperation Lao ChamberofProfessional – Accountants and Auditors AgreementMember Pathway AccountantsofKenya– Public ofCertified Institute agreementof EconomyandFinance–Renewalcooperation Ministry Councilofthe Accounting National andthe Auditors Accountantsand Public ofCertified Kampuchea Institute agreementCooperation Hanoi UniversityofScienceandTechnology – inVietnam agreementand Business–Cooperation SchoolofEconomics andthe UniversityVietnam British Agreement fiveyears foranother CPA Ireland MutualRecognition – Renewalofexisting partnerships with accounting bodies, educational educational bodies, accounting partnerships with tobuildour wecontinue important that need tobeableworkacross itis jurisdictions, As careers becomemore mobileandaccountants • • MOVING FORWARD associated with yourpersonalbrand.” associated with designation havingthat comesalongwith trust that valueofbeingaCPA.Sarah isclearonthe “It’s the forme.” wasabighighlight sothat amount oftime, “to seehowfarCPA short hascomeinthat Australia contribute directly andfeelproud, initiative tothe CPAexperience with herto asitallowed Australia ofSarah’sThe ReflectRAPhasbeenahighlight commitment toreconcilliation.” result will Ibelieve that from makingthat reconciliation journey, opportunities endless andthe comesfromthat CPA comingona Australia twointertwinedtogether,how those impact the core servicesthrough reconciliation tothe journey, as arepresentation ofCPA “From Australia: the ReflectRAP.as partofthe Sarahcreatedthe artwork Opportunity”,apiececreated “Endless artwork titled ofopportunityisreflectedThe theme inSarah’s are CPA the completing designation.” variety ofdifferent aspectsyoutouchonwhen it hasgivenmeastrong anda ofskills foundation professional Ifeellike development opportunities. professional career. “Itreally comesdowntothe abroadwith havesupportedher that rangeofskills beingaCPA that and believes hasequippedher varietyofherroleSarah lovesthe inoperations Operations Manager, PwCIndigenousConsulting CPA RICHARDS SARAH stacked to form certification stacked toformcertification for professional canbe developmentcoursesthat members togainvaluable,industry acceptedawards Considering amicro-credential framework toenable Program Practice newPublic ofthe Rollout
41 | CPA Australia Integrated Report 2019 42 | CPA Australia Integrated Report 2019 3 • • • OBJECTIVES EXPERIENCES AND ENGAGING WITH PERSONALISED PROVIDE MEMBERS member experience andengaging a personalised Develop aculture enables that and committees through branches divisions, support modelformembers Create amore effective local solutions digital by data,technologyand enabled needs andfeedback, member based onindividual and tailored communications Improve memberexperience Member retentionMember –98.1 cent per –6.63/10 satisfaction Member 166,166 members PERFORMANCE Analysis Manager, EyeInstitute Vision Grimes CPA,Scott FinancialPlanning& Management Accountant, CPA Australia LakminiCPA,Samantha Strategic OVER TIME.” AS ITCHANGES WHAT THEYNEED ON UNDERSTANDING WE’RE VERY FOCUSED PROFESSIONALLY, PROGRESS “AS OURMEMBERS
43 | CPA Australia Integrated Report 2019 MEMBER ENGAGEMENT AND SATISFACTION
Member engagement research is a Key themes from the research included: key way in which we track the quality • Members acknowledged that there Reputation metrics have seen of the relationships we have with had been efforts by CPA Australia significant improvement, our members. The current study over the past year to improve. was undertaken in 2017, 2018 and particularly in Australia, but This was reflected in ratings of key 2019 through a third-party provider members continue to want metrics which continued to trend (Forethought). In 2019, this consisted to see more work done on upwards in 2019 of a 20-minute online survey which products and services that will received a 5.7 per cent response • Reputation and future career help them in their careers. rate (n = 8507 members). development were still the most important drivers for member Performance on satisfaction and value satisfaction. by designation, age and country/region for 2017, 2018 and 2019 are shown below.
FIGURE 7: SATISFACTION BY DESIGNATION FIGURE 8: VALUE BY DESIGNATION
8.00 8.00 6.96 7.00 6.90 7.00 6.71 6.50 6.31 6.22 6.21 6.07 6.11 6.00 5.97 6.00 5.70 5.58 5.40 5.37 5.34 5.33
5.00 5.00 4.95 4.62 4.00 4.00
3.00 3.00
2.00 2.00
1.00 1.00
0.00 0.00 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 ASA CPA FCPA ASA CPA FCPA
FIGURE 9: SATISFACTION BY AGE FIGURE 10: VALUE BY AGE
8.00 8.00
7.00 7.00 6.76 6.67 6.60 6.53 6.14 6.07 6.05 5.94 5.92
6.00 5.87 6.00 5.74 5.49 5.41 5.34 5.29 5.00 5.00 5.13 4.72 4.69
4.00 4.00
3.00 3.00
2.00 2.00
1.00 1.00
0.00 0.00 CPA Australia Integrated Report 2019 CPA 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019
44 | 18–34 35–49 50+ 18–34 35–49 +50
FIGURE 11: SATISFACTION BY COUNTRY/REGION
8.00 7.49 7.48 7.48 7.28 7.18 7.11 7.04 7.03 6.99 6.94 6.87 6.83
7.00 6.82 6.82 6.82 6.81 6.76 6.74 6.74 6.69 6.52 6.50 6.50 6.45 6.42 6.25 5.99 6.00 5.95 5.25 5.00 5.10
4.00
3.00
2.00
1.00
0.00 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 Australia New Malaysia Singapore Hong United Mainland Vietnam Indonesia Other Zealand Kong SAR Kingdom China overseas
FIGURE 12: VALUE BY BY COUNTRY/REGION
8.00
7.00 7.20 6.77 6.70 6.70 6.60 6.56 6.45 6.32 6.29 6.24 6.22 6.23 6.21 6.08 6.19 5.98 6.04 5.96 5.94
6.00 5.87 5.81 5.80 5.74 5.71 5.55 5.63 5.56 5.29 5.00 4.43 4.31 4.00
3.00
2.00
1.00
0.00 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 Australia New Malaysia Singapore Hong United Mainland Vietnam Indonesia Other Zealand Kong SAR Kingdom China overseas CPA Australia Integrated Report 2019 CPA 45 | 46 | CPA Australia Integrated Report 2019 DEMOGRAPHICS MEMBER COUNTRIES 100 IN MORE THAN 166,166 MEMBERS +481 Other New Zealand Australia OCEANIA 120,107 116,953 2370 784 +259 TerritoryNorthern Tasmania ACT South Australia Western Australia Queensland Victoria New SouthWales AUSTRALIA 116,953 42,506 16,246 7 68 26 37, 10,146 3305 5384 1499 599 +287 Other Indonesia Vietnam Singapore Malaysia SOUTH-EAST ASIA 20,832 10,374 8532 1126 440 360 -7 Other UK EUROPE +712 Other Mainland China Hong KongSAR EASTERN ASIA 20,260 12,933 1679 1257 6157 1170 422 AMERICAS SOUTHERN ASIA +42 Other Canada USA -5 Other Sri Lanka India 1364 1231 382 449 166 726 816 56 +8 AFRICA -9 Other UAE WESTERN ASIA 539 154 330 209
47 | CPA Australia Integrated Report 2019 48 | CPA Australia Integrated Report 2019 FIGURE 15: MEMBERSHIP BY AGE GROUP DEMOGRAPHICS MEMBER MALE 51% FEMALE 49% MALE 51% FEMALE 49% +70 60-69 50-59 40-49 30-39 20-29 AGE 51% MALE FEMALE 49% * Figures are rounded and may not equal 100 per cent. per 100 equal not may and rounded are * Figures Note: MALE 51% FEMALE 49% +70 5% 60-69 8% 50-59 16% 40-49 27% 30-39 33% 20-29 12% AGE SPLITS FIGURE 13: MEMBER DESIGNATION +70 5% 60-69 8% 50-59 16% 40-49 27% 30-39 33% 20-29 12% AGE SPLITS +70 5% 60-69 8% 50-59 16% 40-49 27% 30-39 33% 20-29 12% AGE SPLITS Total membership includes 54 records that do not have an accurate birth date. birth accurate an have not do that records 54 includes membership Total *
16% 12% 33% 8% 27% FCPA CPA ASA INTERNATIONAL FCPA CPA ASA AUSTRALIA 66% 28% 6% MALE 51% FEMALE 49% 71% 20% +70 5% 60-69 8% 50-59 16% 40-49 27% 30-39 33% 20-29 12% AGE SPLITS 9% MALE 51% FEMALE 49% 5% +70 5% 60-69 8% 50-59 16% 40-49 27% 30-39 33% 20-29 12% AGE SPLITS
* SA A FCPA 13,183 CPA
TOTAL MALE FEMALE 20–29 AGE 115,715
FCPA CPA ASA 7 68 26 37,
MEMBER TYPE FCPA CPA ASA
0
14,420 14,420 19,647 5227 5227 11,975 11,975 70% 22% 7672 7672 8% 26.6% 73.4% FCPA -39 CPA +3310 ASA CHANGE FROM 2018 39.0% 61.0% 0 -1800 AGE 30–39 AGE TOTAL MALE FEMALE CPA ASA FCPA
38,860 38,860 15,103 15,103 54,095 22,381 22,381 31,714 31,714 132 0.2% 71.8% 79% 27.9 58.6% 41.4% ASA CPA FCPA
FIGURE 14: MEMBERSHIP GROWTH
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
AGE 40–49 AGE 50–59 AGE 60–69 AGE 70+
ASA 5347 11.8% ASA 18 6 6 7.2% ASA 471 3.8% ASA 59 0.7% CPA 37,909 83.7% CPA 20,709 79.5% CPA 8576 68.6% CPA 4431 52.1% 2055 4.5% 3470 13.3% 3 459 27.7% 4 018 47.2% FEMALEFEMALEFEMALEFEMALE 49% 49% 49%49% FCPA FCPA FCPA FCPA MALEMALEMALEMALE 51% 51% 51%51%
FEMALE 24,370 53.8% FEMALE 10,617 40.8% FEMALE 2705 21.6% FEMALE 63 4 7.5% AGEAGEAGEAGE SPLITS SPLITS SPLITS SPLITS MALE 20,941 46.2% MALE 15,428 59.2% MALE 9801 78.4% MALE 7874 92.5% CPA Australia Integrated Report 2019 CPA 20-2920-2920-2920-29 12%12%12%12% TOTAL 45,311 TOTAL 26,045 TOTAL 12,506 TOTAL 8508 30-3930-3930-3930-39 33%33%33%33% 49 | 40-4940-4940-4940-49 27%27%27%27% 50-5950-5950-5950-59 16%16%16%16% 60-6960-6960-6960-69 8%8%8%8% +70+70+70+70 5%5%5%5% 50 | CPA Australia Integrated Report 2019 service delivered byouremployees. toimprovecontinues tovaluethe andmemberscontinue 2019, CPA with satisfaction members’overall Australia notchange.Memberretentionalso did remained highin certificate practice public costofthe yearandthe consecutive fourth samelevelforthe for 2020havebeenheldatthe valuetomembers,membershipfees commitment todeliver addvaluetomembers.Aspartofour engaging eventsthat andresourcesinformation websiteandrelevant viathe and members byoffering professional accessto service,timely strategy. We worktocreate with meaningfulinteractions sixgoalssetoutinCPAexperiences isoneofthe Australia’s Providing andengaging personalised memberswith (2018: 97.5%; 2017: 98.1%) MEMBER RETENTION (2018: 6.23/10; 2017: 5.52/10) MEMBER SATISFACTION AND ENGAGEMENT MEMBER TRUST 98.1% 98.1% 6.63/10
data security and opportunities foraccountants. data securityandopportunities reporting, forensic insolvencylawand India accounting, focusonsharingtopicsrangingfromthat management Mumbai,BangaloreDelhi, andChennaihavebeenstarted To groups fourdiscussion supportourmembersinIndia, in wouldrecommendthey program the to apeerorcolleague. reporting 89percentofparticipants experience, with that In eachcasememberswere paired membersofgreater with Walesinvolved 60pairsofpeopleinNewSouth andVictoria. careertheir andoneformembersinmidcareer. Thepilot twostreamswith earlystageof –oneformembersinthe CPA In2019, Australia. weranapilotmentoringprogram knowledgeisapriorityfor todeveloptheir and continue Providing togrow opportunities memberswith professionally affirmatively wasanswered.their question that and95.5percentresponding as‘friendly’ who assistedthem 98.5percentofrespondentswith teammember the rating Theresponsequestions. surveywas56.3percent, ratetothis oftwo complete avoluntarymemberservicesurveyconsisting are conclusionofeachphonecontact,callers At the invitedto Our approach centres onoffering service. helpful,friendly a turnaround of2.16dayswhenreplying toemails(KPI3 days). 20seconds(KPI80percent)and within 89.5 percentofcalls centre. Indoingso,weachievedresults ofanswering more and58,000emailsthrough 138,000calls than contact the In2019, cornerstoneofourserviceethos. the wehandled andresponsiveness are channels.Timeliness and outbound build astrong membersthrough rapportwith ourinbound CPA apremium strivestodeliver Australia levelofserviceand (2018: 7.22/10; 2017: 6.93/10) STAFF WERE HELPFUL PROVIDING ADVICEANDSUPPORT TO MEMBERS 75/0 7.59/10
Board. andthe Committee havebeenapprovedplans that MemberEngagement bythe each DivisionalCouncilhasdevelopedmemberengagement isrelevantthat respective formembersintheir divisions, other. To supportaconsistentlevelofmemberengagement each enable memberstocommunicateandconnectwith channelsand socialmedia complementexisting will that We are platform digital alsolookingtodevelopanewonline betweenDivisionalPresidentscommunication andmembers. Divisionstoimplementprotocolsthe direct supporting email Board. the with of communication CPA workedwith Australia CPA membersatalocallevelandprovide Australia achannel Divisional Councilsplayanimportantrole byengagingwith Leadership Committee. role Greater asanHonoraryAdviser forthe ChinaWomen in Hong KongandMacau,MichaelaBrowning, hastakenonthe Consul-Generalto female businessleaders.TheAustralian representation profession accounting inthe anddeveloping ofenhancingawareness objective the with offemale The Greater anewcommittee ChinaDivisionestablished region. orworkinthe servicememberswholive Branch will and buildrelationships. EasternMetropolitan TheSouth UAEandcreatesthe formemberstoconnect opportunities Centre,Commodities buildsonCPA Australia’s presence in DubaiMulti The UAEbranch,whichislocatedinthe EasternMetropolitan South UAE andthe area ofMelbourne. CPA twonewregional established Australia branchesinthe ofthree establishment Alongside the (page26), newdivisions DIVISIONAL ACTIVITY • • • • • • • member experience.Theseprojects are: improvements areas inthese andenhancethe of targeted projects designedtodrive specifically – amajorprogram comprisesaseries ofworkthat MemberExperienceTransformationthe program In response results, tothese CPA developed Australia career development. and toprovide resources toassistmembersintheir inpolicy,active leadership advocacyandthought tobemore practice, for membersworkinginpublic needed toprovide greater supportandresources to members.Further, CPA itshowedthat Australia CPA are designation most matter twoissuesthat the development andprotecting reputation the ofthe research the Overall, future that highlighted career ChinaandMalaysia. been conductedinAustralia, organisation isundertaking.Research hascurrently the memberengagementinitiatives informed the membershipjourney.their Theworkdonesofarhas ofmembers’needsateachstage understanding research project designedtoimprove CPA Australia’s Member JourneyMappingisacomprehensive TRANSFORMING THEMEMBEREXPERIENCE Member interest (page68) andpolicy My Career Navigator(page 59) reviewQuality program (page35) My Firm.Future (page35) Risk ManagementFrameworktool(page34) ControlQuality Manualtool(page34) Regulatory Burden Reportand project (page33)
51 | CPA Australia Integrated Report 2019 52 | CPA Australia Integrated Report 2019 • • • • • • • • • • • mostpopulareventsheldin2019Some ofthe included: membership milestone. FCPA achievingasignificant status,andthose members advancingfrom ASA to CPA status,CPA to achievementsof events acknowledgeandcelebratethe CPA presentation certificate Australia ceremonies. These eventsheldineachDivisionareMuch anticipated milestone awards. presentationstours, workshops,certificate andmember Council engagementevenings,networkingevents,industry groupsdiscussion sessions,Divisional andinformation events around forumsandroundtables, world,including the In 2019, CPA convenedmore Australia 2500member than organisation ofmembers. forthousands and regional networks,providing atouchpointtothe groups asspecialinterest aswell globally operating groups atalocallevel.Theredialogue are more 180discussion than toencourageengagementand in conveningactivities profession. the impacting DivisionalCouncilsare instrumental peers tolearnfrom majorissues the anddiscuss eachother professional with opportunitytocometogether bodyisthe ourmembersvalueaboutbelongingtoa things One ofthe MEMBER ENGAGEMENTEVENTS A not-for-profitdiscussion group lunchand in Tasmania. featuring ChiefMinister, Hon.MichaelGunner the Territory Northern A memberexclusiveeventinthe processthought 2020Budget framingthe MalaysianMinistryofFinanceonthe Insights bythe in Auckland,Christchurch andWellington Career includedcorporate CFOsheld panelsthat HongKongCancerFund to raisefundsforthe professionalsmembers andaccounting together broughtA charityruninHongKongthat closeto600 socialstructure riskmanagementandthe taxation, impactongovernmentpolicies, economyandthe digital riseofthe lookedatthe Management heldinShanghaithat for andChallenges Digital Economy:Opportunities across governmentandcommerce CPA Week, more with held inPerth 300membersfrom than broader economy the industryand focused onhowfintechistransforming FutureFintech andthe ofFinanceinSingapore –aforum in Brisbane Forumheld Accounting The inauguralIndigenous Groups inQueensland Discussion andEmployability Launch ofSustainability profession accounting achievementsofwomeninthe the Women’sInternational focusingon DayeventsinAustralia understanding moreunderstanding needs. abouttheir why itisimportantforCPA toinvestin Australia from membership,”saysClare, their highlighting development. Memberswant toreceive value and professionalnew channelsforongoingeducation My Career introduction Navigatortoolandthe of “There are already the tangibleoutcomes,like junctures.” atthese a strategytoassistthem abouthaving think need supportandtohelpthem moments andexperienceswhere membersmost can takefrom research the isto“recognise critical the For Clare, organisation keylearnings the oneofthe careers.”in their support forFCPAs advanced andmembersfurther career,stages oftheir butwealsoneedto provide we haveagoodoffering early formembers inthe gaps.Forexample, butalsoidentifies members well, areasshows the where CPA isservicing Australia This isreinforced results. bythe “Theresearch career.”of their evolve andbetailored topeople atdifferent stages To stayrelevant, CPA Australia’s offering needsto profession“Industry andthe ischangingrapidly. areasabout the where needtoinvest,”shesays. they organisationto guidethe more intounderstanding Member JourneyMappingisagoodstrategictool have different needsthroughout membership. their CPA members is“acknowledgingthat Australia research,By embarkingonthis Clare seesthat across arangeofindustry sectors. strongshe hasbuilt members with connections time, Duringthis asPresidentincluding in2018–19. DivisionalCouncil, Victorian and hasservedonthe careerdistinguished finance invariousexecutive roles research. Amemberfor21years,Clare hasenjoyeda value ofCPA Australia’s MemberJourneyMapping Clare LezajaFCPA placedtoappreciate is well the Presidents of Council 2019 Chair 2018–19 President Divisional Council Victorian LEZAJACLARE FCPA other CPAother offices Australia in2020.Z Work iscurrently underwaytorefresh orrelocate four Londonfrom visiting those locations. other engage andaccommodatememberslocally, as aswell co-working hubprovides to spaces andopportunities to premises anewvibrantandefficiently within designed newvenueatareceptionthe heldinSeptember. Themove Overground andbushubs.Memberswere welcomedto Underground Victoria close tothe London the Station, In 2019, weopenedanewLondonoffice inacentrallocation CREATING CONTEMPORARY MEMBERSPACES experience forsomemembersacross different events. created newsystemandthis the aninconsistentservice moveofeventsfromto staggerthe legacysystemsinto centre. itwasnecessary implementation, Duringthe a refund havingtocontactCPA without Australia’s service payment, selectorchangesessions,cancelandprocess flexibility, membersto enabling register forevents,provide system includesanintegratedeventappandhasgreater events.Theself-serve for memberstobookandattend management systemtoprovide amore streamlined process experience forourmembers.We alsointroduced anewevent anenhanced deliver will work onanewwebsitestrategythat ourservicetomembers.Thisyearwehavebegun facilitate that technologyplatforms enhancingthe continuously through by this channelsandweaimtofacilitate digital Members increasingly CPA looktoengagewith Australia TO SERVICE MEMBERS ENHANCING OURTECHNOLOGY • • • • • MOVING FORWARD before roll-out further needsofmembers understandthe to better programThe international berunasapilot will program locations. international intoother and NewZealandstarttointroduce the programexpand the to500pairsacross Australia mentoringpilot,wewill successofthe the With moremake them accessibleto members livestream orrecord events andpresentations to members,andwearethese to exploringoptions plansfor our engagementandcommunication toenhance continue services. In 2020,wewill inaccessingCPAunique challenges Australia Members inremote andregional areas have members to all learningandisrelevant fordigital opportunities We are enhances that lookingtodevelopaplatform website. ofthe user experienceandaccessibility strategy, improve we will content,layout, the onfromFollowing developmentofourwebsite the for ouremployees and alsoenableamore workspace collaborative ustooffer allow will formembers facilities better office.Melbourne These andupdates relocations Malaysia office andamajor the refurbishment of and Darwin.We alsoundertakearefresh will ofthe relocateIn 2020,wewill ouroffices inAuckland improve ourservicetomembers will enableustoimplementtechnologiesthat will much changefrom are they this, keyupdatesthat see systems. Whilemembersmaynotinitially customer relationship managementandfinance our be makingmajorinvestmentsinupdating member experience.In2020andbeyond,wewill to ensure ourkeysystemscanenableaseamless To supportanincreasingly future digital weneed
53 | CPA Australia Integrated Report 2019 54 | CPA Australia Integrated Report 2019 REMUNERATION FRAMEWORK value tomembers. while focusingonourstrategytodeliver ourpeoplethroughsupporting change, during2019continued andwecarryon Considerable organisational change developing andretaining talent. arethat centred around attracting, andworkplacepractices policies To wehavecontemporary achievethis, strategy andorganisational objectives. isempoweredthat onour todeliver workforceengaged andmotivated CPA aimstofosteran Australia 30% ROLES FILLED INTERNALLY (2018: 21%; 2017: 19%) AUSTRALASIA EMPLOYEES OUTSIDE (2018: 14%; 2017: 14%) OF LEADERS TURNOVER REGRETTED OUR PEOPLE *Figures are rounded and may not equal 100 per cent. per 100 equal not may and rounded are *Figures organisational strategythrough anat- achievementofthe commitment tothe outcomes andtoreward employee key memberexperienceandservice CPA tofocusemployeeson Australia enabling key performanceindicators remunerationThe frameworklinks with employees. all remuneration componentsfor a process forapplyingthese components (fixedandvariable) Table 12: CPA Australia employees (including casuals) by region Other China Australia Total Singapore Malaysia
(2018: 28%; 2017: 25%) approach toremuneration principlesand the outlines The remuneration framework Female 66% 89% 63% 64% 54% 87% 11% 11% 20% 20% Male 34% 36% 37% 47% 13% 11% 2017 100% Total 80% 9% 5% 4% 4% is available onourwebsite. AgencyreportGender Equality which Workplacebalance canbefoundinthe onourgender information Further remunerationall gradelevels. ofbetween0.9ratio 1.0 to across Weratio. haveseta2020target fora businessunit,doesimpactthis solutions primarily inourtechnologyanddigital roles,a numberoftechnicalspecialist poolin a genderbalancedcandidate on 2018. fortalentand Thecompetition is0.96to1.04,animprovementposition were required. Thecurrent payequity roles where payequityadjustments and targeted identified interventions The annualremuneration process gender paygapoflike-for-like roles. towards ourcommitmenttoclosethe In 2019, progress wemadefurther organisation. inthe paid individuals remunerationthe 20highest for the 143 Table 146. to 13 onpage55shows of Directors’ onpages Remuneration 124to report ofthis Schedule andinthe FinancialStatementsonpages120the Personnel canbefoundinNote20to Boardthe KeyManagement andother onremuneration information Further of across everyrole organisation. inthe tomembersatisfaction for contributing employeestodriveaccountability for all KPIwasintroducedmember satisfaction memberfocusin2019,continued anew component.Torisk incentive ensure a Female 68% 89% 65% 86% 47% 76% Male 32% 53% 35% 24% 14% 11% 2018 * 100% Total 79% 9% 5% 4% 4% coordination andintegration. empowerment, shared core values, development, focus ascapability areas the developed identifying of domains, aculture blueprinthasbeen involvement andconsistency the To address with issuesidentified the organisation anditsmembers. createthat forthe speedandquality core values,systemsandprocesses opportunity toredefine and reinforce received lowestscores the an indicating Involvement andconsistencydomains strategic direction. toour and experiencealigned emphasis onmemberengagement highest,reflectingthe the increased memberfocus)scored(including inmissionandadaptability Results improvement toculture. of worktoremove silosand streamlinedcollaboration, programs supportrolebetter and functions responsibilities, technologyto need forclarityaround roles and Insights from a surveyindicate the and consistency. adaptability, mission,involvement measuresdiagnostic fourcore domains: against globalorganisations. The performance andisbenchmarked based onamodeloforganisational The DenisonCulture Frameworkis response rateof90percent. a ourpeoplewith all survey with In June2019, weundertookaculture CULTURE ANDENGAGEMENT Female 67% 60% 88% 79% 64% 86% Male 33% 40% 36% 13% 14% 21% 2019 100% Total 79% 9% 4% 4% 4% Table 14: Ratio of female to male remuneration (Australia only) Supervisor/technician support and Administration *Only Australia data is supplied as many overseas offices have a majority of female staff which results in ratios that lack relevance. lack that ratios in results which staff female of majority a have offices overseas many as supplied is data Australia *Only Professional specialist Professional Senior management (L7) management Senior (L6) management Senior across isshowninTable ourlocations 12. currently hasa50/50genderbalance.Thebalance managementteam Theexecutive experience andabilities. reflectscomposition diversity ofbackgrounds, a knowledge, andretaining toattracting committed employeeswhose maternity/paternity leave–three percent)andweare –ninepercent,casualthreepart time percentand CPA –89percent, time employs554people(full Australia • • • 2017: MALE) 66% FEMALE/34% (2018: MALE; FEMALE/32% 68% 67% FEMALE/33% MALE WORKFORCEOF GENDER COMPOSITION DIVERSITY AND INCLUSION Creating aflexibleworkplace. andpromoting diversity Celebrating a culture ofinclusion Gender equality • MOVING FORWARD through culture the survey. include: will Keyinitiatives A culture program transformation ofworkhascommencedtoaddress raisedbyemployees feedback the o o o o o that focuses on: that cultureand diverse byfosteringanenvironment CPA valuesandpromotes Australia aninclusive that arethat required forourbusinesstosucceed organisational ofhigh-quality Delivery design,capability, culture andservices andchangefunctions Organisational redesign of somebusinessareas to effectively roles intheir anddeliver worktogether Improved toolsandtechnologyinfrastructure businessandcollaboration toenableemployees to meetongoingbusinessneeds toensureEnterprise learningsolutions inorder ongoingdevelopmentofemployees’skills the of ourculture inasimple,memorable way Employee valuesdevelopedandlaunchedtoprovide ashared uswith languageandcommonview 2014 0.88 0.89 1.05 0.95 1 2019 SALARY AND FEES BAND also beenincludedwhere applicable. Fringebenefitsandfringetaxhave contributions. total gross remuneration plusemployersuperannuation The abovebandsare basedon fixed salarywhichincludes Total number $1,700,001–$1,800,000 $900,001–$1,000,000 $800,001–$900,000 $701,001–$800,000 $600,001–$700,000 $500,001–$600,000 $400,001–$500,000 $300,001–$400,000 $200,000–$300,000 2019 employees paid 20 Table 13: Total remuneration of highest 2015 0.88 1.02 0.95 0.95 * - 2016 0.92 0.96 0.94 0.94 - 2017 0.88 0.95 0.95 0.96 - 2018 0.90 0.98 0.91 0.96 0.94 2018 20 1 2 5 5 - - - - - 2019 2019 1.04 0.98 0.97 0.96 0.94 20 11 1 5 3 - - - - -
55 | CPA Australia Integrated Report 2019 56 | CPA Australia Integrated Report 2019 4 • • OBJECTIVES AND TOOLS CONTENT RESOURCES DEVELOPMENT LEARNING AND PROVIDE RELEVANT member groups to buildcareers ofspecific productsquality andservices high Develop anddeliver relevance ofCPD andflexibility Improve valueformoney, CPA –>7700 attendees Congress – 7.00/10 INTHEBLACK with Satisfaction Value for money CPD –5.34/10 PERFORMANCE Charities andNot-for-profitsCharities Commission & ACNCCorporateServices, Australian Director RedTape ofReporting, Reduction YatesMelville FCPA, AND EXPERIENCES.” INFORMATION SEEKING OUTNEW I’M CONSTANTLY COMFORT ZONE. MYSELF OUTOFMY GROWTH ANDGETTING IT’S ABOUTPERSONAL I MAKEEVERY DAY. “LEARNING ISACHOICE
57 | CPA Australia Integrated Report 2019 58 | CPA Australia Integrated Report 2019 program twoweeks. soldwithin wasfully from Harvard.2019, Initsfirstoffering in the 50-participant professors with views andinsightsonline experts andother members from worldtoshare overthe all professional their leadership courseenables Theonline Education. Executive We alsointroduced Harvard ManageMentorandHarvard • • CPDrequirementsto meettheir andincludes: of free CPDavailableexceeds whatisrequired foramember resources, chatsandwebinars.Theamount podcasts,live CPD through courses,professional website,including the Members are alsoableto accessarangeofcomplimentary and learningmanuals). recorded learningcourses(online, self-paced webinars changes includeconferences, workshops, webinarsand for 2019 affected andbeyond.TheCPDactivities bythese pricingofourCPDproductswe’ve madechangestothe As partofourcommitmenttoproviding valueformembers, meetmemberneeds. to better toevolve ouroffer continue members, wewill importanceofCPDto of members.Giventhe poorestof the performingareas views inthe rate ourCPDimproved in2019, remains this one While performanceintermsofhowmembers (2018: 20.7%; 2017: 17.1%) IN CPA CPD AUSTRALIA PARTICIPATION OF ELIGIBLE MEMBERS (2018: N/A, 2017: N/A/10) VALUE CPD FOR MONEY AND KNOWLEDGE DEVELOPMENT PROFESSIONAL *2017 and 2018 is N/A due to change in measurement method (refer page 1). page (refer method measurement in change to N/A due is 2018 and *2017 EVOLVING OURCPDOFFER members undertaketoensure knowledgeremains their relevant. CPA Program, butalsothrough our ongoinglearningthat the more 10,900members). than (accessedby ChineseandVietnamese traditional Chinese, insimplified transcripts andtranslation greatest nowincludedownloadable leaders.Videos world’s ofbite-sizedvideosfeaturingsomethe selection Global Leaders’Insightswhichprovides accesstoamonthly 11,750members) than assessments(accessedbymore multiple-choice monthly all can earn16.5CPDhoursperannumaftercompleting businessandleadershiptopicswhereaccounting, members CPA Q&Awhichcoversawiderangeoffinance, business strategy gained through completing the business strategygainedthrough the completing from of andunderstanding technicalexpertise the CPAThe valueofthe stems notonly designation * 5.34/10 27.3%
holistic experiencefordelegates. holistic one andtwo-dayCongress packages whichprovide amore benefitsof the messaging,whichhighlighted marketing CPA Congress duetoashiftin isdown,partly attendance regional conventions. Conference,Accounting Not-for-profit Conference and Conference, Practice Public the CPA Week, Management annualscheduleofevents.Theseincluded complemented the profession.the toCPA Inaddition Congress, 12conferences totravelthroughattendees past,present the andfuture of developed byCPA allowed that wasahighlight Australia emerging industrytrends. Thevirtualreality experience across13 cities peersandexplore globetoconnectwith the More CPA 7700delegatesattended than Congress in organisations community. andthe their impactforindividuals, encouragedpositive that talks Africaaccompaniedlocalspeakersindelivering and South from USA,UK,NewZealand,Germany, the HongKongSAR Robots’and‘TheFuturethe ofDigitalMoney’.Speakers Two approach: key topicsshowcasedthis for ‘Accounting reflectingthe businesscommunity. changesimpacting CPA Congress 2019 of‘BusinessasUnusual’ theme hadthe 2017:(2018: >6500; >8700) CPA CONGRESS ATTENDEES systems upgrade that impactedsearchsystems upgradethat rankings. a broader siteandaback-end to the businessaudience our mainwebsite,reduction budgetdriving advertising in the dropped. contentmovingto ThiswasduetoInPractice numberofvisitstointheblack.com the result a as and The strategyandfocusofINTHEBLACKchangedin2019, orpodcasts. e-newsletters through socialmedia, intheblack.com, printpublication, the be this ourmemberswhether touchpoints wehavewith mostfrequentlyINTHEBLACK isoneofthe accessed (2018: 2.1M; 2017: 1.2M) VISIT TO INTHEBLACK.COM (2018: 6.73/10; 2017: 6.31/10) SATISFACTIONINTHEBLACK WITH INTHEBLACK * CONGRESS ANDCONFERENCES reported in our 2018 report. 2018 our in reported as >9000 than more from 2017 number the restated have we delegates, CPA Congress record to used system the in achange to Due Accountants. of Congress World the to due 2018 in NSW in run not was CPA Congress >1.3 million >7700 7.00/10
5300 havebeendownloaded. launchinginOctober.audiocasts To date,more than Mandarinlanguage format, whichwaslaunchedinJunewith program delivered andarticles ofaudiocasts inaudio In response tomemberinput wealsodevelopedamonthly and more. technology, accounting, taxation, practice public audit, CPA expertsacross membersassubjectmatter Australia tomemberprofiles,In addition INTHEBLACKquoted124 We featured 56 memberprofiles. 227members,including chosen specialisations. advice tohelpmembersprogress intheir profession accounting the andcareer knowledge, emergingtrends impacting is nowmore andtechnical focusedonpolicy INTHEBLACK wasredesigned. Thecontent In July, inputfrom following members, update ofourCPDoffer. ongoing review the assupporting tool aswell and and usedtosupportfuture enhancementsforthe beconsolidated will collected information and the endofNovember launchedatthe The application career potential the available. pathways to require understand better tohelpthem skills those and the application will show them the roles that tend Alternatively, topskills membermayselecttheir the to focusonspecific or industries. roles, locations recruit forwhenthey advertised staff, ability the with employershave topskills toseethe Australia within members allow will that developed anapplication a leaderinreal-time wehave labourmarket analytics, adatasetfromUtilising BurningGlassTechnologies, comingyears. over the strategy formemberstobedevelopedanddelivered firstphaseofanoverarchingthe career development we havedevelopedMyCareer Navigator, whichis trends Inresponse position. existing intheir tothis, or stayingrelevant forefront andatthe ofindustry betweenroles intransitioning them supporting career,on howtobestmanageanddeveloptheir CPA toprovide Australia more guidanceandsupport membersareit wasmadeclearthat lookingto MemberJourneyMappingproject,During the MY CAREERNAVIGATOR • • • • • MOVING FORWARD Big Data, analytics, andcloudcomputing Big Data,analytics, requirements emerging from intelligence, artificial bedevelopedtosupportnewskill CPD will canbestackedtoformcertification courses that accepted awards forprofessional development enablememberstogainvaluable,industry- will that A micro-credential frameworkisbeingconsidered tobedeveloped continue profession frameworkforthe A capability will be explored to continue Business Schoolcourses,will HarvardSuccessful partnerships,suchasthe ensure are they fitforpurpose CPD products tobereviewed continue will to
59 | CPA Australia Integrated Report 2019 60 | CPA Australia Integrated Report 2019 5 • • • OBJECTIVES OF CPAs NEXT GENERATION DEVELOP THE ATTRACT AND prospective members offer andexperiencefor through content acompelling members (ASAs)globally high-calibreAttract Associate membership full CPA Program studentstoattain Improve supportmodelfor the future globaldigital for the relevance CPA ofthe Program highstandardsMaintain the and 9891 new members delivered exams CPA Program >44,000 –6.96/10 satisfaction ASA PERFORMANCE
Finance andStandards, AUSTSWIM Owner, Consultant, A360Accounting. Sanchi KariyawasamCPA, LEADER.” BECOME ABETTER NURTURED METO ALSO INSPIREDAND CPA AUSTRALIAHAS ACCOUNTING. APPROACH TO AND HAVE ASTRATEGIC ON THEBIGPICTURE BECAUSE THEYFOCUS “I CHOSECPA AUSTRALIA
61 | CPA Australia Integrated Report 2019 62 | CPA Australia Integrated Report 2019 Hong Kong Hospital Authority andRSMin2020. Hong KongHospitalAuthority the beextendedtoDeloitte, will students. Thiscollaboration to offer internshipandgraduateprograms forhigh-calibre PwCandErnst&Young with In HongKong,wecollaborated prospective memberinterests. to andaligned specific toageographicallocation tailoredwe havebeenabletodeliver is that information increase from 155,860in2018. Byusinggreater datainsights, increasedfollowers tomore 184,000,an than 18 percent (a 35percentincrease) from 65,800in2018. Facebook increasing LinkedIn followers with tomore 89,000, than CPA Australia’s increased following socialmedia in2019, and more toourwebsite. 35,000clicks than networkhasdelivereddigital more 26,000pageviews than derived from beingaCPA. Ourpresence across CNN the they’ve benefits storiesofmembersandthe showcasing the The seriesaimedtoinspire ofCPAs nextgeneration the by Advantage”. “TheCompetitive contentseriestitled a digital across TV in the Asia-Pacific region and was complemented by reach CNNwhichexpandedouraudience a partnershipwith We exposure alsoextendedourmedia in2019 byintroducing about becomingaCPA. where prospective memberscouldfindoutmore information views andmore CPA tothe 5000clicks than website Australia generatedmoresupport. Theactivity 25,000page than careerdiverse directions CPA the that can designation the andtechnologyhighlighted learning, collaboration community. inindustry, ofinnovation Keythemes continuous role the highlighted membersplayinbusinessandthe BBCthat the andexpandedapartnershipwith activity During 2019, CPA evolvedourenrolment Australia campaign graduates. accounting landscapeleadstolowernumbersof higher education from increases localandglobalbodies changing andthe remainwill previous lowerthan yearsascompetition profession. are Ourexpectations newmembergrowth that organisationthe asoldermembersretire andleavethe of sustainability newmembersiskeytothe Attracting (2018: >10,350; 2017: >11,000) MEMBERSNEW ATTRACTING NEWMEMBERS OF CPAs THE NEXTGENERATION ATTRACT AND DEVELOP 9891
common challenges.” ofglobaltrends,understanding andovercoming toadvancingour personal experiencesiscritical membersandlearnfrom other connect with their front. international on the “Beingableto growth continued witness the membership ofthe As amemberofCPA Patrickisproud Australia, to make yourbusinesssuccessful.” youneedtoforesee time, the all what’s comingto modelsarerapid pace.“Established beingdisrupted financeindustryastechnologyischangingata the learn quicklyisincreasingly importanttoacareer in beingforwardPatrick notesthat andableto thinking toyourcareer.”minded andbringanewperspective Ifyoudon’tthings. try, youneverknow, beopen career earlyintheir say tothose totrydifferent “Ialways andtips: members whoseekconsultation ascareeras well younger with experience,especially CPA eventsbysharinghisindustryinsights Australia He has,inreturn, role takenon anactive insupporting of industriesfrom CPA the network.” Australia andpeoplefromlearn aboutmyclients avariety it’s abroad andnetworkwhere connection Igetto membership: “WhenIjoinedCPA Irealised Australia, he wasintroduced toaspart ofhisCPA Australia has beenlargely community supported bythe For Patrick,a20-yearcareer incommercial banking Cash Management,HSBCChina Country HeadofGlobalLiquidityand PATRICK ZHU FCPA on ourwebsite. ofourRecognisedEmployerPartnersisavailable list A full • • • • Members workingforaRecognisedEmployerPartnerbenefitfrom: Bank ChinaLimitedandKPMGIndonesia. Moore FederalPolice, Australian Stephens,UnitedOverseas In 2019, newRecognisedEmployerPartners includedthe staff. financeandaccounting development oftheir meethighstandardshave shownthey professional forthe Being aRecognisedEmployerPartnermeansorganisations RECOGNISED EMPLOYERPROGRAM “CPA membersare Australia forward-thinking leaders.” increase numberofrespondents inthe agreeing that alsoincreased,of brandsentiment a32percent including throughout significantly the campaignperiod.Keymeasures ourbrandawareness campaignandthat the increased recalled 56percentofbusinesstravellers that seeing Research airportenvironment the conductedwithin showed CPA suchasBusinessInsiderand publications Qantasin-flightportal,business lounges andterminals,the featured membersthat included interviewswith across Qantas practitioner.people toconsiderapublic Theprogram members tofindoutaboutbecomingaCPA andforbusiness wasdesignedtoencourageprospectivewas launchedthat programbeyond aprintmagazinearrangement.A12-month In 2019, Qantaswasenhancedtomove ourpartnershipwith MEMBER-FOCUSED PARTNERSHIPS professional development. maintenanceand Simplified recording ofcontinuing career development Working foranorganisation to committed relationshipA supportive anassignedmentor with CPA Program experiencerequirement ofthe Recognition ofthe Australia’s website.
• • MOVING FORWARD the industryasawhole the organisation, tothat events dedicated than rather key organisations bycreating tailored contentand Creating more experiencesforthose personalised members andeducateourprospective members employour that employers anduniversities approach byacquiringandretaining valued Focusing onacustomercentric,accountbased
63 | CPA Australia Integrated Report 2019 64 | CPA Australia Integrated Report 2019 (2018: 5901; 2017: 5693) 5901; (2018: TO CPA STATUS PROGRESSED ASAs 5653 (2018: 97.2%; 2017: 96%) COMPUTER BASED EXAM 97.7% CANDIDATES SAT A DELIVERED EXAMS 44,000 CPA PROGRAM AND CERTIFICATION CPA PROGRAM 2017: >51,000 EXAMS) through program. the bestopportunitytoprogresshave the dobecomeASAs studentsthat that in increased learningsupporttoensure wehaveinvestedheavily In addition, employers. of membersandtheir ensure future itmeetsthe needs CPA ofthe evolution Program to changesthroughthese continuing CPA islookingtoaddress Australia seekemployment. course whilethey firstcertification undertaking their there isanincreased laginthem CPA Program, do, that andofthose graduates lookingtoundertakethe As aresult, there poolof isasmaller degreean accounting hasdeclined. students comingonshore tostudy for numberofoverseas the In addition, business andcommerce offerings. degreesaccounting tomore general There hasbeenatrend awayfrom ofachangingbusinessworld. challenges professionals whoare ready tomeetthe agile andadaptableaccounting aviewtodeveloping governance with on strategy, and leadership, ethics itfocuses skills, technical accounting to business knowledge.Inaddition grounding inaccountancy, financeand to provide athorough with candidates ( 2018: 46,000 EXAMS, EXAMS, 2018: 46,000 education programeducation designed comprehensive postgraduate The CPA Program isa
subjects insemestertwo. compulsory and extendedtoall Management insemesterone, andGovernance Practice Ethics peers.Quitchwaspiloted with their knowledgecompareshow their to leaderboardcompetitive tosee app anonymouslyorbepartofa Members canchoosetousethe learning ontrackandfront ofmind. for successfulanswers,tohelpkeep andscoring questions such astimed uses gaminganddesignelements, Quitch isamobilelearningappthat who didn’t offer. the utilise increase inscores compared tothose a16percentaverage examswith their Learning received results better on videos. MembersusingGuided exam preparation andstudytechnique examsand videos, quizzes,practice weekly recorded webinars,short tuition through subjectcontentbyusing the semester. The offering guidesmembers throughlearning journeytofollow the anapproachwith mapsouta that semester twoandprovides members waslaunchedin Guided Learning Learning andQuitch. learning products in2019, Guided introduced twonewteaching and In response we feedback, tothis • • • mentioned: Members specifically through CPA the Program. supportprovidedlearning provide greater valueinthe needto the highlighted fromFeedback ASAs (2018: 6.71/10; 2017: 5.97/10) SATISFACTIONASA 6.96/10 THE CPA PROGRAM SUPPORT THROUGH to knowwhere wentwrong. they more failed,needing If they guidance through semester the helptokeepontrack Needing and study The needtobalancework,life
question. a question. minutes within and amismatchofhours an incorrect percentage rate, Advanced. Theerrors included Taxation andAustralia Accounting – Leadership, StrategicManagement GlobalStrategyand Reporting, errors. Thesesubjectswere Financial foursubjectshadminor within it becameapparent questions that semestertwoexamperiod, During the toinformcandidates. published areas. were communications Full providing relevant updatesonthe errors the notes identifying and wasmanagedbyissuing candidates typographical errors. Theimpact on included incorrect and calculations had anumberoferrors which identified Taxation, andAustralia Accounting CPA Program, StrategicManagement the materials fortwosubjectswithin During semesterone,study IMPROVING OURPROCESSES Taxation –Advanced. TaxationAustralia andAustralia Management, InvestmentStrategies, Financial RiskManagement,Practice andGovernance, Issues, Ethics Assurance, ContemporaryBusiness and eight subjects:AdvancedAudit seen anincrease inpassratesfor As aresult measures ofthese wehave these errors.these adversely impactedby candidate’s examresult was scores no showedthat reviewA full exam ofall subjectsimpacted. the disclosurefull taking to those wasmanagedby candidates Theimpacton questions. checksforexam additional measures andintroduced quality and updatedexisting study materialsandreviewed reviewsupplier processes for andexternal our internal reviewed andupdatedboth We havesubsequently to get the bestexperience,”sheexplained. to getthe people with inevents.Getconnecting participating events. Keepanopenmindandbemore in active “Ineverrealisedmost ofthis. there were somany her professionally, tomakethe advisingothers in CPA eventsandnetworkinghasgiven Australia participating valuethat Everlyn speaksaboutthe meet.” you’ll people from You oflife. walks all neverknowwho so far. Igottomeet “Itwasbeyondmyimagination. ofEverlyn’shighlight CPA experiencewith Australia Joining CPA Congress asaspeakerhasbeenthe seeingsuccess.” without you havetobeprepared fortwoorthree years outfromstarting nowhere, from starting scratch, business. “Itcanbeaverylonelyjourney. You’re yourown starting comewith that challenges prepared andemotionally mentally forthe corporateworldtoentrepreneurshipthe tobe from anyonelookingtotransition Everlyn cautions own business,”shesaid. “It’s neverbeenamore tostartyour time exciting andreduceand SMEstosavetime shippingcosts. in Malaysia whichassistse-commerce sellers cross-border e-commerce provider solutions based entrepreneur, adynamic Flickpost: co-founding trajectoryofanestablished has sincetakenthe Everlyn beganhercareer incorporate bankingand Executive Director, Flickpost EVERLYN LAU ASA financial planners in the future.financial plannersin tobecomemembersandalso wanting support those part waythrough requirements education their andalsoto CPA iscurrently Australia tosupportthose exploringoptions and weare outcome. onthe waiting exam FinancialPlanningSpecialisation 1985–1988 andthe to FASEA accreditation forthe CPA ofthe Program from Furthermore, submissionshavebeenmade additional choice. their forProfessionalCourse –Ethics of Advisersandoneother maximum oftwobridgingunits,beingFASEA’s Bridging CPAthe Program (from 1989)nowonlyneedcompletea aFASEAwith relevant degree andwhohavecompleted memberswhoareIt meansthat financialadvisers existing professionalother bodies. accounting representation from CPA and Australia for financialadvisers.Thiscomesafterstrong standardsstudy aspartofitsneweducation CPA Program berecognised will asapproved (FASEA)Authority the that hasconfirmed The FinancialAdvisorStandards andEthics FASEA RECOGNITION • • • • • • MOVING FORWARD stacked toformcertification for professional canbe developmentcoursesthat members togainvaluable,industryacceptedawards Considering amicro-credential frameworktoenable students totakeresit examsmore efficiently approachReviewing ourexamination toenable areas increasing profession inimportancetothe Developing newCPA Program tofocuson electives CPA Program subjects rolloutContinuing ebooksacross ofdigital all bemostrelevant will learningcontentthat identify Using real-time jobmarkettohelp dataaboutthe learningenvironment the personalise that analytics combining products, toolsand offerings with Developing a‘DigitalLearningEcosystem’,
65 | CPA Australia Integrated Report 2019 66 | CPA Australia Integrated Report 2019 6 • • OBJECTIVES ADVOCACY ACTIVE INCOMMUNITY GLOBALLY ANDBE IMPACT POLICY and international policy work policy and international interestspublic through local Advocate formemberand CPAof the brand Australia serve,tobuildrecognitionthey community members andthe benefitof undertakes forthe CPA workthat of policy Australia amount Enhance andextendthe standard setters andregulators setters standard to governments, submissions 68 56.7 – media favourability Australian PERFORMANCE CPA Australia Strategy andBusinessPlanning Analyst, CPA,Patrick Viljoen Advisor, MajorRoadProjects Victoria Support Strategic Communications Judy GaoCPA, OF INFLUENCE.” IT’S AREALNETWORK PEERS INTHEINDUSTRY. MATTER, ASWELL MY CONVERSATIONS THAT THE ISSUESAND CONNECTS MEWITH CPA AUSTRALIA “BEING PART OF
67 | CPA Australia Integrated Report 2019 68 | CPA Australia Integrated Report 2019 Hong Kong SAR Economic Sentiment Surveys. Hong KongSAREconomicSentiment the Chinaand BusinessSurveyand Asia-Pacific Small interest release wasthe ofCPA Australia’s annual tenth moremarkets with Ofparticular mentions. 2300media than There wasalsostrong coverageacross media international • • • • • Topics garnered that greatest the interest media were: any organisation. itemstoprovide media of overonemillion abenchmarkfor organisationsAustralian averagefavourability the andcollates analysisofover400 includesmedia rating Our favourability highestproportion. makingupthe digital television, with across inAustralia mentions media press, digital, and radio metronational, andregional more including media, 800 than presence. In2019, wereceived widespread coveragein to membersismaintainingastrong media and positive organisation ofrelevance onmatters andadvocating A keyaspectofpromoting andviewsofthe policies the andgovernance. and assurance,ethics financial taxation, reporting, retirement savings,auditing of stakeholder, groups advisory andliaison inareas suchas standardnational inabroad andparticipates setting range CPA and ininfluencinginternational isactive Australia • • • member andstakeholderengagement,that: approacha multifaceted research incorporating and To worktowards goal,CPA achievingthis adopts Australia incommunityadvocacy. andbeactive globally policy One ofCPA Australia’s keystrategic goalsistoimpact MEDIA FAVOURABILITY RATING IN AUSTRALIAN AND THOUGHTLEADERSHIP BEING ACTIVEINPOLICY, ADVOCACY ADVOCACY POLICY AND Regulatory burden practitioners. onpublic Tax tips federal election Australian forthe majorparties ofthe Policies Government proposals cashtransactions tolimit The FederalBudget markets ofinterest toour members. inareasInfluences economicandsocialpolicy and government agenciesandstandard setters governments,regulators, engageswith Actively interest andofbenefittomembers standardsinvestment, raiseliving andare public inthe both encouragegoodbusiness, that policies Focuses onpublic 56.7 56.7 (2018: 52.9; 2017: 47.5) • • • • • • • • relevant profession. tomembersandthe Theseincluded: In 2019, weproduced arangeofguidanceandothermaterials SUPPORT FORMEMBERS and UK. also heldinMalaysia,Singapore, UAE Hong KongSAR,the andadvocacywere Membereventsfocusedonpolicy times. webinars andpodcastswere accessed more 26,600 than range oftopicsrelevant toourmembers. Collectively, these We produced 5webinarsand12podcasts,coveringadiverse • • • • • • • presentations, aLiveStream orwebinar. Topics included: More 1600membersregistered than face-to-face toattend current topicsaffecting profession. the membersanddiscuss andNewZealandtomeetwith Australia In 2019, CPA heldmore Australia 40presentations than across and Professional Standards. new COEstocoverDigitalTransformation andEthics affecting profession. the In2019, two weestablished andoffer positions us developpolicy insightsonissues tohelp ofmembersandindustryspecialists expertise CPA Australia’s OurCOEsdrawonthe positions. policy membersiscentraltodeveloping Engaging with ENGAGING WITHMEMBERS policies of the major Australian parties. parties. majorAustralian ofthe policies election taxandsuperannuation Summary ofthe environment statement–business and the Policy assurance requirements –aguidetofinancial Charities and reporting Malaysian ServiceTax services ondigital protections taxwhistleblower Australian 2019 taxtips Australia andNewZealand in Australia Two andassurance auditing guidestounderstanding Committee Policy Public andAccounting Auditing Australian the Two of CAANZ onbehalf with jointpublications changepolicy.Climate Financial reporting Regulatory burden inAustralia of auditing regulation Inquiryintothe Committee Parliamentary savings andagedcare reviews retirementFinancial planning,superannuation, agendapost-election policy The FederalGovernment’s taxandsuperannuation federal election Australian forthe majorparties ofthe Policies • • • • • • • • Major submissionsin2019 included: resources from priority areas. other or regulatory changeswere diverted announcedthat members mayhaveaninterest, whendraftlegislation areascommentary andsubmissionsonall in2019 where professional voiceonkeyissues.We notprovide did aimofproviding the CAANZ,with with jointly asingle 2019 weprepared anincreasing numberofsubmissions sought through channels.Additionally, multiple during response forcommentwhichincludesmemberinput tocalls CPA Australia’s We activities. prepare submissionsin standard andregulators setters isakeyaspectof Representing viewsofmemberstopolicymakers, the (2018: 67; 2017: >80) STANDARD AND REGULATORS SETTERS SUBMISSIONS68 TO GOVERNMENTS, REPRESENTING THEPROFESSION setting boards.setting standardA rangeofsubmissionstointernational andEffectiveness Quality into the ofAudit Brydon Review:SubmissiononIndependentReview inAustralia of auditing inquiryonregulation JointCommittee Parliamentary Paper Consultation ChangeAuthority Climate Commonwealth Instrument Legislative FASEA –RelevantProviders ExamDraft Tax Board Practitioners Review ASIC –Costrecovery and search fees Pre-Budget Government Australian submissionto the
through corporateladder, the itmeansalot.” to pursueacareer anywhere infinance,advancing weight, itopensdoorsforyou, andifyou’re going commercial recognition. “A CPA carriesalotof professional both member comeswith and Andrew valueofbeingaCPA the notesthat Australia of study.” upbringinginterms good trainingandadisciplined hesaid.“You discipline,” the havebeenthrough very role requirements veryquickly. “Most importantly, it’s tasksand toundertakethe knowledge anddiscipline CPA Program necessaryskills, the equippedhimwith in 1968,Andrew recalls undergoing that the Schweppes onhisveryfirstjobatCadbury Reflecting communitysomeofyourexpertise.” the togive Maketime achieving, includecontribution. professional andpersonal agenda.“Apartfrom is toincludecommunityserviceaspartoftheir His keyadviceforCPAs career beginningtheir governanceandfinancialstrength.”It indicates confidenceintowhatIcancontribute. people alittle work.“MyCPAto dothis background cangive career,longstanding leveraginghisCPA designation invested heavilyincommunityworkthroughout his sector, public industries andthe Andrew has manufacturing,newspaper,including media torolesIn addition across anumberofindustries make itcount.” achieved it.“You have touseyour50yearsand he achievedinhisprofessional career andhowhe is impressive, butforwhat notonlyfor itsduration, Andrew’s 50-yeartenure asaCPA member Australia UK/Europe OrderChairman, ofAustraliaAssociation ANDREW KOO FCPA AM BEc
69 | CPA Australia Integrated Report 2019 70 | CPA Australia Integrated Report 2019 • • • • • • • • • across profession the whichincluded: expertsfrom aswebinarsandpodcastswith members, aswell ofarangeguidesandresourcesand publication toassist profession.members andthe development Thisledtothe In 2019, wecommissionedresearch ontopicsimportanttoour ENGAGING WITHCURRENT ISSUES hasbeendownloadedmorebudget that 2600 times. than content.We the with alsoproduced federal apodcastonthe rose from fourto15minutes,showinggreater engagement since 2015andin2019 spentonbudgetrelated time pages performanceofitsbudgetrelatedon the contenteachyear areas ofmissedopportunity. INTHEBLACKhasimproved profession, accounting andthe superannuation as aswell affected andfamilies, businesses,investors,individuals small budget winners andlosersasummaryofhowthe and CPA various Update.Coverageincludedalookatthe inCPA published articles including Tax News,intheblack.com nightacross analysisonthe in-depth ourvariouschannels, FederalBudgetfeatured 2019–20 Australian coverage ofthe Hong KongSAR,MalaysiaandSingapore. Comprehensive budgetsdeliveredon the governmentsofAustralia, bythe CPA provided Australia commentaryandviewstomembers (2018: 2017: 31,400; >24,500) ARTICLES ON INTHEBLACK.COM >31,500 PAGE OF FEDERAL VIEWS BUDGET PROVIDING VIEWSONGOVERNMENTBUDGETS Implementing AASB16/IFRS15–AreImplementing Preparers Ready? slavery inglobalsupplychains transparencyRegulating anddisclosures onmodern areautomation beingintegratedintoexternalaudit Podcasts andpresentation AIand onhowdataanalytics, Technology Future andthe Profession ofthe Financial ServicesIndustry and Banking,Superannuation into Misconductinthe final Commentary onthe the RoyalCommission report of MalaysianWorkplace inthe Gender Equality Survey Sentiment 2019 MainlandChinaEconomicandBusiness Survey2020 Hong KongSAREconomicSentiment BusinessSurvey AnnualAsia-PacificSmall 10th
• • • • • • MOVING FORWARD into policy andadvocacypositions into policy Explore newwaysformemberstoprovide input profession accounting the formembersand matters stakeholders oncritical key other with toenhancecollaboration Continue professionaccounting impactonthe andthe transformation Increase focusontechnologyanddigital CentresReinvigorate the ofExcellence and involvementinconferences andevents updateseries,presentations policy ofthe delivery toenhancememberengagementthroughContinue and Malaysia adviserslocatedinHongKongSAR new policy Increase marketswith ourfocusoninternational Independent limited assurancereportIndependent limited
71 | CPA Australia Integrated Report 2019 72 | CPA Australia Integrated Report 2019 GOVERNANCE AND FINANCIAL REPORT CPA Australia Integrated Report 2019 CPA 73 |
Over 50 Over Under 30 Under 30 Under 30 AGE GROUPS 31 at December as Table diversity 15: Board report. onpages26to28ofthis governancesection the Corporate GovernanceStatementonourwebsiteandin governance frameworkandstructures canbefoundinthe onourapproachInformation area tothis our including approvedof managementunderthe strategy. performanceandactivities decisions andoverseeingthe organisation’s assessingthe andobjectively independently CPA andisresponsible Australia forstrategydevelopment, The Board ofDirectors governingbodyfor isthe Total 30–50 30–50 AGE GROUPS 2019 *Figures are rounded and may not equal 100%. equal not may and rounded are *Figures 30–50 2018 Over 50 Over Total Total 50 Over 2017 BOARD OFDIRECTORS AGE GROUPS Directors Number Number 0100% 10 11 10 0100% 10 0 0 1 2 8 9 0 1 TOTAL TOTAL TOTAL 100% 80% 20% 92% 90% 10% 9% 0% 0% 0% % % % *
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75 | CPA Australia Integrated Report 2019 76 | CPA Australia Integrated Report 2019 awarded aCentenaryMedalin2004. safety andcommunityservicewas services toworkplacerelations and Orderof the in2005for ofAustralia wasmadeaMember Peter Wilson Commission asChair. andCompensation Safety Rehabilitation Commonwealth andthe Australia, Dalgety FarmersLtd,Kimberly-Clark director appointmentsonBoards of Energy 21.Hehasheldnon-executive Bank, AmcorLimitedandasCEOof and group roles executive atANZ Treasuries andVictorian Commonwealth rolesPeter heldseniorexecutive inthe University.at Victoria ofStrategicEconomicStudies Institute Victorian AdvisoryCouncilofthe the and NetworkonDisability Australian the He hashonoraryroles Chairof asthe Latrobe University. Latrobeat the BusinessSchool, and isanaccredited PhDSupervisor School, MonashUniversity, Melbourne, MonashBusiness Management atthe ProfessorPeter isanAdjunct in Super.Vision directorHe isanon-executive of Limited. HR Institute Australian isChairofthe Peter Wilson FAHRILife FCIPD(UK) FCPHRFAICDBCom (Hons)MA(Melb) President Board andChairofthe Peter WilsonAMFCPA, BOARD OFDIRECTORS *Caroline Spencer was a director of the Board until 30 September 2019. September 30 until Board the of adirector was Spencer *Caroline of Superpartners. AUASB, MemberIAASBandDirector Her formerappointmentsincludeChair, UNSWBusinessSchool. at the SchoolofAccounting inthe Practice of Art.MerranisalsoaProfessor of SuperandTarraWarraof Vic Museum WaterMelbourne Director Corporation, Director RACVLtd,Deputy Chairof Her current appointments include and majorinfrastructure projects. contractmanagement education, retail,services, insurance,health, includes financialandprofessional at BDO.Herindustryexperience 10yearsasapartner 20 years, including for practice She operatedinpublic sectors. and public boards private inthe andcommittees experience, havingservedonnumerous directorship andcorporategovernance considerable with non-executive, Merran isaprofessional independent BCom (Hons)FCAMBAFAICD FFIN Deputy President FCPA,Merran Kelsall represents CPA Australia. Accountants (AFA) Councilwhere he of AseanFederation appointed tothe 2016. InOctober2018, ChinAikwas Divisional President for2015and Malaysian 2010 to2016.Hewasthe Malaysian DivisionofCPA from Australia ofthe Chin Aikwasacouncillor which heco-foundedin1995. director ofPHHPGroup ofCompanies services. Heiscurrently executive the andglobalbusiness accounting human resources, financeand commercial andindustrial sales, in he heldseniorleadershippositions BPforover20yearswherewas with United OverseasBankandBP. He He previously workedfor Deloitte, manufacturing andsalesmarketing. oil andgas,shared services, assurance andadvisory, banking, progressively in seniorpositions extensive experiencegainedthrough and commercial leaderwith Chin AikWong isaseniorfinance CA (M)FCTIM BEc (Monash)MBA(Hull) Deputy President Chin AikWong FCPA, President in2012. asits Divisional Council,including Queensland years asamemberofthe andservedforfive Advisory Committee Practice Public as amemberofthe CPA with She hasbeenactive Australia Board.governance experiencetothe Council, Louisebringsstrong corporate Metropolitan ofTAFE Institute South and asamemberChairofthe of TAFE Queensland,ThomsonAdsett Having previously servedasaDirector Accountancy AdvisoryBoard. QUTSchoolof and amemberofthe CaxtonLegalCentre ofthe Committee Executive She isalsoamemberofthe and EconomicsAdvisoryCommittee. Finance Department ofAccounting, Griffith andthe Australia University Currently, LouiseisChairofOpenMinds sectorandnot-for-profitpublic boards. Governance invariouscommercial, of FinanceandRiskChair Chair,including DeputyChair, Chair Louise hasservedinarangeofroles As anexperiencedBoard member, architectural ThomsonAdsett. practice, OfficerChief Operating the leading of sectors.Louiseiscurrentlyhealth architecture, andmental education director across legal,accounting, the General Managerandnon-executive 30years’experienceasaCEO, than moreaccountant andlawyerwith Louise Coxisawell-respected GradDipLegalPrac LLMMTax BBus(Mgt) BBus(Accy)LLB(Hons) Director Louise CoxFCPA, Network, whichhejoinedin2012. of CPA Australia’s Sector Public since 2018. asamember Hecontinues and hasservedasDeputyPresident 2009. In2017,hereturned toCouncil and wasPresident Division in ofthe Divisional Councilfrom 2005to2014 Ric servedonCPA Australia’s Tasmanian Committee. Standing Sustainability Tasmania andChairofitsResources and Education Catholic Commissioner with for-profit boards andiscurrently a He hasservedonanumberofnot- since1982. auditor and hasbeenaregistered company CentreExternal Reporting ofExcellence previously amemberofCPA Australia’s Group.Heads ofFinancialAudit Hewas technical group ACAG andChairsthe Council ofAuditors-General’s (ACAG) Australasian also amemberofthe Tasmanianof the Office. Audit Heis OfficerGeneral andChiefOperating Ric ispresently DeputyAuditor the and internationally. professionof the nationally both not-for-profitin the sectors, andpublic management governance andexecutive infinancial brings expertise reporting, andalso experience, mainlyinaudit, sector Ric hasextensivepublic BBus GAICD Director FCPA,Ric DeSanti Tasmanian Division. Management’s Victorian ofCredit Institute Australian the Robyn isacurrent of councillor to ARITA profession. andthe service anddistinguished dedicated Life MembershiptoARITA forlong, May 2019. In2017, Robynwasawarded and servedasadirector ofARITA until and Turnaround (ARITA) Association RestructuringInsolvency Australian the nowknownas ofAustralia, Association President InsolvencyPractitioners ofthe National to beappointedasthe firstfemale In 2011,Robynbecamethe Task Force. ChairofitsEthics andthe committee She iscurrently DeputyChairofthis the andNewZealand. Accountants Australia of CPA andChartered Australia nomination onthe Committee Practices Accountants (IFAC) andMedium Small of Federation International to the In January2015,Robynwasappointed in Victoria. practice servicetopublic outstanding was awarded HenryFoxAward the for In2014,Robyn Insurance Committee. Public andthe Committee Practice previously Victorian servedonthe has Council.Robyn her six-yeartermonthe Council in2017,and2019 finished CPA Australia’s Divisional Victorian Robyn wasDeputyPresident of for over30years. sector practice public involved inthe turnaround firmandhasbeenactively restructuringa specialist insolvencyand Robyn isapartnerinBrooke Bird, BBus CARITF Director Robyn ErskineFCPA,
77 | CPA Australia Integrated Report 2019 78 | CPA Australia Integrated Report 2019 SP JainSchoolofGlobalManagement. Board ofthe Finance Committee ofthe 2020 wasappointedasamember ofthe ofAustralasiasince2019Institute andin been aDirector Financial Services ofthe Financial ServicesLicences.Helenhas financial servicesBoards andAustralian Advisory Board memberonnumerous Director, ResponsibleManagerand Alumni Leaderandhasservedasa ofFINSIA,aUNSW a SeniorFellow from UNSW, AICD, isaGraduateofthe Helen holdsaBachelorofCommerce CBA andMLC. ANZGroup, the and bankingwith leadership roles management inwealth Helen hasalsoheldseniorexecutive in2009. corporation, agricultural global ANZ andElders,anAustralian formed asaJointVenture between of CEOEldersFinancialPlanning, position Helen wasappointedtothe investment. potential marketplacestart-upsfor online fintechand ofhighquality curating sourcing identification, the and marketplaceswhichinvolve and online self-directed advice,fundsmanagement acrossinitiatives superannuation, anumberofkey Helen isleading HashChing, InvestfitandMoroku. fintech companyAdvisoryBoards: subsequent appointmenttothree Ventures in2016whichledtoher atSapien as anExecutive-in-Residence commenced Shanghai. Helenoriginally Sydney, Valley, Silicon and Melbourne partnersbasedin company with of SapienVentures, aventure capital Helen LoriganisaVenture Partner BCom GAICDSFFin Director Helen Lorigan, BOARD OFDIRECTORS of Experts. Standardsand Quality AgencyRegister TertiaryDale isamemberofthe Education Western Australia. Economic DevelopmentForumin Chamber ofCommerce andIndustry’s asthe Advice andGuidancePanelaswell ATO’slevel AdvisoryPanelandthe Public Boardmember ofthe ofTaxation’s high- Tax Board. Practitioners Heisacurrent National inauguralmembersofthe the AssistantTreasurerby the asoneof more 25yearsand was appointed than Dale hasbeenaregistered taxagentfor Teachers Association. AustralasianLaw andthe Association AustralasianTaxMember ofthe Teachers Taxof the HeisalsoaLife Institute. Adviser andHonoraryLifeMember Chartered Accountant,Chartered Tax asbeinga Academy ofLawaswell Australian ofthe Dale isalsoaFellow Boardto the on1October2018. WA DivisionalCouncilbefore beingelected served asamemberandPresident ofthe ofCPAHe isaFellow andformerly Australia refereed journals. Editor-in-Chief asbeingthe well ofseveral a numberofpeer-reviewed journalsas board editorial papers. Hesitsonthe of conference andinternational and national ofnumerousauthor books,refereed articles University.Curtin andco- author Daleisthe UniversityCouncilat and memberofthe AcademicBoard Chairofthe being the as LawSchool,aswell Curtin Law inthe Dale iscurrently Professor ofTaxation AFAIM MAICD FTMAFAAL(Curtin) CACTA-Life BBus(Dist) PGradDipBus (Dist)(Curtin) MTaxPhD (Law)(Melb) (Hons)(Syd) Director Professor DalePintoFCPA, telecommunications industry.telecommunications rolesand administrative inthe throughparticularly leadership for significantservicetobusiness, Orderthe inJune2018 ofAustralia Rosemary wasmadeaMemberof December 2017. Clubuntil Rugby LeagueFootball Wests ofthe Committee Audit Tigers Boardof the Riskand andChairofthe August2019until andwasaMember Authority andMedia Communications Australian ofthe (part-time) roleRosemary heldthe ofmember development committees. andinternetpolicy telecommunications experiencein has international for more 20years.Rosemary than andRiskCommittees Chair ofAudit and includesroles asmemberor sector andnot-for-profit organisations spans privatesectorcompanies,public Rosemary’s Board-level experience March 2020. companyin .au domainadministration Rosemary becameCEOofauDA,the COAG Energy Councilof Ministers. organisation created in2015bythe CEO Energy an ConsumersAustralia, BusinessSchoolUNSWand Australian Director forthe ofExternalRelations Telecommunications UsersGroup, responsibilities Australian asCEOofthe significant stakeholderengagement energy sectors.Roleshave included and highereducation publishing, media, communications, level inthe experience atCEOandseniorexecutive Rosemary Sinclairhasextensive BA LLBBBusMComFAICD FCPA Director AM FCPA, Rosemary Sinclair Young Presidents’ Organization. Women CorporateDirectors andthe of Directors member of andanactive Governing Council,Singapore Institute ofthe ChairandaFellow She isaVice University andYale University(USA). Singapore, Singapore Management Universityof (Mexico), National (France), IPADE BusinessSchool Business School(Spain),INSEAD suchasIESE expert atuniversities a regular guestlecturer andvisiting speaker andmoderatorisalso Su-Yen isahighly regarded keynote Wyman. at Oliver andEntertainmentPractice Information Communications, Partner forthe Earlier, shewasAsiaManaging Director, AsiaatMercer. Southeast and SeniorPartnerManaging for Marsh&McLennanCompanies, Chair(Singapore)prior tothat, and Capital LeadershipInstitute, Previously Human shewasCEOof the across America. AsiaandNorth development gleanedover25years technology, business, andorganisation a uniqueblendofexperiencein futureand the ofwork,shebrings human capital,leadershipdevelopment, Board andC-Suiteadvisor onstrategy, Recognisedasa committees. and audit remunerationof variousnominating, organisations andChairsorisamember privateandnot-for-profitseveral public, Su-Yen currently boards servesonthe of BA MBAMAICDFSID Director Su-Yen Wong,
79 | CPA Australia Integrated Report 2019 80 | CPA Australia Integrated Report 2019 Ross SpringoloFCPA Suyana Shrestha CPA RkeinCPAAli Derek MaygerFCPA FCPABenjamin Inglis Anil BasnetCPA Michele BainCPA Donna Moore CPA, DeputyPresident Lisa BlakeleyFCPA, DeputyPresident WalkerRandle FCPA, President NORTHERN TERRITORY Ying ZhangFCPA Shan Wu CPA Karen CPA Pitt Lynette PinderCPA Stephanie PerkissCPA Richard MortonFCPA Mark JonesFCPA Ruyi JinFCPA John MHutchesonFCPA CPALisa Gill DegabrieleFCPARosalie FCPAJennifer Dalitz FCPAMaria Balatbat AndersonFCPAVittoria FCPASusanne Ainsworth David FerriFCPA, DeputyPresident FCPA,Erica Blythe DeputyPresident David Crook FCPA, President NEW SOUTHWALES Marvin Wee FCPA FCPAAnnie Ryan Gaye LindfieldCPA Habib KhanFCPA Cha Jordanoski FCPA Michael Jeremenko CPA Lawrence HoskingFCPA GeysenCPAMatthew Greg FieldFCPA FCPA,Kym Partington DeputyPresident FCPA,Rodney Miller DeputyPresident Emily CanningFCPA, President AUSTRALIAN CAPITAL TERRITORY AND COMMITTEES COUNCILS
Robyn ErskineFCPA Richard BlakemanFCPA Piotr JakubickiFCPA, Deputy President Deputy President GriggsFCPA,Jacquetta Clare LezajaFCPA, President VICTORIA Meg Richards FCPA CPADonna Powell FCPAEleanor Patterson Gary O’DonovanFCPA Roger LuCPA James HipwoodCPA Brad HilderFCPA Paul GimplFCPA Fiona StaggFCPA, DeputyPresident FCPA,Ric DeSanti DeputyPresident Andrew Pearce FCPA, President TASMANIA Denis Yengi CPA WrightJodi CPA FCPA Williams Scott Stephen Warren FCPA Nicole RantanenReynoldsFCPA MannFCPAPhilip CPAJudy Horsfall Andrew DowFCPA Karen ConlonFCPA Deputy President Andrew McInerneyFCPA, Chau ChiemFCPA, DeputyPresident Glenn BainCPA, President SOUTH AUSTRALIA FCPA Timchur Tim Grant Tanham-Kelly FCPA Theresa O’ConnorFCPA CPARobert McDowall Cissy MaFCPA GeorgiouMelissa FCPA Tanya FeekingsFCPA Douglas DunstanFCPA FCPA,Kerry Phillips DeputyPresident Deputy President Deborah NisbetFCPA, Peta ShipleyFCPA, President QUEENSLAND Raymond ZhuFCPA Charles Yang FCPA David XiongWang FCPA David ChenWang FCPA Danny Tong FCPA SunFCPAMichelle Tom LinFCPA Kenny LamFCPA John HungFCPA Stan HeFCPA ChanFCPACharlie Patrick ZhuFCPA, DeputyPresident Michael Yu FCPA, DeputyPresident Lily HoFCPA, President CHINA –EASTANDCENTRAL Eden Wong FCPA Raymond Tam FCPA PangFCPAWilson Grace NgCPA John LoFCPA Johnny LamCPA Paul HoFCPA FanFCPAVickie Bong ChanFCPA LauFCPA,Anthony DeputyPresident Janssen ChanFCPA, DeputyPresident Roy LoFCPA, President CHINA –GREATER CHINA Kerri Warner CPA FCPAPaul Tiernan SpencerCPATimothy Mark NarustrangFCPA Tanvi HariaFCPA Thomas GriebelFCPA CoulsonFCPAKylie John DawsonFCPA, DeputyPresident Andrew SeinorFCPA, DeputyPresident HooperFCPA,Quentin President WESTERN AUSTRALIA YeatesMelville FCPA Katrina Watt CPA Edward Turner CPA Brent SzalayFCPA Anne LaFontaineFCPA Kerry HarrisFCPA GordonJustin CPA FCPADevini Goonetilleke * Bryan ChungFCPA FCPADato’ MohammadAzlanAbdullah Jimmy LaiFCPA ,DeputyPresident Gark CheeJinFCPA, DeputyPresident Sharman ArumugamFCPA, President MALAYSIA RineyFCPACatherine Kerry HugglerCPA Nigel Garrow FCPA Christopher Crellin FCPA Christopher BurkeFCPA CPA Britton Garth Rajeev AdrianFCPA Deputy President Warwick SyphersFCPA, Warren McRaeFCPA, President EUROPE Wu FCPARyan Woo FCPAWinson Rebecca Wong FCPA Alfred LeongFCPA Lawrence LamFCPA Fiona HeFCPA Ken ChenFCPA Ken CaiFCPA John LoFCPA, DeputyPresident Tony ChanFCPA, DeputyPresident HuangFCPA,William President CHINA –SOUTH Zhou NingFCPA Jessie Wong FCPA Sun CuiFCPA Dora SongFCPA Lloyd PengFCPA Kevin NgFCPA LiuFCPAWilson Michael LiuFCPA Lily ChenFCPA Henry ChanFCPA QiuFCPA,Justin DeputyPresident Len JuiFCPA, DeputyPresident Derek ChanFCPA, President CHINA –NORTH CHINA its meeting on 9 December 2019. It has been included as it was in operation for the majority of the year. the of majority the for operation in was it as included been 2019. has at It 9December on Committee meeting its Implementation Review Independent the disband to aproposal accepted Board The Yeoh OonJin FCPA Stanley SiaSwieKeanFCPA Ong PangThyeFCPA Lo Wei MinFCPA Koh KahSekFCPA Ho Yew Kee FCPA Andrew HanFCPA Chia-Tern HueyMinFCPA Cheung PuiYuen FCPA Tony FCPA Alizzi Max LohFCPA, DeputyPresident Chng LayChewFCPA, President SINGAPORE Paul Shallard CPA Liz PlowmanCPA Emily HewatCPA Darby HealeyCPA Brad GolchinFCPA FCPAJohn Gill CraigCPAGillian Lyndon BainCPA Deputy President FCPA, Needham Matthew Tracy HickmanFCPA, DeputyPresident Mat Croad FCPA, President NEW ZEALAND Jagdev SinghFCPA Surin SegarFCPA Toh BengSiewFCPA Tan LayKengFCPA Dato’ FeizalMustaphaFCPA Zulkifflee MohamedFCPA Koh ReeNieCPA
IMPLEMENTATION COMMITTEE INDEPENDENT REVIEW Su-Yen Wong Chin AikWong FCPA Helen Lorigan FCPAPeter Wilson FCPA,Merran Kelsall Chair FINANCE ANDPOLICYCOMMITTEE Rosemary SinclairFCPA Dale PintoFCPA Robyn ErskineFCPA FCPARic DeSanti Chin AikWong FCPA, Chair COMPLIANCE COMMITTEE AUDIT, RISKAND As at31December2019 BOARD COMMITTEES Su-Yen Wong Rosemary SinclairFCPA Helen Lorigan Louise CoxFCPA FCPA,Merran Kelsall Chair AND CULTURE COMMITTEE PEOPLE, REMUNERATION Leanne Rowe Geoff Rees Dale PintoFCPA FCPAKerry Phillips Piotr JakubickiFCPA FCPA,Peter Wilson Chair NOMINATION COMMITTEE FCPAMerran Kelsall Robyn ErskineFCPA FCPARic DeSanti Louise CoxFCPA FCPA,Peter Wilson Chair COMMITTEE MEMBER ENGAGEMENT Ivan AuFCPA Shabnam AmirbeaggiFCPA Chin AikWong FCPA Dale PintoFCPA FCPAMerran Kelsall FCPA,Peter Wilson Chair *
81 | CPA Australia Integrated Report 2019 82 | CPA Australia Integrated Report 2019 Carla Wilkin CPACarla Wilkin Gabriel Teo FCPA Gary O’DonovanFCPA Steven NgaifeiHuiFCPA CPAJason Kotkin Bryan HowiesonFCPA Mandy ChengFCPA Weina AngFCPA Mary DunkleyFCPA, Chair ADVISORY COMMITTEE PROFESSIONAL QUALIFICATIONS WalkerRandle FCPA Peta ShipleyFCPA Andrew Pearce FCPA Warren McRaeFCPA Roy LoFCPA David Crook FCPA CroadMatthew FCPA Chng LayChewFCPA Emily CanningFCPA Glenn BainCPA Sharman ArumugamFCPA HooperFCPA,Quentin DeputyChair Clare LezajaFCPA, Chair COUNCIL OFPRESIDENTS Tan LayKengFCPA Warwick SyphersFCPA Ross SpringoloFCPA SpencerCPATimothy FCPAKerry Phillips Richard MortonFCPA Cha Jordanoski FCPA Piotr JakubickiFCPA Paul HoFCPA Paul GimplFCPA Andrew DowFCPA Chia-Tern HueyMinFCPA FCPA,Peter Wilson Chair(non-voting) APPOINTMENTS COUNCIL As at31December2019 COMMITTEES ADVISORY *Passed away January 2020
Graeme McGregor AOFCPA Low Weng KeongFCPA Loh HoonSunFCPA Robert Shiu-HungLeeFCPA Jim Kropp FCPA Robert Jeffery FCPA HendersonAMFCPAScott EastwoodAMFCPAKenneth Clyde DickensAMFCPA FCPAMark Coughlin Denis CorteseFCPA FCPAJohn Cahill David BoymalAMFCPA Brian BloodFCPA David BaulchFCPA Patrick Barrett AOFCPA AlexanderAOFCPAElizabeth LIFE MEMBERS David Morgan, DeputyChair Daen SoukseunFCPA, DeputyChair Gerry SchembriFCPA, Chair DISCIPLINARY PANEL CPALeanne Oliver Margot ThompsonCPA NorrisCPAJulie Phil McCannFCPA Greg Sharpley, Chair ADVISORY COMMITTEE QUALITY REVIEW Prue McStayCPA Hugh ZimmermanCPA Shanna HunterFCPA Brent SzalayFCPA Gavin SwanFCPA Andrew Pearce FCPA Terrence CheongFCPA Sharman ArumugamFCPA ADVISORY COMMITTEE PUBLIC PRACTICE Paul MeiklejohnFCPA Ian McPheeAOFCPA * Bernard Wright AMFCPA Brian Waldron OAMFCPA Trevor AMFCPA Russell CheungFCPAPoon Wing FCPAPatrick Ponting Des PearsonAOFCPA Graham PatonAMFCPA Joycelyn MortonFCPA AOFCPAJohn Miller Sue Williamson FCPASue Williamson Alexis KokkinosCPA Ken FehilyCPA TAXATION FCPAMurray Wyatt Eileen NewbyCPA Paul MayCPA CPANeil Marshall Suzanne MaloneyFCPA Bruce MackleyCPA Alex Harken-Yumru CPA David DenisonCPA Andrew FCPA Albury CPA, Kelleher Noelle Chair RETIREMENT SAVINGS CPASiva Sivanantham SinclairFCPAJulie Leonie NavaraCPA Andrew MarksFCPA Vanessa LimCPA Jude LauFCPA Peter KerrFCPA Mark HucklesbyFCPA Dean HanlonCPA Jessie Wong FCPA, Chair EXTERNAL REPORTING Jean RaarCPA FCPA O’Sullivan Kathleen Michael Mugford CPA FCPAPaul Mather KannaiahFCPADesti Sharon DitchburnFCPA Mark Brown FCPA Andrew Amer MalcikFCPA,Vladimir Chair ESG EXCELLENCE OF CENTRES **CPA Australia shares representation on these bodies with CA ANZ. CA with bodies these on representation shares Australia **CPA OF ACCOUNTANTS BOARD INTERNATIONAL FEDERATION Priya Terumalay FCPA PACIFIC ACCOUNTANTS (CAPA) CONFEDERATION OFASIANAND Chin AikWong FCPA ACCOUNTANTS (AFA) ASEAN FEDERATION OF COMMITTEESAND BOARDS OTHER Nicholas DissCPA REPORTING COUNCIL INTERNATIONAL INTEGRATED Paul Urquhart FCPA ACCOUNTANTS IN BUSINESS(PAIB) IFAC PROFESSIONAL Ian McPheeFCPA ACCOUNTANTS (IESBA) STANDARDS BOARDFOR INTERNATIONAL ETHICS Mike BlakeFCPA STANDARDS BOARD(IPSASB) SECTOR ACCOUNTING INTERNATIONAL PUBLIC Robyn ErskineFCPA PRACTICES COMMITTEE(SMP) IFAC SMALLANDMEDIUM Richard FCPA Petty FINANCE COMMITTEE IFAC PLANNINGAND Michael Codling IFAC NOMINATING COMMITTEE Richard FCPA Petty ** **
** ** ** ** **
83 | CPA Australia Integrated Report 2019 84 | CPA Australia Integrated Report 2019 Audit, Risk and Compliance; Finance and Policy; Finance andPolicy; RiskandCompliance; Audit, In 2019, sixBoard ofdirectors Committees operated: engagement program. acomprehensiveand continuing member recommendations the implementing IRP ofthe strengthening riskmanagement andinternalcontrols, previousduring the year, emphasis on particular with hadbeenimplemented governancechangesthat the Boardthe maintaineda strong focusonconsolidating three-year termon1October 2019. During2019, three directors electedinAugustcommencingtheir The Board metonnineoccasionsin2019 with CORPORATE GOVERNANCE results 93. to –seepages91 financial andanalysisofthe discussion contained inthe the financial yearand arethose operations of results A review Group ofthe operations ofthe duringthe REVIEW OFOPERATIONS (2018: $5,992,000). yearwas$5,025,000 after taxforthe surplus Theconsolidated (2018: $6,723,000). was $4,419,000 surplusbeforeThe consolidated year incometaxforthe CONSOLIDATED RESULTS rolethe community. benefitof ofitsmembersforthe professional andtechnical standards, andpromoting the highest andmaintainingthe competence, setting areas the debate onissueswithin ofprofessional informed stimulating education, entry andcontinuing professionals: providing highstandards ofprofessional representing andbusinessadvisory financial,accounting year remain unchangedand were asanassociation Group ofthe The principalactivities financial duringthe PRINCIPAL ACTIVITIES 15 June2018. practitioner, wasappointedasCompanySecretary on Kerrell MaLLB,LLM(FirstClassHonours),legal COMPANY SECRETARY on pages120 124. to 87to remuneration andtheir isincludedinNote20 are attendance Details ofmeeting setoutonpages85 experienceandspecial qualifications, responsibilities. are setoutonpages76 79 to their with together The directors inofficethe financialyear the endof at Standards, directors the present report the asfollows. Accounting Act2001andAustralian Corporations 31 December2019.Inorder the tocomplywith Group”) (“the entities financialyearended forthe CPA Ltd(“CPA Australia anditscontrolled Australia”) The directors annualfinancial submitthe report of DIRECTORS OF DIRECTORS REPORT OFTHEBOARD impacted and the duration of the outbreak. ofthe duration impacted andthe are onhowmany locations stageasitiscontingent this of-semester exams.Theimpact isdifficult at toquantify deferralofend- causethe potentially anditwill locations organisation hashadto cancel membereventsinseveral the Grouphave afinancialimpacton the in2020,as The outbreak coronavirus ofthe (COVID-19)will SUBSEQUENT EVENTS statements ornotesthereto. affairs Group, ofthe referred than other financial tointhe There werethe stateof significantchangesin noother remains suchtime. inplaceuntil endofJune2021,therefore the until legalentity the CPAconditions, Advicecannotbewoundup Australia from Underthese cancellation. oflicence time the requireAuthority membershipfortwoyears continued FinancialComplaints Australian setoutbythe Conditions back toASICduring2019. CreditLicence andAustralian Licencewere handed FinancialService Australian services business;the of CPA Ltd,nolongercarriesonitsfinancial Australia CPA ownedsubsidiary AdvicePtyLtd,awholly Australia CHANGES INSTATE OFAFFAIRS byeachdirector attended meetings during2019. and Board numberof heldandthe meetings Committee numberofBoardThe tablesonpages85to87setoutthe DIRECTORS’ MEETINGS report.of this statement onourwebsiteandpages26to28 corporategovernance Company isincludedinthe ofthe governance onthe information Further layerofprotectionan additional tomembers. Boardmember andwassupportedbythe asitprovides appoint directors. Thisresolution wasproposed bya three ofexercising months itsemergency powersto requiring Board the ofmemberswithin ameeting tocall Constitution, 60ofthe toamendArticle Meeting AnnualGeneral aftermembersvotedatthe Constitution During 2019, wasmadetoCPA amodification Australia’s work andresolved towinditup. recommendations, forits Committee the thanked 2019, Board the reviewed IRIC’s andacceptedthe business-as-usual workprograms. InDecember completeorareeither embeddedintomanagement’s the IRP’s of that all satisfied 29 arerecommendations now a finalupdate the Board.report for was Thecommittee InOctober2019,Implementation. IRIC completed the andCulture;Remuneration andIndependentReview MemberEngagement;People, Nomination;
BOARD OF DIRECTORS MEETINGS 2019 MEETINGS DIRECTORS OF BOARD premiumor the paid. CPA extentofcover the either todisclose Australia contract providing coverdoesnotallow this its directors andofficers. Thenaturethe insurance of and directors’ andofficers’ of insuranceforall liability year,During the Group the paidprofessional indemnity INDEMNIFICATION OFOFFICERSANDAUDITORS strategy.under the working towards achievementofitsobjectives the are notedelsewhere report, inthis Group the with Group ofthe activities Likely developmentsinthe FUTURE DEVELOPMENTS ensuingoranysubsequentfinancialyear.the stateofaffairs orthe activities of those Group ofthe in affectsignificantly the Group, of the activities the results report dateofthis year tothe hasaffected that ormay or circumstance financial endofthe occurringsincethe Apart from above,there the matter hasbeennoother Chin Aik Wong, Chair Chair Wong, Aik Chin DIRECTORS Chair Wilson, Peter DIRECTORS Merran Kelsall Rosemary Sinclair Rosemary Su-Yen Wong Sinclair Rosemary Ric De Santi Wong Aik Chin AUDIT, RISK AND COMPLIANCE COMMITTEE MEETINGS 2019 MEETINGS COMMITTEE COMPLIANCE AUDIT, AND RISK Caroline Spencer Ric De Santi Robyn Erskine Erskine Robyn Robyn Erskine Erskine Robyn Helen Lorigan Dale Pinto Dale Pinto Louise Cox Cox Louise Caroline Spencer (2) (1) (3) (1) (6) (1) (3) (1) ELIGIBLE ELIGIBLE Scheduled meetings Scheduled meetings 2 2 1 1 5 9 9 9 9 5 9 9 9 5 9 9 5 ATTENDED ATTENDED 2 2 1 1 5 9 9 9 7 5 9 9 9 5 9 9 5 ELIGIBLE ELIGIBLE available under ASIC Legislative Instrument2016/191. available underASICLegislative option statedunderthe ($’000)unlessotherwise dollars valuesareand all rounded nearest tothe thousand The statementsare presented dollars inAustralian ROUNDING OFAMOUNTS report.on page88andformspartofthis The auditor’s isincluded independencedeclaration AUDITOR INDEPENDENCE Ad hoc meetings Ad hoc meetings 1 0 0 1 2 2 2 2 2 2 2 1 2 2 2 2 2 ATTENDED ATTENDED 1 0 0 1 2 2 2 2 2 2 2 1 2 2 2 2 2 ELIGIBLE ELIGIBLE Total 2019 meetings Total 2019 meetings 10 11 11 11 11 11 11 11 11 3 2 1 2 7 7 7 7 ATTENDED ATTENDED 10 11 11 11 11 11 11 11 3 2 1 2 7 9 7 7 7
85 | CPA Australia Integrated Report 2019 86 | CPA Australia Integrated Report 2019 DIRECTORS Chair Wilson, Peter DIRECTORS FINANCE AND POLICY COMMITTEE MEETINGS 2019 Robyn Erskine, Chair Chair Erskine, Robyn DIRECTORS Chair Kelsall, Merran Merran Kelsall Kelsall Merran Cox Louise Wilson Peter Su-Yen Wong Sinclair Rosemary Ric De Santi MEMBER ENGAGEMENT COMMITTEE MEETINGS 2019 Wilson Peter Jakubicki Piotr Rowe Leanne ReesGeoff Phillips Kerry Helen Lorigan Dale Pinto NOMINATION MEETINGS 2019 COMMITTEE Wong Aik Chin Helen Lorigan Chair Kelsall, Merran Dale Pinto Su-Yen Wong Sinclair Rosemary (5) (6) (8) (2) (6) (2) (6) (7) (6) (7) (5) (6) (9) (8) (5) (6) (9) (5) (5) (4) (4) (4) (5) (4) (7) ELIGIBLE ELIGIBLE ELIGIBLE Scheduled meetings Scheduled meetings Scheduled meetings 6 6 6 7 1 6 6 6 6 5 1 5 1 4 5 5 1 1 1 7 5 5 ATTENDED ATTENDED ATTENDED 5 3 6 7 1 6 5 6 6 5 1 5 1 2 4 4 1 1 1 7 5 5 ELIGIBLE ELIGIBLE ELIGIBLE Ad hoc meetings Ad hoc meetings Ad hoc meetings 0 0 0 1 0 1 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 1 ATTENDED ATTENDED ATTENDED 0 0 0 1 0 1 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 1 ELIGIBLE ELIGIBLE ELIGIBLE Total 2019 meetings Total 2019 meetings Total 2019 meetings 6 6 6 8 1 7 7 7 7 6 1 6 1 5 6 6 2 2 2 8 6 6 ATTENDED ATTENDED ATTENDED 5 3 6 8 1 7 6 7 7 6 1 6 1 3 5 5 2 2 2 8 6 6 DIRECTORS Chair Wilson, Peter DIRECTORS INDEPENDENT IMPLEMENTATION REVIEW COMMITTEE MEETINGS 2019 5 March 2020 Director Peter WilsonAMFCPA directors. ofthe onbehalf Act2001 Corporations of the Signed inaccordance aresolution with directors ofthe madepursuanttos298(2) (12) (11) (10) (9) (8) (7) (6) (5) (4) (3) (2) (1) Notes: Chair Kelsall, Merran Rosemary Sinclair Sinclair Rosemary Su-Yen Wong Caroline Spencer Wong Aik Chin Merran Kelsall Au Ivan Shabnam Amirbeaggi Amirbeaggi Shabnam Helen Lorigan Louise Cox Cox Louise PEOPLE, REMUNERATION AND CULTURE COMMITTEE MEETINGS 2019 Dale Pinto Peter Wilson
Committee was wound up by the Board effective 9 December 2019 9December effective Board the by up wound was Committee Committee) this to appointment to subsequent adirector as (appointed representative President Divisional Divisional President representatives (non-directors) 2019 31 December on ended -term Committee CouncilAppointments representative on the Nomination Committee members Independent non-director 2019 10 October on commenced Committee of Chair as Term 2019 10 October on commenced Committee on Term 2019 9October on ended Committee on Term 2019 9October on ended Committee of Chair as Term 2019 June 30 to 2019 January 29 effective Board the by approved meetings Committee and Board from absence of Leave 2019 1October effective director as Appointed 2019 September 30 concluded adirector as Term (10) (11) (2) (6) (2) (5) (1) (3) (1) (6) (10) ELIGIBLE ELIGIBLE Scheduled meetings Scheduled meetings 2 2 1 2 1 1 1 1 4 4 1 1 4 ATTENDED ATTENDED 1 2 1 2 1 1 1 1 4 4 1 1 4 ELIGIBLE ELIGIBLE Director FCPAMerran Kelsall Ad hoc meetings Ad hoc meetings 0 0 0 0 0 0 0 0 0 0 0 0 0 ATTENDED ATTENDED 0 0 0 0 0 0 0 0 0 0 0 0 0 (12)
ELIGIBLE ELIGIBLE Total 2019 meetings Total 2019 meetings 2 2 1 2 1 1 1 1 4 4 1 1 4 ATTENDED ATTENDED 1 2 1 2 1 1 1 1 4 4 1 1 4
87 | CPA Australia Integrated Report 2019 88 | CPA Australia Integrated Report 2019 Auditor’s independencedeclaration
financial 31 December year 2019 ended knowledgeI my declarerelationandthat, in audit belief, toto the theof best of Ltd Australia CPA of Directors the To 2001 of Section 307C the Act Corporations under Declaration Independence Auditor’s Lead
KPMG
ii. i.
Corporations A no contraventions asauditor independenceset requirementsthe the in of out no contraventions code any applicable of of to conduct professional relation the in International Cooperative (“KPMG International”), aSwiss entity. network of independent member firms affiliated with KPMG KPMG, anAustralian partnership and amember firm of the KPMG in relation to relation theand ct 2001 in audit; there have there been: 5 March 20 Melbourne Partner Chris Sargent
20
Professional Standards Legislation. Liabilityby limited CPA Australia Ltd for the the for Ltd Australia CPA
a scheme approved under audit.
Provide with members personalised and engaging experiences Protect, promote and enhance the integrity of the profession the of integrity the enhance and promote Protect, STRATEGIC PILLARS FOR THE YEAR ENDED 31 DECEMBER 2019 31 DECEMBER ENDED YEAR THE FOR FINANCIAL RESULTS OVERVIEW OF resources and tools and resources Provide relevant learning content, and development Total comprehensive income for the year comprehensiveOther income/(expense) for the year, net of tax Attract and develop the next generation of CPAs of generation next the develop and Attract profession accounting the of future the Lead projects strategic including Total CPA Australia projects Strategic projects strategic excluding Total CPA Australia Corporate services and governance Corporate services advocacy community in active be and globally policy Impact
CPA Australia Advice CPA Australia
Cost Revenue Cost Revenue Cost Revenue Result Result Cost Result Revenue Result Revenue Result Tax credit/(expense) Cost Revenue Result Cost Revenue Result Tax credit/(expense) Cost Revenue Cost Revenue Result Cost Revenue Result Cost Revenue Result Cost Result (168,477) (160,959) (34,609) (40,204) (18,308) (31,296) 172,896 172,896 (21,792) (19,248) (45,199) (17,910) 65,227 84,904 12,543 13,386 $’000s (1,865) (1,865) 30,618 (1,779) (7,518) (7,518) 63,112 (5,171) (5,171) 3,444 2,043 5,025 1,665 4,995 7,068 2019 606 606 940 - - - (168,897) (164,727) (28,345) (46,336) (20,628) (20,782) 175,620 175,620 (51,506) (15,269) (34,130) (19,698) 63,809 33,883 (3,257) (4,635) (4,635) $’000s 84,591 (3,391) 68,013 (1,310) 13,076 10,162 (4,170) (4,170) 5,545 2,396 3,706 5,992 5,170 (447) 2018 (731) (731) 930 134 - -
89 | CPA Australia Integrated Report 2019 90 | CPA Australia Integrated Report 2019 Update and Australian Accounting Review. Accounting Update andAustralian suchasINTHEBLACK,CPAservices andpublications and congress, astructured mentoringprogram, library ofCPDproductsdelivery trainingworkshops including resources developmentand andtoolsincludesthe Provide relevant learninganddevelopmentcontent, membership retention. memberbenefitsand level, membercommunications, increasedengagement including supportatbranch of members’admissionsandadvancements,member membershipoffer;of the andassessment administration experiences isacore delivery includesthe that activity Provide andengaging personalised memberswith backgrounds.accounting businessprofessionals forskilled pathways from non- professionthe developmentofmembership andthe to supportmembersthrough future the changesto developmentofstrategies,trainingandtools the futureLead the profession accounting ofthe includes assurance. quality brand,professionaldeveloping the standards and profession’s core includesmanagingand activities Protect, promote integrityofthe andenhancethe strategic projects 2018. whichisconsistent with for corporateservices,CPA Adviceand Australia financials strategyalongwith ofthe six strategicpillars of financial hasbeenpresentedresults the with toalign overview strategicinvestments,the tothese In addition interest.public forourmembersandthe leadership inadvocating CPA toenhanceourthought alsocontinued Australia required skills understand the forcareer development. Career Navigatortoolwasdevelopedtoassistmembers 325 andAPES320respectively. Additionally, My the APES with managementtoolforcompliance and quality through practitioners for public ariskmanagementtool CPA Program andenhancementoftoolsresources KnowledgEquity toprovide supportthrough better the in ChinaandMalaysia,guidedlearningdelivered by made in2019 whichincluded:MemberJourneyMapping newstrategywas Considerable investmentunderthe in 2019 year. completeditsfirstfull CPA hasamember-centric Australia strategythat development of the education ecosystem. education development ofthe renewal ofcore businesssystemsandphaseoneofthe and advocacyroadshow, worktoinform foundational KnowledgEquity, My Career Navigatortool,apolicy guidedlearningsystemdeliveredtools, costsofthe by practitioner Journey Mapping,developmentofpublic Strategic projects Member includecosts associatedwith CreditServices LicenceorAustralian Licence. Financial wound upandnolongerholdsanAustralian process isinthe entity Advice businessandthis ofbeing Board ofCPA CPA decidedtoexitthe Australia Australia a review businessin2018, ofthis viability ofthe the Afterconducting financial planningservicestoclients. for CPA provision membersengagedinthe Australia of previously provided solution anindependentlicencing ownedsubsidiary, wholly ofthe operation the with which CPA associated activities Adviceincludesall Australia andBoardCommittees secretariat. Board, the associatedwith includes activities Board development, humanresources andplanning.Italso property management,technology, organisational suchasfinance,legal,procurement,support activities Corporate servicesandgovernanceincludeinternal (IFAC, AFA, CAPA, etc.). (AASB,AUASBandAPESB)internationally locally government relations profession andsupportforthe andresearch,advocacy includespolicy advocacyand incommunity andbeactive globally Impact policy homecountry.outside their development ofcareer forstudentsstudying pathways professionals tobecomeASAsandCPAs andthe tosupportstudentsandearlycareerand universities and effective relationships employers,academics with Program, Practice and Public developmentofmeaningful CPA ofthe includes developmentanddelivery Program ofCPAs nextgeneration anddevelopthe Attract Further detailsareFurther accounts. inNote6tothe outlined costs related toreinstatement ofSydneyCPA Congress. embeddedguidedlearningofferthe andhigherevent and CPA Program introduction the expensewith of The reduction offset waspartially byhighereducation and lowerdepreciation costs. andamortisation to production campaign practice public costsofthe promotions expense,which washigherin2018 due and toloweradvertising is primarilyattributable 2018than at$168.5m(2018: $168.9m).Thedecrease Expenditure before taxwas$0.4mor0.2percentlower EXPENDITURE revenue above. outlined in membershiprevenue offsetting partially lower the new membergrowth. Thisresulted inanimprovement membership retention ratecompared to2018 and (2018: 164,695)whichwasdrivenbyanimproved The Group 166,166 yearwith endedthe learning partners. also resulted inareduction royalties inthe received from CPAby KnowledgEquityforthe Program free ofcharge introduction ofembeddedguidedlearningdelivered sales andlowerincomefrom sponsorships. The $175.6m). ThiswasprimarilyduetolowerCPA Program 2019cent overthe financialyearto$172.9m(2018: revenueOverall decreased by$2.7mor1.6per 2018constant with andinsomemarketsreduced. thirdfor the yearandCPA Program feeswere held In 2019, were membershipsubscriptions heldconstant REVENUE standards.of newleaseaccounting disclosures includedinrespect adoption oftaxandthe enhancedfor2019have beenfurther additional with financialstatementsandaccompanyingnotes in the the strategy. under identified initiatives disclosures The strategic investinmemberservicesandthe to further past10yearsprovidesachieved overthe anopportunity money ofCPDproducts formembers.Thesurpluses membership feesandthrough improving valuefor the The surpluswasalsodelivered increasing without members. with 2021 strategydevelopedinconjunction 2018 ofthe goalsandobjectives the consistent with – invest innewtoolsandresources tosupportmembers, surplus for2019 wasdelivered to whilecontinuing unrealised gainoninvestments)(2018: $5.5m).The income of$7.1m(aftertax,definedbenefit,FXand tax of$4.4m(2018: comprehensive $6.7m)andanoverall In 2019, Group the delivered surplusbefore anoperating FINANCIAL RESULTS THE FINANCIALRESULTS 2019 DISCUSSION ANDANALYSIS OF members TOTAL REVENUE($’000s) TOTAL EXPENDITURE EXCLUDINGTAX ($’000s) 100,000 125,000 150,000 175,000 200,000 100,000 125,000 150,000 175,000 200,000 25,000 50,000 75,000 25,000 50,000 75,000 0 0
2012 $145,727 2012 $153,782
2013 $154,936 2013 $157,242
2014 $157,495 2014 $161,249
2015 $166,789 2015 $174,534
2016 $172,618 2016 $180,115
2017 $171,106 2017 $181,558
2018 $168,897 2018 $175,620
2019 $168,477 2019 $172,896
91 | CPA Australia Integrated Report 2019 92 | CPA Australia Integrated Report 2019 EXPENDITURE BYSTRATEGIC GOALS Other ComprehensiveOther Income. yearended31December2019for the isrecognised in (2018: offoreign $0.2mgain)ontranslation operations year(2018:full $0.4m).Aforeign exchangelossof$0.2m ofcash$0.1mforthe exchange gainontranslation contributedtoaforeignExchange ratefluctuations Group’s exposure in exchangerates. tofluctuations Any excesscashisreturned toreduce toAustralia the working capitalrequirements offoreign operations. Foreign currency short-term cashisheldtomeetthe FOREIGN EXCHANGE 110. to 107 detailsareFurther containedinNote7onpages at balancedate. deferredto the taxrecognised ontemporarydifferences (2018: expenseof$0.6m).Thisisprimarilyattributable comprehensive yearis$1.0m incomefor the The totalincometaxexpenserecognised inother for 2019 is$0.6m(2018: incometaxexpense$0.7m). The incometaxbenefit recognised inprofit orloss TAXATION strengthening ofglobal investment marketsin2019. $5.3m in2019 (2018: $3.3m loss).Thiswasduetothe (2018: $5.2m)ofrevenue andanunrealised gainof The Group’s returned investmentportfolio $4.9m INVESTMENTS due toincrease incashflowfrom investments. (2018: decrease yearwasprimarily of$17.3m)duringthe The netincrease incashandequivalentsof$16.4m been $5.4m. net cashinflowsfrom wouldhave activities operating ofAASB16.Had16notbeenadopted, adoption cash flowsfrom asa activities operating the of result the impactonnet Note3setsout financing activities. are activities operating ascashflowsfrom nowdisclosed have previously undercashflowsfrom beendisclosed rental paymentsonleased properties whichwould (2018: ofAASB16Leases, adoption $1.4m).Duetothe netcashinflowsfromwith of$13.6m activities operating The Group’s2019 improvedliquidity cashflowand in CASH FLOW taei projects Strategic 4% 1% 27% 3% 21% 19% 13% 1% 11% CPA Advice Australia Corporate servicesandgovernance incommunityadvocacy active andbe globally Impact policy ofCPAsgeneration next anddevelopthe Attract and tools development content,resources Provide relevant learningand and engagingexperiences Provide personalised memberswith futureLead the profession ofthe designation integrityofthe the Protect, promote andenhance increase incashandequivalents. indepositsatcall 2018than by$3.1mwhichisdirectly toan attributable Current andnon-current financialassetsare other lower due tolowerprepaid expenses. currentOther assetsare prioryear the $0.7mlowerthan greater focusoncore membervalue. deliver servicesthat payments received from memberbenefitpartnerswith to $2.6min2019 (2018: lower isduetothe $3m);this Trade receivables andother havedecreased by$0.4m in financialassets,depositsatcall. compared to2018, mainlyduetoincreased investment Cash andcashequivalentsincreased by$16.4m required inNote3. byAASB16Leasesasoutlined reduced openingretained bythe earningsadjustment largely surplusdelivered tothe attributable in2019 by $0.5mor0.4percentcompared to2018, whichis The Group’s balancesheetreflects netassetsincreasing BALANCE SHEET ASSETS 4% 3% 15% 42% 1% 35% Property, plantandequipment assets(incl.intangibles) Other Right-of-use asset financialassets Other Trade receivables andother Cash andcashequivalents in advance. andfeesreceivedwhich isduetohighersubscriptions currentOther were liabilities 2018 $2.3mhigherthan make goodprovision forproperty leases. 2018.higher than Thisismainlyduetoanincrease inthe Current and non-current provisions ended year the $2.0m difference inpaymentstotradecreditors. compared previous tothe isduetoatiming year;this Trade payableswere andother higherby$0.6m new leasearrangements. securitydepositsresultingdue toadditional from non-currentOther assetsare 2018 $0.1mhigherthan year.the directly charged amortisation tothe attributable during Intangible assetsare 2018 lowerthan by$1.1m,whichis of assets$3.1m. depreciation charged yearoffset duringthe byadditions $10.9m (2018: $10.2m)whichisdirectly tothe attributable Property, plantandequipmenthasincreased by$0.7mto LIABILITIES 53% 31% 9% 5% 2% fees inadvance and Subscriptions Lease liabilities Trade payables andother Current provisions Non-current provisions
93 | CPA Australia Integrated Report 2019 94 | CPA Australia Integrated Report 2019 Total comprehensive income for the year tax of year, the for net income comprehensive Other FVOCI at instruments debt of value fair the in Changes onExchange translating differences foreign operations loss: or profit to subsequently reclassified be may that Items Gain/(loss) on sale of financial assets at FVOCI at assets financial of sale on Gain/(loss) FVOCI at investments equity of value fair the in Changes plan benefit defined on gain/(loss) Actuarial loss: or profit to subsequently reclassified be not will that Items INCOME OTHER COMPREHENSIVE year the for Surplus Tax (expense)/income tax income before Surplus expenses Other equipment and plant property, of sale on Gain/(loss) receivables trade for allowance Loss gain/(loss) Impairment FVTPL at assets financial of value fair the in Changes FVTPL at assets financial of sale on Gain/(loss) gain/(loss) exchange foreign Net Finance costs Depreciation expense and amortisation expense catering Travel and Printing and communication expense Other staff costs staff Other expense services Professional Event expense delivery licencesComputer expense hardware and software Rent and outgoings expense outgoings and Rent and promotionAdvertising expense expense CPA and Program Education expense benefits Employee Finance income Revenue FOR THE YEAR ENDED 31 DECEMBER 2019 31 DECEMBER ENDED YEAR THE FOR OTHER COMPREHENSIVE INCOME STATEMENT OFPROFITORLOSSAND The Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the notes to the financial financial 136. to the 98 to notes pages on the out with set statements conjunction in read be to is Income Comprehensive Other and Loss or Profit of Statement The statements 2019 financial CPA Australia 12, 13 &14 Note 6(g) 6(d) 6(b) 6(h) 6(e) 6(a) 6(c) 6(f) 6(i) 23 7 3 5 4
(66,305) (12,235) CONSOLIDATED (12,138) 167,996 (16,174) (17,767) (5,860) (4,645) (6,834) (6,054) (4,287) $’000s (1,549) (9,793) (7,766) 3,043 2,043 2,298 5,025 4,900 7,068 4,419 2019 (187) (118) 606 (20) (58) 105 (42) (49) 1
- (63,082) (16,833) (14,446) (10,624) 170,407 (14,467) (12,919) (5,885) $’000s (6,294) (4,275) (1,295) (4,675) (1,944) ,50) 7,15 ( ,36) 7,13 ( 5,545 5,992 6,723 5,213 (447) 2018 (731) (50) 354 589 (29) (43) (59) 215 712 (5) (3) FINANCIAL POSITION STATEMENT OF Total members' funds Retained surplus Reserves MEMBERS’ FUNDS Net assets Total liabilities liabilities Total non-current liabilities Other Total liabilities current liabilities Other AS AT 31 DECEMBER 2019 ATAS 31 DECEMBER The Statement of Financial Position is to be read in conjunction with the notes to the financial statements 136. to statements 98 pages on financial out the set to notes the with conjunction in read be to is Position Financial of Statement The statements 2019 financial CPA Australia Lease liabilities Lease Provisions LIABILITIESNON-CURRENT liabilities Lease Provisions payables other Trade and CURRENT LIABILITIES Total assets Total assets non-current assets Other assets financial Other ASSETS NON-CURRENT assets Total current assets Other assets financial Other receivables other Trade and equivalents cash and Cash CURRENT ASSETS Right-of-use asset Right-of-use Intangible assets Property, plant and equipment assets tax Deferred Note 14(b) 14(b) 14(a) 7(d) 10 10 16 16 15 15 12 13 11 11
9 8 100,958 126,977 107,389 107,389 255,138 CONSOLIDATED 101,181 128,161 147,749 46,568 88,486 30,270 78,730 $’000s 42,956 10,929 77,487 38,150 12,953 2,609 6,889 5,625 6,431 1,229 2,596 3,612
2019 299 67 - 119,997 205,083 102,605 106,924 106,924 38,562 72,128 85,086 $’000s 76,404 72,332 94,698 12,356 98,159 10,178 6,324 2,983 2,338 2,573 3,461 5,938 4,319 2018 888 238 - - - -
95 | CPA Australia Integrated Report 2019 96 | CPA Australia Integrated Report 2019 Balance at 1 January 2018 1January at Balance Surplus for the year the for Surplus comprehensiveOther income The Statement of Changes in Members’ Funds is to be read in conjunction with the notes to the financial statements set out on pages 98 to 98 136. pages on out set statements financial the to notes the with conjunction in read be to is Funds Members’ in Changes of Statement The statements 2019 financial CPA Australia 2019 31 DECEMBER ENDED YEAR THE FOR IN MEMBERS’FUNDS STATEMENT OFCHANGES Surplus for the year the for Surplus 16 adjustment AASB to Transition 2019 1January at Balance Balance at 31 December 2019 31 December at Balance comprehensiveOther income 2019 1January at balance Restated Note 3 REVALUATION INVESTMENT INVESTMENT RESERVE $’000s (1,345) 3,689 3,689 5,988 2,299 5,034 - - - TRANSLATION TRANSLATION CURRENCY FOREIGN FOREIGN RESERVE CONSOLIDATED $’000s (187) 443 630 630 215 415 - - - RETAINED SURPLUS 102,605 100,958 96,002 (6,603) $’000s 95,930 5,025 5,992 683 (69) 100,321 106,924 107,389 101,379 TOTAL (6,603) $’000s 2,043 5,025 5,992 (447) 1 year but greater than 90 days 90 than greater but 1 year than less deposits for receipts/(payments) Net and intangible assets Payment for property, plant and equipment ACTIVITES INVESTING FLOWS FROM CASH activities operating from inflows cash Net The Statement of Cash Flows is to be read in conjunction with the notes to the financial statements set out on on out set 136. to 98 statements pages pages financial the to notes the with conjunction in read be to is Flows Cash of Statement The statements 2019 financial CPA Australia 2019 31 DECEMBER ENDED YEAR THE FOR CASH FLOWS STATEMENT OF Net receipts/(payments) for deposits greater than 1year than greater deposits for receipts/(payments) Net leases on Interest employees and suppliers to Payments Receipts from operations ACTIVITIES OPERATING FLOWS FROM CASH Proceeds from sale of investments of sale from Proceeds year financial the of end the at equivalents cash and Cash currencies foreign in held cash of balance the in changes rate exchange of Effects of the financial year financial the of beginning the at equivalents cash and Cash held equivalents cash and cash in increase/(decrease) Net activities financing from outflows cash Net liabilities of lease Payment ACTIVITES FINANCING FLOWS FROM CASH activities investing from (outflows)/inflows cash Net received dividends and interest Investment investments of Purchase
12 &13 Note 14(b) 14(b) 8 8 (167,465) 182,567 CONSOLIDATED 88,486 (8,238) (8,238) 16,657 $’000s 13,595 11,300 (1,507) (4,924) 72,128 (3,115) 8,291 5,891 4,954 (299) 2019 203
(179,387) (15,636) (18,433) 180,744 (24,813) (17,076) $’000s 89,433 19,325 (2,179) 72,128 5,073 1,357 (229) (203) 2018 - - -
97 | CPA Australia Integrated Report 2019 98 | CPA Australia Integrated Report 2019 available under ASIC Legislative Instrument2016/191. available underASICLegislative option statedunderthe ($’000) unlessotherwise values are rounded nearest tothe dollars thousand The report ispresented andall dollars inAustralian stated. unless otherwise applied, havebeenconsistently policies The accounting giveninexchangeforassets. consideration values ofthe ofnon-currentvaluations fair assets. Costisbasedonthe changing moneyvaluesor, exceptwhere stated,current on historicalcosts.Theydonottakeintoaccount have beenprepared onanaccrualsbasisandare based financialstatements The generalpurposeconsolidated a) Basisofpreparation 2. statements whenapplied. Group’sto haveamaterialimpactonthe financial financialstatements.Thesearethese notexpected not yeteffective inpreparing andhavenotbeenapplied Interpretations andAmendmentsare inissuebutare Standards, Accounting A numberofAustralian Standards issuedbutnotyeteffective policies. accounting inNote3Changessignificant 16 Leasesisoutlined ofAASB adoption changesduetothe The impactofthe value assets. sheet, exceptforshort-termleasesandoflow requires lesseestorecognise balance leasesonthe all modelforlessees lessees andlessors.Theaccounting treatmentand their financialstatementsofboth inthe ofleasearrangements identification model forthe lease-related interpretations, providing acomprehensive AASB 16Leasesreplaces AASB117Leasesandsome 1 January2019. mandatorily effective periodsonorafter foraccounting AASBwhichwereand Amendmentsissuedbythe Standards, Accounting new Australian Interpretations currentIn the year, Group the following adoptedthe reporting period. andeffective operations to the current forthe annual and Interpretations are AASBthat issuedbythe relevant The Group newandrevised ofthe adoptsall Standards 1. FOR THEYEARENDED31DECEMBER2019 FINANCIAL STATEMENTS NOTES TOTHE ACCOUNTING POLICIES SUMMARY OFSIGNIFICANT ACCOUNTING STANDARDS ADOPTION OFNEWANDREVISED the taxation authority. taxation the amountofGSTrecoverableof the from, orpayableto, areCommitments andcontingencies net disclosed cashflows. is classifiedasoperating recoverable from, authority, taxation orpayableto,the arising from whichis andfinancing activities, investing on agross GSTcomponent ofcashflows basisandthe Cash flowsarethe StatementofCashFlows includedin balancesheet. or payablesinthe isincludedaspartofreceivables authority taxation the The netamountofGSTrecoverable from, orpayableto, • • amountofGSTexcept: the Revenues, expensesandassetsare recognised netof d) Goodsandservicestax(GST) expenses are onconsolidation. infull eliminated intercompanyAll balances,incomeand transactions, from itsactivities. toobtainbenefits ofanentity policies and operating financial powertogovernthe Companyhasthe the controlled Company. bythe Control isachievedwhere the Companyandentities financialstatementsof the financialstatementsincorporate The consolidated c) Basisofconsolidation of Directors on5March 2020. ended 31December2019 were Board bythe authorised the year financialstatementsfor The consolidated in Australia. CPA byguaranteeanddomiciled islimited Australia IASB. IFRSasissuedbythe the with compliance in full Standards Accounting Australian with compliance results paragraphs specifictonot-for-profit Therefore, entities. recognition andmeasurement ofamountsfrom applying financial statements;however,there the isnoimpacton not-for-profitthe purposeofpreparing for entity the pronouncements AASB.CPA ofthe isa Australia Standards, Interpretations authoritative andother Accounting Act2001,Australian Corporations of the been prepared inaccordance requirements the with the Group financialstatementsof The consolidated have b) Statementofcompliance Receivables andpayablesare statedinclusiveofGST. item asapplicable expense assetoraspartofthe ofthe of acquisition GSTisrecognisedin whichcasethe cost aspartofthe services isnotrecoverable from authority, taxation the Where GSTincurred the onpurchases ofgoodsand • • • • service leaveatbalancedate: oflong calculation usedinthe keyassumptions following indeterminingthe Management judgementisapplied Employee entitlements financial statements: significant effectthe amounts on the recognised in Group’s most havethe andthat policies accounting processmanagement hasmadeinthe ofapplyingthe areThe following judgementsthat critical the g) statement presentations. reclassified current toconformwith periodfinancial havebeen information comparative amounts inthe Certain hadalwaysbeenapplied. policy accounting foreachpriorperiodpresenteddisclosed new asifthe period presented amounts comparative other andthe each affected prior earliest component ofequityforthe Standards, openingbalanceof the wehaveadjusted retrospectively inaccordance Accounting Australian with isapplied policy When achangeinaccounting amounts f) Comparative foreign currency reserve translation inequity. comprehensiveto other incomeandrecognised inthe Exchange differences arising,ifany, are charged/credited periodunlessexchangeratesfluctuatesignificantly.the items are averageexchangeratefor translatedatthe prevailing reporting atthe date.Incomeandexpense areoperations exchangerates translatedatthe Group’s ofthe The assetsandliabilities overseas Foreign currency operations occur. periodthey the Exchange differences are recognised inprofit orlossin was determined. ratesprevailingtranslated atthe fairvalue datethe atthe arefair valuethat denominatedinforeign currencies are carriedat sheet date.Non-monetaryassetsandliabilities retranslated balance atthe rateofexchangeruling atthe denominatedinforeignand liabilities currency are Monetaryassets transaction. dateofthe atthe ruling currency functional in the exchangerates atthe Transactions inforeign currencies are recorded initially Foreign currency transactions dollars. Australian foreignAll currency are transactions shownin e) Foreign currency Defined benefitplan. of service Experience ofemployeedepartures andperiod Future on-costrates Future increases inwagesandsalaries accounting policies accounting Group’s judgementsinapplyingthe Critical • • • • expedients: practical Groupthe following hastakenadvantageofthe modified In applyingthe retrospective approach, • • • has beenrecognised: are notrestated. following the application, Oninitial retained earningsat1January2019 andcomparatives recognised openingbalanceof tothe asanadjustment effect cumulative the method, is application ofinitial modified using the retrospective approach.this Under The Group AASB16from hasapplied 1January2019 AASB 16Leases 3. deferredpart ofthe incometaxassettobeutilised. sufficient or all beavailabletoallow taxablesurpluswill itisnotprobableas managementhasassessedthat that recognisedoverseas jurisdictions) atbalancesheetdate period accumulatedtaxlossesare not(unlessrelated to Deferred taxassetsinrespect ofcurrent andprior Deferred taxassets andresidual rates,usefullives amortisation values. Management’s todepreciation/ judgementisapplied Intangible andotherassets commencement date. of leases)basedoncircumstances lease onorafterthe term andjudgements (suchasthe making estimates andnotretrospectively application date ofinitial by been measured basedonprevailing atthe estimates asset, hindsighthasbeenused.Therefore, ithas right-of-use purposesofmeasuringthe For the application date ofinitial measurement right-of-use assetasatthe ofthe directInitial costshavenotbeenincludedinthe 12months than lease commencementdatemayhavebeenmore leasesfrom termofthe initial the sheet) eventhough as short-termleases(i.e.notrecognised onbalance from havebeenaccountedfor dateofapplication the aremainingLeases with orless termof12months 3.92 percent incremental borrowing rateat1January2019 of The Group leasepaymentsusingits discounted reasonablyof leaseswith similarcharacteristics. toportfolios ratehasbeenapplied A singlediscount right-of-use asset. andthe leaseliability valueofthe between the toretainedAn adjustment difference earningsforthe borrowing rateasat1January 2019 incrementalcommencement date,butusingthe Standardas ifthe lease sincethe hadbeenapplied A right-of-useassetmeasured carryingamount at the incremental borrowing rateasat1January2019 remainingthe usingthe leasepayments,discounted measuredA leaseliability present atthe valueof ACCOUNTING POLICIES CHANGES INSIGNIFICANT
99 | CPA Australia Integrated Report 2019 100 | CPA Australia Integrated Report 2019 The following table summarises the impact of transition to AASB 16 on retained earnings at 1 January 2019: 1January at earnings 16 retained on to AASB transition of impact the summarises table following The Retained surplus Lease liabilities recognised under AASB 16 at 1 January 2019 16 1January at AASB under recognised liabilities Lease movements exchange Foreign 117 AASB under recognised incentive lease for Adjustment transition at term remaining 12 than months less with leases for exemption Recognition assets low-value of leases for exemption Recognition 16 AASB under calculation liability lease in included not outgoings for Adjustments 2019 1January at rate borrowing incremental the using Discounted 117 AASB under disclosed as 2018 31 December at commitments lease Operating Balance as reported at 31 December 2018 31 at December reported as Balance Balance at 1 January 2019 1January at Balance 16 AASB to transition on recognised asset tax Deferred 16AASB implementation to prior incentives lease of Derecognition 16 AASB under leases of Recognition RECONCILIATION OF LEASE LIABILITIES AT 2019 1JANUARY LIABILITIES LEASE OF RECONCILIATION
14(a) &(b)
Note BALANCE BALANCE OPENING 102,605 102,605 $’000s CONSOLIDATED IMPACT OF ADOPTING ADOPTING AASB 16 AASB (6,603) (8,443) $’000s 1,500 340
CONSOLIDATED UNDER AASB 16 AASB UNDER NEW OPENING NEW BALANCE BALANCE (13,901) 48,445 58,283 32,432 $’000s (1,500) 96,002 $’000s (627) (17) (17) 32 32 Total assets Total assets non-current Surplus before income tax tax income before Surplus Finance costs Depreciation expense and amortisation outgoings and Rent Retained surplus Reserves Members' funds Net assets Total liabilities liabilities Total non-current Total liabilities current Cash Flows for each of the line itemsaffected. line Cash Flowsforeachofthe Comprehensiveand other IncomeandStatementof as at31December2019, itsStatementofProfit orLoss Group’sAASB 16onthe StatementofFinancialPosition impactofadopting tablessummarisethe The following Total comprehensive income for the year Tax (expense)/income movements exchange Foreign Statement of Financial Position (extract) as at 31 December 2019 31 December at as (extract) Position Financial of Statement Statement of Profit or Loss and Other Comprehensive Income (extract) for the year ended 31 December 2019 December 31 ended year the for (extract) Income Comprehensive Other and Loss or Profit of Statement Total members' funds AS REPORTED AS REPORTED 100,958 (12,235) 107,389 107,389 255,138 101,181 128,161 147,749 46,568 (5,860) $’000s $’000s (1,549) 6,431 7,068 4,419 2019 2019 606 AS AS -
ADJUSTMENTS ADJUSTMENTS CONSOLIDATED CONSOLIDATED (45,493) (38,150) (38,150) (42,956) $’000s (2,537) $’000s (8,318) 7,343 7,343 ,343 3 7, 1,507 2019 ,243 7, 2019 400 340 740 (32) - -
ADOPTION OF AASB 16 AASB OF ADOPTION ADOPTION OF AASB 16 AASB OF ADOPTION BALANCES WITHOUT WITHOUT BALANCES BALANCES WITHOUT WITHOUT BALANCES 102,256 216,988 114,732 114,732 108,301 (14,178) 98,644 $’000s 90,011 $’000s (4,992) 6,431 7,808 4,819 3,612 2019 2019 946 (32) (42)
101 | CPA Australia Integrated Report 2019 102 | CPA Australia Integrated Report 2019 Payments to suppliers and employees and suppliers to Payments Receipts from operations ACTIVITIES OPERATING FLOWS FROM CASH Statement of Cash Flows (extract) for the year ended 31 December 2019 31 December ended year the for (extract) Flows Cash of Statement Interest on leases on Interest Net cash inflows from operating activities activities operating from inflows cash Net end of the financial year financial the of end the at equivalents cash and Cash currencies foreign in held cash of balance the in changes rate exchange of Effects year financial the of beginning the at equivalents cash and Cash held equivalents cash and cash in increase/(decrease) Net activities financing from outflows cash Net liabilities of lease Payment ACTIVITIES FINANCING FLOWS FROM CASH activities investing from (outflows)/inflows cash Net Member fees and subscriptions and fees Member REVENUE FROM CONTRACTS WITH CUSTOMERS Marketing, promotion and publications services Other Professional development Education and CPA Program 4. REVENUE
Note 14b 14b 8 8
CONSOLIDATED 167,996 58,045 86,950 $’000s 13,972 3,488 5,541 2019 REPORTED (167,465) 182,567 88,486 (8,238) (8,238) 16,657 $’000s 13,595 11,300 (1,507) 72,128 (299) 2019 AS AS 170,407 60,022 $’000s 84,693 13,551
6,066 6,075 2018 ADJUSTMENTS CONSOLIDATED (8,238) $’000s (9,745) 8,238 8,238 1,507 2019 ------
BALANCES WITHOUT WITHOUT BALANCES ADOPTION OF ADOPTION AASB 16 AASB 17 210) (177, 182,567 88,486 11,300 $’000s 16,657 72,128 5,357 2019 (299) - - -
with customers Revenue from contracts 2018 At a point in time in apoint At recognition revenue of Timing TOTAL the heading ofcurrent heading the liabilities. –other liabilities andfeesinadvanceunder assubscriptions Position future Statement ofFinancial periodsisshowninthe relates 30days.Revenuethat payment isduewithin to number ofcaseswhere customersare invoicedand Payments are received inadvanceexceptasmall are associatedperformanceobligations the satisfied. andCPAEducation Program revenue isrecognised as Education andCPA Program liabilities. other ofcurrent heading in advanceunderthe – liabilities andfees assubscriptions Statement ofFinancialPosition relatepayments that tofuture periodsare showninthe recognised asrevenue Feesandsubscription overtime. arethat current tothe attributable financialyearare membershipfeesandsubscriptions advance. Onlythose to 31December, in payableannually subscriptions with yearrunsfromThe membershipsubscription 1January Member feesandsubscriptions TOTAL Over time Over time time in apoint At recognition revenue of Timing ofrevenue timing andthe service lines recognition. customers isdisaggregated bymajorproducts and table,revenue following In the from contractswith (a) with customers Revenue from contracts 2019 with customers with Disaggregation ofrevenue from contracts SUBSCRIPTIONS FEES AND AND FEES MEMBER 84,693 86,950 86,950 84,629 $’000s 84,693 82,470 2,223 2,321 EDUCATION PROGRAM AND CPA CPA AND 58,045 58,045 60,022
55,665 60,022 $’000s 57,491 2,380 2,531
PROFESSIONAL PROFESSIONAL DEVELOPMENT within 30daysofinvoicing. within or servicestocustomers.Payment isduefrom customers areobligations bytransferringpromised satisfied goods transferred whenperformance atapointintime Revenue from customersis contracts with other Other revenue-generating activities issatisfied. performance obligation in advance,itisrecognised the until asaliability 30daysofinvoicing.Wherewithin payment isreceived issue.Paymentisduefromor publication customers isrecognisedactivity sponsored of the time atthe event Revenue from promotion marketing, andpublications Marketing, promotion andpublications of‘current heading the liabilities.’ –other liabilities andfeesinadvanceunder assubscriptions Position future StatementofFinancial periodsisshownin the relates 30days.Revenuethat payment isduewithin to received inadvance;where customersare invoiced, are transferred tocustomers.Paymentsare generally aseventsarea pointintime delivered orasgoods Professional development revenue isrecognised at Professional development CONSOLIDATED 13,551 13,972 13,972 $’000s 13,551 13,551 13,972 - - SERVICES OTHER OTHER $’000s 6,066 5,541 5,541 6,066 6,066 5,541 - - PUBLICATIONS PROMOTION MARKETING, $’000s 3,488 3,488 6,075 3,488 6,075 6,075 AND AND - - 170,407 167,996 167,996 140,294 170,407 139,961 TOTAL 30,446 $’000s 27,702
103 | CPA Australia Integrated Report 2019 104 | CPA Australia Integrated Report 2019 period are asfollows: the Significant changesincontractbalancesduring performance obligations. is recognised inaccordance of satisfaction the with receivedconsideration from customersforwhichrevenue ‘current represents this liabilities’; –other liabilities advance of heading underthe Statement ofFinancialPosition andfeesinadvanceareSubscriptions showninthe fromand contractliabilities customers. contractswith tableprovidesThe following aboutreceivables information (b) Contractbalances the period during revenue as recognised amounts received, excluding cash to due Increases period the of beginning balanceadvance at the and fees received in subscriptions the in included was that Revenue recognised Total receivables allowanceLoss receivables’) other and 'trade in Receivables (included received in advance and Subscriptions fees
(78,730) CONSOLIDATED CONSOLIDATED 78,730 $’000s $’000s 75,792 75,792 2,470 2,519 2019 2019 (49) (75,792)
$’000s $’000s 75,792 75,792 74,744 74,744 2,816 2,816 2,774 2,774 2018 2018 (42) Bank deposits investments heldFinancial as assets on: income Interest distributions and Dividends or loss using the effectiveor lossusingthe interest ratemethod. Interest isrecognised asfinanceincomeinprofit Interest righttoreceiveloss whenthe paymentisestablished. Dividends are recognised asfinanceincomeinprofitor Dividends anddistributions at 31December2019. are that obligations unsatisfied) (orpartially unsatisfied be recognised future inthe related toperformance tableincludesrevenueThe following expectedto (c) 5. FINANCEINCOME services Other Professional development Education and CPA Program subscriptions and fees Member performance obligations performance Transaction remaining tothe priceallocated CONSOLIDATED $’000s 2,882 4,900 1,943 2019 75 CONSOLIDATED
78,730 $’000s 18,541 59,978 $’000s 2020 2,025 3,067 5,213 2018 120
121 91 Recruitment events Recruitment Education events Member engagement events events development Professional EXPENSE DELIVERY D. EVENT Defined contribution benefits other and Salaries EXPENSE EMPLOYEE BENEFITS A. 6. EXPENDITURE 1 Media monitoring Research prizes and grants Brand activity activity development Business Defined benefit plan benefit Defined tax benefits Fringe Exam and contentExam development delivery Exam EXPENSE CPA AND PROGRAM EDUCATION B. Other Other Member engagement activity Public practice program campaign Sponsorships advertising Acquisition EXPENSE PROMOTION AND ADVERTISING C. support Exam reported in 2018 has been added to other expenses. other to added been has 2018 in reported $3000 of expense benefit Member comparison, of purpose the For 1
CONSOLIDATED 66,305 60,860 $’000s 12,138 11,814 17,767 2,440 2,003 5,055 5,569 5,696 9,323 9,793 2019 280 257 709 324 231 341 182 376 374 25 95 49 58,004 63,082 $’000s 10,822 16,833 10,624 12,919 5,500 6,635 2,628 1,995 4,676 8,121 2,174 2018 506 326 240 373 373 182 134 196 511 29 33
105 | CPA Australia Integrated Report 2019 106 | CPA Australia Integrated Report 2019 Strategic review Strategic PSC Scheme Risk management and AGM Other Postage Printing and stationery and WAN costs Telephone, internet Publications EXPENSE COMMUNICATION F. AND PRINTING activity Professional conduct Member Journey Mapping Governance Legal and delivery developmentProduct activity development Business Publications Technology projects Corporate support Strategic investment EXPENSE SERVICES PROFESSIONAL E. 6. EXPENDITURE(continued) Professional conduct activity Professional conduct Advocacy Public activity practice audit internal and Board Education and professional development activity Corporate support Member engagement activity Business development activity development Business EXPENSE CATERING AND TRAVEL G. Strategic review Strategic projects Strategic 2
CONSOLIDATED $’000s 16,174 6,834 5,530 6,054 3,070 1,025 1,278 3,701 1,372 2,670 2019 809 340 905 906 663 566 934 730 428 492 108 331 756 270 755 775 102 475 71 - - $’000s 14,467 3,468 3,683 5,885 6,294 1,305 1,040 1,019 1,374 1,106 1,183 3,117 2018 809 380 683 543 553 499 401 627 252 798 593 870 310 713 616 613 91 - - 2 development and delivery. product to reallocated been has 2018 in reported $4000 of expense media For the purpose of comparison, social Total income tax expense/(income) tax Total income Current year expense/(income) tax EXPENSE/(INCOME) TAX CURRENT accordance incometaxlegislation. Australian with such needtobeclassifiedforincometaxpurposesin receipts other to all Group andpaymentsofthe andas doesnotextend tax purposes.Theprincipleofmutuality mutual incomeare forincome nottaxdeductible likewise such subject toincometax.Expensesassociatedwith of memberreceipts represents mutualincomeandisnot principleofmutuality,In applyingthe revenue form in the taxable incomefrom themselves. caseofCPA(members inthe cannotderive Australia) premiselaw principlebasedonthe individuals that whichisacommon principleofmutuality the applies its memberscollectively, notindividually, Group the As anorganisation benefitof iscarriedonforthe that (a) Incometaxrecognised inprofit orloss 7. TAXATION Staff training and development Staff recruitment Staff Agencies employment expense STAFF OTHER COSTS H. Tax expense overseas entities overseas Tax expense 7 (d)) (refer expense/(benefit) tax Deferred TAX EXPENSE/(BENEFIT) DEFERRED Other staff costs staff Other Other andMemberships contributions Merchant fees and bank fees review QA EXPENSES OTHER I. 6. EXPENDITURE(continued) CONSOLIDATED CONSOLIDATED $’000s $’000s tax deductible under Australian incometaxlaw. underAustralian tax deductible foreignthe branchesofCPA are Australia similarly not of activities the income tax.Expensesassociatedwith CPA are Australia notsubjecttoAustralian generally The revenue foreign derivedbythe branchesof also operatesinanumberofoverseasjurisdictions. Group the operations, toitsAustralian In addition by externaltaxadvisors. appropriate whichhasbeenvalidated methodology between mutualandnon-mutualincomeusingan Expenditure Group ofthe hasbeenapportioned 4,645 2,405 2,203 2,531 1,325 2,475 7,766 2019 (665) (606) 2019 668 355 449 59 - $’000s $’000s 2,466 2,288 2,207 2,459 4,675 1,018 ,50 7,15 2018 2018 672 196 519 591 140 731 -
107 | CPA Australia Integrated Report 2019 108 | CPA Australia Integrated Report 2019 deferred assets deferred as losses tax year prior of Derecognition Temporary differences OF: EFFECT TAX expenses Non-deductible Foreign operations expenditure compared previous ofthe that with reporting period. There corporatetaxratewhen hasbeennochangeinthe tax law. ontaxableprofitscorporate entities underAustralian corporate taxrateof30percentpayablebyAustralian abovereconciliation The taxrateusedinthe isthe taxable surplusof$1.3mpriortoanytaxadjustments. $21.6min2019.totalled Thisgivesrisetoanon-mutual $22.2m in2019. expenditure Non-mutualoperating andinvestmentrevenueNon-mutual operating totalled expense/(income) tax Total income jurisdiction foreign tax of Impact assets deferred as recognised not losses tax unused year Current Foreign operations revenue Mutual expenses financialstatementsasfollows: expense inthe surplus from reconciles operations incometax tothe The primafacieincometaxexpenseonpre-tax accounting deriving non-memberincomeandstatutorydeductions. for incometaxare tocertainexpensesincurred limited in derived from deductions Allowable non-memberactivities. purposes comprisesonlycertainincomedeemedtobe GroupThe assessableincomeofthe forincometax ofprimafacieincometax (b) Reconciliation Mutual revenue INCOME: TAXABLE IN CALCULATING DEDUCTIBLE/(TAXABLE) NOT ARE WHICH AMOUNTS OF EFFECT TAX 30% at calculated expense tax Income Surplus before income tax
CONSOLIDATED (47,612) $’000s (1,248) 39,966 (1,106) (1,195) 1,326 4,419 7,373 (606) 2019 642 497 86 59 - (47,000) 38,090 $’000s 6,203 6,723 2,017 1,517 (827) 2018 (641) 258 140 731 731 974 - benefits Employee Revaluation FX subsidiaries Foreign (c) equipment plant and Property, Investments d) Deferred arisefrom taxassets/(liabilities) following: the Leases Provisions Comprehensive Income. StatementofProfitincome inthe orLossandOther comprehensiveinvestments anddebtinstrumentsinother fairvalueofequity changesinthe is includedinthe measurement ofequityinvestmentsanddebtinstruments The deferred fairvalue taxexpensearisingonthe income comprehensive other in recognised tax Total income 7(d)) (refer FCOVI at instruments debt of remeasurement value fair the on arising expense/(benefit) tax Deferred 7(d)) (refer FVOCI at investments equity of remeasurement value fair the on arising expense/(benefit) tax Deferred Tax losses Tax Income taxrecognised comprehensive inother income BALANCE OPENING (2,640) 2,537 (391) 2018 379 117 (2) - - - - RECOGNISED RECOGNISED IN PROFIT OR LOSS OR (1,232) (591) (102) 583 (27) 187 - - - -
COMPREHENSIVE COMPREHENSIVE RECOGNISED RECOGNISED IN OTHER INCOME 575 575
------VALUATION FX RE- FX 16 16 ------
BALANCE CLOSING (1,482) CONSOLIDATED 1,305 (204) 2018 277 90 14 - - - RECOGNISED RECOGNISED IN PROFIT OR LOSS OR 1,162 (912) 204 204 (14) (14) 665 (55) 230 31 19
COMPREHENSIVE COMPREHENSIVE RECOGNISED RECOGNISED
IN OTHER INCOME (986) (986)
------RECOGNISED RECOGNISED TRANSITION TRANSITION TO AASB 16 AASB TO 340 340 ON ON ------
CLASSIFICATION TO DEFERRED CONSOLIDATED $’000s TAX TAX RE- 48 48 2019
------986 986
VALUATION - FX RE- FX ------
BALANCE $’000s CLOSING (3,380) (554) (575) 2018 2,467 (21) 2019 308 570 35 67 67 - -
109 | CPA Australia Integrated Report 2019 110 | CPA Australia Integrated Report 2019 Deposits at call at Deposits atCash bank and in hand CURRENT DTA’s as recognised not Tax losses Deferred taxassetsnotbrought toaccountare asfollows: (e) Deferred taxassetsnotbrought toaccount 8. CASHANDEQUIVALENTS of Profit Comprehensive orLossandOther Income. equity are recognised Statement inequityandnotthe Income taxesrelating toitemsrecognised directly in balancesheetdate. enactedatthe substantively havebeenenactedor on taxrates(andlaws)that assetisrealisedwhen the based issettled, liability orthe are taxratesthat at the year expectedtoapplythe Deferred are incometaxassets andliabilities measured income taxassettobeutilised. deferred orpartofthe all beavailabletoallow surplus will itisnolongerprobableextent that sufficient that taxable reviewed ateachbalancesheetdateandreduced to the The carryingamountofdeferred incometaxassetsis not brought toaccountare below. outlined deferred detailsonthe balance sheet.Further taxassets asset related are taxjurisdictions toother recognised inthe areincome taxassetsandliabilities nil.Anydeferred tax totalnetdeferredtax lossestosuchanextentsothat recognised adeferred carryforward incometaxassetforall temporarydifferences.deductible TheGroup has Deferred incometaxassetsare recognised forall for financial purposes. reporting carryingamounts andtheir bases ofassetsandliabilities differences tax balancesheetdatebetweenthe atthe Deferred incometaxisprovided temporary onall Agreement.Funding groupconsolidated haveentered intoaTax Sharingand group effect with from tax 1April2016.Membersofthe AdvicePtyLtdformedataxconsolidated Australia CPA CPA subsidiary LtdanditsAustralian Australia
CONSOLIDATED CONSOLIDATED 44,000 44,486 88,486 $’000s $’000s 2,329 2019 2019 10,500 $’000s $’000s
61,628 72,128 2,243 2018 2018
Reconciliation ofprofitReconciliation afterincometaxtonetcash Make-good expense/(gain)Make-good adjustment tax Deferred trade receivables on allowance loss Addback Foreign exchange translation Depreciation and amortisation items: non-cash Plus/(minus) FVTPL at assets financial of sale on (gain)/loss Net plantproperty, and equipment of sale on (gain)/loss Net income Interest and dividend items: non-operating Plus/(minus) Surplus for the year the for Surplus ACTIVITIES OPERATING FROM INFLOW other assets other in (Increase)/decrease in (Increase)/decrease liabilities: and assets in Change Finance cost FVTPL at assets financial (Gain)/loss on revaluation of Provision for impairment less than 90daysfromless than dateofinception. the maturingwithin depositsandbankbills at bank,call Cash andcashequivalentscompriseonhand, in Increase/(decrease) in Increase/(decrease) in other liabilities in other Increase/(decrease) fees in operating activities operating from inflow cash Net in Increase/(decrease) receivables payables subscriptions and subscriptions provisions advance received
CONSOLIDATED $’000s (3,043) 12,235 12,235 (4,900) (1,500) 13,595 5,025 5,025 2,938 2,938 1,990 1,990 (665) (105) 2019 589 589 281 281 571 571 (81) 118 118 58 58 42 42 42 - $’000s (6,247) (5,213) 5,992 1,357 1,944 ,36 7,13 (589) (354) (227) (442) 2018 (516) (419)
(612) 575 219
43 59 3 5 is equal to the valueofourreceivables.is equaltothe maximumexposure andthe characteristics tocredit risk single partyorgroup havingsimilar ofcounter parties does nothaveanysignificantcredit riskexposure toany industriesandgeographicalareas.diverse TheGroup consist ofmanymembersandcustomers,spread across reporting endofthe up tothe period.Trade receivables trade receivable from datecredit the granted wasinitially Groupthe credit considersanychangeinthe ofthe quality recoverabilityIn determiningthe ofatradereceivable, effectivecost usingthe interest method. therefore measures atamortised subsequently them contractualcashflowsand the tocollect objective the amount. TheGroup tradereceivables holds the with receivables are recognised transaction atthe initially is charged tradereceivables. onoutstanding Trade 30 daysandtherefore classifiedascurrent. Nointerest of business.Theyare within dueforsettlement generally ordinarygoods soldorservicesperformedinthe course Trade receivables are amountsduefrom customersfor cost at amortised assets financial on interest Accrued bank on interest Accrued OTHER RECEIVABLES Loss allowanceLoss receivables other Trade and CURRENT ASSETS 9. TRADEANDOTHERRECEIVABLES deposits CONSOLIDATED $’000s 2,529 2,596 2,578 2019 (49) 67 61 6 $’000s
2,852 2,983 2,810 2018
(42) 162 173
11 are provided inNote24. lossallowance ofthe calculation Details onthe of tradereceivables isasfollows: forimpairmentinrespect allowance The movementinthe LOSS ALLOWANCE LOSS MOVEMENT IN 10. OTHERASSETS and other deposit Security for impairment provisionLess (at cost) amortised Loan to related parties NON-CURRENT Prepayments plan benefit Defined CURRENT year the of end the at Balance allowance loss Remeasurement of recovered Amounts 9 AASB under Balance at 1 January 9 AASB of application initial on Adjustment 139 AASB under Balance at 1 January
CONSOLIDATED CONSOLIDATED $’000s $’000s 5,625 5,270 2019 2019 299 299 355 (18) 25 42 49 - - - -
$’000s $’000s 6,324 5,915 2018 2018 409 238 238 22 33 42 (6) 15 11 - -
111 | CPA Australia Integrated Report 2019 112 | CPA Australia Integrated Report 2019 provision loan. amountofthe full in2015forthe The Group hadpreviously recognised animpairment amount to$1. was received in2017,reducing non-current the loan from $320,000to$150,000. Arepayment of$149,999 was signedin2017whichreduced loanreceivable the through provision the ofloanfunds.Adeedvariation Technicians ofAccounting Association the Australia IPA,CA ANZandthe promote tojointly of activities the bodies, accounting twoother with of understanding The Group previously entered intoamemorandum Loan torelated parties benefit asset. defined valueofthe tobegrantedthe holiday’ a‘contribution ofmembers’benefits,with accumulation inrespect Guaranteeobligations Superannuation of defined benefitfundbe theEmployer’s recognised under CPA iscurrently Australia requesting anysurplusinthe that As there2019, are nodefinedmembersasat31December benefitsbecomevested. the period until average basisoverthe onastraight-line amortised benefitsare the extent that already vested,andotherwise Past servicescostisrecognised tothe immediately occur,they andpresented comprehensive inother income. directly inretained periodinwhich earnings,inthe Actuarial gainsandlossesare recognised infull, in Note23. detailed disclosures relating planare tothis provided currentand of the liability the definedbenefit benefitof Mercer BenefitServiceshasprovided actuarialcalculations benefit members the Fund. remaining in plan.At31December2019,to the there are nodefined available refunds andreductions infuture contributions present pastservicecost,plusthe tothe limited valueof plan assets.Anyassetresulting from is calculation this unrecognised fairvalueof pastservicecost,netofthe adjusted for definedbenefitobligation, value ofthe representsStatement ofFinancialPosition present the The definedbenefitobligation the recognisedin Defined benefitplan
income (FVOCI) through other comprehensive value fair at assets Financial (FVTPL) loss or profit through value fair at assets Financial year one than greater Deposits NON-CURRENT outlined in Note 24. inNote24. outlined forfinancialassetsare policies Details onaccounting 11. OTHERFINANCIALASSETS Annuities year one than less days, 90 than greater Deposits CURRENT CONSOLIDATED 30,270 30,270 26,789 $’000s 49,698 77,487 1,000 2019 - 38,562 38,562 $’000s 72,332 25,417 45,712 1,000 2018 203 12. PROPERTY, PLANTANDEQUIPMENT the estimated useful life of the assetsasfollows: ofthe usefullife estimated the Depreciation basisover iscalculatedona straight-line depreciation andanyimpairment. classesofassetsareAll stated atcostlessaccumulated parent.by the itemsofproperty,All plantandequipmentare held Library books Library equipment Property, plant and Strata title Buildings Additions 2018 1January at Balance AMOUNT GROSS CARRYING Balance at 1 January 2019 1January at Balance class asset to/from Transfers Disposals Balance at 31 December 2019 31 December at Balance class asset to/from Transfers Disposals Additions Property, plant and equipment as at 31 December 2019 31 December at as equipment and plant Property, Disposals 2018 1January at Balance ACCUMULATED DEPRECIATION AND IMPAIRMENT Property, plant and equipment as at 31 December 2018 31 at December as equipment and plant Property, NET BOOK VALUE 2019 31 December at Balance Depreciation Disposals 2019 1January at Balance Depreciation 5 Years 5 Years 3–13 Years 50 Years 50
BUILDING BUILDING AT COST AT the restorationthe takenup. improvements acorresponding assets)with provision for value ofplantandequipment (comprising ofleasehold These costsareto itsoriginalcondition. includedinthe where there torestore existsan obligation property the to restoration provisions inproperty leasestakenup relevant siteonwhichitislocated.Thisparticularly the andremovingcost ofdismantling itemandrestoring the ofthe costofanassetincludesestimate The initial Lease restoration use. basedonexisting buildings openmarketvalueoflandand assessments ofthe recorded valueatbalancedate.Theyreflect independent in 2019. received valuations All assets exceededthe Valuations are andwere obtainedbiennially obtained Land andbuildings (1,596) (1,672) $’000s (1,520) 3,800 3,800 3,800 2,204 2,128 (76) (76) ------
EQUIPMENT EQUIPMENT PLANT ANDPLANT AT COST AT (36,092) (33,024) (30,321) 42,888 40,964 (3,625) $’000s (3,524) 38,921 6,796 1,007 1,862 1,572 ,40 7,94 (826) (597) CONSOLIDATED 557 821 949
BOOKS AT AT BOOKS LIBRARY LIBRARY $’000s COST (20) (22) (30) (22) (13) (14) (11) 56 31 68 34 51 22 10 13 8 - -
PROGRESS WORK IN IN WORK CAPITAL $’000s (1,862) 1,399 1,974 1,974 2,923 (949) 463 ------(34,642) (37,784) (31,871) TOTAL 44,820 10,929 48,713 43,252 $’000s (3,614) (3,712) 10,178 4,503 2,416 (848) (610) 843 570 - -
113 | CPA Australia Integrated Report 2019 114 | CPA Australia Integrated Report 2019 13. INTANGIBLE ASSETS the greaterthe andvalueinuse. offairvaluelesscoststosell recoverabledown tothe amount.Recoverableamountis recoverablevalues exceedthe assetiswritten amount,the recoverable. existsandwhere Ifsuchanindication carrying in circumstances carryingvaluemaynotbe the indicate are reviewed forimpairmentwheneventsorchanges The carryingvaluesofproperty, plantandequipment Impairment their estimated useful lives asfollows: usefullives estimated their isrecognisedAmortisation basisover onastraight-line andaccumulatedimpairmentloss. amortisation separately are carriedatcostlessaccumulated that arelives finite Intangible assetswith acquired Balance at 1 January 2019 1January at Balance Amortisation and impairment Amortisation Disposals Amortisation and impairment Amortisation Balance at 31 December 2019 31 December at Balance Disposals class asset to/from Transfers Disposals Additions 2019 1January at Balance class asset to/from Transfers Balance at 31 December 2019 31 December at Balance Intangible assets as at 31 December 2018 31 at December as assets Intangible NET BOOK VALUE Balance at 1 January 2018 1January at Balance ACCUMULATED AMORTISATION AND IMPAIRMENT Disposals Additions Balance at 1 January 2018 1January at Balance AMOUNT GROSS CARRYING Intangible assets as at 31 December 2019 31 December at as assets Intangible INTANGIBLE ASSETS AT COST AT (31,852) (33,132) (29,497) assets andare recognised inprofit orloss. proceeds disposal the carryingamountofthe andthe and equipmentare difference determinedasthe between ofproperty, disposal Gains orlossesarisingonthe plant Sale ofnon-current assets a prospective basis. effect beingaccountedforon ofanychangesinestimate reviewed endofeachreporting atthe the period,with are method and amortisation usefullife The estimated 34,309 33,861 33,886 (3,522) $’000s (1,280) Other software Other Website Core systems business (1,211) 2,009 1,177 1,186 1,167 448 - - - -
CAPITAL WORK IN PROGRESS PROGRESS IN WORK CAPITAL CONSOLIDATED – INTANGIBLE ASSETS $’000s (1,186) (448) 329 329 770 745 171 52 52 ------
(31,852) (33,132) (29,497) TOTAL 3 Years 3 Years 3 Years 5 34,361 34,190 (3,522) 34,631 $’000s (1,280) (1,211) 1,229 2,338 1,167 770 171 - - - -
impairment lossistreated asarevaluation increase. reversalis carriedatfairvalue,inwhichcasethe ofthe in profit orlossimmediately,the unless relevant asset years. Areversal ofanimpairmentlossisrecognised recognised unit)inprior asset (cash-generating forthe have beendeterminedhadnoimpairmentloss would carryingamountthat amount doesnotexceedthe increased the extentthat amount, butonlytothe carrying increased revised tothe ofitsrecoverable estimate unit)is asset(cash-generating carrying amountofthe Where reverses, animpairmentloss subsequently the loss istreated asarevaluation decrease. impairment asset iscarriedatfairvalue,inwhichcasethe recognised inprofit orlossimmediately,the unless relevant reduced toitsrecoverable amount.Animpairmentlossis unit)is asset(cash-generating carrying amountofthe itscarryingamount,the tobelessthan unit) isestimated recoverableIf the amountofanasset(orcash-generating cash flowshavenotbeenadjusted. offuturethe estimates the assetforwhich risks specificto valueofmoneyandthe time market assessmentsofthe value usingapre-tax reflects ratethat discount current futureestimated cashflowsaretheir presentdiscounted to andvalueinuse.Inassessinguse,the to sell higheroffairvaluelesscosts Recoverable amountisthe be identified. for whichareasonable basiscan and consistentallocation group smallest tothe allocated units ofcash-generating are they units,orotherwise cash-generating individual corporateassetsarecan beidentified, to alsoallocated Where areasonable andconsistentbasisofallocation assetbelongsisestimated. unittowhichthe generating from recoverable assets,the other cash- amountofthe that areasset doesnotgeneratecashflows independent impairmentloss(ifany).Where extentofthe the the recoverable todetermine assetisestimated amountofthe exists,the an impairmentloss.Ifanysuchindication there assetshavesuffered those that isanyindication amounts ofitsintangibleassetstodeterminewhether At eachreporting Group date,the reviews carrying the Impairment ofintangibleassets period. in the expenditure havebeentreated asexpensesincurred Group maintenanceandoperational anditsmembers.All toolforthe andinformation branding advertising, Group’sThe primaryfocusofthe websiteisasan Website costs
over the leaseterm. over the rental rent periodic the rates.Insomejurisdictions, isfixed tobe andinothers inflation tomarket reset periodically contracts toprovide forpaymentstoincrease each year by itiscustomaryforlease it operates.Insomejurisdictions, The Group leasesproperties from jurisdictions inthe which (a) Right-of-useasset 14. LEASES 31 December 2019 at as asset Right-of-use 31 December 2018 at as asset Right-of-use NET BOOK VALUE 2019 31 December at Balance movements exchange Foreign assets right-of-use Derecognition of Depreciation 2019 1January at Balance movements exchange Foreign assets right-of-use Derecognition of Depreciation 2018 1January at Balance DEPRECIATIONACCUMULATED 2019 31 December at Balance movements exchange Foreign assets right-of-use Derecognition of assets right-of-use to Additions/modification 2019 1January at Balance assets right-of-use Derecognition of assets right-of-use Additions/modification to 2018 1January at Balance AMOUNT GROSS CARRYING
Leased properties CONSOLIDATED 23,989 45,311 38,150 $’000s 21,352 ,243) 7, ( (7,161) (64) 64 34 18 ------
115 | CPA Australia Integrated Report 2019 116 | CPA Australia Integrated Report 2019 (b) Leaseliabilities leaseterm. the shorter than assetif,rarely, ofthe economic life isjudgedtobe this remainingover the remaining leaseoroverthe termofthe Right-of-use assetsare basis onastraight-line amortised • • and increased for: leaseliability,the reduced received, foranyleaseincentives Right-of-use assetsare measured initially amountof atthe Comprehensiveand Other leaseterm. Incomeoverthe recognised as an expense in the Statement of Profit or Loss leasesare these less. Leasepaymentsassociatedwith or of12months aduration value assetsandleaseswith exceptforleasesoflow- use assetandaleaseliability leasesareAll accountedforbyrecognising aright-of- for consideration. time inexchange assetforaperiodof use ofanidentified righttocontrol contractconveysthe a leaseIfthe the contract is,orcontains,alease.A Group ofacontract,the At inception a assesseswhether Balance at 31 December 2019 31 December at Balance movements exchange Foreign Lease payments expense Interest Additions/modification 2019 1January at Balance movements exchange Foreign Lease payments expense Interest Additions/modification 2018 1January at Balance liability of lease Reconciliation Non-current Current LIABILITIES LEASE Initial directInitial costsincurred. lease of the Lease paymentsmadeatorbefore commencement Leased properties CONSOLIDATED 45,565 45,565 32,432 21,352 $’000s 42,956 (9,745) 2,609 1,507
19 - - - - -
• nature modification: ofthe lessor, the of aleasewith dependsonthe accounting the CompanyrenegotiatesWhen the contractualterms the remainingthe (revised) leaseterm. revised the with over carryingamountbeingamortised right-of-useasset, carryingvalueofthe is madetothe index isrevised. cases, anequivalentadjustment Inboth element offuture leasepaymentsdependentonarateor issimilarlyrevised of leaseliabilities variable whenthe onleasecommencement.Thecarryingvalue applied that term, whichare rate samediscount atthe discounted toreflectliability the the paymentstomakeover revised exercised), lease carryingamountofthe the itadjusts being option of alesseeextensionortermination lease (because,forexample,itreassesses probability the CompanyrevisesWhen the termofany ofthe itsestimate payments made. andare balanceoutstanding on the reduced for lease increase asaresult ofinterest charged ataconstantrate measurement,Subsequent toinitial leaseliabilities beingexercised. option termination basisof onthe leasehasbeenestimated term ofthe lease,ifthe the payableforterminating Any penalties • • includes: liability recognition,On initial lease carryingvalueofthe the relate.they lease paymentsare periodtowhich expensedinthe ComprehensiveLoss orOther variable Income.Other andareliabilities StatementofProfit expensedinthe or Service charges are oflease calculation notincludedinthe unchanged throughout leaseterm. the remain variableelementwill assumesthe lease liability measurement initial index orrate.Insuchcases,the ofthe measurement dependonan ifthey leaseliability ofthe sources. Variable leasepaymentsare onlyincludedinthe obtaining interest ratesfrom variousexternalfinancing ratewhichisdeterminedby discount rate asthe rate. Generally, Group the usesitsincremental borrowing readily Group’s determined,the incremental borrowing rateinherentthe leaseor, inthe ratecannotbe ifthat ratedeterminedbyreference discount the term, with to lease lessoroverthe contractual paymentsduetothe areLease liabilities measured present atthe valueofthe separate leaseinaccordance abovepolicy the with isaccounted forasa modification use obtained,the rightsof additional standalonepricefor the the with assets beingleasedforanamountcommensurate renegotiationIf the results inoneormore additional option assess that Companyifitisreasonablyfavour ofthe certainto The exercise priceofany purchase grantedin option value guarantee Amounts expectedtobepayableunderanyresidual
would result inanincrease of$6m. inleaseliability payments, shoulditexercise extensionoption, the The Group future potential the that hasestimated lease circumstances itscontrol. within if there isasignificanteventorchangesin itisreasonablywhether certaintoexercise options the exercise TheGroup extensionoptions. the reassesses itisreasonablycommencement datewhether certainto provide flexibility. operational The Group assessesatlease innewleasesto seeks toincludeextensionoptions exercisable Group. bythe Where Group the practicable, Some property leasescontainextensionoptions Extension options • • * Total years five than More years five to Four years four to Three Two years three to years two to One year one than Less COMMITMENTS LEASE from that shown on pages two and 54 which report total headcount. total report which 54 and two pages on shown that from differ they such as and FTE to refer here stated numbers Employee right-of-use asset is adjusted by the sameamount. bythe right-of-use assetisadjusted date.The modification onthe rate applicable the discounted at leasepayments modified the with renegotiated renegotiated paymentsoverthe term, ensure itscarryingamountreflectsthe the amountof to adjusted further isthen or loss.Theleaseliability anydifference leasewith of the recognised inprofit proportion toreflect termination orfull the partial andright-of-useassetareliability reduced same bythe lease carryingamountofthe the lease,both of the renegotiationIf the results inadecrease scope inthe same amount bythe right-of-useassetbeingadjusted the with date, modification onthe rateapplicable discount the isremeasured leaseliability being leased),the using leaseterm,oronemoreto the assets additional isanextension that lease(whether scopeofthe the caseswhere other In all renegotiating increases CONSOLIDATED 45,565 $’000s 21,987 2,609 5,060 5,881 4,577 5,451 2019 EMPLOYEE NUMBERS the changesoccur.the are recognised inprofitthe periodsinwhich orlossin andchangesinassumptions experience adjustments relatedthe Anyremeasurements liabilities. arisingfrom termsofmaturity mostcloselymatchthe bonds that reportingend ofthe corporate periodonhigh-quality at ratesdeterminedbyreference tomarketyieldsatthe departures andperiodsof service,andare discounted future wageandsalarylevels, experienceofemployee The expectedfuture payments incorporate anticipated future benefits. paymentstobemade forthose been measured present atthe estimated valueofthe than oneyearhave Employee benefitspayablelater include on-costs. are liabilities expected tobepaidwhenthe and settled render servicehavebeenmeasured the amounts atthe employees periodinwhichthe endofthe year afterthe one within Employee benefitsexpectedtobesettled accrued. entitlements leave andvestedunvestedlongservice The employeebenefitsprovision represents annual Employee benefits during the financial year financial the during employees (FTEs) equivalent full-time of number Average properties Restoration of leased Employee benefits NON-CURRENT properties Restoration of leased Employee benefits CURRENT 15. PROVISIONS * CONSOLIDATED CONSOLIDATED 10,501 $’000s 6,335 6,889 3,612 3,148 2019 2019 464 488 554 $’000s 5,708 2,573 5,938 1,952 8,511 2018 2018 230 621 475
117 | CPA Australia Integrated Report 2019 118 | CPA Australia Integrated Report 2019 16. OTHERLIABILITIES resulted inanincrease provision. tothe discount rates.This and leaseterms,inflation to the changes inexpectedcoststorestore sites, applicable In 2019, provision the wasre-measured basedon reviewed provision andthe re-measured ifrequired. and recognised asafinancecostandcircumstances are valueofmoneyisunwound time forthe discount the time, decommissioning, restoration. Atthis andsimilarliabilities assets andAASBInterpretation 1Changesinexisting AASB 137Provisions, andContingent liabilities Contingent The provision isreviewed inaccordance annually with assetcostforleaseholdimprovements.as partofthe GroupEquipment, the recognises arestoration provision In accordance AASB116Property, with Plantand Restoration ofleasedproperties Lease incentive NON-CURRENT Lease incentive received in advance and Subscriptions fees CURRENT to plant and equipment charged provision Additional Balance at 1 January Balance as at 31 at December as Balance discount rate the in changes of effect Unwinding of discount and CONSOLIDATED CONSOLIDATED 78,730 78,730 78,730 $’000s $’000s 3,702 1,478 2,182 2019 2019 42 - - - $’000s $’000s 76,404 75,792 7 92 2 77, 1,397 2,182 2018 2018 888 888 721 612 64
RESERVES Retained surplus MEMBERS' FUNDS Total liabilities liabilities Non-current liabilities Current LIABILITIES Total assets assets Non-current Current assets ASSETS FINANCIAL POSITION in Note14a. are right-of-useassetasoutlined includedaspartofthe From 1January2019 underAASB16,leaseincentives benefits fromthe leasedassetare consumed. representative inwhicheconomic pattern time ofthe basis, exceptwhere basisismore systematic another as areduction ofrental expenseonastraight-line The aggregate were benefitsofincentives recognised wereleases, suchincentives recognised asaliability. werelease incentives received toenterintooperating eventthat toAASB16inthe transition Prior tothe Lease incentives for the year the for Total comprehensive income (expense)/income net of tax comprehensiveOther year the for Surplus FINANCIAL PERFORMANCE Total members' funds 17. PARENT ENTITYDISCLOSURE translation reserve currency Foreign revaluation reserve Investment
CONSOLIDATED 103,834 128,431 101,209 251,383 122,952 147,549 46,340 $’000s $’000s 7 261 97, 2,230 4,492 6,722 6,010 2019 2019 563 103,784 202,101 115,894 86,207 $’000s $’000s 94,837 99,467 98,317 3,480 6,733 6,071 3,711 (662) 2018 2018 606 with no additional lossrecognised. noadditional with $11.72m beingreclassified toinvestmentinsubsidiary accumulatedimpairmentof the of $11.72malongwith loanamount outstanding the with as acapitaltransaction shareholder, forgiveness the loanhasbeentreated ofthe CPA initscapacityasa Ltdwasacting Australia being parent companyCPA Ltd,andthat Australia loanwasfrom Asthe loaninfull. the ashareholder, On 30September2019, Board the approved to forgive group. expensesofthe operating loanadvancesrelateto whichthe toare represented as CPA ofthe consolidation LtdGroup, Australia asfunds interest during2019. on Thisimpairmentlosseliminates relating amountadvancedandrelated tothe implied provision forimpairmentof $1.94mrecognised in2019 parentaccounts ofthe companyandanadditional recognised asat31December 2018 standalone inthe ($5.34m). Aprovision forimpairment of$15.12mwas investmentinCPA($11.72m) andthe Advice Australia loan evidenceofimpairmentthe was objective there andconcludedthat subsidiary investment inthe In 2018, directors the loanandthe assessedthe is$15.34m(2018: loanfacility under the $14.44m). On 31December2019, totalamountadvanced the rate of4.85percent. advanced during2019 wasdeterminedusingamarket entity. $900,000loanamount costofthe Theamortised recorded parent inthe asan‘investmentinsubsidiary’ costwas amortised loanamountadvancedandthe the wasaninterest-freeAs this difference loan,the between a marketrateofinterest forasimilarinstrument. future the involves discounting loanrepayments using effectivecalculated usingthe interest which method, asset inaccordance cost AASB9.Amortised with The loanwasrecognised andmeasured asafinancial to becomeinsolvent. where repayment wouldcauseCPA Advice Australia CPA Advice’s Australia repayment righttodefer the and are repayable by8June2025subjectto infull amountsadvancedare is$20.0m;all facility interest free loan canbeadvancedunderthe maximum amountthat agreement facility The termsofthe the beingthat ownedsubsidiary, itswholly with CPA Advice. Australia On 1June2015,CPA entered Australia intoaloanfacility Loan tosubsidiary Later than five years five than Later years five than later not but year one than Later year one than later Not recognised: been have liabilities following the commitments, contractual of non-cancellable In respect CONTRACTUAL COMMITMENTS OTHER NON-CANCELLABLE 18. COMMITMENTS would notexceed$10permember. Group eventofthe members inthe beingwoundup in accordance of liability the Constitution, the with CPA byguaranteeand, isacompanylimited Australia 19. LIMITATION OFMEMBERS’LIABILITY comprehensive income. statementofprofitin the orloss andother areThese contributions expenses included inother year was$66,627(2018: $64,582). 2019 forthe Thecontribution objectives. pursuit oftheir The Group hasprovided supportin2019 IIRCin tothe 2019the yearwere $495,478(2018: $486,239). for ofAPESB.Thecontributions objectives pursuit ofthe IPACA ANZandthe contributefundsnecessaryfor the APESB,CPA undertakingswith As partofthe Australia, year was$1,548,707(2018: $1,459,233). 2019 forthe Thecontribution objectives. pursuit oftheir The Group hasprovided supportin2019 toIFAC inthe organisations: APESB,IFAC IIRC. andthe GroupIn 2020,the following tosupportthe continue will commitments Other reporting period. significant capitalexpenditurethe the endof asat The Group hasnocontractual commitmentsfor events andsoftware agreements. licensing hirevenue andaudio-visual contractsforCPA Congress commitmentsprimarilyinclude non-cancellable Other Other contractualcommitments
CONSOLIDATED $’000s 1,562 1,183 2019 379 - $’000s 3,159 1,847 1,312 2018 -
119 | CPA Australia Integrated Report 2019 120 | CPA Australia Integrated Report 2019 Caroline Spencer Louise Cox Su-Yen Wong Dale Pinto Rosemary Sinclair Rosemary Helen Lorigan Robyn Erskine Robyn Ric De Santi Chin Aik Wong Aik Chin Merran Kelsall Peter Wilson NAME DIRECTORS NON-EXECUTIVE directing andcontrolling Group. ofthe activities the andresponsibility authority having the forplanning, Key managementpersonnel(KMP)are persons those (a) Keymanagementpersonnel 20. RELATED PARTIES Kerry Mayne Kerry Liz Malady Craig Laughton TraicosErica Pflugrath Gary Rowena Buddee Farid Jarrar Deborah Leung Simon Eassom Yeates Meg Karen Hellwig Diss Nicholas Hunter Andrew EXECUTIVES Former director Director Director Director Director Director Director Director Deputy President Deputy Deputy President Deputy President and Chair Business Development Business Former Executive General Manager Culture and People Former Executive General Manager Practice Public and Advocacy Policy, Former Executive General Manager Culture and People Manager General Executive Advocacy and Policy Manager General Executive Public Professional Practice Standards GeneralExecutive Manager Officer Digital and Information Chief Ltd Co., (Shanghai) –CPA Australia Director Executive General Manager International Member Education GeneralExecutive Manager GeneralExecutive Manager Marketing Executive General Manager Member Experience Ltd Pty Advice –CPA Australia Director Ltd Co., (Shanghai) –CPA Australia Director Officer Financial Chief Officer Executive Chief TITLE
executives wereexecutives entire KMPforthe period: directors non-executive following the indicated, and Ltd orare considered Group. KMPofthe Unlessotherwise included where are they alsodirectors ofCPA Australia reporting period.Directors haveonlybeen ofsubsidiaries wereThe following KMPofCPA Ltdduringthe Australia Resigned 30 September 2019 September 30 Resigned Appointed 1 October 2019 1October Appointed Appointed 1 October 2018 1October Appointed Appointed 1 October 2018 1October Appointed Appointed 1 October 2017 1October Appointed Appointed 1 October 2017 1October Appointed Reappointed 1 October 2019 1October Reappointed Reappointed 1 October 2018 1October Reappointed Appointed 1 October 2017 1October Appointed Appointed 1 October 2017 1October Appointed Reappointed 1 October 2019 1October Reappointed Ceased 20 September 2019 September 20 Ceased 2019 31 July Ceased 11 2019 July Ceased 2019 September 23 Appointed 2019 9September Appointed 2019 9September Appointed 2019 January 29 Appointed 2019 1September Appointed APPOINTED/RESIGNED NA 30 September 2022 September 30 30 September 2021 September 30 30 September 2021 September 30 30 September 2020 September 30 30 September 2020 September 30 30 September 2022 September 30 30 September 2021 September 30 30 September 2020 September 30 30 September 2020 September 30 TERM END DATE END TERM 30 September 2022 September 30 at atotalof$50,000perannum. to receive amaximumamountof$450perhour, capped memberswere Committee, Nomination For the entitled of $2300,cappedat20daysintotalthroughout 2019. werecommittee toreceive entitled amount aperdiem IRIC,DivisionalPresidentsFor the secondedtothis amount. toaperdiem beentitled will they committee Company. Where anon-director isamemberofBoard businessofthe the with inconnection otherwise Board, ofthe committees ofmembersor meetings properly Board, ofthe meetings incursinattending adirector expensesthat andother accommodation The Group reasonable maypayall travelling, effective 16November2018. CPA director Australia onapro duties bonobasis hewouldperformhis General, advisedthat Auditor the with inconsultation MrDeSanti, that Australia’s Board membersadvising communicatedtoall Integrated Report.On20November2018, CPA and wasreported 2017CPA inthe Annual Australia was approved GeneralofTasmania Auditor bythe Mr DeSanti’s CPA onthe participation Board Australia Board inOctober2017and heremains role. inthat Tasmania appointmenttoCPA uponhisinitial Australia’s Director Generalof wasDeputyAuditor RicDeSanti appointment from 28May2018 to30September2019. director onapro duties termofher bonobasisforthe Ms SpencerelectedtoperformherCPA Australia GeneralforWesternappointed asAuditor Australia. On 13March 2018, director Caroline Spencerwas (c) -KeyManagementPersonnel. directors in2019issetoutNote20,section $1,010,267.17. Theannualremuneration paidtothe pooledamountwasincreased2020, the byCPIto was $993,379.71.From 1October2019to30September pooledamountfor10directorsto 30Sept2019,the From Constitution. calculated underthe 1October2018 pooledamountfor10Directors,2019, wasbelowthe AGMin2018.adopted atthe Director renumeration for provisions changesbeing the Constitution, ofthe Directors are remunerated inaccordance the with (i) Director compensation ofkeymanagementpersonnel (b) Compensation individual’s experienceandcompetence. takingintoaccountthe position for eachexecutive going forward todeterminerelevant salaryranges +/- 20percentfrom beused will marketmedian the remuneration, CEO.Bandsof ofthe that including referencepolicy pointtodetermineannualexecutive The Board asthe marketmedian hasalsoadopted the poolisapproved. incentive year andthe performance isreviewed Board bythe endofeach atthe paymentstobemade; must beachievedforincentive Group. ofthe objectives Group’s the Overall, KPIs reward strategic overall employeecommitmenttothe memberserviceoutcomesandto critical including newstrategy isdesignedtofocusemployeesonthe that The Group schemeforitsstaff hasinplacean incentive Board.by the businessunitleadersandapproved with in consultation increases staff other forall are CEO determinedbythe reports CEOare ofthe approved Board. bythe Salary 1 Januaryeachyear. CEOanddirect ofthe Remuneration on from reviews these beeffective normally will from andanysalaryincreasesconducted annually following reviews Remuneration contribution. superannuation are TSC equalstotalgross remuneration employer plusthe below.as discussed scheme at-risk componentcomprisinganincentive component basedonTotal SalaryCost(TSC)andan remunerationExecutive iscomprisedofafixed compensation (ii) Executive lower level,effective 1January2018. CPAfor the AdviceBoard Australia were setata CPA andremuneration subsidiaries Australia levels CPA are Australia Boards tositonthe ofany The Board nodirectors hasdeterminedthat of
121 | CPA Australia Integrated Report 2019 122 | CPA Australia Integrated Report 2019 c) 2019 –KeyManagementPersonnel Compensation $7,500. of fee acommittee received and 2019 September –30 2019 1January from Committee Engagement Member the of Chair was 2018. Erskine Ms 16 November (5) from basis bono apro on duties director his year. the perform to during elected accrued Santi De Mr (4) entitlements leave service long include benefits long-term Other (3) benefits. fringe and parking car include benefits short-term Other (2) 2019. during accrued entitlements leave annual (1) Includes Notes: Helen Lorigan Erskine Robyn Santi De Ric Wong Aik Chin Kelsall Merran NAME Cathy Bibby Cathy Murray Chenery ThomasonRobert Erin Wood Glenn Ahern Dignam Stuart Awty Adam Craig Laughton Malady Liz Mayne Kerry TraicosErica Pflugrath Gary Rowena Buddee Diss Nicholas Hunter Andrew EXECUTIVES Jon Scriven Caroline Spencer Louise Cox Su-Yen Wong Dale Pinto Sinclair Rosemary Peter Wilson DIRECTORS NON-EXECUTIVE Deborah Leung Farid Jarrar Simon Eassom Yeates Meg Hellwig Karen
(8) (4) (7) (5) (9)
(6) COMPANY CPA Australia Limited CPA Australia TOTAL Total Total Limited CPA Australia Limited CPA Australia Limited CPA Australia Total Limited CPA Australia Limited CPA Australia Total CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia CPA Australia (M) Sdn. Bhd. Sdn. (M) CPA Australia Ltd Pty Advice CPA Australia CPA Australia Limited CPA Australia Limited CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Bhd. Sdn. (M) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia CPA Australia Limited CPA Australia CPA Australia (Shanghai) Co., Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia
POSITION Director Advocacy and Public Practice Public and Advocacy Former Executive General Manager Policy, Former Executive General Manager People and Culture Former Executive General Manager Business Development Former director Director Director PresidentDeputy PresidentDeputy Former director Former director Former Group Executive Member Engagement and Education Director Director CFO Technology and Digital Solutions Former Executive General Manager Former Executive General Manager Brand Former General Manager Membership NSW and Divisions Australia Manager General Former Former General Manager Policy and Corporate Affairs Former Interim CEO Former COO Commercial Executive General Manager People and Culture Advocacy and Policy Manager General Executive Standards Professional Practice Public Manager General Executive CEO Former director Director Director Director Director Former director Chair and President and Chair Director Executive General Manager International Officer Digital and Information Chief Executive General Manager Member Education GeneralExecutive Manager Marketing Executive General Manager Member Experience
4,157,533 SALARY SALARY 305,343 305,343 412,813 206,279 206,279 103,539 103,539 385,495 385,495 229,234 229,234 168,252 168,252 296,798 296,798 412,813 697,812 697,812 149,312 149,312 325,114 174,418 FEES 69,292 69,292 69,292 69,292 69,292 SHORT-TERM EMPLOYEE EMPLOYEE SHORT-TERM 17,922 17,922 72,569 72,569 76,557 76,557 79,227 79,227 76,142 AND AND (1) - $ ------
BENEFITS BONUS 710,079 710,079 208,125 208,125 88,791 88,791 70,000 88,791 96,000 70,000 75,400 75,400 76,000 51,000 11,500 11,500 15,616 15,616 17,6 47 47 17,6 $ ------
OTHER 27,834 27,834 3,585 3,585 2,062 2,062 4,527 4,527 3,720 3,720 1,345 1,345 1,434 1,434 2,779 2,779 4,572 4,572 4,572 3,070 3,070
740 740 (2) - - - $ ------
SUPERANNUATION EMPLOYMENT BENEFITS 307,678 25,000 20,677 20,677 13,602 13,602 POST- 17,89 0 0 17,89 25,000 25,000 25,000 23,425 23,425 17,753 19,596 19,596 20,767 20,767 22,917 17,753 6,583 6,583 6,583 6,583 6,583 9,836 9,836 9,836 6,752 6,752 1,703 1,703 7,837 7,837 6,522 6,522 ,233 7, - - - - $ ------
LONG-TERM BENEFITS OTHER OTHER 75,785 75,785 12,931 12,931 2,605 2,605 6,382 6,382 5,420 5,420 6,707 6,707 1,527 9,042 9,042 5,100 5,100 9,341 3,123 3,123 3,149 3,149 9,279 9,341 1,179 1,179 9,279 (3) - - - - $ ------
TERMINATION TOTAL 2019 BENEFITS) 5,278,909 433,058 433,058 106,238 106,238 406,938 528,698 225,875 516,462 516,462 194,831 194,831 191,909 171,869 171,869 113,375 113,375 113,375 101,414 101,414 314,135 314,135 528,698 942,705 414,194 414,194 75,875 75,875 75,875 75,875 75,875 (EXCL. (EXCL. 97,333 19,625 19,625 83,375 ------$ ------
TERMINATION BENEFITS 258,906 258,906 141,075 141,075 117,831 117,831 (10) ------$ ------
TERMINATION TOTAL 2019 BENEFITS) 5,537,815 225,875 942,705 113,375 113,375 113,375 433,058 433,058 414,194 106,238 106,238 406,938 528,698 528,698 312,662 516,462 516,462 312,944 191,909 101,414 101,414 314,135 314,135 414,194 75,875 75,875 75,875 75,875 75,875 19,625 19,625 (INCL. 83,375 97,333 ------$ ------
1,044,089 1,044,089 6,427,595 6,427,595 225,000 225,000 365,553 365,553 125,204 299,439 138,327 138,327 646,416 646,416 112,500 112,500 216,210 216,210 274,617 274,617 466,426 466,426 466,426 466,426 365,553 431,119 431,119 318,541 318,541 268,919 268,919 237,051 237,051 218,961 218,961 417,310 417,310 56,250 56,250 75,000 75,000 75,000 30,096 30,096 TOTAL 94,894 94,894 65,673 18,750 18,750 18,750 2018 ------$ ------
c) 2019 –KeyManagementPersonnel Compensation Cathy Bibby Cathy Murray Chenery ThomasonRobert Erin Wood Glenn Ahern Dignam Stuart Awty Adam Craig Laughton Malady Liz Mayne Kerry TraicosErica Pflugrath Gary Rowena Buddee Deborah Leung Farid Jarrar Simon Eassom Yeates Meg Hellwig Karen Diss Nicholas Hunter Andrew EXECUTIVES Jon Scriven Caroline Spencer Louise Cox Su-Yen Wong Dale Pinto Sinclair Rosemary Helen Lorigan Erskine Robyn Santi De Ric Wong Aik Chin Kelsall Merran Peter Wilson DIRECTORS NON-EXECUTIVE NAME (8) (4) (7) (5) (9)
(6) COMPANY CPA Australia Limited CPA Australia TOTAL Total Total Limited CPA Australia Limited CPA Australia Limited CPA Australia Total Total Limited CPA Australia Limited CPA Australia CPA Australia Limited CPA Australia Limited CPA Australia Bhd. Sdn. (M) CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Bhd. Sdn. (M) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Ltd Pty Advice CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia
POSITION Director Advocacy and Public Practice Public and Advocacy Former Executive General Manager Policy, Former Executive General Manager People and Culture Former Executive General Manager Business Development Former director Director Former director Former director Former Group Executive Member Engagement and Education NSW and Divisions Australia Manager General Former Former General Manager Policy and Corporate Affairs Former director Former Interim CEO Former COO Commercial Executive General Manager People and Culture Advocacy and Policy Manager General Executive Standards Professional Practice Public Manager General Executive Executive General Manager International Officer Digital and Information Chief Executive General Manager Member Education GeneralExecutive Manager Marketing Executive General Manager Member Experience Director Director CFO CEO Former director Director Director Director Director Director PresidentDeputy PresidentDeputy President and Chair Technology and Digital Solutions Former Executive General Manager Former Executive General Manager Brand Former General Manager Membership Director
4,157,533 SALARY SALARY 305,343 305,343 412,813 206,279 206,279 103,539 103,539 385,495 385,495 229,234 229,234 168,252 168,252 296,798 296,798 412,813 697,812 697,812 149,312 149,312 325,114 174,418 FEES 69,292 69,292 69,292 69,292 69,292 SHORT-TERM EMPLOYEE EMPLOYEE SHORT-TERM 17,922 17,922 72,569 72,569 76,557 76,557 79,227 79,227 76,142 AND AND payment. termination the in 2019. included during not paid is amount payments this separation termination; on paid also Includes (10) payment. were $106,396 termination the totalling in included not is entitlements leave amount this service long and termination; on leave paid Annual also (9) were payment. $68,576 totalling termination the in included entitlements not is leave amount service this long and leave termination; on Annual paid 2019.(8) also were $9,677 September 30 on totalling concluded term entitlements leave Spencer’s Ms 2018. service May 28 long from and leave effect Annual with (7) basis bono apro on duties director her perform to elected Spencer Ms (6) (1) - $ ------
BENEFITS BONUS 710,079 710,079 208,125 208,125 88,791 88,791 70,000 88,791 96,000 70,000 75,400 75,400 76,000 51,000 11,500 11,500 15,616 15,616 17,6 47 47 17,6 $ ------
OTHER 27,834 27,834 3,585 3,585 2,062 2,062 4,527 4,527 3,720 3,720 1,345 1,345 1,434 1,434 2,779 2,779 4,572 4,572 4,572 3,070 3,070
740 740 (2) - - - $ ------
SUPERANNUATION EMPLOYMENT BENEFITS 307,678 25,000 20,677 20,677 13,602 13,602 POST- 17,89 0 0 17,89 25,000 25,000 25,000 23,425 23,425 17,753 19,596 19,596 20,767 20,767 22,917 17,753 6,583 6,583 6,583 6,583 6,583 9,836 9,836 9,836 6,752 6,752 1,703 1,703 7,837 7,837 6,522 6,522 ,233 7, - - - - - $ ------
LONG-TERM BENEFITS OTHER OTHER 75,785 75,785 12,931 12,931 2,605 2,605 6,382 6,382 5,420 5,420 6,707 6,707 1,527 9,042 9,042 5,100 5,100 9,341 3,123 3,123 3,149 3,149 9,279 9,341 1,179 1,179 9,279 (3) - - - - $ ------
TERMINATION TOTAL 2019 BENEFITS) 5,278,909 433,058 433,058 106,238 106,238 406,938 528,698 225,875 516,462 516,462 194,831 194,831 191,909 171,869 171,869 113,375 113,375 113,375 101,414 101,414 314,135 314,135 528,698 942,705 414,194 414,194 75,875 75,875 75,875 75,875 75,875 (EXCL. (EXCL. 97,333 19,625 19,625 83,375 ------$ ------
TERMINATION BENEFITS 258,906 258,906 141,075 141,075 117,831 117,831 (10) ------$ ------
TERMINATION TOTAL 2019 BENEFITS) 5,537,815 225,875 942,705 113,375 113,375 113,375 433,058 433,058 414,194 106,238 106,238 406,938 528,698 528,698 312,662 516,462 516,462 312,944 191,909 101,414 101,414 314,135 314,135 414,194 75,875 75,875 75,875 75,875 75,875 19,625 19,625 (INCL. 83,375 97,333 ------$ ------
1,044,089 1,044,089 6,427,595 6,427,595 225,000 225,000 365,553 365,553 125,204 299,439 138,327 138,327 646,416 646,416 112,500 112,500 216,210 216,210 274,617 274,617 466,426 466,426 466,426 365,553 431,119 431,119 318,541 318,541 268,919 268,919 237,051 237,051 218,961 218,961 417,310 417,310 56,250 56,250 75,000 75,000 75,000 30,096 30,096 TOTAL 94,894 94,894 65,673 18,750 18,750 18,750 2018 ------$ ------
123 | CPA Australia Integrated Report 2019 124 | CPA Australia Integrated Report 2019 AND NEW ZEALAND BRANCH ZEALAND NEW AND AUDITOR OF PARENT ENTITY, SUBSIDIARIES AUSTRALIA Audit of financial report financial of Audit 21. AUDITORREMUNERATION and keymanagementpersonnelrelated entities. There are keymanagementpersonnel with notransactions of CPA (Shanghai)Co.Ltd. Australia isadirector GeneralManagerInternational Executive and DeborahLeung,CountryHeadGreater Chinaand Ltd andCPA AdvicePtyLtd(effective 1September2019) Diss, CFOisadirector ofCPA (Shanghai)Co. Australia director ofCPA (Shanghai)Co.,Ltd.Nicholas Australia is adirector ofCPA (M)Sdn.Bhd.anda Australia Priya DharshiniTerumalay, CountryHeadMalaysia, (e) and are payableinearly2020. Andrew Heng,adirector ofCPA (M)Sdn.Bhd. Australia Director feesof$1,736havebeenaccruedinrespect of Group.and the There are noloansbetweenkeymanagementpersonnel (d) Non-audit services – tax compliance –tax services Non-audit services assurance Other for overseas branches reports financial of Audit OTHER AUDIT FIRMS services assurance Other subsidiaries and branches overseas for reports financial of Audit AFFILIATED FIRMS and keymanagementpersonnelrelated entities ofkeymanagementpersonnel transactions Other management personnel Loans andamountsowingtokey
253,314 379,882 56,700 69,868 KPMG 19,112 19,112 2019 CONSOLIDATED $ - -
380,731 249,222 90,009 KPMG 20,696 20,696 41,500
2018 $ - - 50,400 31,239 86,717 4,148 2018 DTT 930 $ - - - and providedthe AFSLandACL. financialadviceunder CPA AdvicePtyLtdisincorporatedinAustralia Australia provision the to facilitate ofservicestomembersinChina. CPA (Shanghai)Co.,LtdisincorporatedinChina Australia provision the facilitate ofservicestomembersinMalaysia. CPA (M)Sdn.Bhd.isincorporatedinMalaysiato Australia downto$1. has beenwritten invested intoCPA AdvicePtyLtdof$17,060,464 Australia investment.Thehistoricalcapital fairvalueofthat to the capital investedintoeachentity, whichmaybedifferent The amountofinvestmentrepresents historical the 22. INVESTMENTINCONTROLLEDENTITIES cashbenefit. the awards where direct memberisthe the recipient of be represented. Sponsorshipscanberaisedformember PricewaterhouseCoopers andErnst&Young also will arrangement localKPMGoffice their with where Deloitte, Offshore canenterintosponsorships divisions forendorsementquarterly. Committee Compliance documented andprovided Board tothe Riskand Audit orCPA authoring article Program istobe this authoring, appropriate professional todeliver entity development, Where most isdeemedtobethe statutoryauditor the workandnon-discretionaryaudit audit-related work. provision tothe islimited external auditor ofstatutory conflict ofinterest.the the useof Asageneralprinciple, toensure Committee Risk andCompliance there isno and requires priorapproval the Board ofthe Audit mustadhereauditor Board-endorsed tothe principles company engagementofthe involvesthe that Any activity KPMG Australia. The 2019 annualfinancial by report hasbeenaudited CPA Australia Advice Pty Ltd Pty Advice CPA Australia Co., Ltd (Shanghai) CPA Australia Bhd. Sdn. (M) CPA Australia CONTROLLED ENTITY CONTROLLED ENTITIES IN INVESTMENT
SHARE OF CLASS Ordinary Ordinary Ordinary • • • • sponsorship from KPMG: During 2019, received divisions following the local of the Big4Careers.of the receivedNew Zealanddivision localsponsorship CPA Congress andCPA Profession Australia Sessions receivedMalaysia division localsponsorshipfor CPA Profession Australia Sessions CPA Congress, Accountant’s International Dayand Singapore received division localsponsorshipfor CPA Congress andCharityRun receivedHong Kongdivision localsponsorshipfor 2019 100 100 100 % ENTITY INTEREST ENTITY 2018 100 100 100 % 1,206,987 160,127 2019 $ 1 INVESTMENT AMOUNT OF OF AMOUNT 1,206,987 160,127 2018 $ 1
125 | CPA Australia Integrated Report 2019 126 | CPA Australia Integrated Report 2019 superannuation plans. superannuation Authority,Regulation andsupervisesregulated licenses regulator,The prudential Prudential Australian the • • • roles: following has the bestinterestsin the ofFundbeneficiaries.The Trustee Fund.TheTrusteethe toactsolely hasalegalobligation The Fund’s Trustee isresponsible governanceof forthe Governance ofthefund hasbeenobtained. exemption fundpaysdefinedbenefitpensionsunlessan if the fundeverythreesuperannuation years,oreveryyear tobeperformedforeachdefinedbenefit valuation requirefunds operate.TheSISRegulations anactuarial provides whichsuperannuation frameworkwithin the industryand superannuation governsthe legislation Industry(Supervision)(SIS) The Superannuation Regulatory framework finalfinancialthe theFund. reportunderAASB119for therefore isnil.Thiswill defined benefitobligation be benefit members the the Fund,hence remaining in benefits only.2019, At31December there are nodefined newmembersreceivenew members.All accumulation thefundisclosedto of The definedbenefitsection on retirement, andwithdrawal. disablement death, Defined benefitmembers receivelumpsumbenefits Fund information Comprehensive occur. yearinwhichthey Incomeinthe through StatementofProfit the orLossandOther Actuarial gainsandlossesare recognised immediately Accounting policy ceasedon31December1999. divisions the definedbenefit toenter divisions. Eligibility benefit The planprovides anddefined accumulation both funds atvariouspercentages totalsalarycost. oftheir nominated fund.Employeesmaycontributetothe own plan’)ortheir (‘the Corporate Superannuation Group ANZSmartChoice Planofthe Superannuation tothe choicetocontributeeither Employees havethe 23. applicable regulations.applicable lawandother superannuation with Compliance Fundassets Management andinvestmentofthe accordance Fundrules the with beneficiaries from Fundassetswhen required in Fundandpaymenttothe ofthe Administration BENEFIT PLAN SUPERANNUATION ANDDEFINED the year.the during benefits payable,curtailmentsorsettlements There were nofundamendmentsaffecting defined the Significant events andacross globally both sectorsisdiversified. the However, allocation equityinvestments,the the within ofequitymarketrisk. has asignificantconcentration andtherefore toequities 59 percentweighting Fund the Theassetshavea Mason Balancedinvestmentoption. The definedbenefitassets theLegg are investedin fund. accumulation tothe contributions currentonce the tooffset assethasbeenutilised against bewoundupin2020 Fund.TheFundwill left inthe above risksasthere are nodefinedbenefitmembers The FundandEmployerare no longer exposedtothe • • • • defined benefits are: Employer. Themore significantrisks the to relating There are Fundexposesthe severalriskstowhichthe Risk timing of the withdrawal. ofthe timing circumstances uponthe depending negative, and or leave.Theimpactmaybepositive they time the the Fundat of financialposition onthe depending the Fund, of financialposition have animpactonthe large benefitsorgroupsthis may ofmembersleave, numberofmembers,ifmemberswith only asmall Fundhas ofmembersleavingservice–asthe Timing definedbenefits the could bemadewhichincrease costofproviding the changes legislative riskisthat risk–the Legislative contributions amounts andthereby requiring employer additional more assumed,increasing than rapidly definedbenefit which future rise bebased)will benefitsamountswill Salary growth wagesorsalaries(on riskthat risk–the increase tooffset contributions shortfall this needto Employerwill assumedandthe be lowerthan investmentreturns riskthat Investment risk–the will Fair value of fund assets at end of the year the of end at assets fund of value Fair paid expenses and Taxes, premiums RECONCILIATION OFTHENETDEFINEDBENEFITLIABILITY/(ASSET) Benefits paid Benefits byContributions fund participants Employer contributions RECONCILIATION OFTHEFAIR VALUE OFFUNDASSETS RECONCILIATION OFTHEDEFINEDBENEFITOBLIGATION year of end at liability/(asset) benefits defined Net Employer contributions experience liability from arising (gains)/losses Actuarial income interest less assets fund on return Actual interest Net cost Current service Actual return on fund assets less interest income interest less assets fund on return Actual Interest income year of beginning at assets fund of value Fair year of start at (asset) liability benefit defined Net Present value of defined benefit obligations at beginning of the year the of beginning at obligations benefit defined of value Present Interest cost Interest cost Current service Contributions byContributions fund participants Present value of defined benefit obligations at end of the year the of end at obligations benefit defined of value Present paid expenses and Taxes, premiums assumptions financial in changes from arising (gains)/losses Actuarial Benefits paid Benefits experience liability from arising (gains)/losses Actuarial 31 DECEMBER 201931 DECEMBER 201931 DECEMBER 31 DECEMBER 201931 DECEMBER FINANCIAL ENDED YEAR FINANCIAL ENDED YEAR FINANCIAL ENDED YEAR $’000s $’000s $’000s (355) (409) (241) (241) 563 355 (18) (15) (13) 154 (13) 24 24 18 (4) 67 24 67 4 9 - - - - 31 DECEMBER 2018 31 DECEMBER 2018 31 DECEMBER 31 DECEMBER 2018 31 DECEMBER $’000s $’000s $’000s 1,291 (409) (734) (734) (453) 563 838 (68) (33) (39) (39) 154 (15) (11) (11) 34 68 63 63 33 49 3 3 -
127 | CPA Australia Integrated Report 2019 128 | CPA Australia Integrated Report 2019 Total Legg Mason Balanced Trust Balanced Mason Legg INVESTMENT FUNDS CATEGORY ASSET Australian equity Australian International equity International Fixed income reporting dateis: The percentage invested in eachassetclassatthe liability/(asset). definedbenefit hasnoimpactonthe The assetceiling effect ofthe Reconciliation assetceiling ofthe • • relating to: The fairvalueoffundassetsincludesnoamounts Fair valueofentity’s ownfinancialinstruments used. been has 2019 31 October at allocation Asset unavailable. currently is 2019 31 December at as allocation ^Asset 2019 31 December at as assets fund of value Fair Alternatives/other Cash Property the employer.the Any property occupiedby, assetsusedby, orother employer’sAny ofthe ownfinancialinstruments ^ ^ ^ ^ ^ ^ TOTAL $’000s 355 355
IN ACTIVE MARKET
QUOTED PRICES PRICES QUOTED FOR IDENTICAL FOR IDENTICAL LEVEL 1 LEVEL ASSETS $’000s 31 DECEMBER 201931 DECEMBER - - SIGNIFICANT SIGNIFICANT OBSERVABLE LEVEL 2 LEVEL INPUTS INPUTS 22% 28% 37% 12% $’000s 0% 1% AS AT AS 355 355 31 DECEMBER 2018 31 DECEMBER UNOBSERVED UNOBSERVED LEVEL 3 LEVEL INPUTS $’000s 29% 22% 38% 0% 8% 3% - - Expected salary increase rate increase salary Expected Discount rate obligation benefit defined to determine Assumptions Discount rate cost benefit defined to determine Assumptions Expected salary increase rate increase salary Expected obligation asat31December2019obligation isnil. definedbenefit ofthe The weightedaverageduration Maturity profile obligation ofdefined benefit Fund. intothe contributions The Employerisnolongerrequired tomake arrangements Funding Fund. matching strategiesadoptedbythe The Group isnotaware ofanyassetandliability matchingstrategies Asset-liability the Fund. benefit membersleftin remainwill scenariosasthere nilunderall are nodefined 2019 asat31December The definedbenefitobligation analysis Sensitivity the at Significant actuarialassumptions date reporting 31 DECEMBER 201931 DECEMBER 31 DECEMBER 201931 DECEMBER FINANCIAL ENDED YEAR 4.3%p.a. 2.0%p.a. $’000s $’000s N/A N/A AS AT AS 31 DECEMBER 2018 31 DECEMBER 31 DECEMBER 2018 31 DECEMBER 2.0%p.a. 3.8%p.a. 2.0%p.a. 4.3%p.a. $’000s $’000s
129 | CPA Australia Integrated Report 2019 130 | CPA Australia Integrated Report 2019 • • areClassifications determinedbyboth: • • • • recognition:upon initial instruments are categories the following classifiedinto designatedandeffective those than other ashedging purpose ofsubsequentmeasurement, financialassets costs(where fortransaction adjusted Forthe applicable). financialassetsareall measured initially atfairvalue priceinaccordance transaction at the AASB15, with a significantfinancingcomponentand are measured tradereceivablesExcept forthose donotcontain that orexpires.cancelled derecognised discharged, whenitisextinguished, and rewards are transferred. is liability Afinancial risks substantial financialassetandall or whenthe cashflowsfromrights tothe the financialassetexpire, Financial assetsare derecognised contractual whenthe or loss,whichare measured atfairvalue. initially carriedatfairvaluethroughexcept forthose profit costs, bytransactions atfairvalueadjusted initially provisions financialinstrumentandare ofthe measured Groupwhen the contractual becomesapartytothe areliabilities Financial assetsandfinancial recognised recognition(a) Initial andsubsequentmeasurement 24. the financialassets. the of The contractualcashflowcharacteristics financialasset the The Group’s businessmodelformanaging comprehensive income(FVOCI). Debt instrumentsatfairvaluethrough other comprehensive income(FVOCI) Equity instrumentsatfairvaluethrough other Fair valuethrough profit orloss(FVTPL) cost Amortised AND RISKMANAGEMENT FINANCIAL INSTRUMENTS are recognised inprofit orloss. anyinterestand losses,including income, ordividend They are measured subsequently atfairvalue.Netgains for measurement costorFVOCI. amortised ateither areFVTPL asthey donotqualify debtinstrumentsthat These financialassetsare mandatorily measured at profit orloss(FVTPL) Financial assetsatfairvaluethrough categoryoffinancialinstruments. this trade receivables andloanstorelated into fall parties The Group’s cashandequivalents,termdeposits, or lossonderecognition isrecognised inprofit orloss. impairment are recognised inprofit orloss.Anygain Interest income,foreign exchangegainsandlosses costisreducedThe amortised byimpairmentlosses. effective costusingthe amortised interest method. These financialassetsare measured subsequently at • • criteriaare following ofthe if both met: Financial assetsare measured costonly atamortised Financial assetsatamortisedcost solely paymentsofprincipalandinterest. that areThe contractualtermsgiverisetocashflows contractualcashflows the istocollect objective abusinessmodelwhose The assetisheldwithin
impairment are recognised inprofit orloss. interest foreign method, exchangegainsandlosses asset.Interestthe effective incomecalculatedusingthe be reclassified toprofit orlossuponderecognition of comprehensiveat fairvalueinother incomeandwill Debt investmentsatFVOCIare measured subsequently clearlyrepresentsdividend areturn ofcapital. recognised profit the asincomewithin the orlossunless are neverreclassified toprofit orloss.Dividends are comprehensiveat fairvalueinother incomeand Equity investmentsatFVOCIare measured subsequently • • assets atFVOCI: The Group financial the following classifies comprehensive income(FVOCI) Financial assetsatfairvaluethrough other contractual cash flows and selling financialassets. contractual cashflowsandselling Group’s bycollecting businessmodelisachievedboth solely principalandinterest ofthe objective andthe whereDebt securities contractualcashflowsare the tobemoreclassification relevant Groupstrategic investmentsandthe considersthis recognition torecognise category. inthis Theseare groupfor whichthe hasirrevocably electedatinitial areEquity instrumentsthat and notheldfortrading, amount isareasonable approximation offairvalue. notmeasuredliabilities carrying atfairvalueifthe forfinancialassetsand fair valueinformation fairvaluehierarchy. levelsinthe their Itdoesnotinclude including liabilities, values offinancialassetsand carryingamountsandfair tableshowsthe The following (b) from dateofinvoice. ofpurchaseconditions statepaymenttermsof30days 30daysofrecognition.within TheGroup‘s termsand date. Theamountsare unsecured andare paid usually financial yearandwhicharethe unpaidasat reporting services provided Group tothe endofthe priortothe Trade payablesrepresent forgoodsand liabilities are measured cost. atamortised Tradethese and liabilities financial Payablesasother In accordance Group AASB9,the with classifiesits Financial liabilities–Trade payables of financialinstruments Carrying amountsandfairvalues
131 | CPA Australia Integrated Report 2019 132 | CPA Australia Integrated Report 2019 As at 31 December 2019 31 December at As Equities value fair at measured assets Financial Total financial liabilities Total financial Trade payables value fair at measured not liabilities Financial value fair at measured not assets Total financial Receivables Annuities Term deposits equivalents cash and Cash value fair at measured not assets Financial value fair at measured assets Total financial Hybrids Alternatives Alternatives – infrastructure –Securities bonds Securities funds Property Equity funds Total financial liabilities Total financial Trade payables value fair at measured not liabilities Financial value fair at measured not assets Total financial Receivables Annuities Term deposits equivalents cash and Cash value fair at measured not assets Financial value fair at measured assets Total financial Hybrids Alternatives Alternatives – infrastructure –Securities bonds Securities funds Property Equity funds Equities value fair at measured assets Financial As at 31 December 2018 31 December at As FIN ANCIAL INSTRUMENTS AMORTISED COSTAMORTISED 122,286 114,703 88,486 $’000s 30,271 38,765 72,128 1,000 1,000 2,529 2,810 ------INSTRUMENTS FVOCI - DEBT -DEBT FVOCI $’000s 6,864 4,914 5,835 4,403 1,029 511 ------FVOCI - EQUITY -EQUITY FVOCI INSTRUMENTS 18,553 21,875 CARRYING AMOUNT $’000s 18,553 21,875 ------OTHERS FVTPL - FVTPL 49,698 45,712 $’000s 29,488 30,781 11,397 1,634 1,462 2,786 2,930 2,551 3,100 9,281 ------
OTHER FINANCIAL LIABILITIES 10,468 10,468 $’000s 9,324 9,324 ------CONSOLIDATED 122,286 114,703 TOTAL 10,468 76,487 88,486 10,468 $’000s 30,271 29,488 18,553 71,129 30,781 38,765 21,875 11,397 72,128 9,324 1,000 1,000 5,835 4,403 2,529 1,634 1,462 2,786 1,029 2,930 2,810 2,551 3,100 9,281 9,324 511 LEVEL 1 LEVEL 26,049 24,492 $’000s 18,553 21,875 3,663 1,029 4,910 511 ------LEVEL 2 LEVEL 46,637 50,438 $’000s 24,578 11,397 27,118 FAIR VALUE 5,835 4,403 1,634 1,462 2,786 2,930 2,551 3,100 9,281 ------LEVEL 3 LEVEL $’000s ------TOTAL 76,487 $’000s 29,488 18,553 71,129 30,781 21,875 11,397 5,835 4,403 1,634 1,462 2,786 2,930 1,029 2,551 3,100 9,281 511 ------As at 31 December 2019 31 December at As Equities value fair at measured assets Financial Total financial liabilities Total financial Trade payables value fair at measured not liabilities Financial value fair at measured not assets Total financial Receivables Annuities Term deposits equivalents cash and Cash value fair at measured not assets Financial value fair at measured assets Total financial Hybrids Alternatives Alternatives – infrastructure –Securities bonds Securities funds Property Equity funds Total financial liabilities Total financial Trade payables value fair at measured not liabilities Financial Total financial assets not measured at fair value fair at measured not assets Total financial Receivables Annuities Term deposits equivalents cash and Cash value fair at measured not assets Financial value fair at measured assets Total financial Hybrids Alternatives Alternatives – infrastructure –Securities bonds Securities funds Property Equity funds Equities value fair at measured assets Financial 2018 31 December at As FIN ANCIAL INSTRUMENTS AMORTISED COSTAMORTISED 122,286 114,703 88,486 $’000s 30,271 38,765 72,128 1,000 1,000 2,529 2,810 ------INSTRUMENTS FVOCI - DEBT -DEBT FVOCI $’000s 6,864 4,914 5,835 4,403 1,029 511 ------FVOCI - EQUITY -EQUITY FVOCI INSTRUMENTS 18,553 21,875 CARRYING AMOUNT $’000s 18,553 21,875 ------OTHERS FVTPL - FVTPL 49,698 45,712 $’000s 29,488 30,781 11,397 1,634 1,462 2,786 2,930 2,551 3,100 9,281 ------
OTHER FINANCIAL LIABILITIES 10,468 10,468 $’000s 9,324 9,324 ------CONSOLIDATED 122,286 114,703 TOTAL 10,468 76,487 88,486 10,468 $’000s 30,271 29,488 18,553 71,129 30,781 38,765 21,875 11,397 72,128 9,324 1,000 1,000 5,835 4,403 2,529 1,634 1,462 2,786 1,029 2,930 2,810 2,551 3,100 9,281 9,324 511 LEVEL 1 LEVEL 26,049 24,492 $’000s 18,553 21,875 3,663 1,029 4,910 511 ------LEVEL 2 LEVEL 46,637 50,438 $’000s 24,578 11,397 27,118 FAIR VALUE 5,835 4,403 1,634 1,462 2,786 2,930 2,551 3,100 9,281 ------LEVEL 3 LEVEL $’000s ------TOTAL 76,487 $’000s 29,488 18,553 71,129 30,781 21,875 11,397 5,835 4,403 1,634 1,462 2,786 2,930 1,029 2,551 3,100 9,281 511 ------
133 | CPA Australia Integrated Report 2019 134 | CPA Australia Integrated Report 2019 Foreign exchange Foreign Annual risk by risk risk Annual not actively trade these investments. tradethese not actively purposes. TheGroup trading than strategic rather does equity investments.Equityinvestments are heldfor The Group isexposedtoequitypricerisksarisingfrom (iii) Equitysecuritypricerisk liabilities. financial The Group doesnothaveanyinterest-bearing fixedinterestwith ratesandterm. bearing financialassetsare instrumentsheldtomaturity interest-bank andsomedebtinstruments.Mostofthe assets bearingvariableinterest cashat rates,including Exposures tointerest rateriskare tofinancial limited (ii) Interest raterisk and InvestmentPolicy. Group’s the with Investment offundsisinline Cash Groupwhile notexposingthe toahighlevelofrisk. are managedtogenerate maximummemberreturns to financialmarkets.Long-terminvestments the exposure cashflowsbyminimising medium-term The Group securingitsshortto focusesonactively interest ratesandequitymarkets. risks ofchangesinforeign currency exchangerates, The Group’s financial exposeitprimarilytothe activities andpolicies (c) Riskmanagementobjectives There were year. notransfersbetweenlevelsduringthe on availablemarketdata. sameinstrumentnorare inthe transactions based they supported bypricesfrom observablecurrent market arethat are basedonunobservableinputsthat neither techniquesormodels in wholeorpartusingvaluation Level 3fairvaluemeasurements are are that those valued Level 2. supported byobservableinputsare classifiedwithin pricingsources oralternative prices, dealerquotations butareto beactive valuedbasedonquotedmarket are tradeinmarketsthat instruments that notconsidered (as prices)orindirectly (derivedfrom prices).Financial arethat assetorliability, observableforthe directly either Level1 quotedpricesincludedwithin than inputs other Level 2fairvaluemeasurements are derivedfrom those reporting endofthe atthe assets orliabilities period. marketsforidentical inactive quoted prices(unadjusted) Level 1fairvaluemeasurements are derivedfrom those $’000s 2019 MINIMUM 510
$’000s 2018 461
reviewed annually. The exposure monitored iscontinuously andlimits riskoffinanciallossfrom the mitigating defaults. creditworthy with dealing asameansof counterparties Group.loss tothe TheGroup ofonly hasapolicy resulting onitscontractualobligations default infinancial Credit riskrefers acounterpartywill riskthat tothe (iv) Credit risk $1.1m (2018 $0.9m)duetochangesinfairvalue. equity reserves wouldhaveincreased/decreased by period. Ifequitypriceshadbeen5percenthigher/lower exposure reporting end ofthe toequitypricerisksatthe analysishasbeendeterminedbasedonthe Sensitivity in exchangeratesrespectively. calculated atshiftsof1percentand10change exchange rates.Minimumandmaximumexposure is 2019 andintercompany loanamountstoshiftsinforeign ofprofit sensitivity the tableillustrates The following for a foreign year. full exchangegainof $0.1mforthe currenciesthe where cashisheldresulted substantial in In 2019, appreciation the against dollar Australian ofthe exposures bydegree andmagnitudeofrisks. throughoperation managementreports whichanalyse finance businessunitand the reported to relevant exposure monitored iscontinuously Group’s bythe inforeignfluctuations exchangerates.Foreign exchange instruments asameansofmanagingexposure to The Group off-balance doesnotutilise sheetderivative parent entity. currency currency functional isnotthe that ofthe recognised denominatedina assetsandliabilities risk arisesfrom future commercial and transactions Chinese yuanandMalaysianringgits.Foreign exchange exposed toSingapore HongKongdollars, dollars, The Group andismainly operatesinternationally (i) Foreign currency risk is exposedare describedbelow. the The mostsignificantfinancialriskstowhich Group $’000s 2,457 2019 AVERAGE
$’000s 2,218 2018
$’000s 4,691 MAXIMUM 2019
$’000s 4,234 2018
trade receivables – amount carrying Gross loss rate Expected 201931 DECEMBER Loss allowance Loss trade receivables – amount carrying Gross loss rate Expected 2018 31 DECEMBER allowance Loss expected collectability of the future ofthe expected collectability the cashflowsof reasonable andsupportable forecasts affect that the credit pastevents,current losses,including conditions, when assessingcredit riskandmeasuringexpected The Group considersabroad rangeofinformation • • ECL model: that arehas twotypesoffinancialassets the subjectto ‘expectedcredit– the TheGroup losses(ECL)model’. torecogniselooking information expectedcredit losses AASB 9’s impairmentrequirements use more forward- Impairment offinancialassets • • • credit industries: following riskarisesmainlyinthe of concentration andthe concentrated inAustralia is notpartofcurrent policy. Trade receivables are Useofoffallowance. balance-sheetfinancialinstruments carryingamount,netofanyloss the isgenerally Position have beenrecognised StatementofFinancial onthe The creditthe Group riskonfinancialassetsof which Fitch equivalent). minimum S&Pcredit ofBBB+(orMoody’s/ rating havea deposit-takinginstitutions authorised the byensuring fundsandtermdepositsismitigated liquid Thecredit havingsimilarcharacteristics. parties riskon exposure toanysinglepartyorgroup ofcounter The Group doesnothaveanysignificantcredit risk spread across industriesandgeographicalareas. diverse Trade receivables consistofmembersandcustomers, Debt instrumentscarriedatFVOCI. Trade receivables Credit services. practices Accounting andsponsors Advertising
CURRENT $’000s 2.09% 1.66% 1,333 1,876 28 31 determined as follows fortradereceivables:determined asfollows asat31December2019The lossallowance was pastfiveyears. is basedonanaveragelossoverthe Group amounts,which 2.09percentforall hasallowed dayspastdue.Basedonitsanalysis,the based onthe possesscredit basisasthey collective riskcharacteristics The Group assessesimpairment oftradereceivables ona expectedcreditthe lossesusingaprovision matrix. andforward-lookingindicators tocalculate information Groupthe usesitshistoricalexperience,external creditlifetime expedient, practical losses.Inusingthis expected amountequaltothe atthe lossallowance the receivables fortradeandother accounting andrecords The Group approach makesuseofa simplified in Trade andotherreceivables financialinstrument. ofthe expectedlife losses overthe determined byaprobability-weighted ofcredit estimate Measurement expectedcredit ofthe lossesis recognised secondcategory. forthe expectedcreditfirst categorywhile‘lifetime losses’are expectedcredit‘12-month losses’are recognised forthe reportingevidence ofimpairmentatthe date. that haveobjective ‘Stage 3’wouldcoverfinancialassets • • ismadebetween: a distinction forward-lookinginstrument. Inapplyingthis approach, MORE THAN and whosecredit riskisnotlow(‘Stage2’). increditsignificantly sinceinitial quality recognition havedeteriorated Financial instrumentsthat havelowcreditor that risk(‘Stage1’) increditsignificantly sinceinitial quality recognition havenotdeteriorated Financial instrumentsthat PAST DUE PAST $’000s 30 DAYS DAYS 30 2.09% 1.66% 404 486 10 7 CONSOLIDATED
MORE THAN PAST DUE PAST $’000s 60 DAYS DAYS 60 2.09% 1.66% 436 126 9 2
MORE THAN PAST DUE PAST $’000s 90 DAYS DAYS 90 2.09% 1.66% 109 140 2 2
$’000s 2,546 2,364 TOTAL 42 49
135 | CPA Australia Integrated Report 2019 136 | CPA Australia Integrated Report 2019 manages the financialrisks manages the toitsinvestmentsset relating because ofchangesinmarketprices.TheGroup the Group’sflows of fluctuate financialinstrumentswill fairvalueoffuture the riskthat Market riskisthe cash (vi) Marketriskmanagement three andare months non-interest bearing. payables,aretrade andother within dueforsettlement can bereadily namely liabilities, financial of.All disposed Exchangeandthat Securities Australian market onthe The Group are that investsinequities tradedinanactive maturity profiles liabilities. offinancialassets and forecastthe andactualcashflows whilematching adequate cashreserves, monitoring andby continuously The Group riskbymaintaining liquidity managesthe management. liquidity Group’sthe and andlong-termfunding short,medium managementof risk managementframeworkforthe Board, the with anappropriate whohavebuilt liquidity responsibilityUltimate risk management for restsliquidity riskmanagement (v) Liquidity 31 December2019. hasbeenrecognisedNo lossimpairmentallowance at andaresecurities expectedlosses. to12months limited andunlisted Debt instrumentsatFVOCIincludelisted Debt instruments statementofprofitthe orloss. Impairment lossesontradereceivables are presented in a periodofgreater 120dayspastdue. than groupthe andfailure tomakecontractualpaymentsfor failure ofadebtortoengageinrepayment planwith is noreasonable ofrecovery expectation includethe reasonable ofrecovery. expectation there that Indicators Trade receivables are off written when there isno the ensuingoranysubsequentfinancialyear.the stateofaffairs orthe activities of those Group ofthe in affectsignificantly the Group, of the activities the results report dateofthis year tothe hasaffected, that ormay, or circumstance financial endofthe occurring sincethe Apart from above,there the matter hasbeennoother outbreak. ofthe duration impacted andthe are onhowmanylocations stageasitiscontingent this of-semester exams.Theimpactisdifficult at toquantify deferralofend- causethe potentially anditwill locations organisation hashadtocancelmembereventsinseveral the Grouphave afinancialimpacton the in2020,as The outbreak coronavirus ofthe (COVID-19)will 26. SUBSEQUENTEVENTS 31 December2019. There are asat liabilities nocontingent 25. CONTINGENTLIABILITIES imposed capitalrequirements. Group ofthe No operations are subjecttoexternally UnitedKingdom. branches inAsia,NewZealandandthe The Group hasaglobalpresence andoperatesthrough and retained earnings. equivalents andmembers’funds,comprisingreserves The Group’s capitalstructure consistsofcashand unchanged from 2018. returnthe strategyremains oninvestments.Theoverall asagoingconcern,whilemaximising able tocontinue The Group managesitscapitaltoensure be itwill that (vii) Capitalriskmanagement eachassetclass. within limits individual forassetclassesand weighting exceeded, including containsthresholds. Thepolicy Policy cannotbe that out inaccordance Group’s the with CashandInvestment On behalf of the directors ofthe On behalf Act2001. Corporations of the Signed inaccordance aresolution with directors ofthe madepursuanttos.295(5) (c) (b) (a) The directors declare that: DECLARATION DIRECTOR’S 5 March 2020 Director Peter WilsonAMFCPA disclosed inNote2(b). disclosed financial the Standards FinancialReporting International with report alsocomplies as the Group; andperformanceof financialposition and givingatruefairviewofthe and Standards Accounting Australian with compliance Act2001,including Corporations the with directors’in the thereto financialstatementsandnotes attached opinion,the are inaccordance becomedueandpayable; be abletopayitsdebtsasandwhenthey directors’in the opinion,there are reasonable grounds companywill the that tobelieve Director FCPAMerran Kelsall
137 | CPA Australia Integrated Report 2019 138 | CPA Australia Integrated Report 2019 Independent Auditor’s report 139 | CPA Australia Integrated Report 2019 140 | CPA Australia Integrated Report 2019 141 | CPA Australia Integrated Report 2019 142 | CPA Australia Integrated Report 2019 This page is intentionally blank. This pageisintentionally in Schedule for the financial year ended 31 December 2019. financialyearended31December in Scheduleforthe ofremunerationThe determination used that with consistently Schedulehasbeenapplied inthis requirements ofAASB124RelatedPartyDisclosures). Theremuneration isonanaccrualsbasis. of eachdirectorthe Actandhasbeendeterminedinaccordance isasdefinedin with directorpaid tothe inrelation capacityasdirector totheir remuneration capacity(the oranother yearended31December2019 forthe Limited anditssubsidiaries regardless itwas ofwhether remuneration all itdiscloses Actinthat 202Bofthe section paidtoeachdirector ofCPA Australia basisispreparedand onthat andpresents requirements the consistentwith information the of direction prescribed information the todisclose Act2001 Corporations 202B ofthe undersection This ScheduleofDirectors’ hasbeenprepared Remuneration Companyhadreceived asifthe a Basis ofPreparation respect 2018 ofthe financialyear. CPA in information comparative with FinancialReporttogether LtdConsolidated Australia 2019 includedinthe totalKeyManagementPersonnelRemuneration Scheduletothe in the To assistmembers,wehavealsoprovided belowareconciliation disclosed information ofthe a direction from prescribed information the memberstodisclose Act. 202Bofthe undersection director yearended31December2019, forthe prepared asifCPA Ltdhadreceived Australia remuneration the Schedulewhichdiscloses pagetitled following included onthe paidtoeach CPA yearended31December2019. forthe Ltdanditssubsidiaries Australia Thisscheduleis We scheduleofremuneration belowanaudited disclose paidandpayabletoeachdirector of 5 March 2020 ENDED 31DECEMBER2019 REMUNERATION FORTHEYEAR SCHEDULE OFDIRECTORS’
143 | CPA Australia Integrated Report 2019 144 | CPA Australia Integrated Report 2019 SCHEDULE OF DIRECTORS’ REMUNERATION (6) Ms Spencer elected to perform her director duties on a pro bono basis with effect from 28 May 2018. May 28 from effect with basis bono apro on duties $7500. of fee director her acommittee perform received to and 2019 elected September –30 2019 Spencer Ms (6) 1January from Committee Engagement Member the of Chair was 2018. Erskine Ms 16 November (5) from basis bono apro on duties director his year. the perform to during elected accrued Santi De Mr (4) entitlements leave service long include benefits long-term Other (3) parking. car include benefits short-term Other (2) (1) Includes annual leave accrued entitlements during 2019. Notes: Deborah Leung Robert ThomasonRobert Awty Adam Kaynes Andrew Ma Kerrell Terumalay Dharshini Priya Diss Nicholas DIRECTORS EXECUTIVE Andrew Heng Stephen Jones Nangia Arun Suzanne Haddan Jon Scriven Caroline Spencer Louise Cox Su-Yen Wong Dale Pinto Sinclair Rosemary Helen Lorigan Erskine Robyn Santi De Ric Wong Aik Chin Kelsall Merran Peter Wilson NON-EXECUTIVE DIRECTORS NON-EXECUTIVE NAME (9) (9) (4) (8) (9) (5) (7) (10) (9) (6) CPA Australia (M) Sdn. Bhd. Bhd. Sdn. (M) CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Bhd. Sdn. (M) CPA Australia Limited CPA Australia Limited CPA Australia CPA Australia Advice Pty Ltd Ltd Pty Advice CPA Australia Ltd Pty Advice CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia CPA Australia Limited Limited CPA Australia COMPANY CPA Australia (Shanghai) Co., Ltd Ltd Co., (Shanghai) CPA Australia CPA Australia (Shanghai) Co., Ltd Co., (Shanghai) CPA Australia TOTAL Total Total Total Ltd Co., (Shanghai) CPA Australia Bhd. Sdn. (M) CPA Australia Limited CPA Australia Total Ltd Pty Advice CPA Australia Limited CPA Australia Total Total CPA Australia (M) Sdn. Bhd. Bhd. Sdn. (M) CPA Australia Ltd Pty Advice CPA Australia Limited CPA Australia Limited CPA Australia CPA Australia Advice Pty Ltd Pty Advice CPA Australia CPA Australia (Shanghai) Co., Ltd Ltd Co., (Shanghai) CPA Australia Bhd. Sdn. (M) CPA Australia Bhd. Sdn. (M) CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Limited CPA Australia Total Total
Former director Former director Engagement and Education Former Group Executive Member Former director Former interim CEO Former COO Commercial Former director Director Former director Director Director Director Director Director PresidentDeputy PresidentDeputy Chair and President President and Chair POSITION Director Executive General Manager International Former director Former director Former consultant to Board Secretariat Director Company and General Secretary Counsel Director Director Former director Former director Director Director Director CFO Director Director Malaysia Head Country Director
1 October 2019 1 October 1 September 2019 1 September 1 September 2019 1 September DATE APPOINTED Resigned 4 June 2018 4June Resigned 2018 4June Resigned 2018 1July Ceased 2018 2April Resigned 2018 2April Ceased 2017 June 23 Ceased 31 August 2019 2019 31 August Retired 2018 September 30 Retired Ceased 26 June 2019 June 26 Ceased 2019 June 26 Ceased 11 2019 July Ceased 31 August 2019 2019 31 August Retired 2019 September 30 Resigned / RESIGNED DATE RETIRED
AND FEES FEES AND 2,103,822 SALARY SALARY 206,279 206,279 305,343 103,539 103,539 206,558 191,859 305,343 305,343 206,558 412,813 191,859 191,859 412,813 412,813 44,034 44,034 69,292 69,292 69,292 69,292 69,292 96,397 41,096 41,096 19,397 19,397 17,922 17,922 76,142 76,142 96,397 96,397 1,736 1,736 (1) - - $ ------
EMPLOYEE BENEFITS 215,065 BONUS 33,500 70,000 88,791 22,774 33,500 33,500 70,000 88,791 88,791 22,774 22,774 ------$ SHORT-TERM SHORT-TERM ------
OTHER 4,572 4,572 4,572 (2) ------$ ------
SUPERANNUATION EMPLOYMENT EMPLOYMENT BENEFITS 206,586 10,603 10,603 25,000 23,437 48,750 19,596 19,596 25,000 23,437 23,437 48,750 48,750 17,753 POST- 17,753 17,753 6,583 6,583 6,583 6,583 6,583 2,603 2,603 3,904 3,904 9,836 9,836 9,836 7, 233 233 7, 1,703 1,703 - - - - $ ------
LONG-TERM BENEFITS BENEFITS OTHER 27,919 4,356 9,279 9,279 4,943 9,279 9,341 4,356 4,356 4,943 9,341 9,341 (3) ------$ ------
TERMINATION TOTAL 2019 BENEFITS) 2,557,964 225,875 113,375 113,375 113,375 268,326 268,326 268,326 528,698 528,698 267,851 267,851 267,851 30,000 45,000 414,194 414,194 46,637 46,637 83,375 83,375 75,875 75,875 75,875 75,875 75,875 19,625 19,625 96,397 96,397 96,397 (EXCL. (EXCL. 1,736 1,736 - - - $ ------
TERMINATION BENEFITS ------$ ------
TERMINATION TOTAL 2019 BENEFITS) 2,557,964 225,875 113,375 113,375 113,375 268,326 268,326 268,326 528,698 528,698 267,851 267,851 267,851 30,000 45,000 414,194 414,194 46,637 46,637 83,375 83,375 75,875 75,875 75,875 75,875 75,875 19,625 19,625 96,397 96,397 96,397 (INCL. (INCL. 1,736 1,736 - - - $ ------
1,044,089 1,044,089 3,764,659 225,000 365,553 466,426 466,426 112,500 112,500 112,500 365,553 420,735 420,735 196,996 196,996 213,073 213,073 82,500 82,500 56,250 56,250 75,000 75,000 75,000 30,096 30,096 45,058 45,058 TOTAL 65,673 65,673 31,450 31,450 18,750 18,750 51,350 51,350 1,659 1,659 2018 $ ------
SCHEDULE OF DIRECTORS’ REMUNERATION Robert ThomasonRobert Awty Adam Kaynes Andrew Ma Kerrell Deborah Leung Terumalay Dharshini Priya Diss Nicholas DIRECTORS EXECUTIVE Andrew Heng Stephen Jones Nangia Arun Suzanne Haddan Jon Scriven Caroline Spencer Louise Cox Su-Yen Wong Dale Pinto Sinclair Rosemary Helen Lorigan Erskine Robyn Santi De Ric Wong Aik Chin Kelsall Merran Peter Wilson DIRECTORS NON-EXECUTIVE NAME (9) (9) (4) (8) (9) (5) (7) (10) (9) (6) CPA Australia (M) Sdn. Bhd. Bhd. Sdn. (M) CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Bhd. Sdn. (M) CPA Australia Limited CPA Australia Limited CPA Australia Ltd Pty Advice CPA Australia Ltd Pty Advice CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia COMPANY TOTAL Total Total Total Ltd Co., (Shanghai) CPA Australia Bhd. Sdn. (M) CPA Australia Limited CPA Australia Total Ltd Pty Advice CPA Australia Limited CPA Australia Total Ltd Co., (Shanghai) CPA Australia Ltd Co., (Shanghai) CPA Australia Total Ltd Co., (Shanghai) CPA Australia Bhd. Sdn. (M) CPA Australia Bhd. Sdn. (M) CPA Australia Total Ltd Pty Advice CPA Australia Ltd Co., (Shanghai) CPA Australia Limited CPA Australia Bhd. Sdn. (M) CPA Australia Ltd Pty Advice CPA Australia Limited CPA Australia Limited CPA Australia Limited CPA Australia
Former director Former director Engagement and Education Former Group Executive Member Former director Former interim CEO Former COO Commercial Former director Director Former director Director Director Director Director Director PresidentDeputy PresidentDeputy President and Chair POSITION Director Former director Former director Former consultant to Board Secretariat Company and General Secretary Counsel Executive General Manager International Director Director Malaysia Head Country Director Director CFO Director Former director Former director Director Director Director
1 October 2019 1 October 1 September 2019 1 September 2019 1 September DATE APPOINTED Resigned 4 June 2018 4June Resigned 2018 4June Resigned 2018 1July Ceased 2018 2April Resigned 2018 2April Ceased 2017 June 23 Ceased 2019 31 August Retired 2018 September 30 Retired Ceased 26 June 2019 June 26 Ceased 2019 June 26 Ceased 11 2019 July Ceased 2019 31 August Retired 2019 September 30 Resigned / RESIGNED DATE RETIRED
AND FEES FEES AND (9) These directors are employees of the CPA Australia Ltd. Group who do not receive remuneration in their capacity as directors of subsidiaries. of directors as capacity their in remuneration (10) receive not do who Group Ltd. CPA Australia the of 2020. employees are early payable are directors These amounts (9) All shareholder. a50% statements. and financial 2019 the directors in two of one accrued is been Jones has Mr which of remuneration 2019 Total (8) ATM to Consultants fees professional to relation in paid $16,637 include Fees and Salary (7) 2,103,822 SALARY SALARY 206,279 206,279 305,343 103,539 103,539 206,558 191,859 305,343 305,343 206,558 412,813 191,859 191,859 412,813 412,813 44,034 44,034 69,292 69,292 69,292 69,292 69,292 96,397 41,096 41,096 19,397 19,397 Mr Kaynes was a consultant to the Board Secretariat of CPA Australia Ltd Group and did not receive remuneration in his capacity as a director adirector as capacity his in remuneration receive subsidiaries. not the did of and Group Ltd CPA of Australia Secretariat Board the to aconsultant was Kaynes Mr 17,922 17,922 76,142 76,142 96,397 96,397 1,736 1,736 (1) - - $ ------
EMPLOYEE BENEFITS 215,065 BONUS 33,500 70,000 88,791 22,774 33,500 33,500 70,000 88,791 88,791 22,774 22,774 ------$ SHORT-TERM SHORT-TERM ------
OTHER 4,572 4,572 4,572 (2) ------$ ------
SUPERANNUATION EMPLOYMENT EMPLOYMENT BENEFITS 206,586 10,603 10,603 25,000 23,437 48,750 19,596 19,596 25,000 23,437 23,437 48,750 48,750 17,753 POST- 17,753 17,753 6,583 6,583 6,583 6,583 6,583 2,603 2,603 3,904 3,904 9,836 9,836 9,836 7, 233 233 7, 1,703 1,703 - - - - $ ------
LONG-TERM BENEFITS BENEFITS OTHER 27,919 4,356 9,279 9,279 4,943 9,279 9,341 4,356 4,356 4,943 9,341 9,341 (3) ------$ ------
TERMINATION TOTAL 2019 BENEFITS) 2,557,964 225,875 113,375 113,375 113,375 268,326 268,326 268,326 528,698 528,698 267,851 267,851 267,851 30,000 45,000 414,194 414,194 46,637 46,637 83,375 83,375 75,875 75,875 75,875 75,875 75,875 19,625 19,625 96,397 96,397 96,397 (EXCL. (EXCL. 1,736 1,736 - - - $ ------
TERMINATION BENEFITS ------$ ------
TERMINATION TOTAL 2019 BENEFITS) 2,557,964 225,875 113,375 113,375 113,375 268,326 268,326 268,326 528,698 528,698 267,851 267,851 267,851 30,000 45,000 414,194 414,194 46,637 46,637 83,375 83,375 75,875 75,875 75,875 75,875 75,875 19,625 19,625 96,397 96,397 96,397 (INCL. (INCL. 1,736 1,736 - - - $ ------
1,044,089 1,044,089
3,764,659 225,000 365,553 466,426 466,426 112,500 112,500 112,500 365,553 420,735 420,735 196,996 196,996 213,073 213,073 82,500 82,500 56,250 56,250 75,000 75,000 75,000 30,096 30,096 45,058 45,058 TOTAL 65,673 65,673 31,450 31,450 18,750 18,750 51,350 51,350 1,659 1,659 2018 $ ------
145 | CPA Australia Integrated Report 2019 146 | CPA Australia Integrated Report 2019 personnel of CPA Australia Ltd Group (Priya Dharshini Terumalay Terumalay Dharshini (Priya Group Ltd CPA of Australia personnel less: 2018.) September 25 to Implementation during Committee the period 2018 3 February less: Group) Ltd CPA of Australia personnel management akey not Remuneration per the CPA perthe Remuneration FinancialReport LimitedConsolidated Australia oftotalremunerationReconciliation 202Bdisclosure persection totalKeyManagementPersonnel tothe (3) (3) (2) (1) Notes: (M) Sdn. Bhd. and CPA Australia (Shanghai) Co., Ltd) Co., Ltd) (Shanghai) CPA and Australia Bhd. Sdn. (M) CPA Ltd, Australia Pty Advice CPA Ltd, Australia (CPA Australia remuneration directors’ disclosing of basis 202B Total section and Andrew Kaynes CPA Australia Limited Consolidated Financial Report Financial Consolidated Limited CPA Australia per Remuneration Personnel Total Management Key Laughton) Craig and Malady Liz Mayne, Kerry Traicos, Erica Pflugrath, Gary Buddee, Rowena Jarrar, Farid Eassom, Yeates, Simon Meg Hellwig, Hunter, Karen (Andrew directors add: less: Group) Ltd CPA Australia of personnel management akey not but Bhd. Sdn. (M) less: less: Group) Ltd CPA of Australia personnel management key not but Ltd Pty Advice CPA of Australia directors (non-executive management personnel of CPA Australia Ltd Group. Ltd CPA of Australia personnel management akey not is she as excluded was Ma Kerrell for Remuneration not a key management personnel of CPA Australia Ltd Group. Ltd CPA of Australia personnel management akey not is she as excluded was Terumalay Dharshini Priya for Remuneration management personnel of CPA Australia Ltd Group. Ltd CPA of Australia personnel management akey not was He subsidiaries. the of adirector as capacity his in remuneration receive not did and 2019 11 July until Group Ltd CPA of Australia Secretariat Board the to aconsultant was He 2019. June 26 on Bhd Sdn. (M) CPA of Australia director and Ltd Co., (Shanghai) CPA of Australia director as resigned Kaynes Andrew Suzanne Haddan, Nangia Arun and Stephen Jones Directors of a foreign subsidiary but not key management management key not but subsidiary aforeign of Directors Review Independent the for performed (work Pinto Dale Andrew Heng (non-executive director of CPA Australia CPA of Australia director (non-executive Heng Andrew Kerrell Ma Kerrell Key management personnel of CPA Australia but not not but CPA of Australia personnel management Key (1) (director of CPA Australia Advice Pty Ltd but but Ltd Pty Advice CPA of Australia (director (3) )
(2)
31 DECEMBER 201931 DECEMBER YEAR ENDED YEAR 3,735,798 2,557,964 5,537,815 (364,723) (121,637) (267,851) (1,736) -
31 DECEMBER 2018 31 DECEMBER YEAR ENDED YEAR 3,764,659 6,427,595 3,592,114 (178,908) (735,911) (12,700) (1,659) -
Independent Auditor’s report – schedule of Directors’ remuneration CPA Australia Integrated Report 2019 CPA 147 | 148 | CPA Australia Integrated Report 2019 Financials 100gsm Precision Laser (PEFC) Text (FSCMIX) Satin 128gsmPacesetter Cover 300gsmExtraprint(PEFC) andNewZealand Australia CA ANZChartered Accountants Assurance Standards Board and AUASB Auditing ATO Taxation Australian Office Investments Commission and Securities ASIC Australian Asian Nations ofSoutheast ASEAN Association Assurance Engagements StandardASAE Australian on Standardsand Ethical Board ProfessionalAPESB Accounting Standardsand Ethical ProfessionalAPES Accounting AO Officerthe Order of ofAustralia OrderAM Memberofthe ofAustralia StandardsReporting Financial to International Equivalents A-IFRS Australian AGM AnnualGeneralMeeting Services Licence Financial AFSL Australian and NewZealand ofAustralia Finance Association AFAANZ and Accounting AFA ofAccountants ASEANFederation CreditACL Australian Licence Standards Board Accounting AASB Australian ACRONYMS Reporting Council Reporting Integrated IIRC International StandardsReporting Financial IFRS International of Accountants IFAC Federation International Board forAccountants Standards Ethics IESBA International Assurance Standards Board and Auditing IAASB International GST Goodsandservicestax Initiative GRI GlobalReporting equivalent FTE Full-time FCPA ofCPA Fellow Australia Authority and Ethics FASEA FinancialAdviserStandards and governance ESG Environmental, social GeneralManager EGM Executive development professionalCPD Continuing CPA COE Centre ofExcellence Digital Officer and CIDO ChiefInformation CFO Chieffinancialofficer officerCEO Chiefexecutive and PacificAccountants CAPA ofAsian Confederation Certified Practising Accountant Practising Certified UK UnitedKingdom UAE UnitedArabEmirates TSC Total SalaryCost TPB Tax Board Practitioners practice andmedium SMP Small enterprise SME Small-to-medium (Supervision) Industry SIS Superannuation SDG SustainableDevelopmentGoals Region SAR SpecialAdministrative Plan Action RAP Reconcilliation PSS Professional Standards Scheme PSC Professional Standards Council PII Professional IndemnityInsurance in Business PAIB Professional Accountants OrderOAM Medalofthe ofAustralia KPI Keyperformanceindicator KMP Keymanagementpersonnel IRP IndependentReviewPanel Committee Implementation IRIC IndependentReview IR IntegratedReporting StandardsAccounting Board Sector Public IPSASB International IPA Institute of Public Accountants ofPublic Institute
149 | CPA Australia Integrated Report 2019 OFFICE LOCATIONS
AUSTRALIA ASIA Hanoi EUROPE Suite 1201A, 12th Floor, Tower A Head office/Victoria Beijing United Kingdom (and registered office) Unit 308B, 3/F Handi Resco Building Eccleston Yards Level 20, 28 Freshwater Place Office Tower C2, Oriental Plaza 521 Kim Ma Street 25 Eccleston Place Southbank VIC 3006 No. 1 East Chang An Avenue Ba Dinh, Hanoi, Vietnam London SW1W 9NF GPO Box 2820 Dong Cheng District P: +84 4 6263 4320 United Kingdom Melbourne VIC 3001 Beijing 100738, China E: [email protected] P: +44 20 7240 8266 Free call: 1300 737 373 P: +8610 8518 5575 Ho Chi Minh City F: +44 20 7240 3452 (Australia only) F: +8610 8518 7001 Suite 501, 5th Floor E: [email protected] E: [email protected] E: [email protected] The Metropolitan 235 Dong Khoi Street Australia Capital Territory Guangzhou District 1, Ho Chi Minh City OCEANIA Level 5, CPA Australia Building Unit 2504, Tower A, GT Land Plaza Vietnam 10 Rudd Street No. 85 Huacheng Avenue Fiji* Canberra ACT 2601 Zhujiang New Town P: +84 28 3520 8338 Neil Underhill and Associates GPO Box 3260 Tianhe District E: [email protected] Attention Neil Underhill Canberra ACT 2601 Guangzhou 510623, China PO Box 1327, Wailada, Lami Indonesia Suva, Fiji Islands P: +8620 8393 0610 World Trade Centre 5 New South Wales P: +679 336 3968 Level 3, 111 Harrington Street F: +8620 8393 0614 12th Floor, Jl. Jend Sudirman Kav. 29 E: [email protected] Sydney NSW 2000 E: [email protected] Jakarta 12920, Indonesia Locked Bag 23 P: +62 21 2964 5100 New Zealand Grosvenor Place NSW 1220 Hong Kong 20/F Tai Yau Building E: [email protected] Level 16, HSBC House 1 Queen Street 181 Johnston Road Malaysia Northern Territory Auckland 1143 Level 2, Charles Darwin Centre Wanchai, Hong Kong Suite 10.01, Level 10 New Zealand 19 Smith Street The Gardens South Tower P: +852 2891 3312 PO Box 105-893 Auckland City Darwin City NT 0800 Mid Valley City F: +852 2832 9167 New Zealand 1143 Lingkaran Syed Putra E: [email protected] Queensland 59200 Kuala Lumpur P: +64 9 913 7450 Level 29, 10 Eagle Street Macau* E: [email protected] Brisbane QLD 4000 P: +603 2267 3388 Rua Dr Pedro Jose Lobo 1 – 3A E: [email protected] GPO Box 1161 Luso International Bank Building Brisbane QLD 4001 14th Floor, Room 1404 – 1405 Singapore Macau 1 Raffles Place South Australia 31-01 One Raffles Place Level 10, 420 King William Street P: +853 2838 9207 Singapore 048616 Adelaide SA 5000 F: +853 2857 9238 GPO Box 2574 E: [email protected] P: +65 6671 6500 Adelaide SA 5001 E: [email protected] Shanghai Suite 4003-4004 Tasmania Level 2, 54 Victoria Street CITIC Square Hobart TAS 7000 1168 Nanjing West Road GPO Box 906 Shanghai 200041, China Hobart TAS 7001 P: +8621 2213 9850 F: +8621 5292 5589 Victoria E: [email protected] Refer to head office location
Western Australia Level 17 Alluvion 58 Mounts Bay Road Perth WA 6000 PO Box 7378 Cloisters Square Perth WA 6850
*International branch offices – not staffed
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