Annual Report 2013

DRIVING A COMPETITIVE FUTURE CPA AUSTRALIA 2013 INTEGRATED REPORT WE VALUE YOUR FEEDBACK ON THIS REPORT AND ANY ENQUIRIES ABOUT OUR POLICIES OR PRACTICES. FOR MORE INFORMATION, CONTACT CPA AUSTRALIA CHIEF EXECUTIVE, ALEX MALLEY, AT [email protected] CPA AUSTRALIA 2013 INTEGRATED REPORT | 1 ABOUT THIS REPORT The scope and boundaries of This report is structured to provide The financial section at the end of this this report covers the activities of readers with a comprehensive picture report is a general purpose financial CPA Australia Ltd (CPA Australia) of how CPA Australia has created value report that has been prepared in and its controlled entities, and is through its business model and how we accordance with the Accounting inclusive of office locations in Australia, intend to do so for the short, medium Standards, Interpretations and other Asia, Europe and New Zealand and long term. It has been informed by authoritative pronouncements of the for the calendar year 1 January to our materiality review (see page 2) and Australian Accounting Standards Board 31 December 2013. features the following main sections: and the Corporations Act 2001. This report has been prepared in • Our members – including service, Accounting Standards include accordance with the fundamental certification and the CPA Program, Australian equivalents to International concepts, guiding principles and broadening our audience and access Financial Reporting Standards (A-IFRS). content elements set out in the to knowledge Compliance with A-IFRS ensures that International Integrated Reporting • Public interest and the profession financial statements and notes of Council’s (IIRC) Integrated – including representation and the consolidated entity comply with Reporting Framework released on advocacy, supporting accounting International Financial Reporting 9 December 2013. education, professional standards Standards (IFRS). Integrated Reporting represents an and community We have also used the Global important opportunity for CPAs to • How we do business – including our Reporting Initiative (GRI) 3.1 play a pivotal role in ensuring that people, environment and governance Sustainability Reporting Guidelines in integrated thinking on the capitals preparing the report to Application • How we manage our financial (financial, manufactured, intellectual, Level C+. The Application Level C+ resources and reporting – this forms human, natural, social and relationship) has been checked by the GRI and part of how we do business, but has feeds into business management independently assured by Deloitte its own section, given the priority of and reporting. Our Chief Executive, Touche Tohmatsu Ltd. Please see the information to our members and Alex Malley, is a member of the IIRC, page 107 for the independent limited other stakeholders driving our commitment to integrated assurance statement and page 106 reporting from the top. More details This structure also reflects our strategic for the Application Level check. For on the IIRC and the framework can be objectives, including key initiatives and more information about the GRI, the found at www.theiirc.org related activities for 2013. guidelines and Application Levels As an integrated report this document The principal audience for this report please visit www.globalreporting.org also covers our sustainability is our membership, but the information There have been no significant changes information. At CPA Australia, the term will also be of value to our other from previous reporting periods in “sustainability” covers our management stakeholders including our committees, scope, boundary or measurement of the relevant capitals for our business. prospective members, staff, key methods of our financial or non- As a business, we are committed influencers (including regulators, financial performance. There are no to reporting on the environmental, governments and their agencies), material exclusions from this report. employers, professional industry social and financial context of our The CPA Australia full integrated bodies, academic institutions and organisation. Our decision to move report in English, and a concise version research partners. towards a whole-of-business view of in Chinese are available online at operations means changing behaviours, cpaaustralia.com.au/annualreport systems and processes to manage our impact on resources and the relationships that support this. 2 | DRIVING A COMPETITIVE FUTURE WHAT MATTERS FOR CPA AUSTRALIA iv viii High i v vi ii vii xii iii xiii x ix xi Business impact xiv Low Low Stakeholder importance High DETERMINING MATERIALITY CPA Australia’s 2012 Annual Report This year, we have not included a FOR CPA AUSTRALIA against the IIRC Draft IR Framework. separate section on our supply chain, We used these issues to form the As part of the development of this as this information is not a priority for basis of the structure of the 2013 report, we engaged Beca Pty Ltd to our stakeholders. Information on our Integrated Report. undertake a materiality determination key supplier partnerships can be found in the sections representing our key process. The aim was to determine KEY BUSINESS ISSUES significant issues that are relevant for products and services, in particular, The key business issues for CPA Australia, by incorporating: Certification and the CPA Program. CPA Australia in overall order of While environmental issues are also • Issues of most importance to significance, taking into account the of relatively low importance to our external stakeholders importance of issues to stakeholders stakeholders and have limited impact • Issues that have the most potential and the potential business on our operations as a business, as a to impact the business impact, are as follows: professional body representing the Our engagement of stakeholders to i Service – member engagement interests of accountants who may develop this report was done via a one- ii Access to knowledge be called on to account for energy on-one interview program, internal and iii An independent board and environmental use in varying external stakeholder workshops and jurisdictions, we believe it is important iv Certification and the material issues ranking process. that we continue to measure and CPA Program External stakeholders included member report our environmental impact. representatives from across industry v Professional standards sectors and of mixed social and vi Broadening the audience demographic backgrounds. Internal vii Representation and advocacy stakeholders represented key business viii Financial sustainability areas and processes. A continuing challenge for CPA Australia into ix Community the future is to engage with a wider x Supporting accounting education range of stakeholders in determining xi Leading on integrated reporting materiality. xii Stable and motivated workforce In addition to external and internal xiii Efficient and rewarding stakeholder engagement, reviews supplier relationships were undertaken of CPA Australia’s risk registers, peer reports and xiv Environment CPA AUSTRALIA 2013 INTEGRATED REPORT | 3 CONTENTS About this report 1 FINANCIAL REPORT 65 What matters for CPA Australia 2 Report of the Board of Directors 66 President’s report 5 Overview of financial results 69 Chief Executive’S report 7 Discussion and analysis of 2013 highlights and challenges 8 the financial results 2013 70 2013 performance and 2014 targets 10 Statement of profit or loss and other comprehensive income 72 Our Business model 12 Statement of financial position 73 How CPA Australia creates value 13 Statement of changes in members’ funds 74 Our strategy 14 Statement of cash flows 75 Risks and opportunities 15 Notes to the financial statements 76 Our future outlook 16 Directors’ declaration 99 OUR MEMBERS 17 Independent Auditor’s Report 100 Service 18 GRI index 102 Certification and the CPA Program 22 GRI Application Level Check 106 Broadening the audience 24 Independent Limited Assurance 107 Access to knowledge 28 Office locations 110 PUBLIC INTEREST AND THE PROFESSION 31 Representation and advocacy 32 Supporting accounting education 35 Professional standards 37 Community 39 HOW WE DO BUSINESS 41 Our people 42 Executive Management Group 46 Environment 47 Governance 49 Board of Directors 50 Corporate Governance Statement 2013 55 Managing Risk 59 Councillors and committees 60 Acronyms 64 4 | DRIVING A COMPETITIVE FUTURE THIS YEAR WE INVESTED HEAVILY IN OUR INFRASTRUCTURE AND DIGITAL COMMUNICATIONS TO BUILD THE FUTURE CAPABILITIES OF OUR ORGANISATION. CPA AUSTRALIA 2013 INTEGRATED REPORT | 5 PRESIDENT’S REPORT Over the course of 2013, we completed We have sustained a continuing CPA Australia’s financial position a series of major infrastructure emphasis on broadening our audience continues to go from strength to upgrades and expanded our digital and strengthening the reach and strength, giving us the foundation communication capabilities to better influence of the CPA Australia brand. we need to build our organisational engage and serve nearly 150,000 In 2013, we took innovation to a new capabilities and invest in the members across 121 countries around level to acquire new members and CPA Program and a range of digital the world. engage existing CPAs. The Bottom platforms to grow and enhance our These new platforms are part of Line television series, broadcast business in new and innovative ways. CPA Australia’s corporate plan to build around Australia on the Nine Network, On behalf of the Board, I would like to the capability

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