ACADEMIES AUSTRALASIA GROUP LIMITED
ANNUAL REPORT 2022
ACN 000 003 725
ACADEMIES AUSTRALASIA GROUP LIMITED
ANNUAL REPORT 2022
CONTENTS
Page
Report of the Chairman and the Group Managing Director and CEO
Directors’ Report
Information on the Directors and Company Secretaries
Information on Senior Company Executives
Remuneration Report - Audited
Corporate Governance Statement
Auditor’s Independence Declaration
Consolidated Financial Statements
Statement of Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes
Directors’ Declaration
Independent Auditor’s Report
Additional Information for a Company listed on the ASX
Corporate Information
Glossary
- 1 -
2
3
6
8
8
10
11
12
13
14
15
16
47
48
53
55
56
REPORT OF THE CHAIRMAN AND THE GROUP MANAGING DIRECTOR AND CEO
Dear Shareholder
FY22 was the second year that we were adversely affected by the COVID-19 pandemic.
There was a substantial fall of $6.58 million or 15% in revenue from services from $42.62 to $36.04 million.
This was mainly because the Australian border was closed, and people movement was severely restricted.
Notwithstanding a fall of that size, after subtracting subsidies for JobKeeper/JobSaver and rental rebates, our
EBITDA for FY22 was $3.97 million - which is $512,000 or 15% better than the EBITDA achieved in
FY21.The after-tax loss for FY22 was $1.31 million – or $249,000 more than the loss in the previous year.
Last year we mentioned the frustration of being hit by a pandemic that came out of left field, there being not
very much that we could do about it, and that our fate was in the hands of politicians and bureaucrats whose
jobs were safe and who had less to worry about trying to make ends meet. There is a real need to be better
organised and more efficient. Most of our business is with international students. While the border was shut, we
worked hard to maintain contact with education agents and potential students. But now there is an inordinate
wait for student visas to be processed. If visa processing time frames were closer to pre-COVID-19 levels during
the last quarter of FY22, we would have substantially better results for FY22. We look forward to the new
Federal Government being more efficient in this area. We remember that international education used to be a
$40 billion business. Substantial value to Australia.
We continue to be debt-free. We began FY23 with $16.0 million in cash, a 29% increase from the cash we had
at the end of June 2021. This puts us in a good position for growth and to pursue new opportunities.
At the end of FY22, TEQSA approved AAPoly’s Bachelor of Business (Cyber Security) degree which will be
offered in Melbourne and Sydney soon. Presently applications for two other Bachelor degrees and one Master
degree that have been submitted for approval. We are also working on another Bachelor degree.
The border closures adversely affected the take-up of the 30 Destination Australia scholarships for international
students, that we were granted by the Federal Government. We were only able to award 24 (80%) scholarships.
More than half the students have graduated while others will graduate next year. It was disappointing that the
Federal Government did not agree to our request to extend the deadline for students to apply for the remaining
6 scholarships.
On behalf of the Board, we would like to convey our sincere appreciation to all shareholders, students, clients,
partners, associates and other stakeholders for their loyalty, contribution, and support during another very
difficult year. Thank you.
Dr John Lewis Schlederer
Chairman
30 August 2022
Christopher Elmore Campbell
Group Managing Director and CEO
- 2 -
DIRECTORS’ REPORT
Your Directors present their report on the Group for FY22.
DIRECTORS
The names of Directors in office at any time during, or since the end of, the financial year are:
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
All Directors have been in office from the start of the financial year to the date of this report.
Details on the Directors and Company Secretaries are set out on pages 6 and 7.
PRINCIPAL ACTIVITY
The principal activity of the Group during the financial year was the provision of training and education services.
CONSOLIDATED RESULT
The consolidated loss before tax for the Group for FY22 was $1,782,000 (FY21: $164,000). The consolidated
loss for the Group, after providing for income tax, amounted to $1,309,000 (FY21: $1,060,000).
REVIEW OF OPERATIONS
Revenue from services decreased by 15 % to $36,042,000 (FY21: $42,624,000).
EBITDA after adjustments for Jobkeeper/Jobsaver and rental rebates:
EBITDA
JobKeeper/JobSaver and rental rebates
EBITDA after adjustments
FY22
$000s
FY21
$000s
5,765
(1,791)
3,974
9,106
(5,644)
3,462
After adjusting for other income in the form of JobKeeper/JobSaver and rental rebates, the Group performed
better than in the previous year. There was an improvement of $512,000 (15%) achieved mainly from the
streamlining of operations which reduced personnel and premises costs.
[Note: ‘EBITDA’ is not a term prescribed by the Australian Accounting Standards (‘AAS’).]
- 3 -
DIVIDENDS
There were no dividends paid or declared during the year.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There were no significant changes in the Company’s state of affairs during the financial year.
RELOCATION OF PREMISES
In FY22 the Company continued consolidating certain operations to reduce costs, including rent. Operations
from the Sydney campus located at 333 Kent Street were relocated to existing premises at Level 6, 505 George
Street as the building in Kent Street is going through major lengthy renovations. The Company has taken a 10-
year lease of 3,300 sqm at 4-10 Goulburn Street, Sydney.
COVID-19 PANDEMIC
We have worked hard to seek international students from offshore following the opening of Australia’s
international border and have been successful. But there has been a major logjam at the visa processing
operations at the Department of Home Affairs (‘DHA’). Apparently, DHA has been hit by a large backlog of
applications for student visas, substantial new applications, staff shortages at overseas posts because of COVID-
19, and the impact of a $900 million cut by the previous government in the budget handed down before the May
elections. The sharp slowdown in visa processing has more than just the international education sector
screaming. Other frustrated sectors include hospitality, waiting for tourists, and businesses waiting for skills
visa processing to be issued for staff they need. The new Federal government made this a priority item that was
addressed at the first National Cabinet meeting, chaired by the Prime Minister. Visa approvals are improving
but still seem far from pre-COVID-19 levels. We are nevertheless confident about the future as the interest to
study in Australia is there.
Domestic training programs continue to be badly affected by COVID-19 – affected by the overall slowdown
in business and the fear of infection. Unless the pandemic deteriorates, we are confident that the domestic
business will improve too.
DEGREE PROGRAMS
Academies Australasia Polytechnic (‘AAPoly’) has been approved by TEQSA to offer the Bachelor of Business
(Cyber Security). Cyber Security is a growing area of concern as a cyber-attack can very quickly break a
business. It is not just an IT, Compliance or Finance department’s responsibility. It is an all-staff, whole-of-
business responsibility. That is why our Cyber Security offering is within a Bachelor of Business degree. Our
Bachelor of Business (Cyber Security) degree which addresses Governance, Risk and Compliance, is Australia’s
first Bachelor degree in Cyber Security with a business focus.
AAPoly has submitted applications for three other degrees to TEQSA.
- 4 -
ACQUISTION OF REMAINING INTEREST IN KREATE PTY LIMITED T/A RURALBIZ TRAINING
(RBT)
On 27 September 2021, AKG4 Investment Holdings Pty Limited acquired the remaining 25% of RBT for a
consideration of $328,000. The Group now owns 100%.
EVENTS AFTER THE REPORTING DATE
Other than the securing of premises from 1 July 2022 at Goulburn Street in Sydney, there were no matters or
circumstances that have arisen since the end of the financial year which significantly affected or may
significantly affect the operations of the Group, the results of those operations, or the state of affairs of the
Group in subsequent financial years.
FUTURE DEVELOPMENTS, PROSPECTS AND BUSINESS STRATEGIES
Please refer to the Report of the Chairman and the Group Managing Director and CEO (Page 2).
ENVIRONMENTAL ISSUES
The Group’s operations are not subject to any significant environmental legislation.
INDEMNIFICATION AND INSURANCE OF OFFICERS
The Company’s constitution provides an indemnity to officers of the Company. The Company is required to
pay all costs, losses and expenses that an officer may incur by reason of any contract entered into or act or thing
done by them in the discharge of their duties except where they act dishonestly.
The Company has paid an insurance premium amounting to $51,000 for a directors and officers liability
insurance policy covering the directors’ and officers’ liabilities as officers of the Company.
OPTIONS
There are no other options over unissued share capital.
ROUNDING OF AMOUNTS
The Director’s report is presented in Australian Dollars and rounded to the nearest thousand dollars in
accordance with Instrument 2016/191.
- 5 -
INFORMATION ON DIRECTORS AND COMPANY SECRETARIES
Dr John Lewis Schlederer
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
Non-executive Director, appointed 21 August 2009. Chairman since 1
January 2014.
B.Sc. (Hons), Grad. Diploma, PhD.
More than 22 years teaching experience at University of New South
Wales and TAFE NSW and many years in business.
14,013,587 shares (10.98 %)
Chairman of the Board. Chairman of the Remuneration Committee.
Member of the Audit and Risk Committee.
None
Christopher Elmore Campbell Group Managing Director and Chief Executive Officer, appointed 1
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
Chiang Meng Heng
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
July 1996.
B.Soc.Sci. (Hons), FFin, FAICD, FCG (CS, CGP), FGIA.
Experience in mergers and acquisitions and more than 21 years’
experience in managing educational institutions. Previous positions
include senior appointments with the Monetary Authority of Singapore
and an international bank in Australia. Member of the Advisory
Council of Asia Society Australia (‘ASA’) since November 2020 after
8 years on the Board of ASA.
20,000,000 shares (15.67 %)
Member of the Remuneration Committee.
None.
Non-executive Director, appointed 15 February 2000.
BBA (Hons).
Previous positions include Treasurer, Citibank NA, Singapore and
Hong Kong; Adviser & Head, Banking Supervision, Monetary
Authority of Singapore; EVP, Overseas Union Bank Ltd including
secondments as Executive Director, International Bank of Singapore
Ltd and President, Asia Commercial Bank Ltd; Managing Director,
First Capital Corporation Ltd; Executive Director, Far East
Organization and Group Managing Director, Lim Kah Ngam Ltd.
Member of Singapore Parliament for 4 terms from 1985 to 2001.
51,185,961 shares (40.11%)
Member of the Audit and Risk Committee and Remuneration
Committee.
None.
- 6 -
Gabriela Del Carmen
Rodriguez Naranjo
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
Sartaj Hans
Qualifications
Experience
Interest in Shares
Special Responsibilities
Directorships held in other listed
entities
COMPANY SECRETARIES
Directorships
Deputy Group Managing Director and Group Chief Operating Officer.
Appointed Executive Director, 21 October 2013.
Alternate Director, 10 May 2011 to 31 December 2013, (Alternate to
Neville Thomas Cleary (Retired 31 December 2013)). Appointed
Chief Operating Officer on 15 August 2017 and Deputy Group
Managing Director on 1 January 2019.
B. Comp.Sci, B.Sci. Sys. Eng.
Joined the Group in April 2001. More than 21 years’ experience
managing
in
curriculum
acquisitions, marketing,
development and lecturing.
Director, IHEA from 17 May 2017. Deputy Chairman of IHEA since
29 May 2019.
100,000 shares (0.08 %)
Group Chief Operating Officer from 15 August 2017. Joint Company
Secretary from 14 September 2016.
None
compliance,
institutions,
educational
experience
regulatory
including
Independent, Non-executive Director, appointed 19 October 2016.
B.E. Honours (Electronics)
Experience in information technology and superannuation at BT
Financial Group, the wealth management arm of Westpac. Played a
pivotal role in the development of Goulburn Health Hub, a medical
facilities project in Goulburn. Many years experience in managing
investments and financial affairs in private family companies.
813,929 shares (0.64%)
Chairman of the Audit and Risk Committee (Appointed 19 October
2016).
None
Stephanie Noble
Qualifications
Experience
Other Responsibilities
Appointed 27 November 2006
BA (Hons) Accounting, FCCA (UK), CPA (Australia).
More than 15 years as Company Secretary of Academies
Australasia Group Limited.
Group Finance Manager.
Gabriela Del Carmen
Rodriguez Naranjo
Appointed 14 September 2016
See Information on Directors.
- 7 -
MEETINGS OF DIRECTORS
Director
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
Directors’
Meetings
Audit and Risk
Committee
Remuneration
Committee
A
3
3
3
3
3
B
3
3
3
3
3
A
2
2
2
2
2
B
2
2
2
2
2
A
2
2
2
-
-
B
2
2
2
-
-
A - Number of meetings held during the time the Director held office during the period
B - Number of meetings attended
INFORMATION ON SENIOR COMPANY EXECUTIVES
Christopher Elmore Campbell
Group Managing Director and Chief Executive Officer.
See Information on Directors.
Gabriela Del Carmen Rodriguez
Naranjo
Deputy Group Managing Director and Group Chief Operating
Officer.
See Information on Directors.
REMUNERATION REPORT – AUDITED
Remuneration Policies
The Remuneration Committee reviews and makes recommendations to the Board on remuneration packages and
policies applicable to the Group Managing Director and Chief Executive Officer, Senior Company Executives
and the Directors themselves. This role also includes responsibility for share option schemes, performance
incentive packages, superannuation entitlements, retirement and termination entitlements, fringe benefit policies
and professional indemnity and liability insurance policies. Remuneration levels are set to attract appropriately
qualified and experienced directors and senior company executives.
During the year, the members of the Remuneration Committee were Dr John Lewis Schlederer, Chiang Meng
Heng and Christopher Elmore Campbell.
All executives receive a fixed base salary, which is based on factors such as market factors and experience, and
superannuation (as required by law). Executives may sacrifice part of their salary towards superannuation.
The Company does not have an employee share option plan.
All remuneration paid to Directors and Executives is valued at the cost to the Company and expensed.
Non-executive Directors’ remuneration comprises fixed fees. The maximum aggregate amount of fees that can
be paid to Non-executive Directors is subject to approval by shareholders at the Annual General Meeting. The
amount approved at the 2009 Annual General Meeting is $250,000 per annum. Fees for Non-executive Directors
are not linked to the performance of the Group.
- 8 -
Directors and Senior Company Executives
Details of the Directors and Senior Company Executives holding office at any time during the financial year are
set out on pages 6 to 7.
a. Remuneration
30 June 2022 Directors and Senior
Company Executives
Short-term employee benefits
Bonus
Cash, salary
and
commissions
Non-
monetary
benefits
Post- employment
benefits
Superannuation
Total
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
$000s
$000s
$000s
$000s
$000s
41
512
40
302
50
945
-
-
-
-
-
-
-
-
-
-
-
-
28
28
4
28
5
93
69
540
44
330
55
1,038
30 June 2021 Directors and Senior
Company Executives
Short-term employee benefits
Bonus
Cash, salary
and
commissions
Non-
monetary
benefits
Post- employment
benefits
Superannuation
Total
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
$000s
$000s
$000s
$000s
$000s
43
470
40
304
50
907
-
-
-
-
-
-
-
-
-
-
-
-
25
25
4
25
5
84
68
495
44
329
55
991
None of the remuneration paid to any Director or Senior Company Executive is tied to any specific performance
condition.
b. Options issued as part of remuneration for the year ended 30 June 2022
The Group has no employee share plan. No options were granted as part of remuneration.
c. Employment contracts of Executives
The employment conditions of all executives are formalised in written contracts of employment. Generally, the
employment contracts stipulate a one-month notice period. Termination payments are generally not payable on
resignation or dismissal for serious misconduct. In the instance of serious misconduct the company can terminate
employment at any time.
With respect to senior company executives, the expiry date of Christopher Elmore Campbell’s fixed term
contract of employment has been extended to 31 December 2023. Gabriela Del Carmen Rodriguez Naranjo’s
fixed term contract expires on 31 December 2024.
- 9 -
AUDITORS’ INDEPENDENCE DECLARATION
The Auditor’s Independence Declaration for FY22 appears on page 11. It forms part of the Directors’ Report
for the year ended FY22.
NON-AUDIT SERVICES
The Board of Directors, in accordance with advice from the Audit and Risk Committee, is satisfied that the
provision of non-audit services by the external auditors, Pilot Partners, during the year is compatible with the
general standard of independence of auditors imposed by the Corporations Act 2001. The Directors are satisfied
that the services disclosed below did not compromise the external auditors’ independence for the following
reasons:
• All non-audit services are reviewed and approved by the Audit and Risk Committee.
• The nature of services provided does not compromise the general principles relating to audit
independence.
The following fees were paid or payable for non-audit services to the external auditors during the year ended
30 June 2022:
• Taxation services
• Other services
$66,000
$10,000
(2021: $73,000)
(2021: $16,000)
CORPORATE GOVERNANCE STATEMENT
The Company’s Corporate Governance Statement and its Key to Disclosures, Corporate Governance Council
Principles and Recommendations (ASX Appendix 4G) are provided to ASX together with the Company’s
Annual Report. The Corporate Governance Statement is on the Company’s website: www.academies.edu.au
Signed in accordance with a resolution of the Board of Directors pursuant to section 298 (2)(a) of the
Corporations Act 2001.
Dr John Lewis Schlederer
Director
30 August 2022
Christopher Elmore Campbell
Director
- 10 -
oilot'
PILOT PARTNERS
Chartered Accountants
Level 10, Waterfront Place
1 Eagle St. Brisbane 4000
PO Box 7095 Brisbane 4001
Queensland Australia
P+61 7 3023 1300
F+61 7 3229 1227
pilotpartners.com. au
AUDITOR'S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
ACADEMIES AUSTRALASIA GROUP LIMITED
I declare that to the best of my knowledge and belief, during the year ended 30 June
2022, there have been:
no contraventions of the auditor's independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the
audit.
^
PILOT PARTNERS
Chartered Accountants
DANIEL GILL
Partner
Signed on 30 August 2022
Level 10
1 Eagle Street
Brisbane Qld 4000
A member of
Nexia
ABN 50 063 687 769 ! Pilot is a registered trade mark licensed to Pilot Partners I Liability Limited by a scheme approved under Professional Standards Legislation
Nexia International is a worldwide network of independent accounting and consulting firms.
-11-
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2022
Note
e
2
3
3
3
3
3
2
3
3
4
7
7
8
Revenue from services
Student acquisition and teaching costs
Gross profit
Personnel expenses
Premises expenses
Other administration expenses
Restructure and non-recurring costs
Other income
Earnings before interest, depreciation and amortisation
Depreciation and amortisation expenses
Profit / (loss) on disposal of assets
Finance costs
Interest income
Loss before income tax
Income tax expense
Loss for the year
Other comprehensive income:
Exchange differences on translating foreign controlled entities
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
(Loss) / profit attributable to:
Owners of the parent entity
Non-controlling interests
Total comprehensive income attributable to:
Owners of the parent entity
Non-controlling interests
Earnings per share (cents per share)
Basic
Diluted
Dividends per share (cents)
The accompanying notes form part of these financial statements.
- 12 -
FY22
$000s
36,042
(15,280)
20,762
(11,704)
(2,944)
(2,060)
4,054
(80)
3,974
1,791
FY21
$000s
42,624
(19,448)
23,176
(13,498)
(3,327)
(2,349)
4,002
(540)
3,462
5,644
5,765
9,106
(6,113)
52
(1,493)
7
(1,782)
473
(7,186)
(364)
(1,761)
41
(164)
(896)
(1,309)
(1,060)
(9)
(9)
(1,318)
(1,302)
(7)
(1,309)
(1,311)
(7)
(1,318)
(1.02)
(1.02)
-
(1)
(1)
(1,061)
(1,241)
181
(1,060)
(1,242)
181
(1,061)
(0.97)
(0.97)
1.865
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022
Note
FY22
FY21
$000s
$000s
Current Assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total Current Assets
Non-Current Assets
Plant and equipment
Right of use assets
Deferred tax assets
Intangible assets
Total Non-Current Assets
Total Assets
Current Liabilities
Tuition fees in advance (Deferred income)
Trade and other payables
Current tax liabilities
Lease liabilities
Provisions
Total Current Liabilities
Non-Current Liabilities
Lease liabilities
Provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share capital
Retained earnings
Foreign currency translation reserve
Non-controlling interests
Total Equity
The accompanying notes form part of these financial statements.
9
10
11
13
14
15
16
17
17
4
18
19
18
19
20
- 13 -
15,956
2,005
3,272
21,233
3,743
21,514
5,726
32,855
63,838
85,071
19,398
3,500
597
4,454
3,400
31,349
25,377
341
25,718
57,067
28,004
12,371
2,373
2,000
16,744
4,337
28,584
4,520
32,844
70,285
87,029
12,919
3,971
-
5,584
3,317
25,791
31,149
371
31,520
57,311
29,718
42,066
(14,534)
60
412
42,066
(13,003)
69
586
28,004
29,718
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2022
Ordinary
Shares
Retained
Earnings
Reserves
Non -
Controlling
Interests
Total
$000s
$000s
$000s
$000s
$000s
Balance at 1 July 2021
Loss for the period
Exchange differences on translating foreign
operations
Total comprehensive income for the year
Acquistion of remaining 25% of RBT (Note 12)
Dividend paid
Balance at 30 June 2022
42,066
(13,003)
-
-
-
-
-
(1,302)
-
(1,302)
(229)
-
42,066
(14,534)
Balance at 1 July 2020
(Loss) / profit for the period
Exchange differences on translating foreign
operations
Total comprehensive income for the year
Dividend paid
Balance at 30 June 2021
42,066
-
-
-
-
(9,382)
(1,241)
-
(1,241)
(2,380)
42,066
(13,003)
69
-
(9)
(9)
-
-
60
70
-
(1)
(1)
-
69
586
(7)
-
(7)
(99)
(68)
412
589
181
-
181
(184)
586
29,718
(1,309)
(9)
(1,318)
(328)
(68)
28,004
33,343
(1,060)
(1)
(1,061)
(2,564)
29,718
The accompanying notes form part of these financial statements.
- 14 -
ACADEMIES AUSTRALASIA GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2022
Note
FY22
$000s
FY21
$000s
23a
Cash Flows from Operating Activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income taxes paid
Net cash provided by (used in) operating activities
Cash Flows from Investing Activities
Make good payments
Acquisition of remaining 25% of RBT
Purchase of intangible assets
Purchase of plant & equipment
Net cash provided by (used in) investing activities
Cash Flows from Financing Activities
Dividends paid
Lease payments
Net cash provided by (used in) financing activities
Net increase in cash held
Net cash at the beginning of the financial year
Net cash at the end of the financial year
9
43,187
(32,521)
7
(1,474)
124
9,323
(28)
(328)
(237)
(327)
(920)
(68)
(4,750)
(4,818)
3,585
12,371
15,956
45,230
(39,757)
41
(1,743)
24
3,795
(82)
-
(239)
(112)
(433)
(2,564)
(5,331)
(7,895)
(4,533)
16,904
12,371
The accompanying notes form part of these financial statements.
- 15 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
This financial report is a general purpose financial report that has been prepared in accordance with Australian
Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the
Australian Accounting Standards Board (AASB) and the Corporations Act 2001.
The financial report includes the consolidated financial statements of Academies Australasia Group Limited
and controlled entities (the Group). Details of the parent entity can be found in Note 27.
Academies Australasia Group Limited is a listed public company, incorporated and domiciled in Australia.
The Group is a for profit entity for financial reporting purposes under Australian Accounting Standards which
set out accounting policies that the AASB has concluded would result in a financial report containing relevant
and reliable information about transactions, events and conditions. Compliance with Australian Accounting
Standards ensures that the financial statements and notes also comply with International Financial Reporting
Standards. Material accounting policies adopted in the preparation of this financial report are presented below
and have been consistently applied unless otherwise stated.
The financial statements were authorised for adoption on 30 August 2022.
New, revised or amending Accounting Standards and Interpretations
The Group has adopted all of the new, revised or amending Accounting Standards and Interpretations issued
by the AASB that are mandatory for the current reporting period.
Bases of preparation
The financial report has been prepared on the accruals basis and is based on historical costs, modified by the
revaluation of certain non-current assets, financial assets and financial liabilities, for which the fair value basis
of accounting has been applied. The financial report is presented in Australian Dollars and rounded to the
nearest thousand dollars in accordance with Instrument 2016/191.
Accounting Policies
a.
Basis of consolidation
The consolidated financial statements incorporate all of the assets, liabilities and results of the parent
(Academies Australasia Group Limited) and all its subsidiaries (including any structured entities). Subsidiaries
are entities the parent controls. The parent controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect those returns through its power over
the entity. A list of the subsidiaries is provided in Note 12.
The assets, liabilities and results of all subsidiaries are fully consolidated into the financial statements of the
Group from the date on which control is obtained by the Group. The consolidation of a subsidiary is
discontinued from the date that control ceases. Intercompany transactions, balances and unrealised gains or
losses on transactions between Group entities are fully eliminated on consolidation. Accounting policies of
subsidiaries have been changed and adjustments made where necessary to ensure uniformity of the accounting
policies adopted by the Group.
- 16 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Equity interests in a subsidiary not attributable, directly or indirectly, to the Group are presented as “non-
controlling interests”. The Group initially recognises non-controlling interests that are present ownership
interests in subsidiaries and are entitled to a proportionate share of the subsidiary’s net assets on liquidation at
either fair value or at the non-controlling interests’ proportionate share of the subsidiary’s net assets.
Subsequent to initial recognition, non-controlling interests are attributed their share of profit or loss and each
component of other comprehensive income. Non-controlling interests are shown separately within the equity
section of the statement of financial position and statement of comprehensive income.
Business combinations
b.
Business combinations occur where an acquirer obtains control over one or more businesses.
A business combination is accounted for by applying the acquisiton method, unless it is a combination
involving entities or businesses under common control. The business combination is accounted for from the
date that control is attained, whereby the fair value of the identifiable assets acquired and liabilities (including
contingent liabilities) assumed is recognised (subject to certain limited exemptions).
When measuring the consideration transferred in the business combination, any asset or liability resulting from
a contingent consideration arrangement is also included. Subsequent to initial recognition, contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity. Contingent consideration classified as an asset or liability is remeasured each reporting period to fair
value, recognising any change to fair value in profit or loss, unless the change in value can be identified as
existing at acquisition date.
All transaction costs incurred in relation to the business combination are expensed to the statement of
comprehensive income.
The acquisition of a business may result in the recognition of goodwill or a gain from a bargain purchase.
Cash and cash equivalents
c.
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of one month or less, and bank overdrafts. Bank overdrafts are shown
within short-term borrowings in current liabilities on the balance sheet.
Trade and other receivables (including contract assets)
d.
Trade and other receivables include amounts due from customers for services performed in the ordinary course
of business. Receivables expected to be collected within 12 months of the end of the reporting period are
classified as current assets. All other receivables are classified as non-current assets.
Trade and other receivables are initially recognised at fair value and subsequently measured at amortised cost
using the effective interest method, less any provision for impairment. Refer to Note 10 for further information
on the determination of impairment losses.
- 17 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Financial instruments
e.
Recognition and Initial Measurement
All financial assets and financial liabilities are initially recognised when the Group becomes a party to the
contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability
is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable
to its acquisition or issue. A trade receivable without a significant financing component is initially measured
at the transaction price.
Financial Assets – Classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt investment;
FVOCI – equity investment; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business
model for managing financial assets, in which case all affected financial assets are reclassified on the first day
of the first reporting period following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL:
– it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
interest on the principal amount outstanding.
On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to
present subsequent changes in the investment’s fair value in OCI. This election is made on an investment-by-
investment basis. All financial assets not classified as measured at amortised cost or FVOCI are measured at
FVTPL.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value
basis are measured at FVTPL.
Financial liabilities – Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as
at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost
using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in
profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
- 18 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Derecognition
The Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset
expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all
of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither
transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the
financial asset.
The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or
expire. The Group also derecognises a financial liability when its terms are modified and the cash flows of the
modified liability are substantially different, in which case a new financial liability based on the modified terms
is recognised at fair value.
On derecognition of a financial asset measured at amortised cost, the difference between the asset’s carrying
amount and the amount of the consideration received and receivable is recognised in profit and loss.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the
consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or
loss.
Fair value
Fair value is the price the Group would receive to sell an asset in an orderly transaction between independent,
knowledgeable and willing parties at measurement date. There are no financial assets or liabilities carried at
fair value.
Financial guarantees
Where material, financial guarantees are issued, which require the issuer to make specified payments to
reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due, are
recognised as a financial liability at fair value on initial recognition. The guarantee is subsequently measured
at the higher of the best estimate of the obligation and the amount initially recognised less, when appropriate,
cumulative amortisation in accordance with AASB 15 Revenue from Contracts with Customers. Where the
entity gives guarantees in exchange for a fee, revenue is recognised under AASB 15.
The fair value of financial guarantee contracts has been assessed using a probability weighted discounted cash
flow approach. The probability has been based on:
-
-
-
the likelihood of the guaranteed party defaulting in a year period;
the proportion of the exposure that is not expected to be recovered due to the guaranteed party
defaulting; and
the maximum loss exposed if the guaranteed party were to default.
Interest borrowing costs
Interest payable costs are recognised as expenses in the period in which they are incurred.
- 19 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Right of use assets and lease liabilities
f.
The Group’s lease portfolio includes property and equipment.
The Group has adopted AASB 16 Leases using the full retrospective restatement approach from 1 July 2019,
recognising right of use assets (ROUA) and an equivalent lease liability at the commencement of the lease.
The ROUA is initially measured at cost less any lease incentives and the lease liability is measured as the
present value of the remaining future lease payments discounted at the Group’s incremental borrowing rate at
the date of initial application.
A depreciation charge against the leased ROUA replaces the straight line expense payment and an interest
expense is recognised against the lease liability. Lease payments are no longer recognised as operating cash
flows, but as financing cash flows in the Statement of Cash Flows.
AASB 16 eliminates the distinction between operating and finance leases and brings all leases except short
term and low value onto the Statement of Financial Position.
The Group recognises a ROUA, representing its right to use the underlying assets and a corresponding lease
liability representing its obligation to make future lease payments. The Group recognises a ROUA and lease
liability at the commencement date of the lease.
ROUA are initially measured at cost (present value of the lease liability) and subsequently at cost less any
accumulated depreciation, impairment losses and adjustments for re-measurement of the lease liability. The
ROUA are depreciated using the straight line method from the commencement date to the end of the lease
term.
Short term leases (with a term of less than 12 months) and leases of low value assets are not recognised as
ROUA and corresponding lease liability. Lease payments on these assets are expensed to the profit and loss
account as incurred.
The lease liabilities are initially measured as the present value of future lease payments expected to be paid
over the lease term, discounted using the Group’s incremental borrowing rate. The lease liability is re-measured
if the future estimated lease payments change as a result of rate changes or the likelihood of exercise of
extension. The lease liabilities are subsequently increased by the interest cost on the lease liability and
decreased by the lease payments.
Make good liability
A liability is recognised for the present value of expected costs for future restoration of the leased premises.
The liability considers the costs associated with the removal of fittings, fit-out, furniture, signage, and other
structures, as well as the cost of restoration of the premises to its original condition by reconditioning or
repainting the walls, replacing, or cleaning the surfaces including carpets, tiles, vinyl, wallpaper and so on. The
calculation of the make good liability involves assumptions such as lease end dates and cost of make good.
The liability recognised for each lease is reviewed at the end of report date and the liability amount is updated
based on the information available at the time. Changes to the estimated future make good obligation for leases
are recognised in the financial statements by adjusting the lease liabilities account. The make good liability
will be carried forward after the lease end date until the make good obligations are fully discharged. The initial
estimate of the future make good liability is recognised as part of lease liabilities and the right-of-use assets.
The right-of-use asset component is depreciated across the lease term on a straight-line basis. The interest on
the make good liability is recognised as part of finance costs.
- 20 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Leasehold improvements and plant and equipment
g.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of
the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net
cash flows that will be received from the asset’s employment and subsequent disposal. The expected net cash
flows have been discounted to their present values in determining recoverable amounts.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate,
only when it is probable that future economic benefits associated with the item will flow to the Group and the
cost of the item can be measured reliably. All other repairs and maintenance are charged to the income
statement during the financial period in which they are incurred.
Depreciation
h.
The depreciable amount of all fixed assets including capitalised lease assets is depreciated on a straight-line or
a diminishing value basis over their useful lives to the Group commencing from the time the asset is held ready
for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or
the estimated useful lives of the improvements.
The depreciation rates used for each class of depreciable assets are:
Class of Fixed Asset
Leasehold improvements
Plant and equipment
Leased plant and equipment
Depreciation Rate
10 – 22.5%
5 – 67%
5 – 25%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet
date. An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount. Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These gains and losses are included in the statement of
comprehensive income.
Goodwill
i.
Goodwill is carried at cost less accumulated impairment losses. Goodwill is calculated as the excess of the sum
of:
-
-
-
the consideration transferred;
any non-controlling interest; and
the acquisition date fair value of any previously held equity interest
over the acquisition date fair value of net identifiable assets acquired.
- 21 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The acquisition date fair value of the consideration transferred for a business combination plus the acquisition
date fair value of any previously held equity interest shall form the cost of the investment in the separate
financial statements.
Fair value uplifts in the value of pre-existing equity holdings are taken to the statement of comprehensive
income. Where changes in the value of such equity holdings had previously been recognised in other
comprehensive income, such amounts are recycled to profit or loss.
The amount of goodwill recognised on acquisition of each subsidiary in which the Group holds less than a
100% interest will depend on the method adopted in measuring the non-controlling interest.
The Group can elect in most circumstances to measure the non-controlling interest in the acquiree either at fair
value (full goodwill method) or at the non-controlling interest’s proportionate share of the subsidiary’s
identifiable net asets (proportionate interest method). In such circumstances, the Group determines which
method to adopt for each acquisition and this is stated in the respective notes of these financial statements
disclosing the business combination.
Under the full goodwill method, the fair value of the non-controlling interest is detemined using valuation
techniques which make the maximum use of market information where available. Under this method, goodwill
attributable to the non-controlling interests is recognised in the consolidated financial statements.
Goodwill on acquisitions of subsidiaries is included in intangible assets.
Goodwill is tested for impairment annually and is allocated to the Group’s cash-generating units or groups of
cash-generating units, representing the lowest level at which goodwill is monitored not larger than an operating
segment. Gains and losses on the disposal of an entity include the carrying amount of goodwill related to the
entity disposed of.
Intangible assets
j.
Intangible assets include course development costs and other intangible assets.
Course development costs are capitalised where they can be related to the development of an identifiable and
separable resource and which yields particular streams of future economic benefits. They are only capitalised
when technical feasibility studies identify that the project is expected to deliver future economic benefits and
these benefits can be measured reliably. These capitalised costs are amortised over their useful lives starting
from the time the development of a particular resource is complete and available for use. The period of
amortisation is up to 5 years.
Impairment of assets
k.
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the
recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is
compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount
is expensed to the statement of comprehensive income.
Impairment testing is performed annually for goodwill and intangible assets with indefinite lives. Where it is
not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
- 22 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Collectibility of trade and other receivables and contract assets are reviewed on an ongoing basis. Debts are
written off when they are known to be uncollectible. An allowance for expected credit losses is raised where
some doubt as to collection exists and is the difference between the total amount owing and the amount
expected to be recovered. The Group also applies the AASB 9 simplified model of recognising lifetime
expected credit losses for receivables as these items do not have a significant financing component. An
expected credit loss allowance is recognised for the total expected loss from possible default events that may
arise over the expected life of the financial asset.
Expected credit losses are the probability-weighted estimate of credit losses over the expected life of a financial
instrument. A credit loss is the difference between all contractual cash flows that are due and all cash flows
expected to be received, all discounted at the original effective interest rate of the financial instrument.
Recognition of expected credit losses in financial statements
At each reporting date, the Group recognises the movement in the loss allowance as an impairment gain or
loss in the statement of profit or loss and other comprehensive income.
The carrying amount of financial assets measured at amortised cost includes the loss allowance relating to
that asset.
The Group has applied the expected credit loss model based on lifetime expected loss allowance for contract
assets.
Trade and other payables
l.
Trade and other payables represent the liabilities for goods and services received by the entity that remain
unpaid at the end of the reporting period. The balance is recognised as a current liability with the amounts
normally paid within 30 days of recognition of the liability.
Provisions and employee benefits
m.
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation.
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees
to balance date. Employee benefits that are expected to be settled within one year have been measured at the
amounts expected to be paid when the liability is settled, plus related on-costs. Employee benefits payable later
than one year have been measured at the present value of the estimated future cash outflows to be made for
those benefits.
Issued capital
n.
Ordinary shares are classified as equity, and are recognised at the fair value of the consideration received by
the company. Incremental costs directly attributable to the issue of new shares are shown in equity as a
deduction, net of tax, from the proceeds.
- 23 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Revenue
o.
Revenue is recognised over the period of tuition, upon completion of specific performance obligations of each
of the contracts. No revenue is recognised prior to a student commencing the tuition phase of delivery. As all
student contracts are for the provision of tuition, income for tuition is recognised as training is provided.
Payment terms vary from contract to contract but in most cases, cash is received prior to the performance
obligation being delivered. International students in particular are required to pay some level of tuition in
advance. Monies received in advance are held as unearned income and recognised as revenue as the
performance obligations are satisfied. Generally, the Group’s obligations in respect of refunds cease after the
course commences.
Revenue derived from the provision of education services is measured at the fair value of consideration
received or receivable to the extent that economic benefits will flow to the Group and the revenue can be
reliably measured.
Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the
financial assets.
Dividend revenue is recognised when the right to receive a dividend has been established.
Rental revenue is recognised on a straight line accrual basis over the term of the lease.
All revenue is stated net of the amount of goods and services tax (GST).
p. Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised
as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in
the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
Income tax
q.
The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable
or disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by
the balance sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly against equity.
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the Group will derive
sufficient future assessable income to enable the benefit to be realised and comply with the conditions of
deductibility imposed by the law.
Academies Australasia Group Limited and its wholly-owned Australian subsidiaries have formed an income
tax consolidated group under the tax consolidation regime. The Group notified the Australian Taxation Office
that it had formed an income tax consolidated group to apply from 1 July 2003.
The tax consolidated group has entered a tax sharing agreement whereby each company in the group contributes
to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated
group.
- 24 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Foreign currency transactions and balances
r.
Foreign currency transactions are translated into Australian currency (the functional currency) using the
exchange rates prevailing at the date of the transaction. Foreign currency monetary items are translated at the
year-end exchange rate. Non-monetary items measured at historical cost continue to be carried at the exchange
rate at the date of the transaction. Non-monetary items measured at fair value are reported at the exchange rate
at the date when fair values were determined.
Foreign Group Companies
The financial results and position of foreign operations whose functional currency is different from the Group’s
presentation currency are translated as follows:
-
-
-
assets and liabilities are translated at year-end exchange rates prevailing at the end of the financial year;
income and expenses are translated at average rates for the period; and
retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on translation of foreign operations are transferred directly to the Group’s foreign
currency translation reserve in the statement of financial position. These differences are recognised in the
statement of comprehensive income.
Earnings per share
s.
Basic earnings per share are calculated as net profit attributable to members of the parent divided by the
weighted average number of ordinary shares.
t. Comparative figures
When required by Accounting Standards, comparative figures have been restated to conform to changes in
presentation for the current financial year.
u. Critical accounting estimates and judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends and economic data, obtained both externally and within the Group. These
estimates and judgements are considered significant items of revenue and expenses relevant in explaining the
financial performance.
Key Estimates – Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may
lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is
determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of
key estimates. Further details on the key estimates used in impairment can be found in Note 16. No impairment
has been recognised in respect of goodwill for the year ended 30 June 2022.
- 25 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Key Estimates – Revenue
The extent to which performance obligations have been satisfied in respect of revenue is estimated as per the
revenue policy (Note 1(o)).
Key Estimates- Recoverability of Receivables
The extent to which receivables are recoverable is used in estimating any allowance for expected credit
losses.
Factors considered include:
-
-
-
-
-
the aging profile of receivables;
the recognition of a corresponding deferred income liability;
the nature of the debtor (e.g. government, business or individual);
subsequent recovery of the receivable after date; and
prior history.
Key Assumptions-COVID-19 Pandemic
For assumptions regarding going concern see note 1(w). For key issues that may trigger the impairment of
goodwill see Note 16, and for estimates on the recoverability of receivables see above.
Other relevant information on the COVID-19 Pandemic is in the Directors’ Report.
v. Segment reporting
An operating segment is a component of an entity:
-
that engages in business activities from which it may earn revenues and incur expenses (including
revenues and expenses relating to transactions with other components of the same entity);
- whose operating results are regularly reviewed by the entity’s Board to make decisions about resources
to be allocated to the segment and assess its performance; and
for which discrete financial information is available.
-
The Company has only one operating segment: Education.
w. Going Concern
These financial statements have been prepared adopting the going concern assumption, which contemplates
the orderly realisation of assets and payment of liabilities in the ordinary course of business.
The appropriateness of this assumption is dependent upon:
-
-
-
-
the continued support of the Group’s bankers;
the continued support of shareholders in the event of a capital raising;
the ability of the Group to return to profitable trading;
the orderly realisation of selected assets in the ordinary course of business at values at least equal to
their book values.
- 26 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The financial statements show that:
-
The Group had a net loss of $1,309,000 (2021 $1,060,000) for the year ended 30 June 2022, largely
attributable to the impact of COVID-19.
The Board is currently satisfied that there are reasonable grounds to assume that the Company will meet its
future financial obligations as and when they fall due.
The following factors support this assumption:
-
-
Positive cash flow from operations for the year of $9,323,000.
Substantial cash holdings across the Group of $15,956,000 of which $13,322,000 is required to be held
in the TPS controlled accounts.
Positive net assets of $28,004,000.
The Group has no bank debt.
Significant efforts made to rationalise the cost structures of the business.
-
-
-
The Board recognises that the Statement of Financial Position shows that the current liabilities exceed
current assets by $10,116,000. Included in the current liabilities are fees paid in advance of $19,398,000.
This is not an amount payable in the ordinary course of business and will be recognised as income as tuition
is delivered.
- 27 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
2. REVENUE
Operating activities
Revenue from services
Non-operating activities
JobKeeper/JobSaver
Rental rebates
3. PROFIT FOR THE YEAR
Student acquisition and teaching costs
- Teaching costs
- Acquisition costs
- Teaching materials
Personnel expenses
- Wages and salaries
- JobKeeper top up payments
- Superannuation
- Payroll tax
- Other
Premises expenses
- Rental
- Outgoings
- Electricity
- Cleaning
- Other
Other administration expenses
- Other administration expenses
- Bad and doubtful debts
Restructure and non-recurring costs
- Costs of personnel now retrenched, including redundancies
- Premises expenses - outgoings backdated/relocation
Depreciation and Amortisation expenses
- Depreciation plant and equipment
- Amortisation of intangible assets
- Depreciation of right of use assets
- Depreciation of make good
Finance costs
- Interest and bank facility fees
- Interest recognised on lease liability
- Interest recognised on make good
- 28 -
FY22
$000s
FY21
$000s
36,042
42,624
805
986
1,791
5,421
223
5,644
9,326
5,037
917
15,280
9,823
-
862
564
455
11,704
1,012
1,134
195
295
308
2,944
2,001
59
2,060
-
80
80
259
772
5,048
34
6,113
160
1,314
19
1,493
11,794
6,459
1,195
19,448
10,788
769
950
643
348
13,498
1,152
1,129
254
446
346
3,327
2,306
43
2,349
488
52
540
350
702
6,091
43
7,186
138
1,605
18
1,761
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
4. INCOME TAX EXPENSE
a. The components of tax expense comprise:
Current tax
Deferred tax
$000s
$000s
(733)
1,206
473
(271)
(625)
(896)
b. The prima facie tax on loss from ordinary activities before tax is reconciled to
income tax as follows:
Tax payable on loss from ordinary activities before tax at 25% (2021:26%)
(446)
(43)
Add/(less) tax effect of:
i. Impact of change in the tax rate to 25% on the opening deferred balance
ii. Permanent differences
iii. Assumption of tax balances of controlled entities
Income tax expense attributable to the entity
-
(49)
22
(473)
The effective tax rate is 26.5 % (2021: 546 % - arising from tax adjustment at item i. above).
c. Current tax payable for the year reconciles as follows:
Opening provision
Add: Current year provision
Add: Prior year
Less: Tax paid
Closing provision
(252)
733
(8)
124
597
844
171
(76)
896
(550)
271
3
24
(252)
5. DIRECTORS AND SENIOR COMPANY EXECUTIVES COMPENSATION
a. Details of Directors and Senior Company Executives, including remuneration, have been set out on pages 6 to
9.
b.
Shareholdings
Number of shares in the Company held by Senior Company Executives and parties related to them:
Shareholdings: Executive Directors and Senior
Company Executives
Balance
1 July 2021
Purchased
on ASX
Balance
30 June 2022
Christopher Elmore Campbell
Gabriela Del Carmen Rodriguez Naranjo
19,000,000
1,000,000
20,000,000
100,000
-
100,000
- 29 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
6. AUDITORS’ REMUNERATION
Remuneration of the auditors of the parent entity for:
- Auditing and reviewing the financial report
- Taxation services
- Other services
Remuneration of other auditors of subsidiaries for:
- Auditing and reviewing the financial report
- Taxation services
- Other services
7. EARNINGS PER SHARE
Basic (cents per share)
Diluted (cents per share)
FY22
$000s
FY21
$000s
296
66
10
372
37
4
10
51
301
73
16
390
38
3
10
51
(1.02)
(1.02)
(0.97)
(0.97)
Weighted average number of ordinary shares used in calculation of basic
earnings per share
127,614,467
127,614,467
The earnings amount used was a loss of $1,302,000 (2021: $1,241,000), being a loss on ordinary activities after tax
attributable to owners of the parent entity.
8. DIVIDENDS PER SHARE
Distributions recognised:
Year ended 30 June 2022: interim ordinary dividend of 0 cents per share,
fully franked (2021: 0.5 cents per share)
Year ended 30 June 2021: final ordinary dividend of 0 cents per share, fully
franked, paid in 2022 (2021: 1.365 cents per share)
Dividends proposed or declared but not recognised in the financial
statements:
Proposed fully franked ordinary dividend of 0 cents per share (2021: fully
franked 0 cents)
FY22
$000s
FY21
$000s
-
-
-
-
638
1,742
2,380
-
Balance of franking account at year end adjusted for franking credits arising
from payment of income tax
3,187
3,108
- 30 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
9. CASH AND CASH EQUIVALENTS
Cash at bank and on hand
FY22
FY21
$000s
$000s
15,956
12,371
There is no overdraft balance at 30 June 2022 (2021: NIL). The net cash position is $15,956,000 (2021: $12,371,000)
Included in the above amounts are tuition fees held in TPS accounts in Australia.
As at 30 June 2022, the Group held $13,322,000 (2021: $10,142,000) in TPS accounts.
(In 2012 the Education Services for Overseas Student Act 2000 (“ESOS Act”) was amended to provide additional
protection for international students studying in Australia. With effect from 1 July 2013, the Group is required to
maintain, in Australia, separate bank accounts (TPS accounts) for prepaid fees received from international students
prior to commencement of their course. Once the students commence their course, the funds may be transferred from the
TPS accounts to operating cash reserves. At all times, the Group must ensure that there are sufficient funds in the TPS
accounts to repay any prepaid tuition fees to international students who have not yet commenced their course. Fees
paid by students who have commenced their course are deposited directly to operating cash reserves. All fees received,
whether deposited to TPS or Group cash reserves are initially accounted for as unearned income, being subject to the
Group’s revenue recognition policy).
10. TRADE AND OTHER RECEIVABLES
CURRENT
Trade receivables
Less allowance for expected credit losses
Contract assets
Other receivables
a. The ageing analysis of trade receivables is as follows:
0 -30 days
31- 60 days – not impaired *
61- 90 days – not impaired *
Over 90 days – not impaired *
Past due and impaired
FY22
$000s
925
(128)
797
1,142
66
2,005
755
2
40
-
128
925
FY21
$000s
1,003
(69)
934
1,364
75
2,373
893
5
29
7
69
1,003
* These are debtors that are past due for which no collateral is held and for which no provision for doubtful debts
has been made as there has not been a significant change in credit quality and the directors believe that the
amounts are still recoverable.
- 31 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
10. TRADE AND OTHER RECEIVABLES (continued)
b. The Group has an exposure to credit risk in Singapore and Australia given the Group’s operations in those
countries. For FY22, an amount of $31,000 is included in trade and other receivables in respect of the business
operations in Singapore. All other receivables of the Group are exposures in Australia.
c. Allowance for expected credit losses at the start of the year
Movement in expected credit losses
Allowance for expected credit losses at the end of the year
FY22
$000s
FY21
$000s
69
59
128
41
28
69
d. The following factors were considered when assessing credit losses, receivables and contract assets:
i. A review was performed during the year and credit losses were recognised as impairments
ii. Government debtors are assessed as low risk
iii. Significant amounts of debtors were recovered after the year end
iv. Other than SPT, historical levels of bad debts have been low
Allowance for expected credit losses
Trade receivables
Contract assets
Sub-total
Colleges at which credit losses have already been written off
Lower risk government debtors
Sub- total
Allowance for credit losses
Credit Loss %
11. OTHER CURRENT ASSETS
Prepayments
Security deposits
Current tax assets
FY22
$000s
925
1,142
2,067
-
(1,332)
735
(128)
17.4%
2,772
500
-
3,272
FY21
$000s
1,003
1,364
2,367
(307)
(1,521)
539
(69)
12.9%
1,308
440
252
2,000
- 32 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
12. CONTROLLED ENTITIES
Academies Australasia Group Limited (Ultimate Parent Entity)
Subsidiaries (controlled directly or indirectly)
ACA Investment Holdings Pte. Limited
Academies Australasia (Management) Pty Limited
Academies Australasia College Pte. Limited
Academies Australasia Institute Pty Limited
Academies Australasia Polytechnic Pty Limited
Academies Australasia Pty Limited
Academy of English Pty Limited
AKG Investment Holdings Pty Limited
AKG2 Investment Holdings Pty Limited
AKG3 Investment Holdings Pty Limited
AKG4 Investment Holdings Pty Limited
AKG5 Investment Holdings Pty Limited
AKG6 Investment Holdings Pty Limited
AKG7 Investment Holdings Pty Limited
AMC Training Pty Limited
AMI Education Pty Limited
Australian College of Technology Pty Limited
Australian Institute of Professional Studies Pty Limited
Australian International High School Pty Limited
Australian Trades Institute Pty Limited
Benchmark Resources Pty Limited T/A Benchmark College
Centre for Australian Education Pte. Limited
Clarendon Business College Pty Limited
Academies Australasia Hair and Beauty T/A Brisbane School of Hairdressing, Gold
Coast School of Hairdressing, Brisbane School of Beauty and Brisbane School of
Barbering
CLB Training & Development Pty Limited as trustee for the CLB Unit Trust
T/A Spectra Training
Discover English Pty Limited
International College of Capoeira Pty Limited T/A College of Sports & Fitness
Humanagement Pty Limited T/A Print Training Australia
Kreate Pty Limited T/A RuralBiz Training
Language Links International Pty Limited
Live. Laugh. Learn. Pty Limited
Newco CLB Training & Development Pty Limited
Skilled Placements Pty Limited
Supreme Business College Pty Limited
Transformations – Pathways to Competence and Developing Excellence Pty
Limited T/A Skills Training Australia
Vostro Institute of Training Australia Pty Limited
Country of
Incorporation
Percentage
Owned/Controlled
FY22
FY21
Singapore
Australia
Singapore
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Singapore
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
67.54
100
100
67.54
100
100
75
100
100
100
100
100
100
100
75
75
100
100
100
100
100
100
- 33 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
12. CONTROLLED ENTITIES (continued)
Acquisition of controlled entities
On 27 September 2021, AKG4 Investment Holdings Pty Limited acquired the remaining 25% of RBT for a
consideration of $328,000. The Group now owns 100%.
Purchase consideration – cash
Non-controlling interest acquired – 25%
Recognised in retained earnings
RBT
Fair Value
$’000s
25%
328
(99)
229
13. PLANT AND EQUIPMENT
FY22
$000s
FY21
$000s
Plant and equipment
At cost
Accumulated depreciation
Leasehold improvements
At cost
Accumulated amortisation
4,501
(3,514)
987
7,795
(5,039)
2,756
4,658
(3,482)
1,176
8,134
(4,973)
3,161
Total plant & equipment
3,743
4,337
Year ended 30 June 2022
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Net foreign currency difference arising on
translation of financial statements of foreign
operations
Carrying amount at the end of the year
Plant and
equipment
Leasehold
improvements
$000s
1,176
100
(31)
(259)
1
$000s
3,161
227
(83)
(555)
6
Total
$000s
4,337
327
(114)
(814)
7
987
2,756
3,743
- 34 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
13. PLANT AND EQUIPMENT (continued)
Year ended 30 June 2021
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Net foreign currency difference arising on
translation of financial statements of foreign
operations
Carrying amount at the end of the year
Plant and
equipment
Leasehold
improvements
Total
$000s
$000s
$000s
1,482
109
(64)
(350)
(1)
1,176
3,975
3
(300)
(506)
(11)
3,161
5,457
112
(364)
(856)
(12)
4,337
14. RIGHT OF USE ASSETS
FY22
$000s
FY21
$000s
Right of use assets
At cost
Accumulated depreciation
Make good
At cost
Accumulated depreciation
Total
Balance at the beginning of the year
Additions
Terminated
Modifications
Depreciation expense
Net foreign currency difference arising on translation of financial statements of
foreign operations
Carrying amount at the end of the year
Make good
- 35 -
44,114
(22,678)
21,436
49,345
(20,869)
28,476
284
(206)
78
352
(244)
108
21,514
28,584
28,476
420
(1,982)
(510)
(5,048)
80
21,436
35,602
719
-
(1,587)
(6,091)
(167)
28,476
78
108
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
15. DEFERRED TAX ASSETS / LIABILITIES
FY22
$000s
FY21
$000s
Deferred Tax Asset
5,726
4,520
The deferred tax asset is made up of the following estimated tax benefits:
Temporary differences:
-
-
-
deferred tax assets
deferred tax liabilities
losses
11,290
(5,840)
276
5,726
11,761
(7,389)
148
4,520
Deferred Tax Assets
Provisions
Unearned income
Lease liabilities and make good
Other
Deferred Tax Liabilities
Plant & equipment
Right of use assets and make good
Prepayments and other
Losses
Total
Opening
Balance
Restated
$000s
927
1,311
9,007
516
11,761
(120)
(7,000)
(269)
(7,389)
148
4,520
Charged To
Income
$000s
35
1,172
(1,672)
(6)
(471)
11
1,714
(176)
1,549
128
1,206
Closing
Balance
$000s
962
2,483
7,335
510
11,290
(109)
(5,286)
(445)
(5,840)
276
5,726
FY22
$000s
FY21
$000s
Deferred tax assets not brought to account, the benefits of which will only be
realised if the conditions for deductibility set out in Note 1(q) occur:
Tax (operating) losses
324
337
- 36 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
16. INTANGIBLE ASSETS
Goodwill at cost
Accumulated impairment losses
Net carrying value
Course development costs and capitalised licences
Accumulated amortisation
Net carrying value
Other at cost
Year ended 30 June 2022
Balance at the beginning of the year
Rebranding costs amortisation
Course development costs and capitalised licences
additions
Course development costs and capitalised licences
write off
Course development costs and capitalised licences
amortisation
Balance at the end of the year
Year ended 30 June 2021
Balance at the beginning of the year
Rebranding costs amortisation
Course development costs and capitalised licences
additions
Course development costs and capitalised licences
amortisation
Balance at the end of the year
Goodwill
$000s
32,376
-
-
-
-
32,376
32,376
-
-
-
32,376
- 37 -
FY22
$000s
FY21
$000s
32,758
(382)
32,376
2,801
(2,325)
476
32,758
(382)
32,376
2,582
(2,120)
462
3
6
32,855
32,844
Course
Development Costs
and capitalised
licences
$000s
Other
Total
$000s
$000s
462
-
237
(6)
(217)
476
417
-
239
(194)
462
6
(3)
32,844
(3)
-
-
-
3
20
(9)
-
(5)
6
237
(6)
(217)
32,855
32,813
(9)
239
(199)
32,844
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
16. INTANGIBLE ASSETS (continued)
Goodwill is assessed by management at the cash generating unit level. The recoverable amount of the cash-generating
unit is determined based on a value in use calculation using cash flow projections covering five years. Cash flows beyond
the five-year period are estimated using a terminal value calculated under standard valuation principles incorporating a
long-term growth rate.
The following assumptions were used in the value in use calculations:
Revenue
Growth
Revenue
Growth
Pre-tax Free
Cash Flow –
Revenue from
Services
Pre-tax Free
Cash Flow –
Revenue from
Services per
annum
Pre-tax Discount
Rate
Long Term Growth
Rate
FY23
53.3%
FY24-FY27
5.5%
FY23
14.2%
FY24-FY27
14.2%
12.2%
1.0%
An impairment would be triggered if any one of the key assumptions (with all other assumptions held constant) set out
below applies over a 5-year period:
• Revenue growth rate is 4.4% or lower.
• Pre-tax discount rate exceeds 15.9%.
• Pre-tax free cash flow – revenue from services per annum FY23-FY27 is 11.4% or lower.
• Long term growth rate is minus 0.5% or lower.
17. TRADE AND OTHER PAYABLES
CURRENT
Unsecured Liabilities
Tuition fees in advance (Deferred income)
Trade payables
Payable to the Australian Taxation Office*
Sundry payables and accrued expenses
* Fully paid
FY22
$000s
FY21
$000s
19,398
1,035
289
2,176
22,898
12,919
1,154
337
2,480
16,890
- 38 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
18. LEASE LIABILITIES
Balance at beginning of year
Additions – new leases
Terminated
Lease modifications
Lease payments
Net foreign currency difference arising on translation of financial statements of
foreign operations
Balance at end of year
Make good
Total
Current
Non-current
Total
Lease liability – undiscounted
Less than one year
One to five years
More than five years
Total undiscounted lease liabilities at end of year
FY22
$000s
36,281
420
(2,163)
(510)
(4,750)
97
29,375
FY21
$000s
42,678
719
-
(1,587)
(5,331)
(198)
36,281
456
452
29,831
36,733
4,454
25,377
29,831
5,276
22,180
6,058
33,514
5,584
31,149
36,733
6,667
21,281
13,940
41,888
a. Short-term lease payments expensed to the profit and loss account in the year $1,012,000 (2021: $1,152,000)
(Note 3)
19. PROVISIONS
CURRENT
Employee entitlements
NON-CURRENT
Employee entitlements
- 39 -
FY22
$000s
FY21
$000s
3,400
3,317
341
371
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
20. SHARE CAPITAL
Issued Share Capital
FY22
Share number
FY22
FY21
$000s Share number
FY21
$000s
Ordinary shares fully paid
127,614,467
42,066
127,614,467
42,066
Ordinary share capital
Balance at the beginning of the financial year
127,614,467
42,066
127,614,467
42,066
Balance at the end of the financial year
127,614,467
42,066
127,614,467
42,066
i. Shares disclosure.
Ordinary shares participate in dividends and the proceeds on winding up of the parent entity in proportion to the number
of shares held.
At a shareholders meeting each ordinary share is entitled to one vote.
The number of shares authorised is equal to the number of shares issued. Shares have no par value.
ii. Capital Management.
Management controls the capital of the Group in order to maintain an acceptable debt to equity ratio, provide the
shareholders with adequate returns and ensures that the Group can fund its operations and continue as a going concern.
The Group’s debt and capital includes ordinary share capital and financial liabilities, supported by financial assets.
Management effectively manages the Group’s capital by assessing financial risks and adjusting its capital structure in
response to changes in these risks and in the market. These responses include the management of debt levels,
distributions to shareholders and share issues.
There were no changes in the Group’s capital management procedures during the year.
21. CONTINGENT LIABILITIES
Corporate Guarantee
There is a corporate guarantee between wholly-owned Group companies as security for bank facilities in effect during
the year. This guarantee does not include:
Academies Australasia College Pte. Limited
Academies Australasia Hair and Beauty Pty Limited
AKG6 Investment Holdings Pty Limited
AMC Training Pty Limited
Centre for Australian Education Pte. Limited
Humanagement Pty Limited
International College of Capoeira Pty Limited
Kreate Pty Limited
Language Links International Pty Limited
- 40 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
22. SEGMENT REPORTING
Business segments
The Company has determined that it has only one operating segment: Education.
Geographical information
The Group operates in Australia and Singapore. The revenues and non-current assets of the Group for the year ended 30
June 2022 are as follows:
Geographic Location
Revenues from External Customers
Non-current assets
$000s
Australia
33,484
61,089
$000s
Singapore
2,558
2,749
Accounting Policies
Segment revenues and expenses are those directly attributable to the segments.
23. CASH FLOW INFORMATION
FY22
$000s
FY21
$000s
a. Reconciliation of cash flow from operations with loss after
income tax
Loss after income tax
(1,309)
(1,060)
Non-cash flows in profit
Amortisation
Depreciation
Net loss on disposal of plant and equipment
Write-downs to recoverable amounts
Unrealised foreign exchange movement
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in other current assets
(Increase)/decrease in intangibles
(Increase)/decrease in deferred tax assets
Increase/(decrease) in trade and other payables
Increase/(decrease) in tax payables
Increase/(decrease) in provisions
Cash flow from operations
772
5,341
(52)
59
(6)
309
(1,525)
3
(1,199)
6,010
849
71
9,323
702
6,484
364
43
(17)
557
977
10
621
(5,551)
298
367
3,795
- 41 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
23. CASH FLOW INFORMATION (continued)
b. Borrowing arrangements with banks
Total Facilities
Credit standby facility available
Amount utilised
Overdraft facility available
Amount utilised
FY22
$000s
FY21
$000s
4,800
(4,031)
769
100
-
100
4,800
(4,221)
579
750
-
750
Credit standby
Line fee 2.0%. Usage fee 1.75%. Security deposit $1,000,000.
Bank overdraft
General terms and conditions apply. Interest rates are variable and subject to adjustment.
The credit standby, bank overdraft and commercial card facilities are due for review on 30 November 2022.
.
24. EVENTS AFTER THE BALANCE SHEET DATE
Other than the securing of premises from 1 July 2022 at Goulburn Street in Sydney, there were no matters or circumstances
that have arisen since the end of the financial year which significantly affected or may significantly affect the operations
of the Group, the results of those operations, or the state of affairs of the Group in subsequent financial years.
25. RELATED PARTY TRANSACTIONS
Directors’ transactions with the Company and the Group
Details of Directors’ remuneration are set out in the Remuneration Report on pages 8 and 9. Directors are reimbursed for
expenses incurred by them on behalf of the Group.
Directors’ and specified executives’ relevant interests in shares
See Directors’ Report on pages 6,7 and 29.
Other related party transactions
Transactions between the Company and controlled entities comprise loans, management fees and interest and are
eliminated on consolidation.
- 42 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
26. FINANCIAL INSTRUMENTS
Financial Risk Management
The Group’s financial instruments consist mainly of deposits with banks, investments, accounts receivable and payable,
loans to and from subsidiaries, bills and leases.
The main purpose of non-derivative financial instruments is to raise finance for operations.
i. Treasury Risk Management
Senior management meet on a regular basis to review currency and interest rate exposure and to evaluate treasury
management strategies where relevant, in the context of the most recent economic conditions and forecasts.
ii. Financial Risks
The main risks the Group is exposed to through its financial instruments are interest rate risk, foreign currency risk,
liquidity risk and credit risk.
Foreign currency risk
The Group is exposed to foreign currency risk on its purchase of products and the sale of training and education courses
to international students and on the translation of its foreign subsidiaries. The Group had not hedged foreign currency
transactions as at 30 June 2022. Senior management continues to evaluate this risk on an ongoing basis.
Credit risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to
recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in
the balance sheet and notes to the financial statements. In the education business, credit risk is minimised by, generally,
collecting tuition fees in advance.
Interest rate risk
The interest rate risk has been managed by the Group by reducing and in most cases eliminating interest bearing debt.
The Group’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result
of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and
financial liabilities, is as follows:
Note Weighted
average
interest
rate
Floating
interest
rate
Fixed
interest
maturing
in:
1 year
or less
Fixed
interest
maturing
in:
1 to 5
years
Non-
Interest
bearing
Total
$000s
$000s
$000s
$000s
$000s
Year ended 30 June 2022
Financial assets
Cash and cash
equivalents
9
Trade and other
receivables
Contract assets
Financial liabilities
Trade and other
payables
Lease liabilities
10
11
17
18
0.05%
15,956
-
-
15,956
-
-
-
-
-
-
-
-
-
-
-
-
4,454
4,454
-
25,377
25,377
- 43 -
-
15,956
863
1,142
2,005
3,500
-
3,500
863
1,142
17,961
3,500
29,831
33,331
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
26. FINANCIAL INSTRUMENTS (continued)
Note Weighted
average
interest
rate
Floating
interest
rate
Fixed
interest
maturing
in:
1 year
or less
Fixed
interest
maturing
in:
1 to 5
years
Non-
Interest
bearing
Total
$000s
$000s
$000s
$000s
$000s
Year ended 30 June 2021
Financial assets
Cash and cash
equivalents
Trade and other
receivables
Contract assets
9
10
11
Financial liabilities
Trade and other
payables
Lease liabilities
17
18
0.27%
12,371
-
-
12,371
-
-
-
-
-
-
-
-
-
-
-
-
5,584
5,584
-
31,149
31,149
-
12,371
1,009
1,364
2,373
3,971
-
3,971
1,009
1,364
14,744
3,971
36,733
40,704
iii. Net fair values of financial assets and liabilities
The carrying amounts of financial assets and liabilities approximate their net fair value.
iv. Sensitivity Analysis
The following table illustrates sensitivity analysis to the Group’s exposure to changes in interest rates. The table
indicates the estimated impact on how profit and equity values reported at the end of the reporting period would have
been affected by changes in the interest rate that management considers reasonably possible.
FY22
+/- 2% in interest rates
Profit
$’000
Equity
$’000
245
245
- 44 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
27. PARENT INFORMATION
The following information has been extracted from the books of the parent and has been prepared in
accordance with Australian Accounting Standards.
STATEMENT OF FINANCIAL POSITION
FY22
$000s
FY21
$000s
Assets
Current assets
Non-current assets
Total Assets
Liabilities
Current Liabilities
Non-current liabilities
Total Liabilities
Equity
Share capital
Retained earnings
Total Equity
STATEMENT OF COMPREHENSIVE INCOME
Total profit
Total comprehensive income
49,306
4,557
53,863
2,727
-
2,727
42,066
9,070
51,136
(1,273)
(1,273)
50,895
3,561
54,456
2,046
-
2,046
42,066
10,344
52,410
(1,859)
(1,859)
28. COMPANY DETAILS
The registered office and principal place of business of Academies Australasia Group Limited is:
Level 6, 505 George Street
Sydney NSW 2000
Australia
- 45 -
ACADEMIES AUSTRALASIA GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2022
Principal places of business of AKG colleges:
NEW SOUTH WALES
VICTORIA
Academies Australasia Polytechnic
Spectra Training
Vostro Institute
Level 7, 628 Bourke Street
Melbourne,VIC 3000
Discover English
247 Collins Street, Melbourne, VIC 3000
Skills Training Australia
Level 14, 459 Little Collins Street
Melbourne, VIC 3000
SOUTH AUSTRALIA
Print Training Australia
Unit 17, 169 Unley Road, Unley, SA 5061
WESTERN AUSTRALIA
Language Links
120 Roe Street, Perth, WA 6003
SINGAPORE
Academies Australasia College
45 Middle Road, Singapore 1889954
Academies Australasia Institute
Academy of English
Australian College of Technology
Australian International High School
Clarendon Business College
Supreme Business College
Level 6, 505 George Street
Sydney, NSW 2000
Benchmark College
Ground Floor, 331 High Street
Sydney, NSW 2750
College of Sports & Fitness
Level 6, 505 George Street
Sydney, NSW 2000
RuralBiz Training
46 Wingewarra Street, Dubbo, NSW 2830
QUEENSLAND
Brisbane School of Hairdressing
Brisbane School of Beauty
Brisbane School of Barbering
Queen Adelaide Building
90-112 Queen Street Mall
Brisbane, QLD 4000
Gold Coast School of Hairdressing
Pivotal Point Tower
3/2 Nerang Street
Southport, QLD 4215
- 46 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
DIRECTORS DECLARATION
The Directors of the Company declare that:
1.
the financial statements and notes, set out on pages 12 to 46, are in accordance with the Corporations Act
2001 and
(i) comply with Accounting Standards which, as stated in accounting policy Note 1 to the financial
statements, constitutes explicit and unreserved compliance with International Financial Reporting
Standards (IFRS); and
(ii) give a true and fair view of the financial position as at 30 June 2022 and of the performance for the
year ended on that date of the Company and consolidated group;
2. The Chief Executive Officer and Group Finance Manager have each declared that:
(i)
the financial records of the Company and the consolidated group for the financial year have been
properly maintained in accordance with s 286 of the Corporations Act 2001;
(ii) the financial statements and notes for the financial year comply with Accounting Standards; and
(iii) the financial statements and notes for the financial year give a true and fair view; and
3. In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable. (See Note 1w).
The Company and wholly-owned subsidiaries identified in Note 12, but excluding those in Note 21, have
entered into a deed of cross guarantee under which the Company and its subsidiaries guarantee the debts of
each other.
At the date of this declaration, there are reasonable grounds to believe that the companies which are party to
this deed of cross guarantee will be able to meet any obligations or liabilities to which they are, or may become
subject to, by virtue of the deed.
This declaration is made in accordance with a resolution of the Board of Directors.
Dr John Lewis Schlederer
Director
30 August 2022
Christopher Elmore Campbell
Director
- 47 -
pilot'
INDEPENDENT AUDITOR'S REPORT
PILOT PARTNERS
Chartered Accountants
Level 10, Waterfront Place
1 Eagle St. Brisbane 4000
PO Box 7095 Brisbane 4001
Queensland Australia
P+61 7 3023 1300
F+61 7 3229 1227
pilotpartners corn au
TO THE MEMBERS OF ACADEMIES AUSTRALASIA GROUP LIMITED
OPINION
We have audited the financial report of Academies Australasia Group Limited ("the
Company") and its subsidiaries (collectively "the Group"), which comprises
the
consolidated statement of financial position as at 30 June 2022, the consolidated
statement of comprehensive income, the consolidated statement of changes in equity
and the consolidated statement of cash flows for the year then ended, and notes to
the financial statements, including a summary of significant accounting policies, and
the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with
the Corporations Act 2001, including:
(i) giving a true and fair view of the Group's financial position as at 30 June 2022
and of its financial performance for the year then ended; and
(ii) complying with Australian Accounting Standards and the Corporations
Regulations 2001.
BASIS FOR OPINION
We conducted our audit in accordance with Australian Auditing Standards. Our
responsibilities under those standards are further described
in the Auditor's
Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting
Professional and Ethical Standards Board's APES 110 Code of Ethics for Professional
Accountants (the Code) that are relevant to our audit of the financial report in
Australia. We have also fulfilled our other ethical responsibilities in accordance with
the Code.
We confirm that the independence declaration required by the Corporations Act 2001,
which has been given to the directors of the Company, would be in the same terms if
given to the directors as at the time of this auditor's report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
A member of
Nexia
ABN 60 063 687 769 I Pilot is a registered trade mark licensed to Pitot Partners ] Liability limited by a scheme approved under Professional Standards Legislation
Nexia International is a worldwide network of independent accounting and consulting firms.
-48-
piloP
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the financial report of the current period. These matters
were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Reason for si nificance
Risk of im airment of oodwill and
Goodwill
assets
comprise a significant portion of the
Group's total assets.
intangible
and
for
The impairment assessment made by
the Group
its goodwill and
intangible assets relies upon significant
judgements in respect of factors such
as forecast cash flows, growth rates
and
operational
assumptions.
economic
and
How our audit addressed the matter
intan ible assets
considered whether
Our audit
the
methodology and principles applied by the
Group in their discounted cash flow model
met
requirements of AASB 136
Impairment of Assets ("AASB 136").
the
Using our understanding of the nature of
the Group's business and the environment
in which it operates, we assessed and
tested the assumptions and methodologies
used in the Group's discounted cash flow
model. In doing so:
(a) We reviewed the Group's impairment
test, including an assessment of its
arithmetical accuracy and conceptual
soundness;
(b)We assessed the basis for the Group's
expected future performance, including
consideration of historical performance;
(c) We compared the discount rate to
available external data;
(d) We assessed growth rates against
recent historical rates performance;
(e) We assessed the basis for terminal
rates
values and
against generally-accepted techniques
and relevant external data;
long-term growth
(f) We performed sensitivity analysis and
evaluated whether a reasonable change
in assumptions could cause the carrying
amount of the CGU to exceed its
recoverable amount; and
Liability limited by a scheme approved under Professional Standards Legislation
-49-
pilot
Goin Concern
The Group incurred a net loss of
$1. 309m during the year ended 30
June 2022, and as of that date, the
Group's current liabilities exceed its
current assets by $10. 116m.
The going concern assessment made
by the Group relies upon significant
judgements in respect of future cash
flows as well as economic and
operational assumptions.
(g)We also considered the adequacy of the
in the financial
relevant disclosures
report.
Using our understanding of the nature of
the Group's business and the environment
in which it operates, we reviewed detailed
information
the
assumptions made in their assessment of
the Group's ability to continue as a going
concern. In doing so:
from management on
(a) We reviewed the Group's cash flow
forecast for the next 12 months,
including an assessment of
its
arithmetical accuracy and conceptual
soundness;
(b) We assessed the reasonableness of the
Group's assumptions underlying the
forecast against available information;
(c) We performed analysis on the forecast
to assess whether a reasonable change
in assumptions could cast doubt on the
Group's ability to continue as a going
concern; and
(d) We reviewed
disclosures
relation to going concern.
the adequacy of the
in the financial report in
Liability limited by a scheme approved under Professional Standards Legislation
-50-
pilot'
OTHER INFORMATION [OR ANOTHER TITLE IF APPROPRIATE SUCH AS "INFORMATION
OTHER THAN THE FINANCIAL REPORT AND AUDITOR'S REPORT THEREON"]
The directors are responsible for the other information. The other information
comprises the information included in the Group's annual report for the year ended 30
June 2022, but does not include the financial report and our auditor's report thereon.
Our opinion on the financial report does not cover the other information and
accordingly we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially
inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL REPORT
The directors of the Company are responsible for the preparation of the financial report
that gives a true and fair view in accordance with Australian Accounting Standards and
the Corporations Act 2001 and for such internal control as the directors determine is
necessary to enable the preparation of the financial report that gives a true and fair
view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability
of the Group to continue as a going concern, disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless the directors
either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL REPORT
Our objectives are to obtain reasonable assurance about whether the financial report
as a whole is free from material misstatement, whether due to fraud or error, and to
issue an auditor's report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with
the Australian Auditing Standards will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of this financial report.
Liability limited by a scheme approved under Professional Standards Legislation
-51-
pilof
A further description of our responsibilities for the audit of the financial report is located
at: htt : www.auasb. ov. au Home. as x. This description forms part of our auditor's
report.
REPORT ON THE REMUNERATION REPORT
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 8 to 9 of the directors'
report for the year ended 30 June 2022.
In our opinion, the Remuneration Report of Academies Australasia Group Limited, for
the year ended 30 June 2022 complies with section 300Aofthe Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of
the Remuneration Report in accordance with section 300A of the Corporations Act
2001. Our responsibility is to express an opinion on the Remuneration Report, based
on our audit conducted in accordance with Australian Auditing Standards.
%^ (PoA^
PILOT PARTNERS
Chartered Accountants
DANIEL GILL
Partner
Signed on 30 August 2022
Level 10
1 Eagle Street
Brisbane Qld 4000
Liability limited by a scheme approved under Professional Standards Legislation
-52-
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR A COMPANY LISTED ON THE ASX
Additional information required by the Australian Securities Exchange Limited and not shown
elsewhere in this report is as follows.
SUBSTANTIAL HOLDERS
Ordinary Shares
The relevant interests of substantial shareholders as at 29 August 2022 were:
Shareholder
No. of Shares Held
%
Mr Chiang Meng Heng a
Mr Christopher Elmore Campbell b
Jilcy Pty Ltd
Andrew Low c
Dr John Lewis Schlederer d
Eng Kim Low
51,185,961
20,000,000
17,400,000
14,174,981
14,013,587
7,648,232
40.11
15.67
13.63
11.11
10.98
5.99
a Includes 7,648,232 shares held by Eng Kim Low
b 17,400,000 shares held by Jilcy Pty Ltd and 1,600,000 shares held by
Bankura Pty Ltd
c Includes 2,048,000 shares held by Paris Pushkin Pty Ltd and 1,809,091 shares held by Mutual
Trust Pty Limited.
d 7,500,000 shares held by J&B Schlederer Pty Ltd and 6,513,587
shares held by Schlederer Nominees Pty Ltd
VOTING RIGHTS
Ordinary Shares
At 29 August 2022 there were 550 holders of the ordinary shares of the Company. The voting rights
attaching to the ordinary shares, set out in Articles 69 and 70 of the Company’s constitution, are:
Article 69
“Subject to these Articles and any rights or restrictions for the time being attached to any class or
classes of shares:
(a) at meetings of members or classes of members each member entitled to attend and vote may attend
and vote in person or by proxy, or attorney and (where the member is a body corporate) by
representative;
(b) on a show of hands, every Member present has 1 vote;
(c) on a poll, every Member present has:
(i) 1 vote for each fully paid share; …….”
Article 70
“Where more than 1 joint holder votes, the vote of the holder, whose name appears first in the register
of members shall be accepted to the exclusion of the others.”
- 53 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR A COMPANY LISTED ON THE ASX
20 LARGEST SHAREHOLDERS AS AT 29 AUGUST 2022
Registered Name
No. Shares
%
Jilcy Pty Ltd
Andrew Low
Eng Kim Low
J&B Schlederer Pty Ltd
Schlederer Nominees Pty Ltd
Kin Group Pty Ltd
National Nominees Limited
Netwealth Investments Limited
Paris Pushkin Pty Ltd
1 Mr Chiang Meng Heng
2
3
4
5
6
7
8
9
10
11 Mutual Trust Pty Ltd
12
13
14
15 Mr Christopher Elmore Campbell
16
17 Mr Sartaj Hans
18 MK & MP Investments Pty Ltd
19
Hamsar Holdings Pty Ltd
20 Mr Daniel Hing Yuen Wong
Bankura Pty Ltd
Salvage Pty Ltd
BNP Paribas Nominees Pty Ltd
JP Morgan Nominees Australia Pty Limited
43,537,729
17,400,000
10,317,890
7,648,232
7,500,000
6,513,587
2,595,514
2,315,944
2,171,144
2,048,000
1,809,091
1,600,000
1,178,351
1,067,844
1,000,000
837,907
700,595
677,135
582,231
547,645
34.12
13.63
8.09
5.99
5.88
5.10
2.03
1.81
1.70
1.60
1.42
1.25
0.92
0.84
0.78
0.66
0.55
0.53
0.46
0.43
112,048,839
87.80
HOLDING RANGE (SHAREHOLDERS) AS AT 29 AUGUST 2022
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 +
No. Holders
68
178
73
170
61
550
Total No. Shares
35,521
494,462
582,908
6,240,148
120,261,428
127,614,467
%
0.03
0.39
0.46
4.89
94.24
100.00
UNMARKETABLE PARCELS AS 29 AUGUST 2022
Minimum $500 parcel at $0.30 per unit
Minimum Parcel Size No. Holders
1,667
96
Units
74,698
- 54 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
ADDITIONAL INFORMATION FOR LISTED PUBLIC COMPANIES
CORPORATE INFORMATION
DIRECTORS
Dr John Lewis Schlederer
Christopher Elmore Campbell
Chiang Meng Heng
Gabriela Del Carmen Rodriguez Naranjo
Sartaj Hans
COMPANY
SECRETARIES
Stephanie Noble
Gabriela Del Carmen Rodriguez Naranjo
REGISTERED OFFICE
Academies Australasia Group Limited
Level 6, 505 George Street
Sydney NSW 2000
Australia
Telephone: (02) 9224 5555
Facsimile:
(02) 9224 5550
Email: companysecretary@academies.edu.au
Web Site: www.academies.edu.au
SHARE REGISTRAR
Computershare Investor Services Pty Limited
GPO Box 2975 Melbourne, VIC 3001
Australia
Telephone: +61 (03) 9415 4000
Toll Free (Australia only): 1300 855 080
SECURITIES EXCHANGE
The Company is listed on the Australian Securities Exchange.
The Home Exchange is Sydney.
ASX Code:
AKG
- 55 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
GLOSSARY
AAC
AAHB
AAI
AAPoly
AASB
ACT
AIHS
AKG
AOE
ASX
BMC
Board
CBC
Academies Australasia College Pte. Limited
Academies Australasia Hair and Beauty Pty Limited
Academies Australasia Institute Pty Limited
Academies Australasia Polytechnic Pty Limited
Australian Accounting Standards Board or a numbered Standard issued by it
Australian College of Technology Pty Limited
Australian International High School Pty Limited
Academies Australasia Group Limited – (ACN 000 003 725)
Academy of English Pty Limited
Australian Securities Exchange
Benchmark Resources Pty Limited - trading as Benchmark College
Board of Directors of AKG
Clarendon Business College Pty Limited
College
Subsidiary company of AKG that is licensed to operate as an education institution
Company
AKG
Corporations Act
Corporations Act 2001 (Cth)
CSF
DE
International College of Capoeira Pty Limited - trading as College of Sports & Fitness
Discover English Pty Limited
Directors
Board of Directors of AKG
EBITDA
Earnings before interest, taxation, depreciation and amortisation
EPS
FVTPL
FVOCI
Earnings per share
Fair value through profit and loss
Fair value through other comprehensive income
FY22 to FY27
Financial Year to 30 June 2022 to Financial Year to 30 June 2027, respectively
- 56 -
ACADEMIES AUSTRALASIA GROUP LIMITED
AND CONTROLLED ENTITIES
GLOSSARY
Group
GST
IHEA
LLI
OCI
RBT
ROUA
SBC
Shares
SPT
STA
TAFE
TEQSA
TPS
VET
VOS
AKG and all its subsidiaries
Goods and Services Tax
Independent Higher Education Australia (Previous name: Council of Private Higher Education
– COPHE)
Language Links International Pty Limited
Other Comprehensive Income
Kreate Pty Limited – trading as RuralBiz Training
Right of Use Assets
Supreme Business College Pty Limited
Fully paid ordinary shares in AKG
CLB Training & Development Pty Limited as trustee for the CLB Unit Trust - trading as
Spectra Training
Transformations – Pathways to Competence and Developing Excellence Pty Limited - trading
as Skills Training Australia
Technical and Further Education
Tertiary Education Quality and Standards Agency
Tuition Protection Scheme
Vocational Education and Training
Vostro Institute of Training Australia Pty Limited
- 57 -