Indoor Skydive Australia Group Limited
Annual Report 2015

Plain-text annual report

INDOOR SKYDIVE AUSTRALIA GROUP LIMITED ABN: 39 154 103 607 CONTENT Chairman’s letter Directors’ Report Remuneration Report (Audited) Auditor’s Independence Declaration Financial Report Shareholder Information Corporate Directory 04 07 13 22 23 67 70 CHAIRMAN’S LETTER Dear Valued Shareholder I am pleased to present to you the 2015 Annual Report. This past year has been exciting and successful. We have: confirmed the strength of our operations concept; matured operations at our Penrith facility; and continued our advertised expansion plans with a facility under construction in Queensland and a facility about to commence construction in Western Australia. Our ongoing expansion was made possible by strong shareholder support and the very successful capital raising conducted early in the year. In March 2015, our Penrith Indoor Skydiving Facility celebrated 12 months of operations. This was an important milestone as it enabled us to confirm and fine-tune a number of aspects underpinning our robust business model. SOME HIGHLIGHTS Penrith operations were profitable and remained cash flow positive from our initial opening. Our state of the art vertical wind tunnel met all expectations. It has been proven to be an aerodynamically stable, robust and low maintenance system. This gives great confidence as we expand our facilities and bring the simulation of free fall parachuting in a safe, all weather environment to more centres across Australia. Penrith’s indoor skydiving facility Group systems and processes have been evolved, tested and proven including throughout high tempo operational periods. Our target market segments; first timers, professional skydivers, education and corporate groups have been proven. In December we achieved our highest sales in a single month. This exceeded $1 million and was driven by the high utilisation of the Penrith facility during school holidays. As expected, a trend of high utilisation during school holiday periods has been established. We have also built a significant following of professional indoor skydivers and our children’s program, Junior iFLY, is successfully developing the next generation of indoor skydive specialists. Military utilisation has stabilised and the Australian Defence Force now formally incorporates wind tunnel use its free fall training programs. In August 2015 47 teams competed in Australia’s first Indoor Skydiving Championship at our Penrith facility. We anticipate this will be the first of many such competitions as indoor skydiving increasingly becomes an Australian sport in its own right. AUSTRALIAN TUNNEL ROLL OUT Building on the foundations of the Penrith success, we are continuing to deliver the Australia tunnel roll out Ken Gillespie Chairman 4 2015 Annual Report |OUR RESULTS The ISA Group results are detailed in the Financial Report and I encourage you to read them. They are an excellent result taking into account we have one operational tunnel and two tunnels in the process of development. Looking forward, we believe: • there will be continued growth of indoor skydiving, as a sport and professional skydiving simulation tool both nationally and internationally; • there are good prospects for additional indoor skydiving facilities throughout Australia and potentially into South East Asia and Hong Kong; • ongoing benefits will accrue from corporate overhead absorption as new tunnels become operational; • Australian sales are necessarily dependent on overall domestic economic prospects; • A weaker Australian dollar adds to imported major equipment costs, however, it supports domestic sales through tourism substitution and higher inbound tourist activity. We thank you for your ongoing commitment to the success of our company and look forward to continuing to increase shareholder value. Ken Gillespie Chairman program. Work on our Gold Coast facility, located within easy walking distance of the heart of Surfers Paradise, is well advanced and will be completed later this year. Our Perth facility, located 5 kms from the Perth CBD and on the strategic commuter highway between the CBD and the domestic and international airports, is also progressing well. The site has been cleared and the design phase is almost complete. Underground works are due to commence shortly. The Perth facility is on track for completion in mid 2016. LOOKING FORWARD The Group continues to identify, and act on, opportunities for additional indoor skydiving facilities across Australia. We do this both in our own right and also through our strategic relationship with the US manufacturing company and tunnel operator SkyVenture. Our relationship with SkyVenture has previously been announced and is governed through our Exclusive Territory Development Agreement. The first development by SkyVenture under this Agreement has commenced early works at Essendon, Victoria. Meanwhile, ISA Group is continuing to research further growth potential. We are investigating the commercial potential for an Adelaide facility. We are also conducting site feasibility and development discussions are being conducted in relation to further potential sites in Melbourne and Sydney. While we continue to deliver on our Australian tunnel roll out program, and the potential to expand this program, we are very mindful of commercial opportunities in South East Asia and Hong Kong. We are currently working hard to understand the region and these markets. In the short term we will look to develop appropriate business and operating models, identify potential regional partners and determine options for potential growth into this exciting region. BUILDING THE DREAM OF FLIGHT Market Analysis will it work here? Finding & securing the right site Securing all the applications Digging the deep foundations Inserting the technical kit Commissioning & Test Flying Customers FLYING 5 1352467| 2015 Annual ReportBOARD OF DIRECTORS From left to right: David Murray AO Non-Executive Director Ken Gillespie AC, DSC, CSM Chairman Malcolm Thompson Alternative Director for Stephen Baxter Danny Hogan MG Director & Chief Operations Officer Wayne Jones Director & Chief Executive Officer Stephen Baxter Non-Executive Director 6 2015 Annual Report |DIRECTORS’ REPORT Ken Gillespie AC, DSC, CSM Chairman Danny Hogan MG Director & Chief Operations Officer Stephen Baxter Non-Executive Director Directors’ Report DIRECTORS’ REPORT In compliance with the provisions of the Corporations Act 2001 (Corporations Act), the Directors of Indoor Skydive Australia Group Limited (ISA Group or the Company) submit the following report for the Company and its controlled entities for the financial year ended 30 June 2015. DIRECTORS The following individuals were Directors of ISA Group at all times during the year and at the date of this Directors’ Report, unless otherwise stated: Ken Gillespie AC, DSC, CSM Chairman Appointed 18 October 2012 One of Australia’s most distinguished career soldiers, Lieutenant General (retired) Ken Gillespie, AC, DSC, CSM, is the Chairman of ISA Group. He is Chair of the Remuneration & Nomination Committee and a member of the Audit & Risk Committee. Ken is also on the Board of Directors of leading local defence manufacturer, Airbus Asia Pacific Group, and the ASX listed, Senetas Limited. He is also a council member of the Australian Strategic Policy Institute, an internationally recognised and Canberra based think tank. Ken, who served with the Australian Defence Force for over 43 years, was appointed Chief of Army in July 2008, a position he held until his retirement in June 2011. Previously he had served as Land Commander Australia and Vice Chief of the Australian Defence Force. Wayne Jones Director & Chief Executive Officer Appointed 4 November 2011 Wayne served for 21 years in the Australian Defence Force and was part of the highly acclaimed Special Air Service Regiment for the last 14 years of his career. Wayne holds various senior instructor qualifications and has been at the forefront of Australian Military Freefall development and training over the past 10 years. He is still involved in the training of special forces troops and he continues to participate in the sport of skydiving at the highest levels. Wayne is a member of the Australian Institute of Company Directors. Danny Hogan MG Director & Chief Operations Officer Appointed 4 November 2011 Danny enlisted in the Australian Regular Army in 1991, and in 1997 was selected for further service within the Special Air Service Regiment. He has been recognised and awarded for his actions and leadership during his 21 year military career including the Medal for Gallantry. He was selected and completed a two year military exchange in the USA with two of the USA’s elite Special Forces Commands. While in the USA he gained his freefall parachuting qualifications and he developed a very strong background in the use of vertical wind tunnel simulation training. Danny is a highly qualified senior dive instructor within the Special Air Service Regiment. Danny is a member of the Australian Institute of Company Directors. Stephen Baxter Non-Executive Director Appointed 13 August 2012 Former Regular Army electronics technician turned successful entrepreneur, Steve is the founder of early Internet Provider SE Net and co-founder of telecommunications infrastructure company, Pipe Networks Ltd. In 2008 he moved to the USA and joined Google Inc deploying high speed telecommunication infrastructure, before returning to Australia. He is a director of Vocus Communications Limited and Other Levels Limited. He is the founder of Brisbane based not-for-profit River City Labs - an early stage and start-up co- working space for tech and creative companies. He is a member for the ISA Group Remuneration & Nomination Committee and Chairman of the Audit & Risk Committee. David Murray AO Non-Executive Director Appointed 3 February 2014 Former Chief Executive Officer of Commonwealth Bank of Australia and Chairman of the Australian Government Future Fund, David has over 40 years’ experience in banking and financial services. He was appointed an Officer of the Order of Australia in 2007 for services to the finance sector nationally and internationally through strategic leadership and policy development, to education through fostering relations between educational institutions, business and industry, and to the community as a supporter and fundraiser. David is Chairman of the Butterfly Foundation. Directors’ Report (continued) Malcolm Thompson Alternative Director for Stephen Baxter Appointed 13 February 2013 An accountant and governance specialist by John Diddams Former Non-executive Director Appointed 27 July 201 Resigned 3 October 2014 training, Malcolm has over 24 years’ experience John has over thirty five years of financial and across technology, telecommunications, R&D and management experience as Chief Financial Officer, aerospace industries in senior roles, including chief Chief Executive Officer and director of both private financial officer, company secretary and director and public listed companies. Prior to his roles. He has been instrumental in setting up resignation John was a member of the ISA Group governance, financial and operational aspects for Audit & Risk Committee. listed companies and has assisted a local subsidiary of Airbus NV (EPA:EAD) relating to $6B COMPANY SECRETARY construction and maintenance contracts for advanced military helicopters. Working with Stephen Baxter, he is currently Chief Investment Officer for Transition Level Investments targeting optimisation of angel and start-up investment success. He is also an alternative director for Stephen Baxter for Other Levels Limited. Fiona Yiend General Counsel & Company Secretary Appointed 16 October 2013 Fiona has over 6 years listed company secretarial experience. She holds a Bachelor of Arts, Bachelor of Laws (Hons), Graduate Diploma in Applied Finance and Investments, Graduate Diploma in International Law and a Graduate Diploma in Applied Corporate Governance. She is also a member of the Australian Corporate Lawyers Association (ACLA). DIRECTORS’ MEETINGS The number of Directors’ meetings which Directors were eligible to attend (including meetings of Board Committees) and the number of meetings attended by each Director during the year were: Board Audit and Risk Committee Remuneration and Nomination Committee Eligible to Attended Eligible to Attended Eligible to Attended Attend Attend Attend Kenneth Gillespie Wayne Jones Danny Hogan Stephen Baxter David Murray Malcolm Thompson John Diddams 10 10 10 10 10 1 3 9 10 10 9 10 1 3 2 2 1 1 2 1 1 1 1 1 8 Indoor Skydive Australia Group Limited 2015 Annual Report 8 Indoor Skydive Australia Group Limited 9 2015 Annual Report 2015 Annual Report |of leading local defence manufacturer, Airbus Asia Former Regular Army electronics technician turned Pacific Group, and the ASX listed, Senetas Limited. successful entrepreneur, Steve is the founder of He is also a council member of the Australian Strategic Policy Institute, an internationally early Internet Provider SE Net and co-founder of telecommunications infrastructure company, Pipe recognised and Canberra based think tank. Ken, Networks Ltd. In 2008 he moved to the USA and who served with the Australian Defence Force for over 43 years, was appointed Chief of Army in July joined Google Inc deploying high speed telecommunication infrastructure, before Directors’ Report In compliance with the provisions of the Corporations Act 2001 (Corporations Act), the Directors of Indoor Skydive Australia Group Limited (ISA Group or the Company) submit the following report for the Company and its controlled entities for the financial year ended 30 June 2015. DIRECTORS The following individuals were Directors of ISA Group at all times during the year and at the date of this Directors’ Report, unless otherwise stated: Ken Gillespie AC, DSC, CSM Chairman Appointed 18 October 2012 One of Australia’s most distinguished career soldiers, Lieutenant General (retired) Ken Gillespie, AC, DSC, CSM, is the Chairman of ISA Group. He is Chair of the Remuneration & Nomination Committee and a member of the Audit & Risk Committee. Ken is also on the Board of Directors 2008, a position he held until his retirement in June 2011. Previously he had served as Land Commander Australia and Vice Chief of the Australian Defence Force. Wayne Jones Director & Chief Executive Officer Appointed 4 November 2011 Wayne served for 21 years in the Australian Defence Force and was part of the highly acclaimed Special Air Service Regiment for the last 14 years of his career. Wayne holds various senior instructor qualifications and has been at the forefront of Australian Military Freefall development and training over the past 10 years. He is still involved in the training of special forces troops and he continues to participate in the sport of skydiving at the highest levels. Wayne is a member of the Australian Institute of Company Directors. Danny Hogan MG Director & Chief Operations Officer Appointed 4 November 2011 Danny enlisted in the Australian Regular Army in 1991, and in 1997 was selected for further service within the Special Air Service Regiment. He has been recognised and awarded for his actions and leadership during his 21 year military career including the Medal for Gallantry. He was selected and completed a two year military exchange in the USA with two of the USA’s elite Special Forces Commands. While in the USA he gained his freefall parachuting qualifications and he developed a very strong background in the use of vertical wind tunnel simulation training. Danny is a highly qualified senior dive instructor within the Special Air Service Regiment. Danny is a member of the Australian Institute of Company Directors. Stephen Baxter Non-Executive Director Appointed 13 August 2012 returning to Australia. He is a director of Vocus Communications Limited and Other Levels Limited. He is the founder of Brisbane based not-for-profit River City Labs - an early stage and start-up co- working space for tech and creative companies. He is a member for the ISA Group Remuneration & Nomination Committee and Chairman of the Audit & Risk Committee. David Murray AO Non-Executive Director Appointed 3 February 2014 Former Chief Executive Officer of Commonwealth Bank of Australia and Chairman of the Australian Government Future Fund, David has over 40 years’ experience in banking and financial services. He was appointed an Officer of the Order of Australia in 2007 for services to the finance sector nationally and internationally through strategic leadership and policy development, to education through fostering relations between educational institutions, business and industry, and to the community as a supporter and fundraiser. David is Chairman of the Butterfly Foundation. Indoor Skydive Australia Group Limited 2015 Annual Report 8 Directors’ Report (continued) Malcolm Thompson Alternative Director for Stephen Baxter Appointed 13 February 2013 An accountant and governance specialist by training, Malcolm has over 24 years’ experience across technology, telecommunications, R&D and aerospace industries in senior roles, including chief financial officer, company secretary and director roles. He has been instrumental in setting up governance, financial and operational aspects for listed companies and has assisted a local subsidiary of Airbus NV (EPA:EAD) relating to $6B construction and maintenance contracts for advanced military helicopters. Working with Stephen Baxter, he is currently Chief Investment Officer for Transition Level Investments targeting optimisation of angel and start-up investment success. He is also an alternative director for Stephen Baxter for Other Levels Limited. John Diddams Former Non-executive Director Appointed 27 July 201 Resigned 3 October 2014 John has over thirty five years of financial and management experience as Chief Financial Officer, Chief Executive Officer and director of both private and public listed companies. Prior to his resignation John was a member of the ISA Group Audit & Risk Committee. COMPANY SECRETARY Fiona Yiend General Counsel & Company Secretary Appointed 16 October 2013 Fiona has over 6 years listed company secretarial experience. She holds a Bachelor of Arts, Bachelor of Laws (Hons), Graduate Diploma in Applied Finance and Investments, Graduate Diploma in International Law and a Graduate Diploma in Applied Corporate Governance. She is also a member of the Australian Corporate Lawyers Association (ACLA). DIRECTORS’ MEETINGS The number of Directors’ meetings which Directors were eligible to attend (including meetings of Board Committees) and the number of meetings attended by each Director during the year were: Board Audit and Risk Committee Remuneration and Nomination Committee Eligible to Attend Attended Eligible to Attend Attended Eligible to Attend Attended Kenneth Gillespie Wayne Jones Danny Hogan Stephen Baxter David Murray Malcolm Thompson John Diddams 10 10 10 10 10 1 3 9 10 10 9 10 1 3 2 2 1 1 2 1 1 1 1 1 Indoor Skydive Australia Group Limited 2015 Annual Report 9 9 | 2015 Annual ReportDirectors’  Report  (continued)   DIRECTORS’ REPORT Continued DIRECTORS’  SHAREHOLDINGS   The  following  table  sets  out  each  Director’s  relevant  interest  in  shares  and  options  in  shares  of  ISA  Group  as  at   the  date  of  this  report.    No  Director  has  any  relevant  interest  in  shares  or  options  in  shares  of  a  related  body   corporate  of  ISA  Group  as  at  the  date  of  this  report.   Director   Number  of  Shares  and  Nature  of  Interest   Kenneth  Gillespie   Indirect  interest  in  396,668  shares  held  by  Sector  West  Pty  Ltd  ATF  Gillespie   Family  Trust   Wayne  Jones   Danny  Hogan   Indirect  interest  in  16,060,000  shares  held  by  Excalib-­‐air  Pty  Ltd,  indirect   interest  in  200,000  shares  held  by  Project  Flight  Pty  Ltd  ATF  Wayne  Jones   Superannuation  Fund,  indirect  interest  in  14,000  shares  held  by  Project   Gravity  Pty  Ltd,  indirect  interest  in  1,575,568  shares  and  228,554   Performance  Rights  held  by  Project  Gravity  Pty  Ltd  ATF  Jones  Family  Trust   Indirect  interest  in  16,060,000  shares  held  by  Excalib-­‐air  Pty  Ltd,  indirect   interest  in  200,000  shares  held  by  Hogan  Superannuation  Fund,  indirect   interest  in  1,175,568  shares  and  228,554  Performance  Rights  held  by   Australian  Indoor  Skydiving  Pty  Ltd  ATF  Hogan  Family  Trust   Stephen  Baxter   Indirect  interest  in  17,000,001  shares  held  by  Birkdale  Holdings  (QLD)  Pty  Ltd     David  Murray   Indirect  interest  in  2,521,667  shares  held  by  Lyndcote  Holdings  Pty  Ltd   Malcolm  Thompson   Indirect  interest  in  400,000  shares  held  by  Lucapac  Consulting  Pty  Ltd   DIVIDENDS   No  dividends  were  declared  during  the  period.   PRINCIPAL  ACTIVITIES   The  principal  activities  of  ISA  Group  during  the   year  were  the  operation  and  development  of   indoor  skydiving  facilities.    The  operational   activities  were  focused  on  the  Company’s  first   indoor  skydiving  facility  located  at  Penrith  NSW.     The  development  activities  focused  on  delivering   the  Company’s  Australian  tunnel  roll  out  including   the  construction  of  the  Company’s  indoor   skydiving  facilities  at  the  Gold  Coast,  Qld  and   Perth,  WA  and  the  early  development  stages   (including  site  identification)  of  additional  sites  in   Australia  and,  potentially,  Asia.       REVIEW  OF  OPERATIONS   ISA  Group  is  currently  focused  on  two  lines  of   operation;  firstly  the  operation  of  our  existing   indoor  skydiving  facility  at  Penrith  NSW  and   secondly  the  continued  development  of  additional   indoor  skydiving  facilities  under  the  Australian   tunnel  roll  out  plan  and  beyond.   The  Penrith  indoor  skydiving  facility  celebrated  its   first  full  year  of  operation  in  March  2015  and  was   operational  throughout  the  period.    The  facility,   the  most  modern  of  its  type,  performed  very  well   during  the  period  and  was  supported  by  each  of   the  key  target  market  sectors.    As  expected,  a   trend  of  high  utilisation  during  school  holiday   periods  has  been  established.   The  development  activities  of  the  Company  have   been  focused  on  the  construction  of  our  second   indoor  skydiving  facility  at  the  Gold  Coast  and  the   planning,  design  and  development  stages  of  our   third  facility  in  Perth.    The  Gold  Coast  facility  is   expected  to  be  operational  by  the  end  of  2015,   while  the  Perth  facility  will  be  operational  in  mid   2016.    Work  also  continues  on  the  early  stages  of   development  for  facility  options  in  Adelaide,   Melbourne  and  Sydney  and  potentially  other   locations  throughout  the  region  including  South   East  Asia  and  Hong  Kong.   Directors’ Report (continued) For the year ended 30 June 2015, ISA Group reported earnings before interest, tax, depreciation and amortisation excluding share With the exception of performance rights which are discussed in detail in the Remuneration Report, ISA Group did not have any options on based payments of $589,536 (2014: ($2,067,584)). issue as at 30 June 2015 (2014: nil). As noted in the half year results, share based payments heavily impacted the results with the ISA ENVIRONMENTAL REGULATION Group reporting a loss before interest, tax, depreciation and amortisation (including share based payments) of $833,586 (2014: $3,311,336). ISA Group also reported a net loss after tax of $1,749,988 ($2014: $2,714,016). This is an excellent result taking into account we have one operational facility and two facilities in the process of development. To fully understand our results, please refer to the full financial statements included in this Annual Report. CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the Company during the financial year. SUBSEQUENT EVENTS ISA Group is not subject to any significant environment regulation under any law of the Commonwealth or of a State or Territory. DIRECTORS’ AND OFFICERS’ INSURANCE During the financial year, ISA Group has paid premiums to insure all Directors and Officers against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of a director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company. In accordance with common commercial practice, the insurance policy prohibits disclosure of the nature of the liability insured against and the amount of the premium. No matters or circumstances have arisen since the The Directors and Company Secretary of ISA Group end of the financial year which significantly affected are also party to a deed of access and indemnity. or may significantly affect the operations of the consolidated group, the results of those operations or the state of affairs of the consolidated group in future financial years. FUTURE DEVELOPMENTS The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the Company or any related body corporate against a liability incurred by such an officer or auditor. ISA Group has previously announced its intention PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied to the court under section 237 of the Corporations Act 2001 for leave to bring, or intervene in, proceedings on behalf of any entity within ISA Group. AUDITOR RSM Bird Cameron Partners continues in office as auditor in accordance with section 327 of the Corporations Act 2001. to continue with the Company’s focus on the Australian tunnel roll-out plan and the initial planning for the development of indoor skydiving facilities in South East Asia and Hong Kong. In the opinion of the Directors, disclosure of any further information regarding business strategies and future development of ISA Group would be unreasonably prejudicial to the Company. REMUNERATION REPORT (AUDITED) The Remuneration Report is set out at page 13 and forms part of this Directors’ Report. INTERESTS IN ISA GROUP SECURITIES Details of the ISA Group securities issued during the year and the number of ISA Group securities on issue as at 30 June 2015 are detailed in Note 14 of the Financial Statements and form part of this Directors’ Report. 10 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   7   Indoor Skydive Australia Group Limited 11 2015 Annual Report 2015 Annual Report |                             Directors’  Report  (continued)   DIRECTORS’  SHAREHOLDINGS   The  following  table  sets  out  each  Director’s  relevant  interest  in  shares  and  options  in  shares  of  ISA  Group  as  at   the  date  of  this  report.    No  Director  has  any  relevant  interest  in  shares  or  options  in  shares  of  a  related  body   corporate  of  ISA  Group  as  at  the  date  of  this  report.   Director   Number  of  Shares  and  Nature  of  Interest   Kenneth  Gillespie   Indirect  interest  in  396,668  shares  held  by  Sector  West  Pty  Ltd  ATF  Gillespie   Family  Trust   Wayne  Jones   Indirect  interest  in  16,060,000  shares  held  by  Excalib-­‐air  Pty  Ltd,  indirect   Danny  Hogan   interest  in  200,000  shares  held  by  Project  Flight  Pty  Ltd  ATF  Wayne  Jones   Superannuation  Fund,  indirect  interest  in  14,000  shares  held  by  Project   Gravity  Pty  Ltd,  indirect  interest  in  1,575,568  shares  and  228,554   Performance  Rights  held  by  Project  Gravity  Pty  Ltd  ATF  Jones  Family  Trust   Indirect  interest  in  16,060,000  shares  held  by  Excalib-­‐air  Pty  Ltd,  indirect   interest  in  200,000  shares  held  by  Hogan  Superannuation  Fund,  indirect   interest  in  1,175,568  shares  and  228,554  Performance  Rights  held  by   Australian  Indoor  Skydiving  Pty  Ltd  ATF  Hogan  Family  Trust   Stephen  Baxter   Indirect  interest  in  17,000,001  shares  held  by  Birkdale  Holdings  (QLD)  Pty  Ltd     David  Murray   Indirect  interest  in  2,521,667  shares  held  by  Lyndcote  Holdings  Pty  Ltd   Malcolm  Thompson   Indirect  interest  in  400,000  shares  held  by  Lucapac  Consulting  Pty  Ltd   DIVIDENDS   No  dividends  were  declared  during  the  period.   PRINCIPAL  ACTIVITIES   The  principal  activities  of  ISA  Group  during  the   year  were  the  operation  and  development  of   indoor  skydiving  facilities.    The  operational   activities  were  focused  on  the  Company’s  first   indoor  skydiving  facility  located  at  Penrith  NSW.     The  development  activities  focused  on  delivering   the  Company’s  Australian  tunnel  roll  out  including   the  construction  of  the  Company’s  indoor   skydiving  facilities  at  the  Gold  Coast,  Qld  and   Perth,  WA  and  the  early  development  stages   (including  site  identification)  of  additional  sites  in   Australia  and,  potentially,  Asia.       REVIEW  OF  OPERATIONS   ISA  Group  is  currently  focused  on  two  lines  of   operation;  firstly  the  operation  of  our  existing   indoor  skydiving  facility  at  Penrith  NSW  and   secondly  the  continued  development  of  additional   indoor  skydiving  facilities  under  the  Australian   tunnel  roll  out  plan  and  beyond.   The  Penrith  indoor  skydiving  facility  celebrated  its   first  full  year  of  operation  in  March  2015  and  was   operational  throughout  the  period.    The  facility,   the  most  modern  of  its  type,  performed  very  well   during  the  period  and  was  supported  by  each  of   the  key  target  market  sectors.    As  expected,  a   trend  of  high  utilisation  during  school  holiday   periods  has  been  established.   The  development  activities  of  the  Company  have   been  focused  on  the  construction  of  our  second   indoor  skydiving  facility  at  the  Gold  Coast  and  the   planning,  design  and  development  stages  of  our   third  facility  in  Perth.    The  Gold  Coast  facility  is   expected  to  be  operational  by  the  end  of  2015,   while  the  Perth  facility  will  be  operational  in  mid   2016.    Work  also  continues  on  the  early  stages  of   development  for  facility  options  in  Adelaide,   Melbourne  and  Sydney  and  potentially  other   locations  throughout  the  region  including  South   East  Asia  and  Hong  Kong.   Directors’ Report (continued) For the year ended 30 June 2015, ISA Group reported earnings before interest, tax, depreciation and amortisation excluding share based payments of $589,536 (2014: ($2,067,584)). As noted in the half year results, share based payments heavily impacted the results with the ISA Group reporting a loss before interest, tax, depreciation and amortisation (including share based payments) of $833,586 (2014: $3,311,336). ISA Group also reported a net loss after tax of $1,749,988 ($2014: $2,714,016). This is an excellent result taking into account we have one operational facility and two facilities in the process of development. To fully understand our results, please refer to the full financial statements included in this Annual Report. CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the Company during the financial year. SUBSEQUENT EVENTS No matters or circumstances have arisen since the end of the financial year which significantly affected or may significantly affect the operations of the consolidated group, the results of those operations or the state of affairs of the consolidated group in future financial years. FUTURE DEVELOPMENTS ISA Group has previously announced its intention to continue with the Company’s focus on the Australian tunnel roll-out plan and the initial planning for the development of indoor skydiving facilities in South East Asia and Hong Kong. In the opinion of the Directors, disclosure of any further information regarding business strategies and future development of ISA Group would be unreasonably prejudicial to the Company. REMUNERATION REPORT (AUDITED) The Remuneration Report is set out at page 13 and forms part of this Directors’ Report. INTERESTS IN ISA GROUP SECURITIES Details of the ISA Group securities issued during the year and the number of ISA Group securities on issue as at 30 June 2015 are detailed in Note 14 of the Financial Statements and form part of this Directors’ Report. With the exception of performance rights which are discussed in detail in the Remuneration Report, ISA Group did not have any options on issue as at 30 June 2015 (2014: nil). ENVIRONMENTAL REGULATION ISA Group is not subject to any significant environment regulation under any law of the Commonwealth or of a State or Territory. DIRECTORS’ AND OFFICERS’ INSURANCE During the financial year, ISA Group has paid premiums to insure all Directors and Officers against liabilities for costs and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in the capacity of a director or officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company. In accordance with common commercial practice, the insurance policy prohibits disclosure of the nature of the liability insured against and the amount of the premium. The Directors and Company Secretary of ISA Group are also party to a deed of access and indemnity. The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or auditor of the Company or any related body corporate against a liability incurred by such an officer or auditor. PROCEEDINGS ON BEHALF OF THE COMPANY No person has applied to the court under section 237 of the Corporations Act 2001 for leave to bring, or intervene in, proceedings on behalf of any entity within ISA Group. AUDITOR RSM Bird Cameron Partners continues in office as auditor in accordance with section 327 of the Corporations Act 2001. Indoor  Skydive  Australia  Group  Limited   7   2015  Annual  Report   Indoor Skydive Australia Group Limited 2015 Annual Report 11 11 | 2015 Annual Report                             Directors’  Report  (continued)   DIRECTORS’ REPORT Continued NON-­‐AUDIT  SERVICES   The  Directors,  in  accordance  with  advice  from  the   Audit   &   Risk   Committee,   are   satisfied   that   the   provision   of   non-­‐audit   services   during   the   year   is   standard   of   compatible   with   independence   the   Corporations   Act   2001.   The   Directors   are   satisfied   the   services   disclosed   below   did   not   that   compromise   the   external   auditor’s   independence   for  the  following  reasons:   the   general   for   auditors   imposed   by   - - all   non-­‐audit   services   are   reviewed   and   approved   by   the   Audit   &   Risk   committee   prior   to   commencement   to   ensure   they   do   not   adversely   affect   the   integrity   and   objectivity  of  the  auditor;  and   the  nature  of  the  services  provided  does   not  compromise  the  general  principles   relating  to  auditor  independence  in   accordance  with  APES  110:  Code  of  Ethics   for  Professional  Accountants  set  by  the   Accounting  Professional  and  Ethical   Standards  Board.   The  fees  paid  or  payable  to  RSM  Bird  Cameron   Partners  for  non-­‐audit  services  provided  during   the  year  ended  30  June  2015  were  $9,840.   AUDITOR’S  INDEPENDENCE  DECLARATION   The  Auditor’s  independence  declaration  is  set  out   at  page  22  and  forms  part  of  this  Directors’  Report.   ROUNDING  OF  AMOUNTS   ISA  Group  is  not  an  entity  to  which  ASIC  class  order   98/100  applies.    Accordingly,  amounts  in  the   financial  statements  and  annual  reports  have  been   rounded  to  the  nearest  dollar  not  the  nearest   thousand  dollars.   BUY  BACK   ISA  Group  does  not  currently  have  any  on-­‐market   buy-­‐back  of  shares.   This  Directors’  Report  is  made  in  accordance  with  a  resolution  of  the  directors  made  pursuant  to  section  298(2)   of  the  Corporations  Act.   On  behalf  of  the  Board   Ken  Gillespie   Chairman   25  August  2015   Sydney   Wayne  Jones   Director  &  Chief  Executive  Officer   12 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   9   2015 Annual Report |                                     REMUNERATION REPORT (AUDITED) Directors’  Report  (continued)   NON-­‐AUDIT  SERVICES   The  fees  paid  or  payable  to  RSM  Bird  Cameron   Partners  for  non-­‐audit  services  provided  during   The  Directors,  in  accordance  with  advice  from  the   the  year  ended  30  June  2015  were  $9,840.   Audit   &   Risk   Committee,   are   satisfied   that   the   provision   of   non-­‐audit   services   during   the   year   is   AUDITOR’S  INDEPENDENCE  DECLARATION   compatible   with   the   general   standard   of   independence   for   auditors   imposed   by   the   The  Auditor’s  independence  declaration  is  set  out   at  page  22  and  forms  part  of  this  Directors’  Report.   Corporations   Act   2001.   The   Directors   are   satisfied   that   the   services   disclosed   below   did   not   compromise   the   external   auditor’s   independence   for  the  following  reasons:   - - all   non-­‐audit   services   are   reviewed   and   approved   by   the   Audit   &   Risk   committee   prior   to   commencement   to   ensure   they   do   not   adversely   affect   the   integrity   and   objectivity  of  the  auditor;  and   the  nature  of  the  services  provided  does   not  compromise  the  general  principles   relating  to  auditor  independence  in   accordance  with  APES  110:  Code  of  Ethics   for  Professional  Accountants  set  by  the   Accounting  Professional  and  Ethical   Standards  Board.   of  the  Corporations  Act.   On  behalf  of  the  Board   ROUNDING  OF  AMOUNTS   ISA  Group  is  not  an  entity  to  which  ASIC  class  order   98/100  applies.    Accordingly,  amounts  in  the   financial  statements  and  annual  reports  have  been   rounded  to  the  nearest  dollar  not  the  nearest   thousand  dollars.   BUY  BACK   ISA  Group  does  not  currently  have  any  on-­‐market   buy-­‐back  of  shares.   This  Directors’  Report  is  made  in  accordance  with  a  resolution  of  the  directors  made  pursuant  to  section  298(2)   Ken  Gillespie   Chairman   25  August  2015   Sydney   Wayne  Jones   Director  &  Chief  Executive  Officer   Indoor  Skydive  Australia  Group  Limited   9   2015  Annual  Report                                       Remuneration  Report  (Audited)   REMUNERATION REPORT (Audited) Remuneration  Report  (Audited)   Dear  Shareholder   Introduction   The  KMP  for  ISA  Group  during  and  since  the  end  of   I  am  pleased  to  present  ISA  Group’s  remuneration  report  for  the  2015  financial  year  for  which  we  seek  your   support.   In  2014  ISA  Group  commenced  a  staged  restructuring  of  our  remuneration  strategy  in  line  with  the  Company’s   transition  into  an  operating  entity.    Under  this  restructuring  we  have  been  bringing  fixed  remuneration  to   acceptable  market  levels  based  on  our  size,  position  and  operating  structure.    Similarly  we  have  been   increasing  the  proportion  of  ‘at  risk’  remuneration  and  reducing  our  reliance  on  performance  rights  as  a   short/medium  term  retention  tool.   In  this  report  you  will  see  the  results  of  this  staged  approached.    Fixed  remuneration  of  our  executives  has   been  brought  closer  to  market  levels.    We  anticipate  all  executives  other  than  the  Founding  Directors,  will  be   remunerated  at  an  acceptable  market  level  for  the  2016  financial  year.    We  consider  this  important  to  attract   and  then  retain  the  highest  calibre  individuals.    At  the  same  time  “at  risk”  remuneration  has  been  amended  to   better  align  shareholder  interests  and  the  Company’s  budget  goals.     You  will  also  see  the  impact  of  share  based  incentives  entered  into  at  the  time  of  initial  employment  set  out  in   this  report.    The  main  share  based  incentives  were  entered  into  with  our  Founding  Directors  in  October  2012   prior  to  listing  on  the  ASX.    These  incentives  have  taken  the  form  of  performance  rights  and  were  approved  by   shareholders  at  the  2013  Annual  General  Meeting.     The  Performance  Rights  issued  to  the  Founding  Directors  were  separated  into  two  different  tranches.    Each   tranche  matured  only  upon  the  successful  completion  of  a  number  of  significant  performance  hurdles  shaped   to  establish  and  develop  the  Group.    The  first  tranche  related  to  the  establishment  of  Australia’s  first  indoor   skydiving  facility  and  its  initial  operating  performance.    The  second  tranche  was  utilised  to  focus  and  task  the   Founding  Directors  to  implement  the  step  change  from  a  single  facility  to  a  multi-­‐facility  operation.     Performance  hurdles  here  were  focused  on  the  key  milestones  necessary  to  bring  an  additional  facility  into   operation.    Where  the  performance  hurdles  are  not  met,  the  performance  rights  lapse  and  the  Founding   Directors  receive  no  benefit.    The  Board  considers  this  approach  to  be  an  appropriate  method  to  drive  the   outcomes  needed  to  meet  performance  and  growth  expectations  and  increase  shareholder  value.       As  ISA  Group  will  become  a  multi-­‐facility  operation  over  the  course  of  the  next  12  months,  the  initial   Performance  Rights  issue  to  the  Founding  Directors  will  have  fulfilled  their  purpose.    We  will  look  now  to   transition  to  a  longer  term  share  based  incentive  with  lower  levels  of  performance  rights  being  issued.   I  trust  that  the  Company’s  remuneration  strategy  will  receive  your  support.    We  welcome  your  feedback.   Yours  sincerely   Ken  Gillespie   Chairman  of  the  Board  and     Remuneration  &  Nomination  Committee   • ISA  Group  has  transitioned  it’s                                                                                                                                                                              Company  Secretary   This  remuneration  report  for  the  year  ended  30   June  2015  (FY2015),  which  forms  part  of  the   Directors’  Report,  outlines  the  remuneration   arrangements  of  ISA  Group  in  accordance  with  the   requirements  of  the  Corporations  Act.    The   information  in  this  report  has  been  audited.     Remuneration  Summary   ISA  Group’s  remuneration  structure  has  been   evolving  to  reflect  the  transition  of  the  Company   from  its  initial  start-­‐up  and  construction  phase  to   an  operating  entity  with  an  aggressive  growth   strategy.    ISA  Group’s  remuneration  practices  are   reflective  of  this  transition  with  the  highlights   noted  below:   remuneration  practices  from  focusing  on   attracting  high  calibre,  experienced   employees  to  providing  a  more  traditional   mix  of  fixed  and  ‘at  risk’  remuneration;   • Share  based  incentives  entered  into  initial   employment  contracts  are  being   share  based  incentives  in  the  form  of   performance  rights  more  aligned  to   shareholder  interests;   • Total  fixed  remuneration  for  Executive   Key  Management  Personnel  (KMP)   increased  by  10-­‐15%  bringing   share  based  incentives.   Key  Management  Personnel   This  report  sets  out  the  remuneration  details  of   KMP,  which  includes  those  individuals  with   authority  and  responsibility  for  planning,  directing   and  controlling  the  activities  of  ISA  Group.     ISA  Group  has  defined  its  KMP  to  include  directors   (executive  and  non-­‐executive)  and  those   executives  who  drive  and  are  responsible  for  the   principal  business  activities  of  the  Company   (Executives)   FY2015  include:   Directors:   Ken  Gillespie   Wayne  Jones   Chairman   Executive  Director  &   Chief  Executive  Officer   Danny  Hogan     Executive  Director  &   Chief  Operations  Officer     Stephen  Baxter     David  Murray     Non-­‐executive  Director   Non-­‐executive  Director   Malcolm  Thompson   Alternative  Director   John  Diddams   Non-­‐executive  Director   (resigned  3  October  2014)   Executives:   Stephen  Burns   Brett  Sheridan   Fiona  Yiend   Chief  Financial  Officer   Chief  Marketing  Officer   General  Counsel  &       Remuneration  Governance   Remuneration  &  Nomination  Committee   (Committee):    The  role  of  the  Committee  is  to   assist  and  advise  the  Board  on  matters  relating  to   the  appointment  and  remuneration  of  directors,   employees  of  ISA  Group.    The  Committee  operates   under  the  Remuneration  &  Nomination   Committee  Charter  that  is  available  on  the  ISA   Group  website:  www.indoorskydive.com.au.   The  Committee  consists  of  Ken  Gillespie  who  is  an   independent  non-­‐executive  and  chair  of  the   Remuneration  Consultants:    As  appropriate  ISA   Group  has  engaged  independent  external   remuneration  consultants  to  provide  advice  and   assistance  in  relation  to  ISA  Group’s  remuneration   practices.    In  the  2014  financial  year  ISA  Group   engaged  Windrose  Consulting  to  provide  advice,   benchmarking  and  recommendations  in  relation  to   executive  remuneration  (including  the  Founding   Directors).    Based  on  the  recommendations  of  the   Windrose  Consulting  report,  ISA  Group  has   implemented  a  staged  remuneration  strategy  to   transition  the  Company’s  remuneration  practices   to  include  a  higher  percentage  of  ‘at  risk’   remuneration  and  align  fixed  remuneration  with   market  levels.     remuneration  packages  more  in  line  with   Committee  and  Stephen  Baxter  who  is  not  an   market  and  reducing  the  reliance  on   independent  non-­‐executive.     completed  and  replaced  with  longer  term   Executives  and  where  appropriate,  other   14 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   10   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   11   2015 Annual Report |                                                   Remuneration  Report  (Audited)   Remuneration  Report  (Audited)   Dear  Shareholder   support.   I  am  pleased  to  present  ISA  Group’s  remuneration  report  for  the  2015  financial  year  for  which  we  seek  your   In  2014  ISA  Group  commenced  a  staged  restructuring  of  our  remuneration  strategy  in  line  with  the  Company’s   transition  into  an  operating  entity.    Under  this  restructuring  we  have  been  bringing  fixed  remuneration  to   acceptable  market  levels  based  on  our  size,  position  and  operating  structure.    Similarly  we  have  been   increasing  the  proportion  of  ‘at  risk’  remuneration  and  reducing  our  reliance  on  performance  rights  as  a   short/medium  term  retention  tool.   In  this  report  you  will  see  the  results  of  this  staged  approached.    Fixed  remuneration  of  our  executives  has   been  brought  closer  to  market  levels.    We  anticipate  all  executives  other  than  the  Founding  Directors,  will  be   remunerated  at  an  acceptable  market  level  for  the  2016  financial  year.    We  consider  this  important  to  attract   and  then  retain  the  highest  calibre  individuals.    At  the  same  time  “at  risk”  remuneration  has  been  amended  to   better  align  shareholder  interests  and  the  Company’s  budget  goals.     You  will  also  see  the  impact  of  share  based  incentives  entered  into  at  the  time  of  initial  employment  set  out  in   this  report.    The  main  share  based  incentives  were  entered  into  with  our  Founding  Directors  in  October  2012   prior  to  listing  on  the  ASX.    These  incentives  have  taken  the  form  of  performance  rights  and  were  approved  by   shareholders  at  the  2013  Annual  General  Meeting.     The  Performance  Rights  issued  to  the  Founding  Directors  were  separated  into  two  different  tranches.    Each   tranche  matured  only  upon  the  successful  completion  of  a  number  of  significant  performance  hurdles  shaped   to  establish  and  develop  the  Group.    The  first  tranche  related  to  the  establishment  of  Australia’s  first  indoor   skydiving  facility  and  its  initial  operating  performance.    The  second  tranche  was  utilised  to  focus  and  task  the   Founding  Directors  to  implement  the  step  change  from  a  single  facility  to  a  multi-­‐facility  operation.     Performance  hurdles  here  were  focused  on  the  key  milestones  necessary  to  bring  an  additional  facility  into   operation.    Where  the  performance  hurdles  are  not  met,  the  performance  rights  lapse  and  the  Founding   Directors  receive  no  benefit.    The  Board  considers  this  approach  to  be  an  appropriate  method  to  drive  the   outcomes  needed  to  meet  performance  and  growth  expectations  and  increase  shareholder  value.       As  ISA  Group  will  become  a  multi-­‐facility  operation  over  the  course  of  the  next  12  months,  the  initial   Performance  Rights  issue  to  the  Founding  Directors  will  have  fulfilled  their  purpose.    We  will  look  now  to   transition  to  a  longer  term  share  based  incentive  with  lower  levels  of  performance  rights  being  issued.   I  trust  that  the  Company’s  remuneration  strategy  will  receive  your  support.    We  welcome  your  feedback.   Yours  sincerely   Ken  Gillespie   Chairman  of  the  Board  and     Remuneration  &  Nomination  Committee   Introduction   This  remuneration  report  for  the  year  ended  30   June  2015  (FY2015),  which  forms  part  of  the   Directors’  Report,  outlines  the  remuneration   arrangements  of  ISA  Group  in  accordance  with  the   requirements  of  the  Corporations  Act.    The   information  in  this  report  has  been  audited.     Remuneration  Summary   ISA  Group’s  remuneration  structure  has  been   evolving  to  reflect  the  transition  of  the  Company   from  its  initial  start-­‐up  and  construction  phase  to   an  operating  entity  with  an  aggressive  growth   strategy.    ISA  Group’s  remuneration  practices  are   reflective  of  this  transition  with  the  highlights   noted  below:   • • • ISA  Group  has  transitioned  it’s   remuneration  practices  from  focusing  on   attracting  high  calibre,  experienced   employees  to  providing  a  more  traditional   mix  of  fixed  and  ‘at  risk’  remuneration;   Share  based  incentives  entered  into  initial   employment  contracts  are  being   completed  and  replaced  with  longer  term   share  based  incentives  in  the  form  of   performance  rights  more  aligned  to   shareholder  interests;   Total  fixed  remuneration  for  Executive   Key  Management  Personnel  (KMP)   increased  by  10-­‐15%  bringing   remuneration  packages  more  in  line  with   market  and  reducing  the  reliance  on   share  based  incentives.   Key  Management  Personnel   This  report  sets  out  the  remuneration  details  of   KMP,  which  includes  those  individuals  with   authority  and  responsibility  for  planning,  directing   and  controlling  the  activities  of  ISA  Group.     ISA  Group  has  defined  its  KMP  to  include  directors   (executive  and  non-­‐executive)  and  those   executives  who  drive  and  are  responsible  for  the   principal  business  activities  of  the  Company   (Executives)   The  KMP  for  ISA  Group  during  and  since  the  end  of   FY2015  include:   Directors:   Ken  Gillespie   Wayne  Jones   Chief  Executive  Officer   Danny  Hogan     Chief  Operations  Officer     Stephen  Baxter     David  Murray     Malcolm  Thompson   John  Diddams   (resigned  3  October  2014)   Chairman   Executive  Director  &   Executive  Director  &   Non-­‐executive  Director   Non-­‐executive  Director   Alternative  Director   Non-­‐executive  Director   Executives:   Chief  Financial  Officer   Stephen  Burns   Chief  Marketing  Officer   Brett  Sheridan   Fiona  Yiend   General  Counsel  &                                                                                                                                                                                  Company  Secretary   Remuneration  Governance   Remuneration  &  Nomination  Committee   (Committee):    The  role  of  the  Committee  is  to   assist  and  advise  the  Board  on  matters  relating  to   the  appointment  and  remuneration  of  directors,   Executives  and  where  appropriate,  other   employees  of  ISA  Group.    The  Committee  operates   under  the  Remuneration  &  Nomination   Committee  Charter  that  is  available  on  the  ISA   Group  website:  www.indoorskydive.com.au.   The  Committee  consists  of  Ken  Gillespie  who  is  an   independent  non-­‐executive  and  chair  of  the   Committee  and  Stephen  Baxter  who  is  not  an   independent  non-­‐executive.     Remuneration  Consultants:    As  appropriate  ISA   Group  has  engaged  independent  external   remuneration  consultants  to  provide  advice  and   assistance  in  relation  to  ISA  Group’s  remuneration   practices.    In  the  2014  financial  year  ISA  Group   engaged  Windrose  Consulting  to  provide  advice,   benchmarking  and  recommendations  in  relation  to   executive  remuneration  (including  the  Founding   Directors).    Based  on  the  recommendations  of  the   Windrose  Consulting  report,  ISA  Group  has   implemented  a  staged  remuneration  strategy  to   transition  the  Company’s  remuneration  practices   to  include  a  higher  percentage  of  ‘at  risk’   remuneration  and  align  fixed  remuneration  with   market  levels.     Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   10   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   11   15 | 2015 Annual Report                                                   Remuneration  Report  (Cont)   REMUNERATION REPORT (Audited) Continued As  the  strategy  based  off  the  Windrose  Consulting   report  spans  a  number  of  years,  ISA  Group  did  not   consider  it  appropriate  to  engage  further   remuneration  consultants  during  FY2015.   2014  Annual  General  Meeting  (AGM):    At  the   Company’s  AGM  in  November  2014,  78.05%  of   votes  received  were  in  favour  of  adopting  the   remuneration  report.   Hedging  of  Remuneration:    In  accordance  with  the   provisions  of  the  Corporations  Act,  KMP  and  their   closely  related  parties  are  prohibited  from  hedging   any  element  of  their  remuneration  that  is   unvested  (due  to  time  or  other  conditions)  or  is   vested  but  subject  to  restrictions  on  disposal.   Director  Remuneration   Remuneration  Policy  and  Structure:    ISA  Group’s   non-­‐executive  director  remuneration  policy  is  to   provide  fair  remuneration  that  is  sufficient  to   attract  and  retain  non-­‐executive  Directors  with  the   experience,  knowledge,  skills  and  judgment  to   steward  the  Company’s  success.   Non-­‐executive  Directors  are  paid  fees  for  their   services  to  the  Company.    Non-­‐executive  director   fees  consist  of  base  fees  and  fees  for  membership   on  board  committees.     To  preserve  impartiality,  non-­‐executive  Directors   do  not  receive  incentive  or  performance  based   remuneration,  nor  are  they  entitled  to  retirement   or  termination  benefits.   Non-­‐executive  Director  Fees:    Actual  fees  paid  to   non-­‐executive  Directors  in  FY2015  totalled   $218,850  which  is  significantly  less  than  the  prior   period  due  to  the  change  in  board  composition   following  the  resignation  of  John  Diddams  and  the   performance  of  services  by  management  which   were  previously  provided  by  John  on  a  consultancy   basis.   There  was  no  increase  in  the  fees  paid  to  non-­‐ executive  Directors  in  FY2015.   Executive  Director  Remuneration:    The  Founding   Directors  receive  a  mix  of  fixed  and  variable   remuneration  which  is  determined  on  the  same   basis  as  the  executive  remuneration.    Please  see   the  executive  remuneration  section  for  details  of   the  Founding  Directors’  remuneration.     Executive  Remuneration   Fixed  Remuneration:    The  review  of  remuneration   Termination   An  Executive  must  be  an   Remuneration  Policy  and  Structure:    Executive   remunerations  consists  of  fixed  remuneration  and   variable  remuneration.   Fixed  remuneration  is  comprised  of  cash  salary   and  superannuation  and  other  limited  non-­‐ monetary  benefits.    The  levels  are  set  to  attract   and  retain  qualified,  skilled  and  experienced   executives  and  are  determined  based  on   comparable  market  data.   Variable  (or  ‘at  risk’)  remuneration  is  comprised  of   a  short  term  incentive  (STI)  and  a  long  term   incentive  (LTI).    Incentives  are  set  to  reward   executives  for  achievement  of  financial,   operational  and  strategic  objectives,  and  are   designed  to  align  executive  interests  with   shareholder  interests.   In  2013  ISA  Group  conducted  a  review  of  executive   remuneration  in  relation  to  a  comparator  group  of   ASX  listed  companies  of  comparable  operational   scope  and  size  to  ISA  Group.    This  review  indicated   that  ISA  Group’s  remuneration  levels  were  below   market  and  needed  to  be  adjusted  to  remain   effective  in  retaining  and  motivating  key   employees.    Following  this  review  ISA  Group   implemented  a  staged  remuneration  strategy  to   bring  its  remuneration  structure  more  in  line  with   its  comparator  group.    Details  of  the  changes  are   set  out  below.   Remuneration  Mix:    Variable  remuneration  for   Executive  KMP  is  structured  with  a  mix  of  STI  and   LTI  incentives  calculated  based  on  a  percentage  of   base  salary.    The  percentage  varies  between   Executives  and  is  determined  based  on  the  extent   to  which  they  are  in  a  position  to  directly  influence   Company  performance.     For  example:   Remunerapon  Mix   Performance   Assessment   Base  Salary   Max  STI   Max  LTI   *  based  on  achieving  maximum  amount  of  STI  and   LTI.   Remuneration  Report  (Cont)   undertaken  in  2013  established  that  ISA  Group’s   fixed  remuneration  was  below  market  levels.    As  a   result  ISA  Group  undertook  to  progressively   increase  Executive  fixed  remuneration  to  bring  it   more  into  line  with  the  practices  of  the  Company’s   comparator  group.    At  the  same  time  reliance  on   share  based  remuneration  is  being  reduced  and   longer  term  performance  hurdles  are  being   implemented.    In  accordance  with  this  strategy  in   FY2015  the  fixed  remuneration  of  Executive  KMP   was  increased  by  between  10-­‐15%.   Short  Term  Incentive  Plan  (STI  Plan):    The  key   features  of  ISA  Group’s  STI  Plan  are  outlined   below:   From  of  Grant   Cash  payment   Performance  Period   12  months  (annual)   Maximum  Award   Performance   Measures     Each  Executive  may  earn   up  to  a  pre-­‐determined   fixed  amount.    The   maximum  award  varies   between  Executives  and   is  dependent  upon  role   and  responsibilities.   The  STI  award  paid   depends  on  the  extent   to  which  Executives   meet  pre-­‐determined   targets  (KPIs).  The  KPIs   are  set  following   finalisation  of  the   Company’s  budget  and   strategic  objectives  for   the  new  financial  year.     The  KPIs  for  FY2015   comprised  Company   Revenue  and  Company   EBITDA.   Executive  performance  is   assessed  following   determination  of   Company  annual  results   for  the  preceding   financial  year  and  is   subject  to  the  Board   taking  into  account   qualitative  matters.     employee  and  not   servicing  out  a  notice   period  when  the   payment  of  an  STI  is   made.   For  FY2015,  the  STI  Plan  KPIs  were  not  met.     Accordingly  all  Executives  forfeited  100%  of  their   STI  award.   Long  Term  Incentive  Plan  (LTI  Plan):    At  the  time   of  employing  each  Executive,  ISA  Group  agreed  to   provide  a  pre-­‐determined  amount  of  performance   rights  subject  to  certain  performance  hurdles   being  met.    For  all  Executives  other  than  the   Founding  Directors  the  performance  hurdles   related  to  continuity  of  performance.    The  final   award  under  these  agreements  relates  to  the   FY2015  year  and  are  detailed  below.     For  the  Founding  Directors  the  performance   hurdles  are  milestone  based  related  to  establishing   the  Company’s  initial  indoor  skydiving  facility  and   then  transitioning  the  Company  into  a  multi-­‐facility   operation.    The  Company  anticipates  that  the  final   awards  under  the  performance  rights  entered  into   with  the  Founding  Directors  will  occur  in  FY2016.   The  key  driver  of  the  agreements  to  provide   performance  rights  under  employment   agreements  was  to  compensate  for  lower  than   market  fixed  remuneration  and  to  provide  the   Company  with  stability  via  the  retention  of  key   employees  during  the  Company’s  establishment   phases.    As  the  Company  has  now  commenced   operations  and,  during  the  course  of  the  next   financial  year,  will  become  a  multi-­‐facility   operation  the  LTI  Plan  going  forward  has   performance  hurdles  of  longer  duration  and  lower   performance  rights  awards.   16 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   12   Indoor  Skydive  Australia  Group  Limited   13   2015  Annual  Report   2015 Annual Report |                                   Remuneration  Report  (Cont)   Remuneration  Report  (Cont)   Fixed  Remuneration:    The  review  of  remuneration   undertaken  in  2013  established  that  ISA  Group’s   fixed  remuneration  was  below  market  levels.    As  a   result  ISA  Group  undertook  to  progressively   increase  Executive  fixed  remuneration  to  bring  it   more  into  line  with  the  practices  of  the  Company’s   comparator  group.    At  the  same  time  reliance  on   share  based  remuneration  is  being  reduced  and   longer  term  performance  hurdles  are  being   implemented.    In  accordance  with  this  strategy  in   FY2015  the  fixed  remuneration  of  Executive  KMP   was  increased  by  between  10-­‐15%.   Short  Term  Incentive  Plan  (STI  Plan):    The  key   features  of  ISA  Group’s  STI  Plan  are  outlined   below:   From  of  Grant   Cash  payment   Performance  Period   12  months  (annual)   Maximum  Award   Performance   Measures     Remunerapon  Mix   Performance   Assessment   Each  Executive  may  earn   up  to  a  pre-­‐determined   fixed  amount.    The   maximum  award  varies   between  Executives  and   is  dependent  upon  role   and  responsibilities.   The  STI  award  paid   depends  on  the  extent   to  which  Executives   meet  pre-­‐determined   targets  (KPIs).  The  KPIs   are  set  following   finalisation  of  the   Company’s  budget  and   strategic  objectives  for   the  new  financial  year.     The  KPIs  for  FY2015   comprised  Company   Revenue  and  Company   EBITDA.   Executive  performance  is   assessed  following   determination  of   Company  annual  results   for  the  preceding   financial  year  and  is   subject  to  the  Board   taking  into  account   qualitative  matters.     As  the  strategy  based  off  the  Windrose  Consulting   Executive  Remuneration   report  spans  a  number  of  years,  ISA  Group  did  not   consider  it  appropriate  to  engage  further   remuneration  consultants  during  FY2015.   2014  Annual  General  Meeting  (AGM):    At  the   Company’s  AGM  in  November  2014,  78.05%  of   votes  received  were  in  favour  of  adopting  the   remuneration  report.   closely  related  parties  are  prohibited  from  hedging   any  element  of  their  remuneration  that  is   unvested  (due  to  time  or  other  conditions)  or  is   vested  but  subject  to  restrictions  on  disposal.   Director  Remuneration   Remuneration  Policy  and  Structure:    ISA  Group’s   non-­‐executive  director  remuneration  policy  is  to   Remuneration  Policy  and  Structure:    Executive   remunerations  consists  of  fixed  remuneration  and   variable  remuneration.   Fixed  remuneration  is  comprised  of  cash  salary   and  superannuation  and  other  limited  non-­‐ monetary  benefits.    The  levels  are  set  to  attract   and  retain  qualified,  skilled  and  experienced   Variable  (or  ‘at  risk’)  remuneration  is  comprised  of   a  short  term  incentive  (STI)  and  a  long  term   incentive  (LTI).    Incentives  are  set  to  reward   executives  for  achievement  of  financial,   operational  and  strategic  objectives,  and  are   designed  to  align  executive  interests  with   shareholder  interests.   Hedging  of  Remuneration:    In  accordance  with  the   executives  and  are  determined  based  on   provisions  of  the  Corporations  Act,  KMP  and  their   comparable  market  data.   provide  fair  remuneration  that  is  sufficient  to   In  2013  ISA  Group  conducted  a  review  of  executive   attract  and  retain  non-­‐executive  Directors  with  the   remuneration  in  relation  to  a  comparator  group  of   experience,  knowledge,  skills  and  judgment  to   ASX  listed  companies  of  comparable  operational   steward  the  Company’s  success.   scope  and  size  to  ISA  Group.    This  review  indicated   that  ISA  Group’s  remuneration  levels  were  below   Non-­‐executive  Directors  are  paid  fees  for  their   market  and  needed  to  be  adjusted  to  remain   services  to  the  Company.    Non-­‐executive  director   effective  in  retaining  and  motivating  key   fees  consist  of  base  fees  and  fees  for  membership   employees.    Following  this  review  ISA  Group   on  board  committees.     To  preserve  impartiality,  non-­‐executive  Directors   do  not  receive  incentive  or  performance  based   remuneration,  nor  are  they  entitled  to  retirement   or  termination  benefits.   Non-­‐executive  Director  Fees:    Actual  fees  paid  to   non-­‐executive  Directors  in  FY2015  totalled   $218,850  which  is  significantly  less  than  the  prior   period  due  to  the  change  in  board  composition   implemented  a  staged  remuneration  strategy  to   bring  its  remuneration  structure  more  in  line  with   its  comparator  group.    Details  of  the  changes  are   set  out  below.   Remuneration  Mix:    Variable  remuneration  for   Executive  KMP  is  structured  with  a  mix  of  STI  and   LTI  incentives  calculated  based  on  a  percentage  of   base  salary.    The  percentage  varies  between   Executives  and  is  determined  based  on  the  extent   to  which  they  are  in  a  position  to  directly  influence   following  the  resignation  of  John  Diddams  and  the   Company  performance.     performance  of  services  by  management  which   were  previously  provided  by  John  on  a  consultancy   For  example:   basis.   There  was  no  increase  in  the  fees  paid  to  non-­‐ executive  Directors  in  FY2015.   Executive  Director  Remuneration:    The  Founding   Directors  receive  a  mix  of  fixed  and  variable   remuneration  which  is  determined  on  the  same   basis  as  the  executive  remuneration.    Please  see   the  executive  remuneration  section  for  details  of   the  Founding  Directors’  remuneration.     Base  Salary   Max  STI   Max  LTI   *  based  on  achieving  maximum  amount  of  STI  and   LTI.   Indoor  Skydive  Australia  Group  Limited   12   2015  Annual  Report   Termination   An  Executive  must  be  an   employee  and  not   servicing  out  a  notice   period  when  the   payment  of  an  STI  is   made.   For  FY2015,  the  STI  Plan  KPIs  were  not  met.     Accordingly  all  Executives  forfeited  100%  of  their   STI  award.   Long  Term  Incentive  Plan  (LTI  Plan):    At  the  time   of  employing  each  Executive,  ISA  Group  agreed  to   provide  a  pre-­‐determined  amount  of  performance   rights  subject  to  certain  performance  hurdles   being  met.    For  all  Executives  other  than  the   Founding  Directors  the  performance  hurdles   related  to  continuity  of  performance.    The  final   award  under  these  agreements  relates  to  the   FY2015  year  and  are  detailed  below.     For  the  Founding  Directors  the  performance   hurdles  are  milestone  based  related  to  establishing   the  Company’s  initial  indoor  skydiving  facility  and   then  transitioning  the  Company  into  a  multi-­‐facility   operation.    The  Company  anticipates  that  the  final   awards  under  the  performance  rights  entered  into   with  the  Founding  Directors  will  occur  in  FY2016.   The  key  driver  of  the  agreements  to  provide   performance  rights  under  employment   agreements  was  to  compensate  for  lower  than   market  fixed  remuneration  and  to  provide  the   Company  with  stability  via  the  retention  of  key   employees  during  the  Company’s  establishment   phases.    As  the  Company  has  now  commenced   operations  and,  during  the  course  of  the  next   financial  year,  will  become  a  multi-­‐facility   operation  the  LTI  Plan  going  forward  has   performance  hurdles  of  longer  duration  and  lower   performance  rights  awards.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   17 13   | 2015 Annual Report                                   Remuneration  Report  (Audited)   REMUNERATION REPORT (Audited) Continued The  key  features  of  the  LTI  Plan  are  outlined  below:   Remuneration  Report  (Cont)   FY2015  Remuneration  Details  The  tables  in  this  section  detail  the  remuneration  received  by  KMP  during   FY2015.    This  information  is  disclosed  in  accordance  with  the  Corporations  Act  and  the  Australian  Accounting   Form  of  Grant   Performance  Rights  are  granted  for  no  consideration  and,  if  the   performance  hurdles  are  satisfied  vest.    On  vesting  the  Performance   Rights  may  be  exercised  and  entitle  the  Executive  to  one  share  in  the   Company  for  each  Performance  Right  exercised.   Standards.   Directors   Vesting  Date   Upon  expiry  of  the  performance  period   Performance  Period   From  employment  to  30  June  2015   Performance  Measure   Continuous  service  to  30  June  2015   Termination   If  an  executive  ceases  employment  for  any  reason  the  Performance   Rights  will  not  vest  and  will  lapse.   Remuneration  Outcomes  for  FY2015   This  section  provides  details  of  the  remuneration  of  KMP  for  FY2015  and  a  summary  of  the  key  financial  results   for  ISA  Group  since  its  establishment.   ISA  Group’s  Financial  Performance:    The  table  below  sets  out  ISA  Group’s  earnings  and  movements  in   shareholder  wealth  since  establishment.   Revenue   2012   -­‐   2013   2014   2015   -­‐   1,212,643   6,431,444   Net  Profit/Loss  after  Tax   (206,116)   (914,571)   (2,714,016)   (1,749,988)   Share  price  at  30  June   *   0.43   0.68   0.45   *  ISA  Group  listed  on  the  ASX  on  18  January  2013.   The  fees  and  remuneration  received  by  non-­‐executive  Directors  in  FY2015  are  set  out  below,  including  a   comparison  with  FY2014.    The  amounts  received  by  the  Founding  Directors  is  included  in  the  information   concerning  Executives.   Financial   Salary  and   Bonus     Share  based   Total   payments   Kenneth  Gillespie   Stephen  Baxter   David  Murray   Malcolm  Thompson*   2015   John  Diddams**   Year   2015   2014   2015   2014   2015   2014   2014   2015   2014   Fees     75,000   75,000   45,000   45,000   30,000   12,500    -­‐   -­‐   23,750   95,000     -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   75,000   75,000   45,000   45,000   30,000   12,500   -­‐   45,100   68,850   107,052   202,052   *  As  an  alternative  director  Malcolm  Thompson  does  not  receive  any  fees  or  remuneration  from  ISA  Group.   **  John  Diddams  resigned  as  a  director  on  3  October  2015.    During  the  2014  financial  year  John  provided   financial  advisory  and  consulting  services  and  was  company  secretary  to  16  October  2013.    During  the  2015   financial  year  John  continued  to  provide  financial  advisory  and  consulting  services  up  to  his  resignation.  The   fees  payable  for  these  services  are  in  addition  to  directors  fees  and  are  included  in  the  table  above.   18 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   14   Indoor  Skydive  Australia  Group  Limited   15   2015  Annual  Report   2015 Annual Report |                                                   Remuneration  Report  (Audited)   The  key  features  of  the  LTI  Plan  are  outlined  below:   Form  of  Grant   Performance  Rights  are  granted  for  no  consideration  and,  if  the   performance  hurdles  are  satisfied  vest.    On  vesting  the  Performance   Rights  may  be  exercised  and  entitle  the  Executive  to  one  share  in  the   Company  for  each  Performance  Right  exercised.   Vesting  Date   Upon  expiry  of  the  performance  period   Performance  Period   From  employment  to  30  June  2015   Performance  Measure   Continuous  service  to  30  June  2015   Remuneration  Report  (Cont)   FY2015  Remuneration  Details  The  tables  in  this  section  detail  the  remuneration  received  by  KMP  during   FY2015.    This  information  is  disclosed  in  accordance  with  the  Corporations  Act  and  the  Australian  Accounting   Standards.   Directors   The  fees  and  remuneration  received  by  non-­‐executive  Directors  in  FY2015  are  set  out  below,  including  a   comparison  with  FY2014.    The  amounts  received  by  the  Founding  Directors  is  included  in  the  information   concerning  Executives.   Financial   Year   Salary  and   Fees     Bonus     Share  based   payments   Total   Termination   If  an  executive  ceases  employment  for  any  reason  the  Performance   Kenneth  Gillespie   Rights  will  not  vest  and  will  lapse.   Stephen  Baxter   David  Murray   2015   2014   2015   2014   2015   2014   Malcolm  Thompson*   2015   John  Diddams**   2014   2015   2014   75,000   75,000   45,000   45,000   30,000   12,500    -­‐   -­‐   23,750   95,000     -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   75,000   75,000   45,000   45,000   30,000   12,500   -­‐   45,100   68,850   107,052   202,052   *  As  an  alternative  director  Malcolm  Thompson  does  not  receive  any  fees  or  remuneration  from  ISA  Group.   **  John  Diddams  resigned  as  a  director  on  3  October  2015.    During  the  2014  financial  year  John  provided   financial  advisory  and  consulting  services  and  was  company  secretary  to  16  October  2013.    During  the  2015   financial  year  John  continued  to  provide  financial  advisory  and  consulting  services  up  to  his  resignation.  The   fees  payable  for  these  services  are  in  addition  to  directors  fees  and  are  included  in  the  table  above.   Remuneration  Outcomes  for  FY2015   This  section  provides  details  of  the  remuneration  of  KMP  for  FY2015  and  a  summary  of  the  key  financial  results   for  ISA  Group  since  its  establishment.   ISA  Group’s  Financial  Performance:    The  table  below  sets  out  ISA  Group’s  earnings  and  movements  in   shareholder  wealth  since  establishment.   2012   2013   2014   2015   Revenue   -­‐   1,212,643   6,431,444   Net  Profit/Loss  after  Tax   (206,116)   (914,571)   (2,714,016)   (1,749,988)   Share  price  at  30  June   0.43   0.68   0.45   -­‐   *   *  ISA  Group  listed  on  the  ASX  on  18  January  2013.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   14   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   19 15   | 2015 Annual Report                                                   Remuneration  Report  (Cont)   REMUNERATION REPORT (Audited) Continued Remuneration  Report  (Cont)   Executives     Shareholdings  of  KMP   The  remuneration  received  by  Executives  in  FY2015  is  set  out  below,  including  a  comparison  with  FY2014.   The  shareholding  of  the  Directors  including  Founding  Directors  is  set  out  on  page  10  of  the  Directors’  Report.     Short  Term  Benefits   Post   Employment   Benefits     Long   Term   Benefits   KMP   Year   Salary   STI   $   189,465   $   -­‐   2015   Non   Mone-­‐ tary   $   8,151   Super-­‐ annuation   $   18,000   Long   Service   Leave   $   -­‐   Share   Based   Payments   Rights   Total   Other   Term-­‐ ination   $   -­‐   $   445,240   $   660,856   Wayne  Jones   CEO   Danny  Hogan   COO   2014   165,000   20,000   -­‐   16,956   2015   189,465   -­‐   8,887   18,000   2014    165,000   20,000   Stephen  Burns   CFO   2015   145,961   Brett  Sheridan   CMO   Fiona  Yiend   GC/CS   2014   -­‐   2015   164,827   2014   150,000   2015   164,827   2014   110,337   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐    16,956   13,866   -­‐   3,721   15,659   -­‐   -­‐   -­‐   13,875   15,659   10,278   -­‐   -­‐    -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   493,259   695,215   445,240   661,592   493,259   695,215   39,950   199,777   -­‐   -­‐   -­‐   184,207   105,300   272,118   57,392   237,878   -­‐   120,615   Directors:     The  following  key  terms  are  contained  in  employment  agreements  for  the  Executives  including  the  Founding   Performance  rights  holdings  of  KMP   Non-­‐executive  Directors  do  not  hold  performance  rights.    Details  of  the  performance  rights  holdings  of  other   KMP  are  set  out  below:   30  June  2014   Wayne  Jones   Danny  Hogan   Brett  Sheridan   Stephen  Burns   Fiona  Yiend   John  Diddams   Balance  at  1  July   2014   Granted  as   remuneration   Rights  exercised   Balance  at  30  June   2015   0   0   0   0   0   0   1,175,568   1,175,568   1,175,568   1,175,568   135,000   0   85,000   0   0   0   260,000   260,000   0   0   135,000   0   85,000   0   20 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   16   Indoor  Skydive  Australia  Group  Limited   17   2015  Annual  Report   The  holdings  of  the  remaining  KMP  are  as  follows:   Employee     Role   Balance  at  30  June  2015   Brett  Sheridan   Chief  Marketing  Officer   Stephen  Burns   Chief  Financial  Officer   Fiona  Yiend   General  Counsel  &  Company  Secretary     415,000   210,000   92,555   Key  performance  Indicators  are  set  at  the  commencement  of  each  financial  year  and  are  objective  and   measurable.    Following  a  review  of  performance  for  FY2015  it  was  determined  that  the  KPIs  were  not  met.   Each  Executive  forfeited  100%  of  the  STI  for  FY2015.   STI  Outcomes   LTI  Outcomes   Details   of   the   Performance   Rights   holdings   of   KMP   at   30   June   2015   are   set   out   in   the   table   above.   Since   30   June  2015,  performance  rights  have  been  issued  to,  and  exercised  by  senior  managers  including  KMP.  On  13   July  2015,  435,000  shares  were  issued  in  relation  to  vested  and  exercised  performance  rights.    Also  on  13  July   2015,  1,158,457  Performance  Rights  were  issued  to  senior  managers  including  KMP  under  the  Indoor  Skydive   Australia  Group  Limited  Performance  Rights  Plan  as  part  of  ISA  Group’s  long  term  incentive  program.   Employment  Agreements   Duration  of  Agreement     All   From  employment  for  no  fixed  term   Period  of  notice  required  to   terminate  agreement  (by  the   relevant  KMP)   Founding  Directors   6  Months   Chief  Financial  Officer,   6  weeks   Chief  Marketing   Officer  and  General   Counsel  &  Company   Secretary   Termination  Payments   Founding  Directors   6  months’  notice  for  termination  by  Employer   Chief  Financial  Officer   6  weeks’  notice  for  termination  by  Employer   and  legislative  entitlements  on  redundancy.     and  legislative  entitlements  on  redundancy.   Chief  Marketing   6  weeks’  notice  for  termination  by  Employer   Officer  and  General   and  6  months  on  redundancy.   Counsel  &  Company   Secretary   Termination  payments  are  calculated  based  on  the  total  fixed  remuneration  at  the  date  of  termination.    No   payment  is  payable  in  the  event  of  summary  dismissal.   Related  party  Transaction   No  related  party  transactions  were  entered  into  with  KMP  during  FY2015. 2015 Annual Report |                                                                 Remuneration  Report  (Cont)   Remuneration  Report  (Cont)   Executives     Shareholdings  of  KMP   The  remuneration  received  by  Executives  in  FY2015  is  set  out  below,  including  a  comparison  with  FY2014.   Short  Term  Benefits   Benefits     Benefits   Other   Payments   Post   Employment   Long   Term   Share   Based   KMP   Year   Salary   STI   Wayne  Jones   2015   189,465   $   2014   165,000   20,000   Non   Mone-­‐ tary   $   8,151   Super-­‐ annuation   Long   Term-­‐ Service   ination   Rights   Total   Leave   $   $   $   445,240   660,856   493,259   695,215   Danny  Hogan   2015   189,465   8,887   18,000   445,240   661,592   $   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   CEO   COO   CFO   CMO   GC/CS   2014    165,000   20,000   Stephen  Burns   2015   145,961   2014   -­‐   2014   150,000   Fiona  Yiend   2015   164,827   2014   110,337   Performance  rights  holdings  of  KMP   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   Brett  Sheridan   2015   164,827   3,721   15,659   $   18,000   16,956    16,956   13,866   -­‐   13,875   15,659   10,278   $   -­‐   -­‐   -­‐    -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   493,259   695,215   39,950   199,777   -­‐   -­‐   -­‐   184,207   105,300   272,118   57,392   237,878   -­‐   120,615   Non-­‐executive  Directors  do  not  hold  performance  rights.    Details  of  the  performance  rights  holdings  of  other   KMP  are  set  out  below:   30  June  2014   Balance  at  1  July   Granted  as   Rights  exercised   Balance  at  30  June   2014   remuneration   2015   Wayne  Jones   Danny  Hogan   Brett  Sheridan   Stephen  Burns   Fiona  Yiend   John  Diddams   0   0   0   0   0   0   1,175,568   1,175,568   1,175,568   1,175,568   135,000   0   85,000   0   0   0   260,000   260,000   0   0   0   0   135,000   85,000   The  shareholding  of  the  Directors  including  Founding  Directors  is  set  out  on  page  10  of  the  Directors’  Report.     The  holdings  of  the  remaining  KMP  are  as  follows:   Employee     Role   Balance  at  30  June  2015   Brett  Sheridan   Chief  Marketing  Officer   Stephen  Burns   Chief  Financial  Officer   Fiona  Yiend   General  Counsel  &  Company  Secretary     415,000   210,000   92,555   STI  Outcomes   Key  performance  Indicators  are  set  at  the  commencement  of  each  financial  year  and  are  objective  and   measurable.    Following  a  review  of  performance  for  FY2015  it  was  determined  that  the  KPIs  were  not  met.   Each  Executive  forfeited  100%  of  the  STI  for  FY2015.   LTI  Outcomes   Details   of   the   Performance   Rights   holdings   of   KMP   at   30   June   2015   are   set   out   in   the   table   above.   Since   30   June  2015,  performance  rights  have  been  issued  to,  and  exercised  by  senior  managers  including  KMP.  On  13   July  2015,  435,000  shares  were  issued  in  relation  to  vested  and  exercised  performance  rights.    Also  on  13  July   2015,  1,158,457  Performance  Rights  were  issued  to  senior  managers  including  KMP  under  the  Indoor  Skydive   Australia  Group  Limited  Performance  Rights  Plan  as  part  of  ISA  Group’s  long  term  incentive  program.   Employment  Agreements   The  following  key  terms  are  contained  in  employment  agreements  for  the  Executives  including  the  Founding   Directors:     Duration  of  Agreement     All   From  employment  for  no  fixed  term   Period  of  notice  required  to   terminate  agreement  (by  the   relevant  KMP)   Founding  Directors   6  Months   6  weeks   Chief  Financial  Officer,   Chief  Marketing   Officer  and  General   Counsel  &  Company   Secretary   Termination  Payments   Founding  Directors   Chief  Financial  Officer   Chief  Marketing   Officer  and  General   Counsel  &  Company   Secretary   6  months’  notice  for  termination  by  Employer   and  legislative  entitlements  on  redundancy.     6  weeks’  notice  for  termination  by  Employer   and  legislative  entitlements  on  redundancy.   6  weeks’  notice  for  termination  by  Employer   and  6  months  on  redundancy.   Termination  payments  are  calculated  based  on  the  total  fixed  remuneration  at  the  date  of  termination.    No   payment  is  payable  in  the  event  of  summary  dismissal.   Related  party  Transaction   No  related  party  transactions  were  entered  into  with  KMP  during  FY2015. Indoor  Skydive  Australia  Group  Limited   16   2015  Annual  Report   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   21 17   | 2015 Annual Report                                                                 AUDITOR’S INDEPENDENCE DECLARATION 22 2015 Annual Report |FINANCIAL REPORT Income For the year ended 30 June 2015 CONSOLIDATED STATEMENT of Profit or Loss and other Comprehensive Consolidated  Statement  of  Profit  or  Loss  and  other  Comprehensive  Income   For  the  year  ended  30  June  2015   Consolidated  Statement  of  Financial  Position   As  at  30  June  2015   Assets   Current  Assets   Cash  and  cash  equivalents   Term  deposits   Trade  receivables  and  other  assets   Total  Current  Assets   Non-­‐Current  Assets   Deferred  tax  asset   Property,  plant  and  equipment   Intangible  asset   Total  Non-­‐Current  Assets   Total  Assets   Liabilities   Current  Liabilities   Trade  and  other  payables   Provisions   Deferred  revenue   Borrowings   Total  Current  Liabilities   Non-­‐Current  Liabilities   Provision  for  site  restoration   Total  Non-­‐Current  Liabilities   Total  Liabilities   Net  Assets   EQUITY   Issued  capital   Share  based  payments  reserve   Accumulated  losses   Total  Equity   5   6   4   7   9   10   11   12   13   Note   Consolidated  Group   2015   $   2014   $   4,321,619   1,117,249   1,325,556   826,165   300,278   323,320   6,473,340   1,740,847   1,608,033   1,391,691   23,881,098   17,227,529   710,630   1,184,384   26,199,761   19,803,604   32,673,101   21,544,451   2,042,848   1,149,006   109,683   1,280,530   65,187   905,497   1,500,000   3,433,061   3,619,690   -­‐   -­‐   -­‐   1(r)(ii)   2,197,897   2,197,897   3,433,061   5,817,587   29,240,040   15,726,864   14   18   33,639,681   18,467,998   1,185,050   1,093,569   (5,584,691)   (3,834,703)   29,240,040   15,726,864   Revenue   Sales  revenue   Interest  income   Foreign  exchange  fair  value  gain   Total  revenue   Expenses   Depreciation  and  amortisation   Cost  of  sales     Administration  expenses   Accounting  and  audit  fees   Professional  fees   Legal  fees   Share  registry  and  ASX  fees   Advertising  and  marketing  expense   Insurance   Occupancy  expenses   Employee  expenses   Directors  fees   Share  based  payments   Foreign  exchange  fair  value  loss   Finance  costs   Travel  and  entertainment   Total  expenses   Loss  before  income  tax   Income  tax  benefit   Net  loss  for  the  year   Other  comprehensive  income   Note   Consolidated  Group   2015   $   2014   $   3   6,431,444   1,212,643   137,763   19,358   106,028   -­‐   6,588,565   1,318,671   888,115   1,316,002   374,739   76,690   66,088   3,920   87,425   447,501   116,032   199,927   540,831   358,003   199,485   73,307   295,193   43,247   75,406   251,352   99,347   90,298   3,000,696   1,517,224   158,750   167,500   18   1,423,122   1,243,779   -­‐   244,629   151,259   121,687   253,513   94,206   8,554,895   5,424,378   (1,966,330)   (4,105,707)   4   216,342   1,391,691   (1,749,988)   (2,714,016)   Other  comprehensive  income  for  the  year   -­‐   -­‐   Total  comprehensive  loss  for  the  year   (1,749,988)   (2,714,016)   Earnings  per  share   From  continuing  operations:   – basic  earnings  per  share  (cents)   – diluted  earnings  per  share  (cents)   22   22   (1.63)   (1.63)   (3.45)   (3.45)   The  accompanying  notes  form  part  of  these  financial  statements.   The  accompanying  notes  form  part  of  these  financial  statements   24 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   19   Indoor  Skydive  Australia  Group  Limited   20   2015  Annual  Report   2015 Annual Report |                                                                                                                                                                                                                     Consolidated  Statement  of  Profit  or  Loss  and  other  Comprehensive  Income   For  the  year  ended  30  June  2015   Note   Consolidated  Group   2015   $   2014   $   3   6,431,444   1,212,643   137,763   19,358   106,028   -­‐   6,588,565   1,318,671   888,115   1,316,002   374,739   76,690   66,088   3,920   87,425   447,501   116,032   199,927   540,831   358,003   199,485   73,307   295,193   43,247   75,406   251,352   99,347   90,298   18   1,423,122   1,243,779   3,000,696   1,517,224   158,750   167,500   -­‐   244,629   151,259   121,687   253,513   94,206   8,554,895   5,424,378   (1,966,330)   (4,105,707)   4   216,342   1,391,691   (1,749,988)   (2,714,016)   Revenue   Sales  revenue   Interest  income   Total  revenue   Expenses   Foreign  exchange  fair  value  gain   Depreciation  and  amortisation   Cost  of  sales     Administration  expenses   Accounting  and  audit  fees   Professional  fees   Legal  fees   Share  registry  and  ASX  fees   Advertising  and  marketing  expense   Insurance   Occupancy  expenses   Employee  expenses   Directors  fees   Share  based  payments   Foreign  exchange  fair  value  loss   Finance  costs   Travel  and  entertainment   Total  expenses   Loss  before  income  tax   Income  tax  benefit   Net  loss  for  the  year   Other  comprehensive  income   Earnings  per  share   From  continuing  operations:   Other  comprehensive  income  for  the  year   -­‐   -­‐   Total  comprehensive  loss  for  the  year   (1,749,988)   (2,714,016)   – basic  earnings  per  share  (cents)   – diluted  earnings  per  share  (cents)   22   22   (1.63)   (1.63)   (3.45)   (3.45)   The  accompanying  notes  form  part  of  these  financial  statements.   CONSOLIDATED STATEMENT of Financial Position Consolidated  Statement  of  Financial  Position   As  at  30  June  2015   As at 30 June 2015 Assets   Current  Assets   Cash  and  cash  equivalents   Term  deposits   Trade  receivables  and  other  assets   Total  Current  Assets   Non-­‐Current  Assets   Deferred  tax  asset   Property,  plant  and  equipment   Intangible  asset   Total  Non-­‐Current  Assets   Total  Assets   Liabilities   Current  Liabilities   Trade  and  other  payables   Provisions   Deferred  revenue   Borrowings   Total  Current  Liabilities   Non-­‐Current  Liabilities   Provision  for  site  restoration   Total  Non-­‐Current  Liabilities   Total  Liabilities   Net  Assets   EQUITY   Issued  capital   Share  based  payments  reserve   Accumulated  losses   Total  Equity   Note   5   6   4   7   9   10   11   12   13   Consolidated  Group   2015   $   2014   $   4,321,619   1,117,249   1,325,556   826,165   300,278   323,320   6,473,340   1,740,847   1,608,033   1,391,691   23,881,098   17,227,529   710,630   1,184,384   26,199,761   19,803,604   32,673,101   21,544,451   2,042,848   1,149,006   109,683   1,280,530   65,187   905,497   -­‐   1,500,000   3,433,061   3,619,690   1(r)(ii)   -­‐   -­‐   2,197,897   2,197,897   3,433,061   5,817,587   29,240,040   15,726,864   14   18   33,639,681   18,467,998   1,185,050   1,093,569   (5,584,691)   (3,834,703)   29,240,040   15,726,864   The  accompanying  notes  form  part  of  these  financial  statements   Indoor  Skydive  Australia  Group  Limited   19   2015  Annual  Report   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   20   25 | 2015 Annual Report                                                                                                                                                                                                                     Consolidated  Statement  of  Changes  in  Equity   CONSOLIDATED STATEMENT For  the  year  ended  30  June  2015   of Changes in Equity For the year ended 30 June 2015 Consolidated  Statement  of  Cash  Flows   For  the  year  ended  30  June  2015   Consolidated  Group   Issued  Capital   $   Share  based   payments   reserve   $   Accumulated   losses   Total   $   $   Balance  at  1  July  2014   18,467,998   1,093,569   (3,834,703)   15,726,864   Shares  issued  during  the  year   Share  issue  costs   Employee  share  based  payment   performance  rights   Loss  for  the  year   15,785,388   (613,705)   -­‐   -­‐   -­‐   -­‐   91,481   -­‐   -­‐   -­‐   15,785,388   (613,705)   91,481   -­‐   (1,749,988)   (1,749,988)   Balance  at  30  June  2015   33,639,681   1,185,050   (5,584,691)   29,240,040   Cash  Flows  From  Operating  Activities   Receipts  from  customers   Payments  to  suppliers  and  employees   Finance  costs   Interest  received   Net  cash  inflows  /  (outflows)  from  operating  activities   16   Balance  at  1  July  2013   Shares  issued  during  the  year   Share  issue  costs   Employee  share  based  payment   performance  rights   Loss  for  the  year   6,974,490   12,071,083   (577,575)   -­‐   -­‐   -­‐   -­‐   -­‐   1,093,569   (1,120,687)   5,853,803   Purchase  of  property,  plant  and  equipment   Cash  Flows  From  Investing  Activities   -­‐   -­‐   -­‐   12,071,083   (577,575)   1,093,569   -­‐   (2,714,016)   (2,714,016)     Balance  at  30  June  2014   18,467,998   1,093,569   (3,834,703)   15,726,864   The  accompanying  notes  form  part  of  these  financial  statements.   Purchases  of  foreign  exchange  contracts   Deposits  for  tunnel  equipment   Purchase  of  term  deposits     Net  cash  inflows  /  (outflows)  from  investing  activities   Cash  Flows  From  Financing  Activities   Proceeds  from  issue  of  shares   Repayment  of  convertible  note   Share  issue  costs   Net  cash  inflows  /  (outflows)  from  financing  activities   Note   Consolidated  Group   2015   $   2014   $   7,037,772   2,277,161   (6,207,107)   (2,783,112)   (270,943)   (182,262)   123,513   106,028   683,235   (582,185)   (8,767,648)   (11,657,638)   (88,499)   (96,764)   -­‐   (806,994)   (1,025,278)   (300,278)   (9,881,425)   (12,861,674)   14,453,746   10,416,183   13   (1,500,000)   (500,000)   (613,705)   (577,576)   12,340,041   9,338,607   Net  increase/(decrease)  in  cash  held   Cash  and  cash  equivalents  at  beginning  of  financial  year   Effects  of  exchange  rate  changes   3,141,851   (4,105,252)   1,117,249   5,222,501   62,519   -­‐   Cash  and  cash  equivalents  at  end  of  financial  year   5   4,321,619   1,117,249   The  accompanying  notes  form  part  of  these  financial  statements.   26 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   21   Indoor  Skydive  Australia  Group  Limited   22   2015  Annual  Report   2015 Annual Report |                                                                                                                                                     Consolidated  Statement  of  Changes  in  Equity   For  the  year  ended  30  June  2015   Consolidated  Statement  of  Cash  Flows   CONSOLIDATED STATEMENT For  the  year  ended  30  June  2015   of Cash Flows For the year ended 30 June 2015 Note   Consolidated  Group   2015   $   2014   $   Balance  at  30  June  2015   33,639,681   1,185,050   (5,584,691)   29,240,040   (1,749,988)   (1,749,988)   Net  cash  inflows  /  (outflows)  from  operating  activities   16   (1,120,687)   5,853,803   Purchase  of  property,  plant  and  equipment   Cash  Flows  From  Investing  Activities   Cash  Flows  From  Operating  Activities   Receipts  from  customers   Payments  to  suppliers  and  employees   Finance  costs   Interest  received   Consolidated  Group   Issued  Capital   Share  based   Accumulated   Total   payments   reserve   $   losses   $   Balance  at  1  July  2014   18,467,998   1,093,569   (3,834,703)   15,726,864   Shares  issued  during  the  year   Share  issue  costs   Employee  share  based  payment   performance  rights   Loss  for  the  year   Balance  at  1  July  2013   Shares  issued  during  the  year   Share  issue  costs   performance  rights   Loss  for  the  year   $   15,785,388   (613,705)   6,974,490   12,071,083   (577,575)   -­‐   -­‐   -­‐   -­‐   91,481   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   $   15,785,388   (613,705)   91,481   12,071,083   (577,575)   1,093,569   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   Employee  share  based  payment   1,093,569   Balance  at  30  June  2014   18,467,998   1,093,569   (3,834,703)   15,726,864   (2,714,016)   (2,714,016)     The  accompanying  notes  form  part  of  these  financial  statements.   Purchases  of  foreign  exchange  contracts   Deposits  for  tunnel  equipment   Purchase  of  term  deposits     Net  cash  inflows  /  (outflows)  from  investing  activities   Cash  Flows  From  Financing  Activities   Proceeds  from  issue  of  shares   Repayment  of  convertible  note   Share  issue  costs   Net  cash  inflows  /  (outflows)  from  financing  activities   7,037,772   2,277,161   (6,207,107)   (2,783,112)   (270,943)   (182,262)   123,513   106,028   683,235   (582,185)   (8,767,648)   (11,657,638)   (88,499)   (96,764)   -­‐   (806,994)   (1,025,278)   (300,278)   (9,881,425)   (12,861,674)   14,453,746   10,416,183   13   (1,500,000)   (500,000)   (613,705)   (577,576)   12,340,041   9,338,607   Net  increase/(decrease)  in  cash  held   Cash  and  cash  equivalents  at  beginning  of  financial  year   Effects  of  exchange  rate  changes   3,141,851   (4,105,252)   1,117,249   5,222,501   62,519   -­‐   Cash  and  cash  equivalents  at  end  of  financial  year   5   4,321,619   1,117,249   The  accompanying  notes  form  part  of  these  financial  statements.   Indoor  Skydive  Australia  Group  Limited   21   2015  Annual  Report   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   22   27 | 2015 Annual Report                                                                                                                                                     NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   These   consolidated   financial   statements   and   notes   represent   those   of   Indoor   Skydive   Australia   Group   Limited  and  Controlled  Entities  (the  Consolidated  Group  or  Group).   The  separate  financial  statements  of  the  parent  entity,  Indoor  Skydive  Australia  Group  Limited  have  not   been  presented  within  this  financial  report  as  permitted  by  the  Corporations  Act  2001.     The  financial  statements  were  authorised  for  issue  on  25  August  2015  by  the  Directors  of  the  Company.   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES   Basis  of  Preparation   The   financial   statements   are   general   purpose   financial   statements   that   have   been   prepared   in   accordance   with   Australian   Accounting   Standards,   Australian   Accounting   Interpretations,   other   authoritative  pronouncements  of  the  Australian  Accounting  Standards  Board  and  the  Corporations  Act   2001.   The   Group   is   a   for-­‐profit   entity   for   financial   reporting   purposes   under   Australian   Accounting   Standards.   Australian   Accounting   Standards   set   out   accounting   policies   that   the   Australian   Accounting   Standards   Board   has   concluded   would   result   in   financial   statements   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  as   issued   by   the   International   Accounting   Standards   Board.     Material   accounting   policies   adopted   in   the   preparation   of   these   financial   statements   are   presented   below   and   have   been   consistently   applied   unless  stated  otherwise.   Except  for  cash  flow  information,  the  financial  statements  have  been  prepared  on  an  accruals  basis  and   are  based  on  historical  costs,  modified,  where  applicable,  by  the  measurement  at  fair  value  of  selected   non-­‐current  assets,  financial  assets  and  financial  liabilities.   a.   Principles  of  Consolidation   The   consolidated   financial   statements   incorporate   the   assets,   liabilities   and   results   of   entities   controlled   by   Indoor   Skydive   Australia   Group   Limited   at   the   end   of   the   reporting   period.   A   controlled  entity  is  any  entity  over  which  Indoor  Skydive  Australia  Group  Limited  has  the  ability   and  right  to  govern  the  financial  and  operating  policies  so  as  to  obtain  benefits  from  the  entity’s   activities.   Where   controlled   entities   have   entered   or   left   the   Group   during   the   year,   the   financial   performance   of   those   entities   is   included   only   for   the   period   of   the   year   that   they   were   controlled.    A  list  of  controlled  entities  is  contained  in  Note  8  to  the  financial  statements.   In   preparing   the   consolidated   financial   statements,   all   intragroup   balances   and   transactions   between  entities  in  the  consolidated  group  have  been  eliminated  in  full  on  consolidation.  Non-­‐ controlling  interests,  being  the  equity  in  a  subsidiary  not  attributable,  directly  or  indirectly,  to  a   parent,   are   reported   separately   within   the   equity   section   of   the   consolidated   statement   of   financial  position  and  statements  showing  profit  or  loss  and  other  comprehensive  income.    The   non-­‐controlling   interests   in   the   net   assets   comprise   their   interests   at   the   date   of   the   original   business  combination  and  their  share  of  changes  in  equity  since  that  date.   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Business  Combinations   Business  combinations  occur  where  an  acquirer  obtains  control  over  one  or  more  businesses.   A   business   combination   is   accounted   for   by   applying   the   acquisition   method,   unless   it   is   a   combination   involving   entities   or   businesses   under   common   control.   The   business   combination   will   be   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  in  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  business  combinations,  other  than  those  associated  with   the  issue  of  a  financial  instrument,  are  recognised  as  expenses  in  profit  or  loss  when  incurred.   The  acquisition  of  a  business  may  result  in  the  recognition  of  goodwill  or  a  gain  from  a  bargain  purchase.   Goodwill  is  carried  at  cost  less  any  accumulated  impairment  losses.  Goodwill  is  calculated  as  the   Goodwill (i) (ii) excess  of  the  sum  of:   the  consideration  transferred;   any  non-­‐controlling  interest  (determined  under  either  the  full  goodwill  or   proportionate  interest  method);  and   (iii) the  acquisition  date  fair  value  of  any  previously  held  equity  interest,   over  the  acquisition  date  fair  value  of  net  identifiable  assets  acquired.   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  remeasurements  in  any  pre-­‐existing  equity  holdings  are  recognised  in  profit  or  loss  in   the  period  in  which  they  arise.  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  assets  (proportionate  interest  method).  In   such  circumstances,  the  Group  determines  which  method  to  adopt  for  each  acquisition  and  this  is   stated  in  the  respective  notes  to  these  financial  statements  disclosing  the  business  combination.   Under   the   full   goodwill   method,   the   fair   value   of   the   non-­‐controlling   interests   is   determined   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.   28 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   23   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   24   2015 Annual Report |                                 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   These   consolidated   financial   statements   and   notes   represent   those   of   Indoor   Skydive   Australia   Group   Limited  and  Controlled  Entities  (the  Consolidated  Group  or  Group).   The  separate  financial  statements  of  the  parent  entity,  Indoor  Skydive  Australia  Group  Limited  have  not   been  presented  within  this  financial  report  as  permitted  by  the  Corporations  Act  2001.     The  financial  statements  were  authorised  for  issue  on  25  August  2015  by  the  Directors  of  the  Company.   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES   Basis  of  Preparation   The   financial   statements   are   general   purpose   financial   statements   that   have   been   prepared   in   accordance   with   Australian   Accounting   Standards,   Australian   Accounting   Interpretations,   other   authoritative  pronouncements  of  the  Australian  Accounting  Standards  Board  and  the  Corporations  Act   2001.   The   Group   is   a   for-­‐profit   entity   for   financial   reporting   purposes   under   Australian   Accounting   Standards.   Australian   Accounting   Standards   set   out   accounting   policies   that   the   Australian   Accounting   Standards   Board   has   concluded   would   result   in   financial   statements   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  as   issued   by   the   International   Accounting   Standards   Board.     Material   accounting   policies   adopted   in   the   preparation   of   these   financial   statements   are   presented   below   and   have   been   consistently   applied   unless  stated  otherwise.   Except  for  cash  flow  information,  the  financial  statements  have  been  prepared  on  an  accruals  basis  and   are  based  on  historical  costs,  modified,  where  applicable,  by  the  measurement  at  fair  value  of  selected   non-­‐current  assets,  financial  assets  and  financial  liabilities.   a.   Principles  of  Consolidation   The   consolidated   financial   statements   incorporate   the   assets,   liabilities   and   results   of   entities   controlled   by   Indoor   Skydive   Australia   Group   Limited   at   the   end   of   the   reporting   period.   A   controlled  entity  is  any  entity  over  which  Indoor  Skydive  Australia  Group  Limited  has  the  ability   and  right  to  govern  the  financial  and  operating  policies  so  as  to  obtain  benefits  from  the  entity’s   activities.   Where   controlled   entities   have   entered   or   left   the   Group   during   the   year,   the   financial   performance   of   those   entities   is   included   only   for   the   period   of   the   year   that   they   were   controlled.    A  list  of  controlled  entities  is  contained  in  Note  8  to  the  financial  statements.   In   preparing   the   consolidated   financial   statements,   all   intragroup   balances   and   transactions   between  entities  in  the  consolidated  group  have  been  eliminated  in  full  on  consolidation.  Non-­‐ controlling  interests,  being  the  equity  in  a  subsidiary  not  attributable,  directly  or  indirectly,  to  a   parent,   are   reported   separately   within   the   equity   section   of   the   consolidated   statement   of   financial  position  and  statements  showing  profit  or  loss  and  other  comprehensive  income.    The   non-­‐controlling   interests   in   the   net   assets   comprise   their   interests   at   the   date   of   the   original   business  combination  and  their  share  of  changes  in  equity  since  that  date.   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Business  Combinations   Business  combinations  occur  where  an  acquirer  obtains  control  over  one  or  more  businesses.   A   business   combination   is   accounted   for   by   applying   the   acquisition   method,   unless   it   is   a   combination   involving   entities   or   businesses   under   common   control.   The   business   combination   will   be   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  in  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  business  combinations,  other  than  those  associated  with   the  issue  of  a  financial  instrument,  are  recognised  as  expenses  in  profit  or  loss  when  incurred.   The  acquisition  of  a  business  may  result  in  the  recognition  of  goodwill  or  a  gain  from  a  bargain  purchase.   Goodwill Goodwill  is  carried  at  cost  less  any  accumulated  impairment  losses.  Goodwill  is  calculated  as  the   excess  of  the  sum  of:   (i) (ii) (iii) the  consideration  transferred;   any  non-­‐controlling  interest  (determined  under  either  the  full  goodwill  or   proportionate  interest  method);  and   the  acquisition  date  fair  value  of  any  previously  held  equity  interest,   over  the  acquisition  date  fair  value  of  net  identifiable  assets  acquired.   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  remeasurements  in  any  pre-­‐existing  equity  holdings  are  recognised  in  profit  or  loss  in   the  period  in  which  they  arise.  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  assets  (proportionate  interest  method).  In   such  circumstances,  the  Group  determines  which  method  to  adopt  for  each  acquisition  and  this  is   stated  in  the  respective  notes  to  these  financial  statements  disclosing  the  business  combination.   Under   the   full   goodwill   method,   the   fair   value   of   the   non-­‐controlling   interests   is   determined   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.   Indoor  Skydive  Australia  Group  Limited   23   2015  Annual  Report   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   24   29 | 2015 Annual Report                                 ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Goodwill  on  acquisition  of  subsidiaries  is  included  in  intangible  assets.  Goodwill  on  acquisition  of   associates  is  included  in  investments  in  associates.   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   being  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.   Changes   in   the   ownership   interests   in   a   subsidiary   that   do   not   result   in   a   loss   of   control   are   accounted  for  as  equity  transactions  and  do  not  affect  the  carrying  amounts  of  goodwill.   b.   Income  Tax   The   income   tax   expense/(benefit)   for   the   year   comprises   current   income   tax   expense/(benefit)   and  deferred  tax  expense/(benefit).   Current   income   tax   expense   charged   to   profit   or   loss   is   the   tax   payable   on   taxable   income.   Current   tax   liabilities/(assets)   are   measured   at   the   amounts   expected   to   be   paid   to/(recovered   from)  the  relevant  taxation  authority.   Deferred  income  tax  expense  reflects  movements  in  deferred  tax  asset  and  deferred  tax  liability   balances  during  the  year  as  well  as  unused  tax  losses.   Any   subsequent   period   adjustments   to   deferred   tax   assets   arising   from   unused   tax   losses   as   a   result   of   revised   assessments   of   the   probability   of   recoverability   is   recognised   by   the   head   Current  and  deferred  income  tax  expense/(benefit)  is  charged  or  credited  outside  profit  or  loss   when  the  tax  relates  to  items  that  are  recognised  outside  profit  or  loss.     Except   for   business   combinations,   no   deferred   income   tax   is   recognised   from   the   initial   recognition  of  an  asset  or  liability,  where  there  is  no  effect  on  accounting  or  taxable  profit  or  loss.   Each   class   of   property,   plant   and   equipment   is   carried   at   cost   or   fair   value   as   indicated   less,   where  applicable,  any  accumulated  depreciation  and  impairment  losses.   Deferred  tax  assets  and  liabilities  are  calculated  at  the  tax  rates  that  are  expected  to  apply  to  the   period  when  the  asset  is  realised  or  the  liability  is  settled  and  their  measurement  also  reflects  the   manner   in   which   management   expects   to   recover   or   settle   the   carrying   amount   of   the   related   asset   or   liability.   With   respect   to   non-­‐depreciable   items   of   property,   plant   and   equipment   measured   at   fair   value   and   items   of   investment   property   measured   at   fair   value,   the   related   deferred  tax  liability  or  deferred  tax  asset  is  measured  on  the  basis  that  the  carrying  amount  of   the  asset  will  be  recovered  entirely  through  sale.       Deferred  tax  assets  relating  to  temporary  differences  and  unused  tax  losses  are  recognised  only   to   the   extent   that   it   is   probable   that   future   taxable   profit   will   be   available   against   which   the   benefits  of  the  deferred  tax  asset  can  be  utilised.   Current  tax  assets  and  liabilities  are  offset  where  a  legally  enforceable  right  of  set-­‐off  exists  and  it   is   intended   that   net   settlement   or   simultaneous   realisation   and   settlement   of   the   respective   asset   and   liability   will   occur.     Deferred   tax   assets   and   liabilities   are   offset   where:   (a)   a   legally   enforceable  right  of  set-­‐off  exists;  and  (b)  the  deferred  tax  assets  and  liabilities  relate  to  income   taxes  levied  by  the  same  taxation  authority  on  either  the  same  taxable  entity  or  different  taxable   entities   where   it   is   intended   that   net   settlement   or   simultaneous   realisation   and   settlement   of   the   respective   asset   and   liability   will   occur   in   future   periods   in   which   significant   amounts   of   deferred  tax  assets  or  liabilities  are  expected  to  be  recovered  or  settled.   30 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   25   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   26   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   Tax  Consolidation  -­‐  Australia   The  Company  and  its  wholly-­‐owned  Australian  resident  entities  have  formed  a  tax  consolidated   group  with  effect  from  1  November  2011  and  will  therefore  be  taxed  as  a  single  entity  from  that   date.  The  Company  is  the  head  entity  within  the  tax-­‐consolidated  group.   Current   tax   expense/income,   deferred   tax   liabilities   and   deferred   tax   assets   arising   from   temporary   differences   of   the   members   of   the   tax-­‐consolidated   group   are   recognised   in   the   separate   financial   statements   of   the   members   of   the   tax-­‐consolidated   group   using   a   modified   stand-­‐alone  tax  allocation  methodology.     Any  current  tax  liabilities  (or  assets)  and  deferred  tax  assets  arising  from  unused  tax  losses  of  the   controlled   entities   are   assumed   by   the   head   entity   in   the   tax-­‐consolidated   group   and   are   recognised  as  amounts  payable  (receivable)  to  (from)  other  entities  in  the  tax-­‐consolidated  group   in  conjunction  with  any  tax  funding  arrangements.   The   Company   recognises   deferred   tax   assets   arising   from   unused   tax   losses   of   the   tax-­‐ consolidated   group   to   the   extent   that   it   is   probable   that   future   taxable   profits   of   the   tax-­‐ consolidated  group  will  be  available  against  which  the  asset  can  be  utilised.   company  only.   c.   Property,  Plant  and  Equipment     Plant  and  Equipment     Plant   and   equipment   are   measured   on   the   cost   basis   and   therefore   carried   at   cost   less   accumulated  depreciation  and  any  accumulated  impairment.    In  the  event  the  carrying  amount  of   plant  and  equipment  is  greater  than  the  estimated  recoverable  amount,  the  carrying  amount  is   written   down   immediately   to   the   estimated   recoverable   amount   and   impairment   losses   are   recognised  either  in  profit  or  loss  or  as  a  revaluation  decrease  if  the  impairment  losses  relate  to  a   revalued  asset.    A  formal  assessment  of  recoverable  amount  is  made  when  impairment  indicators   are  present  (refer  to  Note  1(i)  for  details  of  impairment).   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.   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  recognised  as  expenses  in  profit  or  loss  during  the  financial  period  in  which  they   are  incurred.   2015 Annual Report |                                                           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   being  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.   Changes   in   the   ownership   interests   in   a   subsidiary   that   do   not   result   in   a   loss   of   control   are   accounted  for  as  equity  transactions  and  do  not  affect  the  carrying  amounts  of  goodwill.   b.   Income  Tax   The   income   tax   expense/(benefit)   for   the   year   comprises   current   income   tax   expense/(benefit)   and  deferred  tax  expense/(benefit).   Current   income   tax   expense   charged   to   profit   or   loss   is   the   tax   payable   on   taxable   income.   Current   tax   liabilities/(assets)   are   measured   at   the   amounts   expected   to   be   paid   to/(recovered   from)  the  relevant  taxation  authority.   Deferred  income  tax  expense  reflects  movements  in  deferred  tax  asset  and  deferred  tax  liability   balances  during  the  year  as  well  as  unused  tax  losses.   Current  and  deferred  income  tax  expense/(benefit)  is  charged  or  credited  outside  profit  or  loss   when  the  tax  relates  to  items  that  are  recognised  outside  profit  or  loss.     Deferred  tax  assets  and  liabilities  are  calculated  at  the  tax  rates  that  are  expected  to  apply  to  the   period  when  the  asset  is  realised  or  the  liability  is  settled  and  their  measurement  also  reflects  the   manner   in   which   management   expects   to   recover   or   settle   the   carrying   amount   of   the   related   asset   or   liability.   With   respect   to   non-­‐depreciable   items   of   property,   plant   and   equipment   measured   at   fair   value   and   items   of   investment   property   measured   at   fair   value,   the   related   deferred  tax  liability  or  deferred  tax  asset  is  measured  on  the  basis  that  the  carrying  amount  of   the  asset  will  be  recovered  entirely  through  sale.       Deferred  tax  assets  relating  to  temporary  differences  and  unused  tax  losses  are  recognised  only   to   the   extent   that   it   is   probable   that   future   taxable   profit   will   be   available   against   which   the   benefits  of  the  deferred  tax  asset  can  be  utilised.   Current  tax  assets  and  liabilities  are  offset  where  a  legally  enforceable  right  of  set-­‐off  exists  and  it   is   intended   that   net   settlement   or   simultaneous   realisation   and   settlement   of   the   respective   asset   and   liability   will   occur.     Deferred   tax   assets   and   liabilities   are   offset   where:   (a)   a   legally   enforceable  right  of  set-­‐off  exists;  and  (b)  the  deferred  tax  assets  and  liabilities  relate  to  income   taxes  levied  by  the  same  taxation  authority  on  either  the  same  taxable  entity  or  different  taxable   entities   where   it   is   intended   that   net   settlement   or   simultaneous   realisation   and   settlement   of   the   respective   asset   and   liability   will   occur   in   future   periods   in   which   significant   amounts   of   deferred  tax  assets  or  liabilities  are  expected  to  be  recovered  or  settled.   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Goodwill  on  acquisition  of  subsidiaries  is  included  in  intangible  assets.  Goodwill  on  acquisition  of   Tax  Consolidation  -­‐  Australia   associates  is  included  in  investments  in  associates.   The  Company  and  its  wholly-­‐owned  Australian  resident  entities  have  formed  a  tax  consolidated   group  with  effect  from  1  November  2011  and  will  therefore  be  taxed  as  a  single  entity  from  that   date.  The  Company  is  the  head  entity  within  the  tax-­‐consolidated  group.   Current   tax   expense/income,   deferred   tax   liabilities   and   deferred   tax   assets   arising   from   temporary   differences   of   the   members   of   the   tax-­‐consolidated   group   are   recognised   in   the   separate   financial   statements   of   the   members   of   the   tax-­‐consolidated   group   using   a   modified   stand-­‐alone  tax  allocation  methodology.     Any  current  tax  liabilities  (or  assets)  and  deferred  tax  assets  arising  from  unused  tax  losses  of  the   controlled   entities   are   assumed   by   the   head   entity   in   the   tax-­‐consolidated   group   and   are   recognised  as  amounts  payable  (receivable)  to  (from)  other  entities  in  the  tax-­‐consolidated  group   in  conjunction  with  any  tax  funding  arrangements.   The   Company   recognises   deferred   tax   assets   arising   from   unused   tax   losses   of   the   tax-­‐ consolidated   group   to   the   extent   that   it   is   probable   that   future   taxable   profits   of   the   tax-­‐ consolidated  group  will  be  available  against  which  the  asset  can  be  utilised.   Any   subsequent   period   adjustments   to   deferred   tax   assets   arising   from   unused   tax   losses   as   a   result   of   revised   assessments   of   the   probability   of   recoverability   is   recognised   by   the   head   company  only.   c.   Property,  Plant  and  Equipment     Except   for   business   combinations,   no   deferred   income   tax   is   recognised   from   the   initial   recognition  of  an  asset  or  liability,  where  there  is  no  effect  on  accounting  or  taxable  profit  or  loss.   Each   class   of   property,   plant   and   equipment   is   carried   at   cost   or   fair   value   as   indicated   less,   where  applicable,  any  accumulated  depreciation  and  impairment  losses.   Plant  and  Equipment     Plant   and   equipment   are   measured   on   the   cost   basis   and   therefore   carried   at   cost   less   accumulated  depreciation  and  any  accumulated  impairment.    In  the  event  the  carrying  amount  of   plant  and  equipment  is  greater  than  the  estimated  recoverable  amount,  the  carrying  amount  is   written   down   immediately   to   the   estimated   recoverable   amount   and   impairment   losses   are   recognised  either  in  profit  or  loss  or  as  a  revaluation  decrease  if  the  impairment  losses  relate  to  a   revalued  asset.    A  formal  assessment  of  recoverable  amount  is  made  when  impairment  indicators   are  present  (refer  to  Note  1(i)  for  details  of  impairment).   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.   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  recognised  as  expenses  in  profit  or  loss  during  the  financial  period  in  which  they   are  incurred.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   25   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   26   31 | 2015 Annual Report                                                           ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   e.   Foreign  Currency  Transactions  and  Balances   Functional  and  Presentation  Currency   The   functional   currency   of   each   of   the   Group’s   entities   is   measured   using   the   currency   of   the   primary   economic   environment   in   which   that   entity   operates.   The   consolidated   financial   statements  are  presented  in  Australian  dollars,  which  is  the  parent  entity’s  functional  currency.   Exchange  differences  arising  on  the  translation  of  monetary  items  are  recognised  in  profit  or  loss,   except  where  deferred  in  equity  as  a  qualifying  cash  flow  or  net  investment  hedge.   Exchange  differences  arising  on  the  translation  of  non-­‐monetary  items  are  recognised  directly  in   other  comprehensive  income  to  the  extent  that  the  underlying  gain  or  loss  is  recognised  in  other   comprehensive  income;  otherwise  the  exchange  difference  is  recognised  in  profit  or  loss.   Cash  and  cash  equivalents  include  cash  on  hand,  deposits  available  on  demand  with  banks  and   bank  overdrafts.  Bank  overdrafts  are  reported  within  short-­‐term  borrowings  in  current  liabilities   f.   Cash  and  Cash  Equivalents   in  the  statement  of  financial  position.   g.   Trade  and  Other  Payables   are  classified  as  non-­‐current  liabilities.   h.   Goods  and  Services  Tax  (GST)   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.    Payables  expected  to  be  settled  within  12   months  of  the  end  of  the  reporting  period  are  classified  as  current  liabilities.    All  other  liabilities   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  (ATO).       Receivables   and   payables   are   stated   inclusive   of   the   amount   of   GST   receivable   or   payable.   The   net  amount  of  GST  recoverable  from,  or  payable  to,  the  ATO  is  included  with  other  receivables  or   payables  in  the  statement  of  financial  position.   Cash   flows   are   presented   on   a   gross   basis.   The   GST   components   of   cash   flows   arising   from   investing  or  financing  activities  which  are  recoverable  from,  or  payable  to,  the  ATO  are  presented   as  operating  cash  flows  included  in  receipts  from  customers  or  payments  to  suppliers.   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Depreciation   The   depreciable   amount   of   all   fixed   assets   including   buildings   and   capitalised   lease   assets,   but   excluding  freehold  land,  is  depreciated  on  a  straight-­‐line  basis  over  the  asset’s  useful  life  to  the   consolidated   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:   Transactions  and  Balances   Class  of  Fixed  Asset   Useful  Life   Office  equipment   Furniture  and  fittings   IT  equipment   3  years   5  years   5  years   Vertical  wind  tunnel  building  infrastructure   40  years    (2014:  20  years)   Vertical  wind  tunnel  equipment   20  years   The  assets’  residual  values  and  useful  lives  are  reviewed,  and  adjusted  if  appropriate,  at  the  end   of  each  reporting  period.   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   recognised   in   profit   or   loss   in   the   period   in   which   they   arise.   When   revalued   assets   are   sold,   amounts   included   in   the   revaluation   surplus   relating   to   that   asset   are   transferred  to  retained  earnings.   d.   Leases   Leases  of  fixed  assets,  where  substantially  all  the  risks  and  benefits  incidental  to  the  ownership  of   the  asset   –  but  not  the  legal  ownership  –  are  transferred  to  entities  in  the  consolidated  group,   are  classified  as  finance  leases.     Finance  leases  are  capitalised  by  recognising  an  asset  and  a  liability  at  the  lower  of  the  amounts   equal   to   the   fair   value   of   the   leased   property   or   the   present   value   of   the   minimum   lease   payments,  including  any  guaranteed  residual  values.  Lease  payments  are  allocated  between  the   reduction  of  the  lease  liability  and  the  lease  interest  expense  for  the  period.   Leased  assets  are  depreciated  on  a  straight-­‐line  basis  over  the  shorter  of  their  estimated  useful   lives  or  the  lease  term.     Lease   payments   for   operating   leases,   where   substantially   all   the   risks   and   benefits   remain   with   the  lessor,  are  recognised  as  expenses  in  the  periods  in  which  they  are  incurred.     Lease  incentives  under  operating  leases  are  recognised  as  a  liability  and  amortised  on  a  straight-­‐ line  basis  over  the  lease  term.     32 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   27   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   28   2015 Annual Report |                                                                         Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Depreciation   The   depreciable   amount   of   all   fixed   assets   including   buildings   and   capitalised   lease   assets,   but   excluding  freehold  land,  is  depreciated  on  a  straight-­‐line  basis  over  the  asset’s  useful  life  to  the   consolidated   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.   e.   Foreign  Currency  Transactions  and  Balances   Functional  and  Presentation  Currency   The   functional   currency   of   each   of   the   Group’s   entities   is   measured   using   the   currency   of   the   primary   economic   environment   in   which   that   entity   operates.   The   consolidated   financial   statements  are  presented  in  Australian  dollars,  which  is  the  parent  entity’s  functional  currency.   The  depreciation  rates  used  for  each  class  of  depreciable  assets  are:   Transactions  and  Balances   The  assets’  residual  values  and  useful  lives  are  reviewed,  and  adjusted  if  appropriate,  at  the  end   of  each  reporting  period.   g.   Trade  and  Other  Payables   Exchange  differences  arising  on  the  translation  of  monetary  items  are  recognised  in  profit  or  loss,   except  where  deferred  in  equity  as  a  qualifying  cash  flow  or  net  investment  hedge.   Exchange  differences  arising  on  the  translation  of  non-­‐monetary  items  are  recognised  directly  in   other  comprehensive  income  to  the  extent  that  the  underlying  gain  or  loss  is  recognised  in  other   comprehensive  income;  otherwise  the  exchange  difference  is  recognised  in  profit  or  loss.   f.   Cash  and  Cash  Equivalents   Cash  and  cash  equivalents  include  cash  on  hand,  deposits  available  on  demand  with  banks  and   bank  overdrafts.  Bank  overdrafts  are  reported  within  short-­‐term  borrowings  in  current  liabilities   in  the  statement  of  financial  position.   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.    Payables  expected  to  be  settled  within  12   months  of  the  end  of  the  reporting  period  are  classified  as  current  liabilities.    All  other  liabilities   are  classified  as  non-­‐current  liabilities.   h.   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  (ATO).       Receivables   and   payables   are   stated   inclusive   of   the   amount   of   GST   receivable   or   payable.   The   net  amount  of  GST  recoverable  from,  or  payable  to,  the  ATO  is  included  with  other  receivables  or   payables  in  the  statement  of  financial  position.   Cash   flows   are   presented   on   a   gross   basis.   The   GST   components   of   cash   flows   arising   from   investing  or  financing  activities  which  are  recoverable  from,  or  payable  to,  the  ATO  are  presented   as  operating  cash  flows  included  in  receipts  from  customers  or  payments  to  suppliers.   Class  of  Fixed  Asset   Useful  Life   Office  equipment   Furniture  and  fittings   IT  equipment   3  years   5  years   5  years   Vertical  wind  tunnel  building  infrastructure   40  years    (2014:  20  years)   Vertical  wind  tunnel  equipment   20  years   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   recognised   in   profit   or   loss   in   the   period   in   which   they   arise.   When   revalued   assets   are   sold,   amounts   included   in   the   revaluation   surplus   relating   to   that   asset   are   transferred  to  retained  earnings.   d.   Leases   Leases  of  fixed  assets,  where  substantially  all  the  risks  and  benefits  incidental  to  the  ownership  of   the  asset   –  but  not  the  legal  ownership  –  are  transferred  to  entities  in  the  consolidated  group,   are  classified  as  finance  leases.     Finance  leases  are  capitalised  by  recognising  an  asset  and  a  liability  at  the  lower  of  the  amounts   equal   to   the   fair   value   of   the   leased   property   or   the   present   value   of   the   minimum   lease   payments,  including  any  guaranteed  residual  values.  Lease  payments  are  allocated  between  the   reduction  of  the  lease  liability  and  the  lease  interest  expense  for  the  period.   Leased  assets  are  depreciated  on  a  straight-­‐line  basis  over  the  shorter  of  their  estimated  useful   lives  or  the  lease  term.     Lease   payments   for   operating   leases,   where   substantially   all   the   risks   and   benefits   remain   with   the  lessor,  are  recognised  as  expenses  in  the  periods  in  which  they  are  incurred.     Lease  incentives  under  operating  leases  are  recognised  as  a  liability  and  amortised  on  a  straight-­‐ line  basis  over  the  lease  term.     Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   27   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   28   33 | 2015 Annual Report                                                                         ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   i.   Impairment  of  Assets   k.   Provisions   At  the  end  of  each  reporting  period,  the  Group  assesses  whether  there  is  any  indication  that  an   asset   may   be   impaired.   The   assessment   will   include   the   consideration   of   external   and   internal   sources  of  information.  If  such  an  indication  exists,  an  impairment  test  is  carried  out  on  the  asset   by  comparing  the  recoverable  amount  of  the  asset,  being  the  higher  of  the  asset’s  fair  value  less   costs  to  sell  and  value  in  use,  to  the  asset’s  carrying  amount.  Any  excess  of  the  asset’s  carrying   amount  over  its  recoverable  amount  is  recognised  immediately  in  profit  or  loss,  unless  the  asset   is  carried  at  a  revalued  amount  in  accordance  with  another  Standard  (e.g.  in  accordance  with  the   revaluation   model   in   AASB   116:   Property,   Plant   and   Equipment).   Any   impairment   loss   of   a   revalued  asset  is  treated  as  a  revaluation  decrease  in  accordance  with  that  other  Standard.   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.   Impairment  testing  is  performed  annually  for  goodwill,  intangible  assets  with  indefinite  lives  and   intangible  assets  not  yet  available  for  use.   j.   Employee  Benefits   Provision  is  made  for  the  Group’s  liability  for  employee  benefits  arising  from  services  rendered  by   employees  to  the  end  of  the  reporting  period.  Employee  benefits  that  are  expected  to  be  settled   within   a   year   have   been   measured   at   the   amounts   expected   to   be   paid   when   the   liability   is   settled.  Expenses  for  non-­‐accumulating  sick  leave  are  recognised  when  the  leave  is  taken  and  are   measured   at   the   rates   paid   or   payable.   Liabilities   for   long   service   leave   are   recognised   when   employees  reach  a  qualifying  period  of  continuous  service.  Liabilities  and  expenses  for  bonuses   are  recognised  where  contractually  obliged  or  where  there  is  a  past  practice  that  has  created  a   constructive  obligation.   Share-­‐based  Payments   Share-­‐based   compensation   benefits   are   provided   to   certain   employees   (including   key   management  personnel)  via  the  Indoor  Skydive  Australia  Group  Limited  Performance  Rights  Plan.   The   fair   value   is   measured   at   grant   date   and   is   recognised   over   the   period   the   services   are   received,   which   is   the   expected   vesting   period   during   which   the   employees   would   become   entitled  to  exercise  the  performance  rights.     Non-­‐market  vesting  conditions  are  included  in  assumptions  about  the  number  of  options  that  are   expected   to   become   exercisable.   Estimates   are   subsequently   revised   if   there   is   any   indication   that   the   number   of   share   options   expected   to   vest   differs   from   previous   estimates.   Any   cumulative   adjustment   prior   to   vesting   is   recognised   in   the   current   period.   No   adjustment   is   made   to   any   expense   recognised   in   prior   periods   if   share   options   ultimately   exercised   are   different  to  that  estimated  on  vesting.     The   fair   value   of   performance   rights   granted   for   rights   with   non-­‐market   based   performance   criteria   are   measured   using   the   binomial   option   pricing   methodology   which   is   the   approach   typically  used  for  valuing  rights  which  may  be  exercised,  once  vested,  at  any  time  up  until  expiry.     Upon  exercise  of  share  options,  the  proceeds  received  net  of  any  directly  attributable  transaction   costs  are  allocated  to  contributed  equity.   34 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   29   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   30   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   Provisions   are   recognised   when   the   Group   has   a   legal   or   constructive   obligation,   as   a   result   of   past   events,   for   which   it   is   probable   that   an   outflow   of   economic   benefits   will   result   and   that   outflow  can  be  reliably  measured.   Provisions  are  measured  using  the  best  estimate  of  the  amounts  required  to  settle  the  obligation   at  the  end  of  the  reporting  period.   l.   Revenue  and  Other  Income   Revenue  is  measured  at  the  fair  value  of  the  consideration  received  or  receivable  after  taking  into   account   any   trade   discounts   and   volume   rebates   allowed.   When   the   inflow   of   consideration   is   deferred,  it  is  included  in  the  Statement  of  Financial  Position  as  a  current  liability.   Revenue   from   the   sale   of   goods   and   services   is   recognised   at   the   point   of   delivery   as   this   corresponds  to  the  transfer  of  significant  risks  and  rewards  of  ownership  and  the  cessation  of  all   involvement  in  those  goods  and  services.   Interest  revenue  is  recognised  on  an  accruals  basis  using  the  effective  interest  method.   m.   Deferred  Revenue   n.   Trade  and  Other  Receivables   Income  relating  to  future  periods  is  initially  recorded  as  deferred  revenue,  and  is  then  recognised   as  revenue  over  the  relevant  periods  of  admission  or  rendering  of  other  services.   Trade   and   other   receivables   include   amounts   due   from   customers   for   goods   sold   and   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  1(i)  for  further  discussion  on  the  determination  of  impairment  losses.   o.   Inventories   p.   Borrowing  Costs   nventories  are  valued  at  the  lower  of  cost  and  net  realisable  value.  Cost  is  determined  using  the   weighted  average  cost  method,  after  deducting  any  purchase  settlement  discount  and  including   I logistics  expenses  incurred  in  bringing  the  inventories  to  their  present  location  and  condition.   Borrowing  costs  directly  attributable  to  the  acquisition,  construction  or  production  of  assets  that   necessarily  take  a  substantial  period  of  time  to  prepare  for  their  intended  use  or  sale  are  added   to  the  cost  of  those  assets,  until  such  time  as  the  assets  are  substantially  ready  for  their  intended   use  or  sale.   All  other  borrowing  costs  are  recognised  in  profit  or  loss  in  the  period  in  which  they  are  incurred.   2015 Annual Report |                                                           Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   i.   Impairment  of  Assets   k.   Provisions   At  the  end  of  each  reporting  period,  the  Group  assesses  whether  there  is  any  indication  that  an   asset   may   be   impaired.   The   assessment   will   include   the   consideration   of   external   and   internal   sources  of  information.  If  such  an  indication  exists,  an  impairment  test  is  carried  out  on  the  asset   by  comparing  the  recoverable  amount  of  the  asset,  being  the  higher  of  the  asset’s  fair  value  less   costs  to  sell  and  value  in  use,  to  the  asset’s  carrying  amount.  Any  excess  of  the  asset’s  carrying   amount  over  its  recoverable  amount  is  recognised  immediately  in  profit  or  loss,  unless  the  asset   is  carried  at  a  revalued  amount  in  accordance  with  another  Standard  (e.g.  in  accordance  with  the   revaluation   model   in   AASB   116:   Property,   Plant   and   Equipment).   Any   impairment   loss   of   a   revalued  asset  is  treated  as  a  revaluation  decrease  in  accordance  with  that  other  Standard.   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.   Impairment  testing  is  performed  annually  for  goodwill,  intangible  assets  with  indefinite  lives  and   intangible  assets  not  yet  available  for  use.   j.   Employee  Benefits   Provision  is  made  for  the  Group’s  liability  for  employee  benefits  arising  from  services  rendered  by   employees  to  the  end  of  the  reporting  period.  Employee  benefits  that  are  expected  to  be  settled   within   a   year   have   been   measured   at   the   amounts   expected   to   be   paid   when   the   liability   is   settled.  Expenses  for  non-­‐accumulating  sick  leave  are  recognised  when  the  leave  is  taken  and  are   measured   at   the   rates   paid   or   payable.   Liabilities   for   long   service   leave   are   recognised   when   employees  reach  a  qualifying  period  of  continuous  service.  Liabilities  and  expenses  for  bonuses   are  recognised  where  contractually  obliged  or  where  there  is  a  past  practice  that  has  created  a   constructive  obligation.   Share-­‐based  Payments   Share-­‐based   compensation   benefits   are   provided   to   certain   employees   (including   key   management  personnel)  via  the  Indoor  Skydive  Australia  Group  Limited  Performance  Rights  Plan.   The   fair   value   is   measured   at   grant   date   and   is   recognised   over   the   period   the   services   are   received,   which   is   the   expected   vesting   period   during   which   the   employees   would   become   entitled  to  exercise  the  performance  rights.     Non-­‐market  vesting  conditions  are  included  in  assumptions  about  the  number  of  options  that  are   expected   to   become   exercisable.   Estimates   are   subsequently   revised   if   there   is   any   indication   that   the   number   of   share   options   expected   to   vest   differs   from   previous   estimates.   Any   cumulative   adjustment   prior   to   vesting   is   recognised   in   the   current   period.   No   adjustment   is   made   to   any   expense   recognised   in   prior   periods   if   share   options   ultimately   exercised   are   different  to  that  estimated  on  vesting.     The   fair   value   of   performance   rights   granted   for   rights   with   non-­‐market   based   performance   criteria   are   measured   using   the   binomial   option   pricing   methodology   which   is   the   approach   typically  used  for  valuing  rights  which  may  be  exercised,  once  vested,  at  any  time  up  until  expiry.     Upon  exercise  of  share  options,  the  proceeds  received  net  of  any  directly  attributable  transaction   costs  are  allocated  to  contributed  equity.   Provisions   are   recognised   when   the   Group   has   a   legal   or   constructive   obligation,   as   a   result   of   past   events,   for   which   it   is   probable   that   an   outflow   of   economic   benefits   will   result   and   that   outflow  can  be  reliably  measured.   Provisions  are  measured  using  the  best  estimate  of  the  amounts  required  to  settle  the  obligation   at  the  end  of  the  reporting  period.   l.   Revenue  and  Other  Income   Revenue  is  measured  at  the  fair  value  of  the  consideration  received  or  receivable  after  taking  into   account   any   trade   discounts   and   volume   rebates   allowed.   When   the   inflow   of   consideration   is   deferred,  it  is  included  in  the  Statement  of  Financial  Position  as  a  current  liability.   Revenue   from   the   sale   of   goods   and   services   is   recognised   at   the   point   of   delivery   as   this   corresponds  to  the  transfer  of  significant  risks  and  rewards  of  ownership  and  the  cessation  of  all   involvement  in  those  goods  and  services.   Interest  revenue  is  recognised  on  an  accruals  basis  using  the  effective  interest  method.   m.   Deferred  Revenue   Income  relating  to  future  periods  is  initially  recorded  as  deferred  revenue,  and  is  then  recognised   as  revenue  over  the  relevant  periods  of  admission  or  rendering  of  other  services.   n.   Trade  and  Other  Receivables   Trade   and   other   receivables   include   amounts   due   from   customers   for   goods   sold   and   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  1(i)  for  further  discussion  on  the  determination  of  impairment  losses.   o.   Inventories   nventories  are  valued  at  the  lower  of  cost  and  net  realisable  value.  Cost  is  determined  using  the   weighted  average  cost  method,  after  deducting  any  purchase  settlement  discount  and  including   I logistics  expenses  incurred  in  bringing  the  inventories  to  their  present  location  and  condition.   p.   Borrowing  Costs   Borrowing  costs  directly  attributable  to  the  acquisition,  construction  or  production  of  assets  that   necessarily  take  a  substantial  period  of  time  to  prepare  for  their  intended  use  or  sale  are  added   to  the  cost  of  those  assets,  until  such  time  as  the  assets  are  substantially  ready  for  their  intended   use  or  sale.   All  other  borrowing  costs  are  recognised  in  profit  or  loss  in  the  period  in  which  they  are  incurred.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   29   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   30   35 | 2015 Annual Report                                                           ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   Provisions  for  site  restoration  obligations  are  recognised  when  the  Group  has  a  present  legal  or   constructive  obligation  as  a  result  of  past  events,  it  is  probable  that  an  outflow  of  resources  will   be  required  to  settle  the  obligation  and  the  amount  has  been  reliably  estimated.  Provisions  are   not  recognised  for  future  operating  losses.   Where  there  are  a  number  of  similar  obligations,  the  likelihood  that  an  outflow  will  be  required   in   settlement   is   determined   by   considering   the   class   of   obligations   as   a   whole.   A   provision   is   recognised  even  if  the  likelihood  of  an  outflow  with  respect  to  any  one  item  included  in  the  same   class  of  obligations  may  be  small.   Provisions  are  measured  at  the  present  value  of  management's  best  estimate  of  the  expenditure   required   to   settle   the   present   obligation   at   the   end   of   the   reporting   period.   The   discount   rate   used  to  determine  the  present  value  is  a  pre-­‐tax  rate  that  reflects  current  market  assessments  of   the  time  value  of  money  and  the  risks  specific  to  the  liability.  The  increase  in  the  provision  due  to   the  passage  of  time  is  recognised  as  interest  expense.   For   the   prior   corresponding   period,   the   Group   assumed   it   would   be   required   to   remove   all   building  works  on  expiry  of  the  lease.  To  this  extent,  an  estimate  of  the  cost  to  remove  the  VWT   and   its   related   Building   Infrastructure   was   provided   for   amounting   to   $2,144,290   escalated   by   2.5%   to   $2,197,897   and   was   capitalised   into   the   cost   of   the   building   infrastructure   in   the   accounting   records.   The   estimate   to   remove   the   infrastructure   and   equipment   was   based   on   current  costs  using  existing  technology  at  current  prices.  These  costs  were  projected  forward  at  a   2.5%   inflationary   escalation   and   then   discounted   back   at   2.5%   after   consideration   of   the   risks   associated  with  the  project  and  were  depreciated  over  20  years.  The  unwinding  of  the  effect  of   discounting  on  the  site  restoration  provision  was  included  within  finance  costs  in  the  statement   of  comprehensive  income.   The   terms   of   the   Lease   were   negotiated   with   the   signing   of   the   new   Deed   with   the   landlord,   Penrith   Rugby   League   Club   Limited.     Management   and   the   Directors   have   considered   the   new   terms  of  the  lease  and  have  exercised  their  judgement  in  determining  that  the  landlord  is  unlikely   to   exercise   their   rights   to   require   the   Company   to   make   good   the   facility   in   Penrith.   Consequently,  the  existing  provision  has  been  reversed  and  the  prior  year  accumulated  unwind   of  make  good  liability  and  accumulated  depreciation  of  the  make  good  asset  have  been  reversed   in  the  current  year.     iii. Deferred  Tax   Once   the   additional   facilities   are   operational,   the   Group   is   expecting   to   generate   a   taxable   income.    As  it  is  therefore  considered  probable  that  the  unused  tax  losses  will  be  recouped,  the   directors   have   recognised   a   deferred   tax   asset   to   the   extent   of   the   tax   losses   and   deductible   temporary  differences.     NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   q.   Comparative  Figures   ii. Provision  for  Site  Restoration  of  VWT  Equipment  and  Building  Infrastructure     When  required  by  Accounting  Standards,  comparative  figures  have  been  adjusted  to  conform  to   changes  in  presentation  for  the  current  financial  year.     Where   the   Group   has   retrospectively   applied   an   accounting   policy,   made   a   retrospective   restatement  or  reclassified  items  in  its  financial  statements,  an  additional  statement  of  financial   position  as  at  the  beginning  of  the  earliest  comparative  period  will  be  disclosed.   r.   Critical  Accounting  Estimates  and  Judgements   i. Useful  lives,  Residual  Values  and  Classification  of  Property,  Plant  and  Equipment   There  is  a  degree  of  judgement  required  in  estimating  the  residual  values  and  useful  lives  of  the   Property,   Plant   and   Equipment.   There   is   also   a   degree   of   judgement   required   in   terms   of   the   classification   of   such   Property,   Plant   and   Equipment.   The   Group’s   main   assets   at   present   comprise  the  Vertical  Wind  Tunnel  (VWT)  Equipment  and  its  related  Building  Infrastructure.  The   construction  of  these  assets  are  typically  foreseen  in  the  lease  agreements,  however  the  Board   has  exercised  their  judgement  in  determining  that  the  nature  of  these  assets  are  that  of  buildings   and  equipment,  rather  than  leasehold  improvements.  On  23  June  2015,  the  Group  entered  into  a   Deed   of   Restatement   and   Amended   (Deed)   with   the   Penrith   Landlord   which   clarified   the   application  of  certain  terms  of  the  lease  and  changed  the  agreement  from  4  consecutive  5  year   sub-­‐leases   to   a   single   20   year   lease,   with   two   option   terms   of   10   years   each   extending   the   full   term  of  the  lease  to  40  years.    To  this  extent,  in  determining  the  useful  life  of  the  property  plant   and   equipment   the   directors   have   increased   their   estimates   in   relation   to   the   building   infrastructure  from  20  years  to  40  years  reflecting  the  updated  useful  life  of  the  facility.   36 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   31   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   32   2015 Annual Report |                                               Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   q.   Comparative  Figures   ii. Provision  for  Site  Restoration  of  VWT  Equipment  and  Building  Infrastructure     When  required  by  Accounting  Standards,  comparative  figures  have  been  adjusted  to  conform  to   changes  in  presentation  for  the  current  financial  year.     Where   the   Group   has   retrospectively   applied   an   accounting   policy,   made   a   retrospective   restatement  or  reclassified  items  in  its  financial  statements,  an  additional  statement  of  financial   position  as  at  the  beginning  of  the  earliest  comparative  period  will  be  disclosed.   r.   Critical  Accounting  Estimates  and  Judgements   i. Useful  lives,  Residual  Values  and  Classification  of  Property,  Plant  and  Equipment   There  is  a  degree  of  judgement  required  in  estimating  the  residual  values  and  useful  lives  of  the   Property,   Plant   and   Equipment.   There   is   also   a   degree   of   judgement   required   in   terms   of   the   classification   of   such   Property,   Plant   and   Equipment.   The   Group’s   main   assets   at   present   comprise  the  Vertical  Wind  Tunnel  (VWT)  Equipment  and  its  related  Building  Infrastructure.  The   construction  of  these  assets  are  typically  foreseen  in  the  lease  agreements,  however  the  Board   has  exercised  their  judgement  in  determining  that  the  nature  of  these  assets  are  that  of  buildings   and  equipment,  rather  than  leasehold  improvements.  On  23  June  2015,  the  Group  entered  into  a   Deed   of   Restatement   and   Amended   (Deed)   with   the   Penrith   Landlord   which   clarified   the   application  of  certain  terms  of  the  lease  and  changed  the  agreement  from  4  consecutive  5  year   sub-­‐leases   to   a   single   20   year   lease,   with   two   option   terms   of   10   years   each   extending   the   full   term  of  the  lease  to  40  years.    To  this  extent,  in  determining  the  useful  life  of  the  property  plant   and   equipment   the   directors   have   increased   their   estimates   in   relation   to   the   building   infrastructure  from  20  years  to  40  years  reflecting  the  updated  useful  life  of  the  facility.   Provisions  for  site  restoration  obligations  are  recognised  when  the  Group  has  a  present  legal  or   constructive  obligation  as  a  result  of  past  events,  it  is  probable  that  an  outflow  of  resources  will   be  required  to  settle  the  obligation  and  the  amount  has  been  reliably  estimated.  Provisions  are   not  recognised  for  future  operating  losses.   Where  there  are  a  number  of  similar  obligations,  the  likelihood  that  an  outflow  will  be  required   in   settlement   is   determined   by   considering   the   class   of   obligations   as   a   whole.   A   provision   is   recognised  even  if  the  likelihood  of  an  outflow  with  respect  to  any  one  item  included  in  the  same   class  of  obligations  may  be  small.   Provisions  are  measured  at  the  present  value  of  management's  best  estimate  of  the  expenditure   required   to   settle   the   present   obligation   at   the   end   of   the   reporting   period.   The   discount   rate   used  to  determine  the  present  value  is  a  pre-­‐tax  rate  that  reflects  current  market  assessments  of   the  time  value  of  money  and  the  risks  specific  to  the  liability.  The  increase  in  the  provision  due  to   the  passage  of  time  is  recognised  as  interest  expense.   For   the   prior   corresponding   period,   the   Group   assumed   it   would   be   required   to   remove   all   building  works  on  expiry  of  the  lease.  To  this  extent,  an  estimate  of  the  cost  to  remove  the  VWT   and   its   related   Building   Infrastructure   was   provided   for   amounting   to   $2,144,290   escalated   by   2.5%   to   $2,197,897   and   was   capitalised   into   the   cost   of   the   building   infrastructure   in   the   accounting   records.   The   estimate   to   remove   the   infrastructure   and   equipment   was   based   on   current  costs  using  existing  technology  at  current  prices.  These  costs  were  projected  forward  at  a   2.5%   inflationary   escalation   and   then   discounted   back   at   2.5%   after   consideration   of   the   risks   associated  with  the  project  and  were  depreciated  over  20  years.  The  unwinding  of  the  effect  of   discounting  on  the  site  restoration  provision  was  included  within  finance  costs  in  the  statement   of  comprehensive  income.   The   terms   of   the   Lease   were   negotiated   with   the   signing   of   the   new   Deed   with   the   landlord,   Penrith   Rugby   League   Club   Limited.     Management   and   the   Directors   have   considered   the   new   terms  of  the  lease  and  have  exercised  their  judgement  in  determining  that  the  landlord  is  unlikely   to   exercise   their   rights   to   require   the   Company   to   make   good   the   facility   in   Penrith.   Consequently,  the  existing  provision  has  been  reversed  and  the  prior  year  accumulated  unwind   of  make  good  liability  and  accumulated  depreciation  of  the  make  good  asset  have  been  reversed   in  the  current  year.     iii. Deferred  Tax   Once   the   additional   facilities   are   operational,   the   Group   is   expecting   to   generate   a   taxable   income.    As  it  is  therefore  considered  probable  that  the  unused  tax  losses  will  be  recouped,  the   directors   have   recognised   a   deferred   tax   asset   to   the   extent   of   the   tax   losses   and   deductible   temporary  differences.     Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   31   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   32   37 | 2015 Annual Report                                               ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   iv. Exclusive  Territory  Development  Agreement  Recognition  and  Amortisation   s.   New  Accounting  Standards  for  Application  in  Future  Periods   On  20  December  2013  an  Exclusive  Territory  Development  Agreement  was  entered  into  between   the  Company  and  iFly  Australia  Pty  Ltd  (iFly)  to  exclusively  develop  projects  in  Australia  and  New   Zealand   for   which   iFly   would   receive   2,500,000   shares   in   the   company   (IDZ.ASX).   iFly   is   the   Australian   subsidiary   of   SkyVenture   International,   our   vertical   wind   tunnel   supplier.   The   agreement  has  created  an  intangible  asset  which  is  expected  to  create  a  future  economic  benefit.   This   intangible   asset   must   be   initially   valued   at   cost,   in   accordance   with   AASB   138.   The   cost   is   calculated  as  $1,500,000,  being  the  fair  value  of  the  shares  granted  to  iFly,  at  the  IDZ  close  price   of  $0.60  at  20  December  2013.   The  term  of  the  agreement  is  limited,  and  the  asset  is  therefore  classified  as  a  finite  life  intangible   asset.  An  intangible  asset  with  a  finite  life  is  to  be  amortised  over  its  useful  life.  The  amortisation   method   selected   should   reflect   the   pattern   over   which   the   asset’s   future   economic   benefit   is   expected  to  be  consumed.  If  that  pattern  cannot  be  determined  reliably,  the  straight-­‐line  method   is  to  be  used.  The  amortisation  period  and  method  for  an  intangible  asset  with  a  finite  useful  life   are  to  be  reviewed  at  least  at  the  end  of  each  annual  reporting  period.  If  the  expected  useful  life   or   expected   pattern   of   consumption   of   the   future   economic   benefit   is   different   from   previous   estimates,  the  period  or  method  is  to  be  revised.  As  at  the  reporting  date,  there  is  no  change  to   the  previous  estimates.       An  accelerated  amortisation  rate  of  40%  has  been  used  against  this  intangible  asset.  This  reflects   the  expected  consumption  of  benefits  under  the  agreement.    Although  it  is  conceivable  that  the   agreement  could  run  to  the  full  term  of  20  years,  management  expect  that  the  majority  of  the   benefit   will   be   achieved   over   an   initial   period   of   four   years   through   the   delivery   of   the   four   tunnels  for  which  deposits  have  been  paid  to  SkyVenture  International.     38 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   33   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   34   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   The  AASB  has  issued  a  number  of  new  and  amended  Accounting  Standards  and  Interpretations  that  have   mandatory  application  dates  for  future  reporting  periods,  some  of  which  are  relevant  to  the  Group.  The  Group  has   decided  not  to  early  adopt  any  of  the  new  and  amended  pronouncements.  The  Group’s  assessment  of  the  new   and  amended  pronouncements  that  are  relevant  to  the  Group  but  applicable  in  future  reporting  periods  is  set  out   below: Reference Title Summary Application Expected AASB 2015-3 Amendments to The Standard completes the 1 July 2015 Australian Accounting AASB’s project to remove Australian guidance on materiality Standards arising from Australian Accounting Standards. Impact date (financial years beginning) Not yet known AASB 2014-3 Amendments to This Standard amends AASB 11 1 January None to provide guidance on the accounting for acquisitions of interests in joint operations in which the activity constitutes a business. 2016 AASB 2014-4 Amendments to This Standard amends AASB 116 1 January None from the Withdrawal of AASB 1031 Materiality Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations Australian Accounting Standards – Acceptable Methods of Amortisation and AASB 138 to establish the 2016 principle for the basis of depreciation and amortisation as Clarification of being the expected pattern of Depreciation and and to clarify that revenue is consumption of the future economic benefits of an asset, generally presumed to be an inappropriate basis for that purpose. Australian Accounting entities to use the equity method 2016 of accounting for investments in Standards – Equity subsidiaries, joint ventures and Method in Separate associates in their separate Financial Statements financial statements. AASB 2014-9 Amendments to This amending standard allows 1 January None 2015 Annual Report |                                 On  20  December  2013  an  Exclusive  Territory  Development  Agreement  was  entered  into  between   the  Company  and  iFly  Australia  Pty  Ltd  (iFly)  to  exclusively  develop  projects  in  Australia  and  New   Zealand   for   which   iFly   would   receive   2,500,000   shares   in   the   company   (IDZ.ASX).   iFly   is   the   Australian   subsidiary   of   SkyVenture   International,   our   vertical   wind   tunnel   supplier.   The   agreement  has  created  an  intangible  asset  which  is  expected  to  create  a  future  economic  benefit.   This   intangible   asset   must   be   initially   valued   at   cost,   in   accordance   with   AASB   138.   The   cost   is   calculated  as  $1,500,000,  being  the  fair  value  of  the  shares  granted  to  iFly,  at  the  IDZ  close  price   of  $0.60  at  20  December  2013.   The  term  of  the  agreement  is  limited,  and  the  asset  is  therefore  classified  as  a  finite  life  intangible   asset.  An  intangible  asset  with  a  finite  life  is  to  be  amortised  over  its  useful  life.  The  amortisation   method   selected   should   reflect   the   pattern   over   which   the   asset’s   future   economic   benefit   is   expected  to  be  consumed.  If  that  pattern  cannot  be  determined  reliably,  the  straight-­‐line  method   is  to  be  used.  The  amortisation  period  and  method  for  an  intangible  asset  with  a  finite  useful  life   are  to  be  reviewed  at  least  at  the  end  of  each  annual  reporting  period.  If  the  expected  useful  life   or   expected   pattern   of   consumption   of   the   future   economic   benefit   is   different   from   previous   estimates,  the  period  or  method  is  to  be  revised.  As  at  the  reporting  date,  there  is  no  change  to   the  previous  estimates.       An  accelerated  amortisation  rate  of  40%  has  been  used  against  this  intangible  asset.  This  reflects   the  expected  consumption  of  benefits  under  the  agreement.    Although  it  is  conceivable  that  the   agreement  could  run  to  the  full  term  of  20  years,  management  expect  that  the  majority  of  the   benefit   will   be   achieved   over   an   initial   period   of   four   years   through   the   delivery   of   the   four   tunnels  for  which  deposits  have  been  paid  to  SkyVenture  International.     Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   iv. Exclusive  Territory  Development  Agreement  Recognition  and  Amortisation   s.   New  Accounting  Standards  for  Application  in  Future  Periods   The  AASB  has  issued  a  number  of  new  and  amended  Accounting  Standards  and  Interpretations  that  have   mandatory  application  dates  for  future  reporting  periods,  some  of  which  are  relevant  to  the  Group.  The  Group  has   decided  not  to  early  adopt  any  of  the  new  and  amended  pronouncements.  The  Group’s  assessment  of  the  new   and  amended  pronouncements  that  are  relevant  to  the  Group  but  applicable  in  future  reporting  periods  is  set  out   below: Reference Title Summary Expected Impact Application date (financial years beginning) 1 July 2015 Not yet known The Standard completes the AASB’s project to remove Australian guidance on materiality from Australian Accounting Standards. AASB 2015-3 AASB 2014-3 AASB 2014-4 AASB 2014-9 Amendments to Australian Accounting Standards arising from the Withdrawal of AASB 1031 Materiality Amendments to Australian Accounting Standards – Accounting for Acquisitions of Interests in Joint Operations Amendments to Australian Accounting Standards – Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to Australian Accounting Standards – Equity Method in Separate Financial Statements This Standard amends AASB 11 to provide guidance on the accounting for acquisitions of interests in joint operations in which the activity constitutes a business. 1 January 2016 None This Standard amends AASB 116 and AASB 138 to establish the principle for the basis of depreciation and amortisation as being the expected pattern of consumption of the future economic benefits of an asset, and to clarify that revenue is generally presumed to be an inappropriate basis for that purpose. This amending standard allows entities to use the equity method of accounting for investments in subsidiaries, joint ventures and associates in their separate financial statements. 1 January 2016 None 1 January 2016 None Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   33   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   34   39 | 2015 Annual Report                                 NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Reference Title Summary Expected Impact Application date (financial years beginning) 1 January 2016 None Reference Title Summary Application Expected Impact date (financial years beginning) AASB 9 Financial Instruments This Standard supersedes both 1 January None AASB 9 (December 2010) and 2018 AASB 9 (December 2009) when applied. It introduces a “fair value through other comprehensive income” category for debt instruments, contains requirements for impairment of financial assets, etc. 1 January 2016 None AASB 2014-7 Amendments to Consequential amendments 1 January None arising from the issuance of AASB 2018 Australian Accounting Standards arising from AASB 9 (December 2014) 9 This amending standard requires a full gain or loss to be recognised when a transaction involves a business (even if the business is not housed in a subsidiary), and a partial gain or loss to be recognised when a transaction involves assets that do not constitute a business (even if those assets are housed in a subsidiary). The Standard makes amendments to various Australian Accounting Standards arising from the IASB’s Annual Improvements process, and editorial corrections. AASB 2014-10 Amendments to Australian Accounting Standards – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to Australian Accounting Standards – Annual Improvements to Australian Accounting Standards 2012- 2014 Cycle Amendments to Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 Revenue from Contracts with Customers AASB 2015-1 AASB 2015-2 AASB 15 AASB 2014-5 Amendments to Australian Accounting Standards arising from AASB 15 The Standard makes amendments to AASB 101 Presentation of Financial Statements arising from the IASB’s Disclosure Initiative project. 1 January 2016 Disclosures Only This Standard establishes principles (including disclosure requirements) for reporting useful information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Consequential amendments arising from the issuance of AASB 15. 1 January 2017 None 1 January 2017 None 40 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   35   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   36   2015 Annual Report |                     Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   NOTE  1:  SUMMARY  OF  SIGNIFICANT  ACCOUNTING  POLICIES  (CONT)   Reference Title Summary Application Expected Reference Title Summary AASB 2014-10 Amendments to This amending standard requires 1 January None AASB 9 Financial Instruments This Standard supersedes both AASB 9 (December 2010) and AASB 9 (December 2009) when applied. It introduces a “fair value through other comprehensive income” category for debt instruments, contains requirements for impairment of financial assets, etc. Expected Impact Application date (financial years beginning) 1 January 2018 None AASB 2014-7 Amendments to Australian Accounting Standards arising from AASB 9 (December 2014) Consequential amendments arising from the issuance of AASB 9 1 January 2018 None Impact date (financial years beginning) AASB 2015-2 Amendments to The Standard makes 1 January 2016 Disclosures Only AASB 2015-1 Amendments to The Standard makes 1 January None Australian Accounting a full gain or loss to be recognised 2016 when a transaction involves a Standards – Sale or business (even if the business is Contribution of not housed in a subsidiary), and a Assets between an partial gain or loss to be Investor and its recognised when a transaction Associate or Joint involves assets that do not Venture constitute a business (even if those assets are housed in a subsidiary). Australian Accounting amendments to various Australian 2016 Accounting Standards arising Standards – Annual from the IASB’s Annual Improvements to Improvements process, and editorial corrections. Australian Accounting Standards 2012- 2014 Cycle Australian Accounting Standards – Disclosure Initiative: Amendments to AASB 101 Revenue from Contracts with Customers amendments to AASB 101 Presentation of Financial Statements arising from the IASB’s Disclosure Initiative project. requirements) for reporting useful information about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. AASB 15 This Standard establishes 1 January None principles (including disclosure 2017 AASB 2014-5 Amendments to Consequential amendments 1 January None arising from the issuance of AASB 2017 Australian Accounting Standards arising from AASB 15 15. Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   35   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   36   41 | 2015 Annual Report                     ended 30 June 2015 Financial  Statements   For  the  year  ended  30  June  2015   FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  2:    PARENT  INFORMATION  (CONT)   The  parent  entity  does  not  have  any  guarantees  as  at  30  June  2015.   The  parent  entity  does  not  have  any  contingent  liabilities  as  at  30  June  2015.   Other  than  amounts  disclosed  in  the  financial  statements,  the  parent  entity  has  no  additional   contractual  commitments  as  at  30  June  2015  (2014:  nil).   Guarantees   Contingent  liabilities   Contractual  commitments   NOTE  3:    SALES  REVENUE   VWT  revenue   Other  sales   2015   $   2014   $   6,140,502   1,143,476   290,942   69,167   6,431,444   1,212,643   NOTE  2:    PARENT  INFORMATION   2015   $   2014   $   The  following  information  has  been  extracted  from  the  books  and   records  of  the  parent  and  has  been  prepared  in  accordance  with   Australian  Accounting  Standards.   Statement  of  Financial  Position   Assets   Current  assets   Non-­‐current  assets   Total  Assets   Liabilities   Current  liabilities   Non-­‐current  liabilities   Total  Liabilities   Equity   Issued  capital   Share  based  payments  reserve   Retained  earnings   Total  Equity   6,314,769   2,202,175   20,607,847   17,763,874   26,922,616   19,966,049   401,990   2,343,286   -­‐   2,197,897   401,990   4,541,183   33,639,481   18,467,798   1,185,050   1,093,569   (8,303,905)   (4,136,501)   26,520,626   15,424,866   Statement  of  Profit  or  Loss  and  Other  Comprehensive  Income   Total  profit/(loss)  before  tax   Total  comprehensive  income   (4,167,404)   (2,917,383)   (4,167,404)   (2,917,383)     42 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   37   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   38   2015 Annual Report |                                                                                         NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 2015   $   2014   $   NOTE  2:    PARENT  INFORMATION  (CONT)   Guarantees   The  parent  entity  does  not  have  any  guarantees  as  at  30  June  2015.   Contingent  liabilities   The  parent  entity  does  not  have  any  contingent  liabilities  as  at  30  June  2015.   Contractual  commitments   Other  than  amounts  disclosed  in  the  financial  statements,  the  parent  entity  has  no  additional   contractual  commitments  as  at  30  June  2015  (2014:  nil).   NOTE  3:    SALES  REVENUE   VWT  revenue   Other  sales   2015   $   2014   $   6,140,502   1,143,476   290,942   69,167   6,431,444   1,212,643   Financial  Statements   For  the  year  ended  30  June  2015   NOTE  2:    PARENT  INFORMATION   The  following  information  has  been  extracted  from  the  books  and   records  of  the  parent  and  has  been  prepared  in  accordance  with   Australian  Accounting  Standards.   Statement  of  Financial  Position   Assets   Current  assets   Non-­‐current  assets   Total  Assets   Liabilities   Current  liabilities   Non-­‐current  liabilities   Total  Liabilities   Share  based  payments  reserve   Equity   Issued  capital   Retained  earnings   Total  Equity   6,314,769   2,202,175   20,607,847   17,763,874   26,922,616   19,966,049   401,990   2,343,286   -­‐   2,197,897   401,990   4,541,183   33,639,481   18,467,798   1,185,050   1,093,569   (8,303,905)   (4,136,501)   26,520,626   15,424,866   Statement  of  Profit  or  Loss  and  Other  Comprehensive  Income   Total  profit/(loss)  before  tax   Total  comprehensive  income   (4,167,404)   (2,917,383)   (4,167,404)   (2,917,383)     Indoor  Skydive  Australia  Group  Limited   37   2015  Annual  Report   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   38   43 | 2015 Annual Report                                                                                         ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  4:    INCOME  TAX  EXPENSE   A  reconciliation  of  income  tax  expense  applicable  to  accounting  loss  before  income  tax  at  the  statutory   income  tax  rate  to  income  tax  expense  at  the  company’s  effective  income  tax  rate  for  the  period  ended   30  June  2015  and  30  June  2014  is  as  follows:   2015   $   2014   $   Accounting  loss  before  income  tax   (1,966,330)   (4,105,707)   At  the  statutory  income  tax  rate  of  30%  (2014:  30%)   Permanent  differences   Tax  effect  on  temporary  and  timing  differences  not  brought   to  account   Income  tax  benefit  not  brought  to  account   Income  Tax  Benefit     Deferred  tax  assets  (timing  difference)  comprises  of:   Black  hole  expenditure   Unrealised  gain  and  losses   Provisions  and  others   Deferred  tax  asset  (timing  difference)  brought  to  account   Deferred  tax  asset  (tax  losses)  brought  to  account   (589,899)   571,966   (169,939)   (28,470)   (216,342)   314,991   (17,550)   137,504   434,945   1,173,088   (1,231,712)   469,565   (296,548)   (332,996)   (1,391,691)   238,265   (1,458)   169,668   406,475   985,216   Total  deferred  tax  bought  into  account   1,608,033   1,391,691   NOTE  5:    CASH  AND  CASH  EQUIVALENTS   2015   $   2014   $   Cash  at  bank  and  on  hand   4,321,619   1,117,249   4,321,619   1,117,249   The  above  cash  balance  excludes  term  deposits  of  $1,325,556  held  as  at  30  June  2015  (2014:   $300,278).     44 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   39   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   40   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  6:    TRADE  RECEIVABLES  AND  OTHER  ASSETS   Trade  receivables   Inventory   Other  receivables   Prepaid  expenses   NOTE  7:    PROPERTY,  PLANT  AND  EQUIPMENT   VWT  Equipment  and  Building  Infrastructure   (Operational)   At  cost   Accumulated  depreciation   Total  VWT  Equipment  and  Building  Infrastructure   Provision  for  Site  Restoration  of  the  VWT  Equipment  and   Building  Infrastructure  on  Termination  of  Lease       At  cost   Accumulated  depreciation   Total  Provision  for  Site  Restoration  of  the  VWT   Equipment  and  Building  Infrastructure   2015   $   59,375   44,927   501,959   219,904   826,165   2015   $   15,075,915   (694,276)   14,381,639   2014   $   46,795   -­‐   172,325   104,200   323,320   2014   $   14,501,459   (118,000)   14,383,459   -­‐   -­‐   -­‐   2,144,290   (107,214)   2,037,076   The  terms  of  the  lease  agreement  on  the  Penrith  facility  were  renegotiated  with  the  signing  of  the  new  Deed  with  the   landlord,  Penrith  Rugby  League  Club  Limited.    Management  and  Directors  have  considered  the  proposed  terms  of  the   new  lease  and  have  exercised  their  judgement  in  determining  that  the  landlord  is  unlikely  to  exercise  their  rights  to   require  the  Company  to  make  good  the  facility  in  Penrith.  Consequently,  the  existing  provision  was  reversed  upon  the   renegotiation   of   the   lease   and   the   prior   year   accumulated   unwind   of   make   good   liability   and   accumulated   depreciation   of   the   make   good   asset   have   been   reversed   in   the   current   year.   This   resulted   in   a   reduction   in   depreciation   of   $107,214,   and   finance   costs   of   $53,607   during   the   period,   in   addition   to   the   removal   of   the   make   good  asset  and  make  good  liability.   2015 Annual Report |                                                                                                                                                                               Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  4:    INCOME  TAX  EXPENSE   A  reconciliation  of  income  tax  expense  applicable  to  accounting  loss  before  income  tax  at  the  statutory   income  tax  rate  to  income  tax  expense  at  the  company’s  effective  income  tax  rate  for  the  period  ended   30  June  2015  and  30  June  2014  is  as  follows:   Accounting  loss  before  income  tax   (1,966,330)   (4,105,707)   At  the  statutory  income  tax  rate  of  30%  (2014:  30%)   Permanent  differences   Tax  effect  on  temporary  and  timing  differences  not  brought   to  account   Income  tax  benefit  not  brought  to  account   Income  Tax  Benefit     Deferred  tax  assets  (timing  difference)  comprises  of:   Black  hole  expenditure   Unrealised  gain  and  losses   Provisions  and  others   Deferred  tax  asset  (timing  difference)  brought  to  account   Deferred  tax  asset  (tax  losses)  brought  to  account   2015   $   2014   $   (589,899)   571,966   (169,939)   (28,470)   (216,342)   314,991   (17,550)   137,504   434,945   1,173,088   (1,231,712)   469,565   (296,548)   (332,996)   (1,391,691)   238,265   (1,458)   169,668   406,475   985,216   Total  deferred  tax  bought  into  account   1,608,033   1,391,691   NOTE  5:    CASH  AND  CASH  EQUIVALENTS   2015   $   2014   $   Cash  at  bank  and  on  hand   4,321,619   1,117,249   4,321,619   1,117,249   The  above  cash  balance  excludes  term  deposits  of  $1,325,556  held  as  at  30  June  2015  (2014:   $300,278).     NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  6:    TRADE  RECEIVABLES  AND  OTHER  ASSETS   Trade  receivables   Inventory   Other  receivables   Prepaid  expenses   NOTE  7:    PROPERTY,  PLANT  AND  EQUIPMENT   VWT  Equipment  and  Building  Infrastructure   (Operational)   At  cost   Accumulated  depreciation   Total  VWT  Equipment  and  Building  Infrastructure   Provision  for  Site  Restoration  of  the  VWT  Equipment  and   Building  Infrastructure  on  Termination  of  Lease       At  cost   Accumulated  depreciation   Total  Provision  for  Site  Restoration  of  the  VWT   Equipment  and  Building  Infrastructure   2015   $   59,375   44,927   501,959   219,904   826,165   2015   $   15,075,915   (694,276)   14,381,639   2014   $   46,795   -­‐   172,325   104,200   323,320   2014   $   14,501,459   (118,000)   14,383,459   -­‐   -­‐   -­‐   2,144,290   (107,214)   2,037,076   The  terms  of  the  lease  agreement  on  the  Penrith  facility  were  renegotiated  with  the  signing  of  the  new  Deed  with  the   landlord,  Penrith  Rugby  League  Club  Limited.    Management  and  Directors  have  considered  the  proposed  terms  of  the   new  lease  and  have  exercised  their  judgement  in  determining  that  the  landlord  is  unlikely  to  exercise  their  rights  to   require  the  Company  to  make  good  the  facility  in  Penrith.  Consequently,  the  existing  provision  was  reversed  upon  the   renegotiation   of   the   lease   and   the   prior   year   accumulated   unwind   of   make   good   liability   and   accumulated   depreciation   of   the   make   good   asset   have   been   reversed   in   the   current   year.   This   resulted   in   a   reduction   in   depreciation   of   $107,214,   and   finance   costs   of   $53,607   during   the   period,   in   addition   to   the   removal   of   the   make   good  asset  and  make  good  liability.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   39   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   40   45 | 2015 Annual Report                                                                                                                                                                               ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  8:    CONTROLLED  ENTITIES   Subsidiaries  of  Indoor  Skydive  Australia  Group   2015   2014   Country  of   Incorporation   Indoor  Skydiving  Penrith  Holdings  Pty  Ltd   Indoor  Skydiving  Penrith  Pty  Ltd   Indoor  Skydiving  Gold  Coast  Pty  Ltd   Indoor  Skydiving  Adelaide  Pty  Ltd   Indoor  Skydiving  Perth  Pty  Ltd   ISAG  Holdings  D  Pty  Ltd   upRAW  Café  &  Juice  Bar  Pty  Ltd  *    *  Changed  to  ISAG  Café  Pty  Ltd  on  21  July  2015 Australia   Australia   Australia   Australia   Australia   Australia   Australia   %   100   100   100   100   100   100   100   %   100   100   100   100   100   100   100   NOTE  7:    PROPERTY,  PLANT  AND  EQUIPMENT  (CONT)   VWT  Construction  Work  in  Progress   VWT  equipment  and  building  infrastructure  under   construction   VWT  deposits  paid   Total  Construction  Work  in  Progress   2015   $   8,747,988   751,471   9,499,459   2014   $   -­‐   806,994   806,994   As  construction  commences  on  a  facility,  the  balance  is  transferred  from  VWT  deposits  paid  to  VWT  Equipment  and   Building  Infrastructure  under  construction.     Total   At  cost   2015     $   2014   $   24,574,374   17,452,743   Accumulated  depreciation   (694,276)   (225,214)   Total   23,881,098   17,227,529   a.   Movements  in  Carrying  Amounts   VWT  Equipment   Building   Infrastructure   $   Provision  for  Site   Restoration  of  VWT   Equipment  and  Building   Infrastructure   $   VWT  Construction   Work  In  Progress   Total   $   $   2,830,917   2,144,290   -­‐   4,975,207 11,670,542   -­‐   806,994   12,477,536   (118,000)   (107,214)   -­‐   (225,214)   14,383,459   2,037,076   806,994   17,227,529   799,670   -­‐   8,692,465   9,492,135   -­‐   (2,144,290)   (801,490)   107,214   -­‐   -­‐   (2,144,290)   (694,276)   14,381,639   -­‐   9,499,459   23,881,098   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   41   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   42   Consolidated   Group:   Balance  at  1  July   2013   Additions   Depreciation   expense   Balance  at  1  July   2014   Additions   Write  back  for   site  restoration   Depreciation   expense   Balance  at  30   June  2015   46 2015 Annual Report |                                                                                                         Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   VWT  Construction  Work  in  Progress   VWT  equipment  and  building  infrastructure  under   construction   VWT  deposits  paid   Total  Construction  Work  in  Progress   NOTE  7:    PROPERTY,  PLANT  AND  EQUIPMENT  (CONT)   NOTE  8:    CONTROLLED  ENTITIES   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 2015   $   8,747,988   751,471   9,499,459   2014   $   -­‐   806,994   806,994   2015     $   2014   $   24,574,374   17,452,743   23,881,098   17,227,529   Subsidiaries  of  Indoor  Skydive  Australia  Group   Country  of   Incorporation   2015   2014   Indoor  Skydiving  Penrith  Holdings  Pty  Ltd   Indoor  Skydiving  Penrith  Pty  Ltd   Indoor  Skydiving  Gold  Coast  Pty  Ltd   Indoor  Skydiving  Adelaide  Pty  Ltd   Indoor  Skydiving  Perth  Pty  Ltd   ISAG  Holdings  D  Pty  Ltd   upRAW  Café  &  Juice  Bar  Pty  Ltd  *    *  Changed  to  ISAG  Café  Pty  Ltd  on  21  July  2015 Australia   Australia   Australia   Australia   Australia   Australia   Australia   %   100   100   100   100   100   100   100   %   100   100   100   100   100   100   100   As  construction  commences  on  a  facility,  the  balance  is  transferred  from  VWT  deposits  paid  to  VWT  Equipment  and   Building  Infrastructure  under  construction.     Accumulated  depreciation   (694,276)   (225,214)   a.   Movements  in  Carrying  Amounts   Total   At  cost   Total   Consolidated   Group:   Balance  at  1  July   2013   Additions   Depreciation   expense   Balance  at  1  July   2014   Additions   Write  back  for   site  restoration   Depreciation   expense   Balance  at  30   June  2015   VWT  Equipment   Provision  for  Site   VWT  Construction   Total   Building   Restoration  of  VWT   Work  In  Progress   Infrastructure   Equipment  and  Building   $   Infrastructure   $   $   $   2,830,917   2,144,290   4,975,207 11,670,542   806,994   12,477,536   (118,000)   (107,214)   (225,214)   14,383,459   2,037,076   806,994   17,227,529   799,670   8,692,465   9,492,135   -­‐   (2,144,290)   (801,490)   107,214   (2,144,290)   (694,276)   14,381,639   9,499,459   23,881,098   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   41   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   42   47 | 2015 Annual Report                                                                                                         ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  11:    PROVISIONS  -­‐  CURRENT   Provision  for  Employee  Benefits   Opening  balance   Additional  provisions   Amounts  used   NOTE  12:    DEFERRED  REVENUE   Deferred  revenue   Closing  balance  –  Provision  for  employee  entitlements   109,683   65,187   Provisions  for  employee  benefits  represent  amounts  accrued  for  annual  leave.   The  current  portion  for  this  provision  includes  the  total  amount  accrued  for  annual  leave  entitlements  that  have  vested   due  to  employees  having  completed  the  required  period  of  service.  Based  on  past  experience,  the  Group  does  not  expect   the  full  amount  of  annual  leave  balances  classified  as  current  liabilities  to  be  settled  within  the  next  12  months.  However,   these  amounts  must  be  classified  as  current  liabilities  since  the  Group  does  not  have  an  unconditional  right  to  defer  the   settlement  of  these  amounts  in  the  event  employees  wish  to  use  their  leave  entitlement.   2015   $   2014   $   65,187   10,911   233,225   87,659   (188,729)   (33,383)   2015   $   2014   $   1,280,530   905,497   1,280,530   905,497   Deferred  revenue  primarily  represents  prepaid  sales  in  respect  of  flight  time  purchased  in  advance.    The   sales  will  be  released  to  revenue  at  the  time  the  services  are  rendered.   NOTE  9:    INTANGIBLE  ASSET   Exclusive  Territory  Development  Agreement   1,500,000   1,500,000   2015   $   2014   $   Accumulated  amortisation   Movements  in  Carrying  Amounts   (789,370)   (315,616)   710,630   1,184,384   2015   $   2014   $   Opening  written  down  value   1,184,384   -­‐   Addition:  Exclusive  Territory  Development  Agreement   -­‐   1,500,000   Amortisation   Closing  written  down  value   (473,754)   (315,616)   710,630   1,184,384   The   intangible   asset   was   acquired   during   the   2014   year   and   is   valued   at   cost.     The   fair   value   of   $1,500,000  represents  the  value  of  the  shares  granted  to  iFly  Australia  Pty  Limited  under  the  Exclusive   Joint   Territory   Agreement,   being   2,500,000   shares   at   a   close   price   of   $0.60   on   grant   date   (20   December  2013).     An  accelerated  amortisation  rate  of  40%  has  been  used  against  this  intangible  asset,  amortised  from   20   December   2013.   An   accelerated   method   has   been   used   to   reflect   the   expected   consumption   of   benefits  under  the  agreement.       NOTE  10:    TRADE  AND  OTHER  PAYABLES   2015   $   2014   $   Trade  payables   1,602,493   601,450   Other  payables  and  accruals   440,355   547,556   NOTE  13:    BORROWINGS   Convertible  Note  Facility   2,042,848   1,149,006   During  the  period,  iFly  Australia  Pty  Ltd  exercised  their  rights  under  the  Exclusive  Territory   Development  Agreement  to  invest  up  to  $1,000,000  in  a  subsidiary  of  the  Company,  Indoor  Skydiving   Gold  Coast  Pty  Ltd.  The  investment  has  been  agreed  to  be  set  off  against  amounts  owed  to  iFly   Australia  Pty  Ltd  for  the  purchase  of  equipment.  As  shares  in  the  subsidiary  have  not  yet  been  issued  a   non-­‐controlling  interest  in  the  Group  has  not  been  recognised  in  the  Group  balance  sheet  as  at  the   reporting  date  and  is  included  in  trade  payables  above.   The  Convertible  Note  Finance  Facility  (Facility)  between  the  Company  and  Birkdale  Holdings  (Qld)  Pty  Ltd  as  trustee  for   the  Baxter  Family  Trust  (Birkdale)  was  fully  repaid  on  13  November  2014,  prior  to  the  conversion  date  of  10  December   2014.  Pursuant  to  the  ASX  announcement  dated  11  June  2015,  the  facility  expired  on  10  June  2015  without  conversion.     Interest  was  paid  quarterly  at  10%  pa  on  the  drawn  amount  of  the  Facility  and  a  2%  line  fee  was  paid  on  the  undrawn   portion.    An  amount  of  $244,402  is  included  in  finance  expenses  for  the  period  in  relation  to  this  Facility.     48 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   43   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   44   2015 Annual Report |                                                                                                                       Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  9:    INTANGIBLE  ASSET   2015   $   2014   $   (789,370)   (315,616)   710,630   1,184,384   2015   $   2014   $   Exclusive  Territory  Development  Agreement   1,500,000   1,500,000   Accumulated  amortisation   Movements  in  Carrying  Amounts   Opening  written  down  value   1,184,384   -­‐   Addition:  Exclusive  Territory  Development  Agreement   -­‐   1,500,000   Amortisation   Closing  written  down  value   (473,754)   (315,616)   710,630   1,184,384   The   intangible   asset   was   acquired   during   the   2014   year   and   is   valued   at   cost.     The   fair   value   of   $1,500,000  represents  the  value  of  the  shares  granted  to  iFly  Australia  Pty  Limited  under  the  Exclusive   Joint   Territory   Agreement,   being   2,500,000   shares   at   a   close   price   of   $0.60   on   grant   date   (20   December  2013).     An  accelerated  amortisation  rate  of  40%  has  been  used  against  this  intangible  asset,  amortised  from   20   December   2013.   An   accelerated   method   has   been   used   to   reflect   the   expected   consumption   of   benefits  under  the  agreement.       NOTE  10:    TRADE  AND  OTHER  PAYABLES   2015   $   2014   $   2,042,848   1,149,006   During  the  period,  iFly  Australia  Pty  Ltd  exercised  their  rights  under  the  Exclusive  Territory   Development  Agreement  to  invest  up  to  $1,000,000  in  a  subsidiary  of  the  Company,  Indoor  Skydiving   Gold  Coast  Pty  Ltd.  The  investment  has  been  agreed  to  be  set  off  against  amounts  owed  to  iFly   Australia  Pty  Ltd  for  the  purchase  of  equipment.  As  shares  in  the  subsidiary  have  not  yet  been  issued  a   non-­‐controlling  interest  in  the  Group  has  not  been  recognised  in  the  Group  balance  sheet  as  at  the   reporting  date  and  is  included  in  trade  payables  above.   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  11:    PROVISIONS  -­‐  CURRENT   Provision  for  Employee  Benefits   Opening  balance   Additional  provisions   Amounts  used   2015   $   2014   $   65,187   10,911   233,225   87,659   (188,729)   (33,383)   Closing  balance  –  Provision  for  employee  entitlements   109,683   65,187   Provisions  for  employee  benefits  represent  amounts  accrued  for  annual  leave.   The  current  portion  for  this  provision  includes  the  total  amount  accrued  for  annual  leave  entitlements  that  have  vested   due  to  employees  having  completed  the  required  period  of  service.  Based  on  past  experience,  the  Group  does  not  expect   the  full  amount  of  annual  leave  balances  classified  as  current  liabilities  to  be  settled  within  the  next  12  months.  However,   these  amounts  must  be  classified  as  current  liabilities  since  the  Group  does  not  have  an  unconditional  right  to  defer  the   settlement  of  these  amounts  in  the  event  employees  wish  to  use  their  leave  entitlement.   NOTE  12:    DEFERRED  REVENUE   Deferred  revenue   2015   $   2014   $   1,280,530   905,497   1,280,530   905,497   Deferred  revenue  primarily  represents  prepaid  sales  in  respect  of  flight  time  purchased  in  advance.    The   sales  will  be  released  to  revenue  at  the  time  the  services  are  rendered.   Trade  payables   1,602,493   601,450   Other  payables  and  accruals   440,355   547,556   NOTE  13:    BORROWINGS   Convertible  Note  Facility   The  Convertible  Note  Finance  Facility  (Facility)  between  the  Company  and  Birkdale  Holdings  (Qld)  Pty  Ltd  as  trustee  for   the  Baxter  Family  Trust  (Birkdale)  was  fully  repaid  on  13  November  2014,  prior  to  the  conversion  date  of  10  December   2014.  Pursuant  to  the  ASX  announcement  dated  11  June  2015,  the  facility  expired  on  10  June  2015  without  conversion.     Interest  was  paid  quarterly  at  10%  pa  on  the  drawn  amount  of  the  Facility  and  a  2%  line  fee  was  paid  on  the  undrawn   portion.    An  amount  of  $244,402  is  included  in  finance  expenses  for  the  period  in  relation  to  this  Facility.     Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   43   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   44   49 | 2015 Annual Report                                                                                                                       ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  14    ISSUED  CAPITAL   118,974,294  (2014:  87,305,666)  fully  paid  ordinary  shares   35,289,996   19,504,608   employees  would  become  entitled  to  exercise  the  performance  rights.   Share  issue  costs   (1,650,315)   (1,036,610)   c.   Capital  Management   2015   $   2014   $   Performance   rights   are   provided   to   certain   employees   (including   key   management   personnel)   via   the   Indoor   Skydive   Australia   Group   Limited   Performance   Rights   Plan.   The   fair   value   is   measured   at   grant   date   and   is   recognised   over   the   period   the   services   are   received,   which   is   the   expected   vesting   period   during   which   the   33,639,681   18,467,998   a.   Ordinary  Shares   2015     No.   2014   No.   At  the  beginning  of  the  reporting  period:   87,305,666   58,810,833   Shares  issued  during  the  year   - - Share  issues   Share  based  payments   28,907,492   28,262,333   2,761,136   232,500   NOTE  15:    CAPITAL  AND  LEASING  COMMITMENTS   a.   Operating  Lease  Commitments     At  the  end  of  the  reporting  period   118,974,294   87,305,666   During  the  year,  the  Company  undertook  a  rights  issue  to  raise  additional  capital.  The  issue  included  an   institutional  component  of  22,124,845  shares  and  a  retail  component  of  6,782,647  shares.  The   institutional  component  was  completed  on  3  November  2014,  and  the  retail  component  was  completed   on  27  November  2014.   b.   Performance  Rights   2015   $   2014   $   At  the  beginning  of  the  reporting  period:   4,962,264          -­‐   Performance  rights  issued  during  the  year   350,000   4,962,264   Performance  rights  lapsed  during  the  year   Performance  rights  exercised  during  the  year   (783,710)   (2,611,136)   -­‐   -­‐   At  the  end  of  the  reporting  period   1,917,418   4,962,264   If   all   of   the   above   performance   rights   vested   at   the   same   time,   they   would   represent   1.6%   of   the   total   issued   capital  of  the  Company.   As  disclosed  in  the  2014  report,  during  the  year  150,000  conditional  rights  were  also  issued  to  senior  employees.   50 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   45   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   46   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  14    ISSUED  CAPITAL  (CONT)    The   Board   controls   the   capital   of   the   Group   in   order   to   generate   long-­‐term   shareholder   value   and   to   ensure   that   the   Group   can   fund   its   operations   and   continue   as   a   going   concern.     The   Board   assesses   the   Group’s   capital   requirements   based   on   the   Company’s   stage   of   operations,   having   regard   to   available   debt   funding   and   equity   funding   and   seek   to   maintain  a  capital  structure  based  on  the  lowest  cost  of  capital  available  to  the  Group.    The  Board  achieves  this  through   the  management  of  debt  levels,  distributions  and  share  issues.   The  Group  is  not  subject  to  any  externally  imposed  capital  requirements.   There  have  been  no  changes  in  the  strategy  adopted  by  the  Company  to  manage  the  capital  of  the  Group  since  the  prior   year.    The  Group  does  not  currently  have  a  specific  strategy  in  respect  of  the  Group’s  gearing.     Non-­‐cancellable  operating  leases  contracted  for  but  not   recognised  in  the  financial  statements     Payable  –  minimum  lease  payments:   not  later  than  12  months     580,793   85,350   between  12  months  and  five  years     3,015,074   200,000   –     –     –     later  than  five  years     2015   $   2014   $   11,461,155   750,000   15,057,022   1,035,350   2015   $   2014   $   2,425,130   2,425,130   -­‐   -­‐   b.   Capital  Commitments     Subsidiary  capital  commitments  contracted  for  but  not   recognised  in  the  financial  statements       SkyVenture  (USD  1,862,500)   2015 Annual Report |                                                                                                                                             Share  issue  costs   (1,650,315)   (1,036,610)   c.   Capital  Management   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  14    ISSUED  CAPITAL  (CONT)   Performance   rights   are   provided   to   certain   employees   (including   key   management   personnel)   via   the   Indoor   Skydive   Australia   Group   Limited   Performance   Rights   Plan.   The   fair   value   is   measured   at   grant   date   and   is   recognised   over   the   period   the   services   are   received,   which   is   the   expected   vesting   period   during   which   the   employees  would  become  entitled  to  exercise  the  performance  rights.    The   Board   controls   the   capital   of   the   Group   in   order   to   generate   long-­‐term   shareholder   value   and   to   ensure   that   the   Group   can   fund   its   operations   and   continue   as   a   going   concern.     The   Board   assesses   the   Group’s   capital   requirements   based   on   the   Company’s   stage   of   operations,   having   regard   to   available   debt   funding   and   equity   funding   and   seek   to   maintain  a  capital  structure  based  on  the  lowest  cost  of  capital  available  to  the  Group.    The  Board  achieves  this  through   the  management  of  debt  levels,  distributions  and  share  issues.   The  Group  is  not  subject  to  any  externally  imposed  capital  requirements.   There  have  been  no  changes  in  the  strategy  adopted  by  the  Company  to  manage  the  capital  of  the  Group  since  the  prior   year.    The  Group  does  not  currently  have  a  specific  strategy  in  respect  of  the  Group’s  gearing.     28,907,492   28,262,333   2,761,136   232,500   NOTE  15:    CAPITAL  AND  LEASING  COMMITMENTS   a.   Operating  Lease  Commitments     2015   $   2014   $   Non-­‐cancellable  operating  leases  contracted  for  but  not   recognised  in  the  financial  statements     Payable  –  minimum  lease  payments:   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  14    ISSUED  CAPITAL   118,974,294  (2014:  87,305,666)  fully  paid  ordinary  shares   35,289,996   19,504,608   2015   $   2014   $   33,639,681   18,467,998   a.   Ordinary  Shares   2015     No.   2014   No.   At  the  beginning  of  the  reporting  period:   87,305,666   58,810,833   Shares  issued  during  the  year   Share  issues   - - Share  based  payments   At  the  end  of  the  reporting  period   118,974,294   87,305,666   During  the  year,  the  Company  undertook  a  rights  issue  to  raise  additional  capital.  The  issue  included  an   institutional  component  of  22,124,845  shares  and  a  retail  component  of  6,782,647  shares.  The   institutional  component  was  completed  on  3  November  2014,  and  the  retail  component  was  completed   on  27  November  2014.   b.   Performance  Rights   2015   $   2014   $   At  the  beginning  of  the  reporting  period:   4,962,264          -­‐   Performance  rights  issued  during  the  year   350,000   4,962,264   Performance  rights  lapsed  during  the  year   Performance  rights  exercised  during  the  year   (783,710)   (2,611,136)   -­‐   -­‐   At  the  end  of  the  reporting  period   1,917,418   4,962,264   If   all   of   the   above   performance   rights   vested   at   the   same   time,   they   would   represent   1.6%   of   the   total   issued   capital  of  the  Company.   As  disclosed  in  the  2014  report,  during  the  year  150,000  conditional  rights  were  also  issued  to  senior  employees.   b.   Capital  Commitments     Subsidiary  capital  commitments  contracted  for  but  not   recognised  in  the  financial  statements       SkyVenture  (USD  1,862,500)   11,461,155   750,000   15,057,022   1,035,350   2015   $   2014   $   2,425,130   2,425,130   -­‐   -­‐   not  later  than  12  months     580,793   85,350   between  12  months  and  five  years     3,015,074   200,000   later  than  five  years     –     –     –     Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   45   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   46   51 | 2015 Annual Report                                                                                                                                             ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  16:    CASH  FLOW  INFORMATION   Reconciliation  of  Cash  Flow  from  Operations  with  Loss  after   Income  Tax   2015   $   2014   $   Loss  after  income  tax     Non-­‐cash  flows  in  loss:   –     –     -­‐   -­‐   -­‐   Share  based  payments   Gain/loss  on  FX  revaluation   Unwind  of  make  good  discount   Depreciation  expense   Amortisation  expense   Changes  in  assets  and  liabilities:   (1,749,988)   (2,714,016)   1,423,122   1,243,779   (62,519)   (53,607)   70,259   53,607   467,968   225,214   473,754   315,616   (iv)   Other  related  parties:   –     –     -­‐   –     –     –     (increase)/decrease  in  trade  and  term  receivables   (666,185)   (77,811)   (increase)/decrease  in  prepaid  expenses   104,200   (79,960)   (increase)/decrease  in  deferred  tax  asset   216,342   (1,391,691)   increase/(decrease)  in  trade  payables  and  accruals   106,158   813,046   increase/(decrease)  in  unearned  revenue   379,493   905,497   increase/(decrease)  in  provisions   44,497   54,275   Cash  flow  used  in  operations   683,235   (582,185)   NOTE  17:    RELATED  PARTY  TRANSACTIONS   a.   The  Group’s  main  related  parties  are  as  follows: (i)   Entities  exercising  control  over  the  Group: There  is  no  ultimate  parent  entity  that  exercises  control  over  the  Group.     2014   199,261   1,500,000   52 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   47   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   48   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  17:    RELATED  PARTY  TRANSACTIONS  (CONT)   (ii)   Key  management  personnel:   Any  person(s)  having  authority  and  responsibility  for  planning,  directing  and  controlling  the  activities  of   the  entity,  directly  or  indirectly,  including  any  director  (whether  executive  or  otherwise)  of  that  entity,   are  considered  key  management  personnel.   For  details  of  disclosures  relating  to  key  management  personnel,  refer  to  the  Remuneration  Report.   (iii)   Entities  subject  to  significant  influence  by  the  Group:   An  entity  that  has  the  power  to  participate  in  the  financial  and  operating  policy  decisions  of  an  entity,   but  does  not  have  control  over  those  policies,  is  an  entity  which  holds  significant  influence.  Significant   influence  may  be  gained  by  share  ownership,  statute  or  agreement.  There  are  no  such  entities  in  the   Group.   - - Other  related  parties  include  entities  controlled  by  the  ultimate  parent  entity  and  entities  over  which   key  management  personnel  have  joint  control.   Birkdale  Holdings  (Qld)  Pty  Ltd  is  trustee  for  the  Baxter  Family  Trust  (Birkdale)  which  executed  a   Convertible   Note   Deed   on   10   December   2012.   The   facility   expired   on   10   June   2015   without   conversion.    Birkdale  is  a  company  associated  with  Stephen  Baxter,  a  Director  of  the  Company.   The  entities  disclosed  in  Note  8  are  100%  owned  subsidiary  companies  of  the  parent  entity.   b   Transactions  with  related  parties:   Balances   and   transactions   between   the   Company   and   its   subsidiaries,   which   are   related   parties   of   the   Company,   have   been   eliminated   on   consolidation   and   are   not   disclosed   in   this   Note.   Details   of   transactions   between  the  Group  and  other  related  parties  are  disclosed  below.   Transactions  between  related  parties  are  on  normal  commercial  terms  and  conditions  no  more  favourable  than   those   available   to   other   parties   unless   otherwise   stated.     The   following   table   provides   the   total   amount   of   transactions  that  have  been  entered  into  with  related  parties  for  the  financial  year:   Associates   Payments  to   Amounts  owed  to   related  parties   related  parties   Birkdale  Holdings  (Qld)  Pty  Ltd   2015   244,402   -­‐   The  amounts  outstanding  are  unsecured  and  will  be  settled  in  cash.  No  guarantees  have  been  given  or  received.   No   expense   has   been   recognised   in   the   current   or   prior   periods   for   bad   or   doubtful   debts   in   respect   of   the   amounts  owed  to  related  parties.    See  Note  13  for  other  terms  in  respect  of  the  amounts  owed  to  related  parties.   2015 Annual Report |                                                                                                                     2015   $   2014   $   (1,749,988)   (2,714,016)   1,423,122   1,243,779   (62,519)   (53,607)   70,259   53,607   467,968   225,214   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  16:    CASH  FLOW  INFORMATION   Income  Tax   Loss  after  income  tax     Non-­‐cash  flows  in  loss:   Share  based  payments   Gain/loss  on  FX  revaluation   Unwind  of  make  good  discount   Depreciation  expense   Amortisation  expense   Changes  in  assets  and  liabilities:   –     –     -­‐   -­‐   -­‐   –     –     -­‐   –     –     –     NOTE  17:    RELATED  PARTY  TRANSACTIONS   a.   The  Group’s  main  related  parties  are  as  follows: (i)   Entities  exercising  control  over  the  Group: (increase)/decrease  in  trade  and  term  receivables   (666,185)   (77,811)   (increase)/decrease  in  prepaid  expenses   104,200   (79,960)   (increase)/decrease  in  deferred  tax  asset   216,342   (1,391,691)   increase/(decrease)  in  trade  payables  and  accruals   106,158   813,046   increase/(decrease)  in  unearned  revenue   379,493   905,497   increase/(decrease)  in  provisions   44,497   54,275   Cash  flow  used  in  operations   683,235   (582,185)   Reconciliation  of  Cash  Flow  from  Operations  with  Loss  after   (ii)   Key  management  personnel:   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  17:    RELATED  PARTY  TRANSACTIONS  (CONT)   Any  person(s)  having  authority  and  responsibility  for  planning,  directing  and  controlling  the  activities  of   the  entity,  directly  or  indirectly,  including  any  director  (whether  executive  or  otherwise)  of  that  entity,   are  considered  key  management  personnel.   For  details  of  disclosures  relating  to  key  management  personnel,  refer  to  the  Remuneration  Report.   (iii)   Entities  subject  to  significant  influence  by  the  Group:   An  entity  that  has  the  power  to  participate  in  the  financial  and  operating  policy  decisions  of  an  entity,   but  does  not  have  control  over  those  policies,  is  an  entity  which  holds  significant  influence.  Significant   influence  may  be  gained  by  share  ownership,  statute  or  agreement.  There  are  no  such  entities  in  the   Group.   473,754   315,616   (iv)   Other  related  parties:   Other  related  parties  include  entities  controlled  by  the  ultimate  parent  entity  and  entities  over  which   key  management  personnel  have  joint  control.   - - Birkdale  Holdings  (Qld)  Pty  Ltd  is  trustee  for  the  Baxter  Family  Trust  (Birkdale)  which  executed  a   Convertible   Note   Deed   on   10   December   2012.   The   facility   expired   on   10   June   2015   without   conversion.    Birkdale  is  a  company  associated  with  Stephen  Baxter,  a  Director  of  the  Company.   The  entities  disclosed  in  Note  8  are  100%  owned  subsidiary  companies  of  the  parent  entity.   b   Transactions  with  related  parties:   Balances   and   transactions   between   the   Company   and   its   subsidiaries,   which   are   related   parties   of   the   Company,   have   been   eliminated   on   consolidation   and   are   not   disclosed   in   this   Note.   Details   of   transactions   between  the  Group  and  other  related  parties  are  disclosed  below.   Transactions  between  related  parties  are  on  normal  commercial  terms  and  conditions  no  more  favourable  than   those   available   to   other   parties   unless   otherwise   stated.     The   following   table   provides   the   total   amount   of   transactions  that  have  been  entered  into  with  related  parties  for  the  financial  year:   Associates   Payments  to   related  parties   Amounts  owed  to   related  parties   Birkdale  Holdings  (Qld)  Pty  Ltd   2015   244,402   -­‐   There  is  no  ultimate  parent  entity  that  exercises  control  over  the  Group.     2014   199,261   1,500,000   The  amounts  outstanding  are  unsecured  and  will  be  settled  in  cash.  No  guarantees  have  been  given  or  received.   No   expense   has   been   recognised   in   the   current   or   prior   periods   for   bad   or   doubtful   debts   in   respect   of   the   amounts  owed  to  related  parties.    See  Note  13  for  other  terms  in  respect  of  the  amounts  owed  to  related  parties.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   47   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   48   53 | 2015 Annual Report                                                                                                                     ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  18:    SHARE  BASED  PAYMENTS   The  following  Share  Based  Payments  were  expensed  during  the  period:   –    Net  amounts  credited  to  the  share  based  payment  reserve  (in  respect  of   performance  rights)   – Gailyon  Investments  Pty  Ltd(i)     73,125  FPO  shares   – Bruce  McLeary  (ii)   24,375  FPO  shares   2015   $   2014   $   1,423,122   1,198,869   -­‐   -­‐   33,683   11,227   1,423,122   1,243,779   i. ii. A  company  associated  with  Michael  Gordon  of  Gordon  Capital,  Financial  Advisor       Associate  of  Gordon  Capital,  Financial  Advisor   On  27  November  2013  shareholders  approved  the  Indoor  Skydive  Australia  Group  Limited  Performance  Rights   Plan  (Plan)  at  the  2013  Annual  General  Meeting.    The  Plan  allows  for  the  grant  of  performance  rights  to   Directors  and  employees  as  part  of  the  Company’s  remuneration  strategy.  The  performance  rights  carry   neither  rights  to  dividends,  nor  voting  rights  and  may  be  exercised  at  any  time  from  the  date  of  vesting  to  the   date  of  their  expiry.     Measurement  of  fair  values   (i) Equity-­‐Settled  Share-­‐Based  Payment  Arrangements   The  fair  value  of  equity  instruments  granted  under  the  Plan  has  been,  where  appropriate,  calculated   using  a  binominal  approximation  option  pricing  model.  Service  and  non-­‐market  performance   conditions  attached  to  the  approvals  or  grants  were  not  taken  into  account  in  determining  the  fair   value.   Where  performance  rights  that  were  immediately  exercised  were  granted,  the  fair  value  of  the  equity   instrument  was  calculated  with  reference  to  the  5  day  VWAP  of  IDZ  shares  on  the  transaction  date.   The  inputs  used  in  the  calculation  of  the  fair  value  at  grant  (or  approval)  date  of  the  Equity-­‐settled   share-­‐based  payments  were  as  follows:   27  November  2013   27  November  2013   7  July  2014   with  those  adopted  in  these  financial  statements.   Fair  Value  at  grant/approval  date   (weighted  average)   Share  Price  at  grant/approval  date   Exercise  Price   Expected  Volatility   Expected  life  (weighted  average   number  of  days)   Expected  dividends   Risk-­‐free  rate  (weighted  average)   5  day  VWAP   $0.59   $0.59   $0.00   50%   956   0%   2.95%   N/A   $0.59   $0.59   $0.00   50%   307   0%   2.69%   N/A   $0.68   $0.68   $0.00   50%   358   0%   2.58%   $0.68   54 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   49   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   50   The  number  and  weighted-­‐average  exercise  prices  of  equity  instruments  granted  under  the  Plan  were  as  follows:   Number  of  rights   Weighted-­‐average  exercise  price   4,962,264      350,000     (783,710)            (2,611,136)        1,917,418     0   0   0   0   0   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  18:    SHARE  BASED  PAYMENTS  (CONT)   Reconciliation  of  outstanding  share  options   Outstanding  at  30  June  2014   Granted  during  the  year   Forfeited  during  the  year   Exercised  during  the  year   Outstanding  as  at  30  June  2015   NOTE  19:    SEGMENT  INFORMATION   General  Information   Identification  of  reportable  segments   within  the  same  segment.   Types  of  Products  and  Services  by  Segment   The   Group’s   operations   are   in   one   business   segment   being   the   construction   and   operation   of   indoor   skydiving   facilities.    The  Group  operates  in  one  geographical  segment  being  Australia.  All  subsidiaries  in  the  Group  operate   The  products  and  services  will  include  a  number  of  indoor  skydiving  facilities  allowing  human  flight  within  a  safe   environment  used  by  tourists,  enthusiasts  and  military.   Basis  of  Accounting  for  Purposes  of  Reporting  by  Operating  Segments   Accounting  policies  adopted   Unless  stated  otherwise,  all  amounts  reported  to  the  Board  of  Directors,  being  the  chief  operating  decision  makers   with   respect   to   operating   segments,   are   determined   in   accordance   with   accounting   policies   that   are   consistent   NOTE  20:    FINANCIAL  RISK  MANAGEMENT   Financial  Risk  Management  Policies   The   Audit   and   Risk   Committee   (A&RC)   has   been   delegated   responsibility   by   the   Board   of   Directors   for,   among   other   issues,   managing   financial   risk   exposures   of   the   Group.   The   A&RC   monitors   the   Group’s   financial   risk   management  policies  and  exposures  and  approves  financial  transactions  within  the  scope  of  its  authority.  It  also   reviews  the  effectiveness  of  internal  controls  relating  to  commodity  price  risk,  counterparty  credit  risk,  currency   risk,  liquidity  risk  and  interest  rate  risk.    The  A&RC  meets  on  a  regular  basis  and  minutes  of  the  A&RC  are  reviewed   by  the  Board.   The   A&RC’s   overall   risk   management   strategy   seeks   to   assist   the   Group   in   meeting   its   financial   targets,   while   minimising   potential   adverse   effects   on   financial   performance.   Its   functions   include   the   review   of   the   use   of   hedging  derivative  instruments,  credit  risk  policies  and  future  cash  flow  requirements.   2015 Annual Report |                                             Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  18:    SHARE  BASED  PAYMENTS   The  following  Share  Based  Payments  were  expensed  during  the  period:   2015   $   2014   $   –    Net  amounts  credited  to  the  share  based  payment  reserve  (in  respect  of   1,423,122   1,198,869   performance  rights)   – Gailyon  Investments  Pty  Ltd(i)     73,125  FPO  shares   – Bruce  McLeary  (ii)   24,375  FPO  shares   -­‐   -­‐   33,683   11,227   1,423,122   1,243,779   i. ii. A  company  associated  with  Michael  Gordon  of  Gordon  Capital,  Financial  Advisor       Associate  of  Gordon  Capital,  Financial  Advisor   On  27  November  2013  shareholders  approved  the  Indoor  Skydive  Australia  Group  Limited  Performance  Rights   Plan  (Plan)  at  the  2013  Annual  General  Meeting.    The  Plan  allows  for  the  grant  of  performance  rights  to   Directors  and  employees  as  part  of  the  Company’s  remuneration  strategy.  The  performance  rights  carry   neither  rights  to  dividends,  nor  voting  rights  and  may  be  exercised  at  any  time  from  the  date  of  vesting  to  the   date  of  their  expiry.     Measurement  of  fair  values   (i) Equity-­‐Settled  Share-­‐Based  Payment  Arrangements   The  fair  value  of  equity  instruments  granted  under  the  Plan  has  been,  where  appropriate,  calculated   using  a  binominal  approximation  option  pricing  model.  Service  and  non-­‐market  performance   conditions  attached  to  the  approvals  or  grants  were  not  taken  into  account  in  determining  the  fair   value.   Where  performance  rights  that  were  immediately  exercised  were  granted,  the  fair  value  of  the  equity   instrument  was  calculated  with  reference  to  the  5  day  VWAP  of  IDZ  shares  on  the  transaction  date.   The  inputs  used  in  the  calculation  of  the  fair  value  at  grant  (or  approval)  date  of  the  Equity-­‐settled   share-­‐based  payments  were  as  follows:   27  November  2013   27  November  2013   7  July  2014   Fair  Value  at  grant/approval  date   (weighted  average)   Share  Price  at  grant/approval  date   Exercise  Price   Expected  Volatility   Expected  life  (weighted  average   number  of  days)   Expected  dividends   Risk-­‐free  rate  (weighted  average)   5  day  VWAP   $0.59   $0.59   $0.00   50%   956   0%   2.95%   N/A   $0.59   $0.59   $0.00   50%   307   0%   2.69%   N/A   $0.68   $0.68   $0.00   50%   358   0%   2.58%   $0.68   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   49   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  18:    SHARE  BASED  PAYMENTS  (CONT)   Reconciliation  of  outstanding  share  options   The  number  and  weighted-­‐average  exercise  prices  of  equity  instruments  granted  under  the  Plan  were  as  follows:   Number  of  rights   Weighted-­‐average  exercise  price   4,962,264      350,000     (783,710)            (2,611,136)        1,917,418     0   0   0   0   0   Outstanding  at  30  June  2014   Granted  during  the  year   Forfeited  during  the  year   Exercised  during  the  year   Outstanding  as  at  30  June  2015   NOTE  19:    SEGMENT  INFORMATION   General  Information   Identification  of  reportable  segments   The   Group’s   operations   are   in   one   business   segment   being   the   construction   and   operation   of   indoor   skydiving   facilities.    The  Group  operates  in  one  geographical  segment  being  Australia.  All  subsidiaries  in  the  Group  operate   within  the  same  segment.   Types  of  Products  and  Services  by  Segment   The  products  and  services  will  include  a  number  of  indoor  skydiving  facilities  allowing  human  flight  within  a  safe   environment  used  by  tourists,  enthusiasts  and  military.   Basis  of  Accounting  for  Purposes  of  Reporting  by  Operating  Segments   Accounting  policies  adopted   Unless  stated  otherwise,  all  amounts  reported  to  the  Board  of  Directors,  being  the  chief  operating  decision  makers   with   respect   to   operating   segments,   are   determined   in   accordance   with   accounting   policies   that   are   consistent   with  those  adopted  in  these  financial  statements.   NOTE  20:    FINANCIAL  RISK  MANAGEMENT   Financial  Risk  Management  Policies   The   Audit   and   Risk   Committee   (A&RC)   has   been   delegated   responsibility   by   the   Board   of   Directors   for,   among   other   issues,   managing   financial   risk   exposures   of   the   Group.   The   A&RC   monitors   the   Group’s   financial   risk   management  policies  and  exposures  and  approves  financial  transactions  within  the  scope  of  its  authority.  It  also   reviews  the  effectiveness  of  internal  controls  relating  to  commodity  price  risk,  counterparty  credit  risk,  currency   risk,  liquidity  risk  and  interest  rate  risk.    The  A&RC  meets  on  a  regular  basis  and  minutes  of  the  A&RC  are  reviewed   by  the  Board.   The   A&RC’s   overall   risk   management   strategy   seeks   to   assist   the   Group   in   meeting   its   financial   targets,   while   minimising   potential   adverse   effects   on   financial   performance.   Its   functions   include   the   review   of   the   use   of   hedging  derivative  instruments,  credit  risk  policies  and  future  cash  flow  requirements.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   50   55 | 2015 Annual Report                                             ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  20:  FINANCIAL  RISK  MANAGEMENT  (CONT)   b.   Liquidity  risk   following  mechanisms:   activities;   – using  derivatives  that  are  only  traded  in  highly  liquid  markets;   – monitoring  undrawn  credit  facilities;   – obtaining  funding  from  a  variety  of  sources;   – maintaining  a  reputable  credit  profile;   – managing  credit  risk  related  to  financial  assets;   only  investing  surplus  cash  with  major  financial  institutions;  and   comparing  the  maturity  profile  of  financial  liabilities  with  the  realisation  profile  of  financial  assets.   – – they  become  due.   The  table  below  reflects  an  undiscounted  contractual  maturity  analysis  for  financial  liabilities.   Cash  flows  realised  from  financial  assets  reflect  management’s  expectation  as  to  the  timing  of  realisation.   Actual  timing  may  therefore  differ  from  that  disclosed.  The  timing  of  cash  flows  presented  in  the  table  to   settle   financial   liabilities   reflects   the   earliest   contractual   settlement   dates   and   does   not   reflect   management’s  expectations  that  banking  facilities  will  be  rolled  forward.   NOTE  20:  FINANCIAL  RISK  MANAGEMENT  (CONT)   Specific  Financial  Risk  Exposures  and  Management   The  main  risks  the  Group  is  exposed  to  through  its  financial  instruments  are  credit  risk,  liquidity  risk  and  market   risk  consisting  of  interest  rate  risk,  foreign  currency  risk  and  other  price  risk  (commodity  and  equity  price  risk).   Liquidity  risk  arises  from  the  possibility  that  the  Group  might  encounter  difficulty  in  settling  its  debts  or   otherwise  meeting  its  obligations  related  to  financial  liabilities.    The  Group  manages  this  risk  through  the   There  have  been  no  substantive  changes  in  the  types  of  risks  the  Group  is  exposed  to,  how  these  risks  arise,  or  the   Board’s  objectives,  policies  and  processes  for  managing  or  measuring  the  risks  from  the  previous  period.   – preparing   forward-­‐looking   cash   flow   forecasts   in   relation   to   its   operating,   investing   and   financing   a.   Credit  risk   Exposure   to   credit   risk   relating   to   financial   assets   arises   from   the   potential   non-­‐performance   by   counter   parties  of  contract  obligations  that  could  lead  to  a  financial  loss  to  the  Group.   Risk   is   also   minimised   through   investing   surplus   funds   in   financial   institutions   that   maintain   a   high   credit   rating,  or  in  entities  that  the  A&RC  has  otherwise  assessed  as  being  financially  sound.       Credit  risk  exposures   The   maximum   exposure   to   credit   risk   by   class   of   recognised   financial   assets   at   the   end   of   the   reporting   period  excluding  the  value  of  any  collateral  or  other  security  held,  is  equivalent  to  the  carrying  amount  and   classification   of   those   financial   assets   (net   of   any   provisions)   as   presented   in   the   statement   of   financial   position.   No  collateral  is  held  by  the  Group  securing  receivables.   The  Group’s  policy  is  to  ensure  that  it  will  always  have  sufficient  cash  to  allow  it  to  meet  it  liabilities  when   The  Group  only  has  significant  concentrations  of  credit  risk  with  any  single  counterparty  in  the  form  of  its   bankers,  and  therefore  significant  credit  risk  exposures  to  Australia.  USD  amounts  under  purchase  contracts   are  expected  to  be  settled  after  the  reporting  period.   There  are  no  trade  and  other  receivables  that  are  past  due  nor  impaired.         Credit   risk   related   to   balances   with   banks   and   other   financial   institutions   is   managed   by   the   A&RC   in   accordance   with   approved   Board   policy.   Such   policy   requires   that   surplus   funds   are   only   invested   with   counterparties  with  a  Standard  &  Poor’s  rating  of  at  least  AA–.       The  following  table  provides  information  regarding  the  credit  risk  relating  to  cash  and  term  deposits  based   on  Standard  &  Poor’s  counterparty  credit  ratings.   Cash  and  Term  Deposits:   Cash  at  bank  and  on  hand   Term  deposits   AA-­‐  rated   56 2015   $   2014   $   4,321,619   1,117,249   1,325,556   300,278   5,647,175   1,417,527   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   51   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   52   2015 Annual Report |                                                                   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  20:  FINANCIAL  RISK  MANAGEMENT  (CONT)   b.   Liquidity  risk   Liquidity  risk  arises  from  the  possibility  that  the  Group  might  encounter  difficulty  in  settling  its  debts  or   otherwise  meeting  its  obligations  related  to  financial  liabilities.    The  Group  manages  this  risk  through  the   following  mechanisms:   – preparing   forward-­‐looking   cash   flow   forecasts   in   relation   to   its   operating,   investing   and   financing   activities;   – using  derivatives  that  are  only  traded  in  highly  liquid  markets;   – monitoring  undrawn  credit  facilities;   Risk   is   also   minimised   through   investing   surplus   funds   in   financial   institutions   that   maintain   a   high   credit   – obtaining  funding  from  a  variety  of  sources;   rating,  or  in  entities  that  the  A&RC  has  otherwise  assessed  as  being  financially  sound.       – maintaining  a  reputable  credit  profile;   – managing  credit  risk  related  to  financial  assets;   – – only  investing  surplus  cash  with  major  financial  institutions;  and   comparing  the  maturity  profile  of  financial  liabilities  with  the  realisation  profile  of  financial  assets.   The  Group’s  policy  is  to  ensure  that  it  will  always  have  sufficient  cash  to  allow  it  to  meet  it  liabilities  when   they  become  due.   The  table  below  reflects  an  undiscounted  contractual  maturity  analysis  for  financial  liabilities.   Cash  flows  realised  from  financial  assets  reflect  management’s  expectation  as  to  the  timing  of  realisation.   Actual  timing  may  therefore  differ  from  that  disclosed.  The  timing  of  cash  flows  presented  in  the  table  to   liabilities   reflects   the   earliest   contractual   settlement   dates   and   does   not   reflect   settle   financial   management’s  expectations  that  banking  facilities  will  be  rolled  forward.   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  20:  FINANCIAL  RISK  MANAGEMENT  (CONT)   Specific  Financial  Risk  Exposures  and  Management   The  main  risks  the  Group  is  exposed  to  through  its  financial  instruments  are  credit  risk,  liquidity  risk  and  market   risk  consisting  of  interest  rate  risk,  foreign  currency  risk  and  other  price  risk  (commodity  and  equity  price  risk).   There  have  been  no  substantive  changes  in  the  types  of  risks  the  Group  is  exposed  to,  how  these  risks  arise,  or  the   Board’s  objectives,  policies  and  processes  for  managing  or  measuring  the  risks  from  the  previous  period.   a.   Credit  risk   Exposure   to   credit   risk   relating   to   financial   assets   arises   from   the   potential   non-­‐performance   by   counter   parties  of  contract  obligations  that  could  lead  to  a  financial  loss  to  the  Group.   Credit  risk  exposures   position.   The   maximum   exposure   to   credit   risk   by   class   of   recognised   financial   assets   at   the   end   of   the   reporting   period  excluding  the  value  of  any  collateral  or  other  security  held,  is  equivalent  to  the  carrying  amount  and   classification   of   those   financial   assets   (net   of   any   provisions)   as   presented   in   the   statement   of   financial   No  collateral  is  held  by  the  Group  securing  receivables.   The  Group  only  has  significant  concentrations  of  credit  risk  with  any  single  counterparty  in  the  form  of  its   bankers,  and  therefore  significant  credit  risk  exposures  to  Australia.  USD  amounts  under  purchase  contracts   are  expected  to  be  settled  after  the  reporting  period.   There  are  no  trade  and  other  receivables  that  are  past  due  nor  impaired.         Credit   risk   related   to   balances   with   banks   and   other   financial   institutions   is   managed   by   the   A&RC   in   accordance   with   approved   Board   policy.   Such   policy   requires   that   surplus   funds   are   only   invested   with   counterparties  with  a  Standard  &  Poor’s  rating  of  at  least  AA–.       The  following  table  provides  information  regarding  the  credit  risk  relating  to  cash  and  term  deposits  based   on  Standard  &  Poor’s  counterparty  credit  ratings.   Cash  and  Term  Deposits:   Cash  at  bank  and  on  hand   Term  deposits   AA-­‐  rated   2015   $   2014   $   4,321,619   1,117,249   1,325,556   300,278   5,647,175   1,417,527   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   51   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   52   57 | 2015 Annual Report                                                                   ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   Most  of  the  Group’s  transactions  are  carried  out  in  AUD.  Exposures  to  currency  exchange  rates   primarily   arise   from   the   purchase   of   vertical   wind   tunnel   equipment   from   SkyVenture   International,   which   is   denominated   in   US   dollars.   Further,   the   Group   has   USD   cash,   which   is   used  to  fund  the  purchase  of  vertical  wind  tunnel  equipment  in  the  United  States.     To   mitigate   the   Group’s   exposure   to   foreign   currency   risk,   non-­‐AUD   cash   flows   are   monitored   and   forward   exchange   contracts   are   entered   into   in   accordance   with   the   Group’s   risk   management  policies.  Forward  exchange  contracts  are  mainly  entered  into  for  significant  long-­‐ term   foreign   currency   exposures   that   are   not   expected   to   be   offset   by   other   currency   transactions.    Exposure  to  foreign  exchange  risk  may  result  in  the  fair  value  or  future  cash  flows   of  a  financial  instrument  fluctuating  due  to  movement  in  foreign  exchange  rates  of  currencies  in   which  the  Group  holds  financial  instruments  which  are  other  than  the  AUD  functional  currency   of  the  Group.   (iii)   Other  price  risk   Other   price   risk   relates   to   the   risk   that   the   fair   value   or   future   cash   flows   of   a   financial   instrument  will  fluctuate  because  of  changes  in  market  prices  largely  due  to  demand  and  supply   factors  (other  than  those  arising  from  interest  rate  risk  or  currency  risk)  for  commodities.   The  Group  is  not  exposed  to  commodity  price  risk.  The  Group  is  not  exposed  to  securities  price   risk  on  investments  held  for  trading  over  the  medium  to  longer  terms.   Sensitivity  analysis   reasonably  possible.   variables.   The  following  table  illustrates  sensitivities  to  the  Group’s  exposures  to  changes  in  interest  rates,   and  exchange  rates.  In  respect  of  the  exchange  rates,  the  table  summarises  the  sensitivity  of  the   balance  of  financial  instruments  held  at  the  reporting  date  to  movement  in  the  exchange  rate  of   the  US  dollar  to  the  Australian  dollar,  with  all  other  variables  held  constant.    The  table  indicates   the  impact  on  how  profit  and  equity  values  reported  at  the  end  of  the  reporting  period  would   have   been   affected   by   changes   in   the   relevant   risk   variable   that   management   considers   to   be   These   sensitivities   assume   that   the   movement   in   a   particular   variable   is   independent   of   other   NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   Financial  liability  and  financial  asset  maturity  analysis  for  the  Consolidated  Group.     (ii)   Foreign  exchange  risk   Within  1  Year   2015   2014   1  to  5  Years   2015   2014   Over  5  Years   2015   2014   Total   2015   2014   $   $   $   $   $   $   $   $   -­‐   1,500,000   1,042,848   1,149,006   1,042,848   2,649,006   1,042,848   2,649,006   4,321,619   1,117,249   1,325,556   826,165   300,278   219,120   6,473,340   1,636,647   5,430,492  (1,012,359)   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   1,042,848   1,500,000   1,149,006   1,042,848   2,649,006   1,042,848   2,649,006   4,321,619   1,117,249   1,325,556   826,165   300,278   219,120   6,473,340   1,636,647   5,430,492   (1,012,359)   Financial   liabilities  due  for   payment   Borrowings   Trade  and  other   payables     Total  contractual   outflows   Total  expected   outflows   Financial  assets   –  cash  flows   realisable   Cash  and  cash   equivalents   Term  deposits   Trade  and  other   receivables   Total  anticipated   inflows     Net  inflow  on   financial   instruments   c.   Market  risk   (i)   Interest  rate  risk   Exposure  to  interest  rate  risk  arises  on  financial  assets  and  financial  liabilities  recognised  at  the   end   of   the   reporting   period   whereby   a   future   change   in   interest   rates   will   affect   future   cash   flows  or  the  fair  value  of  fixed  rate  financial  instruments.  The  Group  is  not  exposed  to  earnings   volatility  on  floating  rate  instruments.   The   financial   instruments   that   primarily   expose   the   Group   to   interest   rate   risk   are   borrowings,   cash  and  cash  equivalents  and  term  deposits.     Interest  rate  risk  is  managed  using  a  mix  of  fixed  and  floating  rate  debt,  if  required.  At  30  June   2015,  the  group  is  free  of  all  funding  related  debt.     58 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   53   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   54   2015 Annual Report |                                                                                                                         Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   Financial  liability  and  financial  asset  maturity  analysis  for  the  Consolidated  Group.     (ii)   Foreign  exchange  risk   Within  1  Year   1  to  5  Years   Over  5  Years   Total   2015   2014   2015   2014   2015   2014   2015   2014   $   $   $   $   $   $   $   $   Financial   liabilities  due  for   payment   Borrowings   payables     outflows   outflows   Financial  assets   –  cash  flows   realisable   Cash  and  cash   equivalents   Term  deposits   Trade  and  other   receivables   inflows     Net  inflow  on   financial   instruments   Trade  and  other   1,042,848   1,149,006   -­‐   1,500,000   Total  contractual   1,042,848   2,649,006   Total  expected   1,042,848   2,649,006   4,321,619   1,117,249   1,325,556   300,278   826,165   219,120   Total  anticipated   6,473,340   1,636,647   5,430,492  (1,012,359)   c.   Market  risk   (i)   Interest  rate  risk   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   -­‐   1,500,000   1,149,006   1,042,848   1,042,848   2,649,006   1,042,848   2,649,006   4,321,619   1,117,249   1,325,556   826,165   300,278   219,120   6,473,340   1,636,647   5,430,492   (1,012,359)   Exposure  to  interest  rate  risk  arises  on  financial  assets  and  financial  liabilities  recognised  at  the   end   of   the   reporting   period   whereby   a   future   change   in   interest   rates   will   affect   future   cash   flows  or  the  fair  value  of  fixed  rate  financial  instruments.  The  Group  is  not  exposed  to  earnings   volatility  on  floating  rate  instruments.   The   financial   instruments   that   primarily   expose   the   Group   to   interest   rate   risk   are   borrowings,   cash  and  cash  equivalents  and  term  deposits.     Interest  rate  risk  is  managed  using  a  mix  of  fixed  and  floating  rate  debt,  if  required.  At  30  June   2015,  the  group  is  free  of  all  funding  related  debt.     Most  of  the  Group’s  transactions  are  carried  out  in  AUD.  Exposures  to  currency  exchange  rates   primarily   arise   from   the   purchase   of   vertical   wind   tunnel   equipment   from   SkyVenture   International,   which   is   denominated   in   US   dollars.   Further,   the   Group   has   USD   cash,   which   is   used  to  fund  the  purchase  of  vertical  wind  tunnel  equipment  in  the  United  States.     To   mitigate   the   Group’s   exposure   to   foreign   currency   risk,   non-­‐AUD   cash   flows   are   monitored   and   forward   exchange   contracts   are   entered   into   in   accordance   with   the   Group’s   risk   management  policies.  Forward  exchange  contracts  are  mainly  entered  into  for  significant  long-­‐ term   foreign   currency   exposures   that   are   not   expected   to   be   offset   by   other   currency   transactions.    Exposure  to  foreign  exchange  risk  may  result  in  the  fair  value  or  future  cash  flows   of  a  financial  instrument  fluctuating  due  to  movement  in  foreign  exchange  rates  of  currencies  in   which  the  Group  holds  financial  instruments  which  are  other  than  the  AUD  functional  currency   of  the  Group.   (iii)   Other  price  risk   Other   price   risk   relates   to   the   risk   that   the   fair   value   or   future   cash   flows   of   a   financial   instrument  will  fluctuate  because  of  changes  in  market  prices  largely  due  to  demand  and  supply   factors  (other  than  those  arising  from  interest  rate  risk  or  currency  risk)  for  commodities.   The  Group  is  not  exposed  to  commodity  price  risk.  The  Group  is  not  exposed  to  securities  price   risk  on  investments  held  for  trading  over  the  medium  to  longer  terms.   Sensitivity  analysis   The  following  table  illustrates  sensitivities  to  the  Group’s  exposures  to  changes  in  interest  rates,   and  exchange  rates.  In  respect  of  the  exchange  rates,  the  table  summarises  the  sensitivity  of  the   balance  of  financial  instruments  held  at  the  reporting  date  to  movement  in  the  exchange  rate  of   the  US  dollar  to  the  Australian  dollar,  with  all  other  variables  held  constant.    The  table  indicates   the  impact  on  how  profit  and  equity  values  reported  at  the  end  of  the  reporting  period  would   have   been   affected   by   changes   in   the   relevant   risk   variable   that   management   considers   to   be   reasonably  possible.   These   sensitivities   assume   that   the   movement   in   a   particular   variable   is   independent   of   other   variables.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   53   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   54   59 | 2015 Annual Report                                                                                                                         ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   Year  ended  30  June  2015   +/–1%  in  interest  rates   Profit   $   Equity   $   56,472   56,472   +/–10%  in  devaluation  of  the  AUD   24   24   Year  ended  30  June  2014   +/–1%  in  interest  rates   +/–10%  in  devaluation  of  the  AUD   14,175   86,762   14,175   86,762   There  have  been  no  changes  in  any  of  the  methods  or  assumptions  used  to  prepare  the  above  sensitivity  analysis   from  the  prior  year.  These  movements  are  considered  to  be  reasonably  possible  based  on  observation  of  current   market  conditions.     Fair  Values   Fair  value  estimation   The  fair  values  of  financial  assets  and  financial  liabilities  are  presented  in  the  following  table  and  can  be  compared   to  their  carrying  amounts  as  presented  in  the  statement  of  financial  position.    Fair  value  is  the  amount  at  which  an   asset   could   be   exchanged,   or   a   liability   settled,   between   knowledgeable,   willing   parties   in   an   arm’s   length   transaction.     Fair   values   derived   may   be   based   on   information   that   is   estimated   or   subject   to   judgment,   where   changes   in   assumptions   may   have   a   material   impact   on   the   amounts   estimated.     Areas   of   judgement   and   the   assumptions   have  been  detailed  below.    Where  possible,  valuation  information  used  to  calculate  fair  value  is  extracted  from  the   market,  with  more  reliable  information  available  from  markets  that  are  actively  traded.    In  this  regard,  fair  values   for   listed   securities   are   obtained   from   quoted   market   bid   prices.     Where   securities   are   unlisted   and   no   market   quotes   are   available,   fair   value   is   obtained   using   discounted   cash   flow   analysis   and   other   valuation   techniques   commonly  used  by  market  participants.   Differences  between  fair  values  and  carrying  amounts  of  financial  instruments  with  fixed  interest  rates  are  due  to   the  change  in  discount  rates  being  applied  by  the  market  since  their  initial  recognition  by  the  Group.       Most  of  these  instruments,  which  are  carried  at  amortised  cost  (i.e.  term  receivables,  held-­‐to-­‐maturity  assets,  loan   liabilities),  are  to  be  held  until  maturity  and  therefore  the  fair  value  figures  calculated  bear  little  relevance  to  the   Group.       60 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   55   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   56   Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   2015   2014   Consolidated  Group   Note   Carrying  Amount     Fair  Value     $   $   Carrying   Amount   $   Fair  Value     $   Financial  assets   Cash  and  cash  equivalents   4,321,619   4,321,619   1,117,249   1,117,249   Term  deposits   1,325,556   1,325,556   300,278   300,278   Trade  and  other  receivables   826,165   826,165   219,120   219,120   Total  financial  assets   6,473,340   6,473,340   1,636,647   1,636,647   Financial  liabilities   Trade  and  other  payables   2,042,848   2,042,848   1,149,006   1,149,006   Borrowings   -­‐   -­‐   1,500,000   1,500,000   Total  financial  liabilities   2,042,848   2,042,848   2,649,006   2,649,006   (i)   (i)   (i)   (i)   (iii)   The  fair  values  disclosed  in  the  above  table  have  been  determined  based  on  the  following  methodologies:   (i) Cash   and   cash   equivalents,   term   deposits,   trade   and   other   receivables,   and   trade   and   other   payables   are   short-­‐term   instruments   in   nature   whose   carrying   amount   is   equivalent   to   fair   value.    Trade  and  other  payables  exclude  amounts  provided  for  annual  leave,  which  is  outside   the  scope  of  AASB  139.     (ii) Convertible  Note  Finance  Facility  fair  value  approximates  carrying  amount.   NOTE    21:  AUDITOR’S  REMUNERATION   Remuneration  of  the  auditor  for:   –     Audit  fees   –     Half  year  review   –   Taxation  compliance   –     Other  advisory  services   2015   $   2014   $   45,000   40,000   22,000   18,807   7,500   2,340   -­‐   2,400   76,840   61,207   2015 Annual Report |                                                                 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   Profit   Equity   NOTE  20:    FINANCIAL  RISK  MANAGEMENT  (CONT)   56,472   56,472   $   24   $   24   14,175   86,762   14,175   86,762   Year  ended  30  June  2015   +/–1%  in  interest  rates   +/–10%  in  devaluation  of  the  AUD   Year  ended  30  June  2014   +/–1%  in  interest  rates   +/–10%  in  devaluation  of  the  AUD   market  conditions.     Fair  Values   Fair  value  estimation   transaction.     There  have  been  no  changes  in  any  of  the  methods  or  assumptions  used  to  prepare  the  above  sensitivity  analysis   from  the  prior  year.  These  movements  are  considered  to  be  reasonably  possible  based  on  observation  of  current   The  fair  values  of  financial  assets  and  financial  liabilities  are  presented  in  the  following  table  and  can  be  compared   to  their  carrying  amounts  as  presented  in  the  statement  of  financial  position.    Fair  value  is  the  amount  at  which  an   asset   could   be   exchanged,   or   a   liability   settled,   between   knowledgeable,   willing   parties   in   an   arm’s   length   Fair   values   derived   may   be   based   on   information   that   is   estimated   or   subject   to   judgment,   where   changes   in   assumptions   may   have   a   material   impact   on   the   amounts   estimated.     Areas   of   judgement   and   the   assumptions   have  been  detailed  below.    Where  possible,  valuation  information  used  to  calculate  fair  value  is  extracted  from  the   market,  with  more  reliable  information  available  from  markets  that  are  actively  traded.    In  this  regard,  fair  values   for   listed   securities   are   obtained   from   quoted   market   bid   prices.     Where   securities   are   unlisted   and   no   market   quotes   are   available,   fair   value   is   obtained   using   discounted   cash   flow   analysis   and   other   valuation   techniques   commonly  used  by  market  participants.   Differences  between  fair  values  and  carrying  amounts  of  financial  instruments  with  fixed  interest  rates  are  due  to   the  change  in  discount  rates  being  applied  by  the  market  since  their  initial  recognition  by  the  Group.       Most  of  these  instruments,  which  are  carried  at  amortised  cost  (i.e.  term  receivables,  held-­‐to-­‐maturity  assets,  loan   liabilities),  are  to  be  held  until  maturity  and  therefore  the  fair  value  figures  calculated  bear  little  relevance  to  the   Group.       Consolidated  Group   Note   Financial  assets   Cash  and  cash  equivalents   Term  deposits   Trade  and  other  receivables   Total  financial  assets   Financial  liabilities   Trade  and  other  payables   Borrowings   (i)   (i)   (i)   (i)   (iii)   2015   2014   Carrying  Amount     $   Fair  Value     $   Carrying   Amount   $   Fair  Value     $   4,321,619   4,321,619   1,117,249   1,117,249   1,325,556   1,325,556   300,278   300,278   826,165   826,165   219,120   219,120   6,473,340   6,473,340   1,636,647   1,636,647   2,042,848   2,042,848   1,149,006   1,149,006   -­‐   -­‐   1,500,000   1,500,000   Total  financial  liabilities   2,042,848   2,042,848   2,649,006   2,649,006   The  fair  values  disclosed  in  the  above  table  have  been  determined  based  on  the  following  methodologies:   (i) Cash   and   cash   equivalents,   term   deposits,   trade   and   other   receivables,   and   trade   and   other   payables   are   short-­‐term   instruments   in   nature   whose   carrying   amount   is   equivalent   to   fair   value.    Trade  and  other  payables  exclude  amounts  provided  for  annual  leave,  which  is  outside   the  scope  of  AASB  139.     (ii) Convertible  Note  Finance  Facility  fair  value  approximates  carrying  amount.   NOTE    21:  AUDITOR’S  REMUNERATION   Remuneration  of  the  auditor  for:   –     Audit  fees   –     Half  year  review   –   Taxation  compliance   –     Other  advisory  services   2015   $   2014   $   45,000   40,000   22,000   18,807   7,500   2,340   -­‐   2,400   76,840   61,207   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   55   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   56   61 | 2015 Annual Report                                                                 ended 30 June 2015 Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTES TO THE FINANCIAL STATEMENTS For the year Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  24:    CONTINGENT  LIABILITIES   As  disclosed  in  Note  1(r)  (ii)  and  Note  7,  the  terms  of  the  Penrith  Lease  were  negotiated  with  the  signing  a  the  new   Deed  with  the  landlord,  Penrith  Rugby  League  Club  Limited.    The  requirement  to  make  good  the  premises  is  now   subject  to  Landlord's  discretion.  Management  and  the  Directors  have  considered  the  new  terms  of  the  lease  and   have  exercised  their  judgement  in  determining  that  the  landlord  is  unlikely  to  exercise  their  rights  to  require  the   Company  to  make  good  the  facility  in  Penrith.  For  the  prior  corresponding  period,  the  Group  had  an  obligation  to   remove  all  building  works  on  expiry  of  the  lease.  To  this  extent,  an  estimate  of  the  cost  to  remove  the  VWT  and  its   related  Building  Infrastructure  was  determined  to  be  $2,144,290  for  the  year  ended  30  June  2014.  This  liability  is   now  contingent  on  the  Landlord  exercising  their  rights  and  requiring  the  Group  to  make  good  the  premises.   The  Group  does  not  have  any  other  contingent  liabilities  at  the  reporting  date.     NOTE  22:    EARNINGS  PER  SHARE   Earnings  per  share  (cents  per  share)   From  continuing  operations:   - basic  earnings  per  share   - diluted  earnings  per  share   2015   Cents   (1.63)   (1.63)   2015   $   2014   Cents   (3.45)   (3.45)   2014   $   a.   Reconciliation  of  earnings  to  profit  or  loss:   Profit   (1,749,988)   (2,714,016)   Earnings  used  to  calculate  basic  EPS   (1,749,988)   (2,714,016)     Earnings  used  in  the  calculation  of  dilutive  EPS   (1,749,988)   (2,714,016)   b.   Weighted  average  number  of  ordinary  shares  outstanding  during   the  year  used  in  calculating  basic  EPS   Weighted  average  number  of  dilutive  performance  rights   outstanding   Weighted  average  number  of  ordinary  shares  outstanding  during   the  year  used  in  calculating  dilutive  EPS   No.   No.   107,101,112   78,666,583   -­‐   -­‐   107,101,112   78,666,583   During  the  year,  350,000  performance  rights  were  granted  to  employees  (including  key  management  personnel)   under  the  performance  rights  plan.  These  rights  are  considered  to  be  potential  ordinary  shares,  and  have  not  been   included  in  the  determination  of  basic  earnings  per  share.  The  performance  rights  have  not  been  included  in  the   diluted  earnings  per  share  calculation  as  they  are  considered  to  be  contingently  issuable  potential  ordinary  shares   and  their  issue  is  contingent  upon  specified  conditions  in  addition  to  the  passage  of  time.  Details  relating  to  the   performance  rights  are  set  out  in  Note  15.   NOTE  23:    EVENTS  AFTER  REPORTING  DATE     No   matters   or   circumstances   have   arisen   since   the   end   of   the   financial   year   which   significantly   affected   or   may   significantly  affect  the  operations  of  the  consolidated  group,  the  results  of  those  operations,  or  the  state  of  affairs   of  the  consolidated  group  in  future  financial  years.   62 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   57   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   58   2015 Annual Report |                                                                           NOTES TO THE FINANCIAL STATEMENTS Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   For the year ended 30 June 2015 NOTE  24:    CONTINGENT  LIABILITIES   As  disclosed  in  Note  1(r)  (ii)  and  Note  7,  the  terms  of  the  Penrith  Lease  were  negotiated  with  the  signing  a  the  new   Deed  with  the  landlord,  Penrith  Rugby  League  Club  Limited.    The  requirement  to  make  good  the  premises  is  now   subject  to  Landlord's  discretion.  Management  and  the  Directors  have  considered  the  new  terms  of  the  lease  and   have  exercised  their  judgement  in  determining  that  the  landlord  is  unlikely  to  exercise  their  rights  to  require  the   Company  to  make  good  the  facility  in  Penrith.  For  the  prior  corresponding  period,  the  Group  had  an  obligation  to   remove  all  building  works  on  expiry  of  the  lease.  To  this  extent,  an  estimate  of  the  cost  to  remove  the  VWT  and  its   related  Building  Infrastructure  was  determined  to  be  $2,144,290  for  the  year  ended  30  June  2014.  This  liability  is   now  contingent  on  the  Landlord  exercising  their  rights  and  requiring  the  Group  to  make  good  the  premises.   The  Group  does  not  have  any  other  contingent  liabilities  at  the  reporting  date.     Notes  to  the  Financial  Statements   For  the  year  ended  30  June  2015   NOTE  22:    EARNINGS  PER  SHARE   Earnings  per  share  (cents  per  share)   From  continuing  operations:   basic  earnings  per  share   diluted  earnings  per  share   - - 2015   Cents   (1.63)   (1.63)   2015   $   2014   Cents   (3.45)   (3.45)   2014   $   a.   Reconciliation  of  earnings  to  profit  or  loss:   Profit   (1,749,988)   (2,714,016)   Earnings  used  to  calculate  basic  EPS   (1,749,988)   (2,714,016)     Earnings  used  in  the  calculation  of  dilutive  EPS   (1,749,988)   (2,714,016)   No.   No.   b.   Weighted  average  number  of  ordinary  shares  outstanding  during   107,101,112   78,666,583   Weighted  average  number  of  dilutive  performance  rights   -­‐   -­‐   Weighted  average  number  of  ordinary  shares  outstanding  during   107,101,112   78,666,583   the  year  used  in  calculating  basic  EPS   outstanding   the  year  used  in  calculating  dilutive  EPS   During  the  year,  350,000  performance  rights  were  granted  to  employees  (including  key  management  personnel)   under  the  performance  rights  plan.  These  rights  are  considered  to  be  potential  ordinary  shares,  and  have  not  been   included  in  the  determination  of  basic  earnings  per  share.  The  performance  rights  have  not  been  included  in  the   diluted  earnings  per  share  calculation  as  they  are  considered  to  be  contingently  issuable  potential  ordinary  shares   and  their  issue  is  contingent  upon  specified  conditions  in  addition  to  the  passage  of  time.  Details  relating  to  the   performance  rights  are  set  out  in  Note  15.   NOTE  23:    EVENTS  AFTER  REPORTING  DATE     No   matters   or   circumstances   have   arisen   since   the   end   of   the   financial   year   which   significantly   affected   or   may   significantly  affect  the  operations  of  the  consolidated  group,  the  results  of  those  operations,  or  the  state  of  affairs   of  the  consolidated  group  in  future  financial  years.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   57   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   58   63 | 2015 Annual Report                                                                           DIRECTORS’ DECLARATION   For the year ended 30 June 2015 Directors’  Declaration   For  the  year  ended  30  June  2015   In   accordance   with   a   resolution   of   the   directors   of     Indoor   Skydive   Australia   Group   Limited,   the  Directors   of   the   Company  declare  that:   1.   The  financial  statements  and  notes,  as  set  out  on  pages  23  to  63,  are  in  accordance  with  the  Corporations   Act  2001  and:   a.   b.   comply   with   Australian   Accounting   Standards,   which,   as   stated   in   accounting   policy   Note   1   to   the   financial  statements,  constitutes  compliance  with  International  Financial  Reporting  Standards  (IFRS);   and   give  a  true  and  fair  view  of  the  financial  position  as  at  30  June  2015  and  of  the  performance  for  the   year  ended  on  that  date  of  the  consolidated  group;   2.   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;  and   3.   The  Directors  have  been  given  the  declarations  required  by  s  295A  of  the  Corporations  Act  2001.   Ken  Gillespie   Chairman   25  August  2015   Sydney   Wayne  Jones   Director  &  Chief  Executive  Officer   64 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   59   2015 Annual Report |                               INDEPENDENT AUDITORS REPORT Directors’  Declaration   For  the  year  ended  30  June  2015   Company  declare  that:   Act  2001  and:   and   In   accordance   with   a   resolution   of   the   directors   of     Indoor   Skydive   Australia   Group   Limited,   the  Directors   of   the   1.   The  financial  statements  and  notes,  as  set  out  on  pages  23  to  63,  are  in  accordance  with  the  Corporations   a.   comply   with   Australian   Accounting   Standards,   which,   as   stated   in   accounting   policy   Note   1   to   the   financial  statements,  constitutes  compliance  with  International  Financial  Reporting  Standards  (IFRS);   b.   give  a  true  and  fair  view  of  the  financial  position  as  at  30  June  2015  and  of  the  performance  for  the   year  ended  on  that  date  of  the  consolidated  group;   2.   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;  and   3.   The  Directors  have  been  given  the  declarations  required  by  s  295A  of  the  Corporations  Act  2001.   Ken  Gillespie   Chairman   25  August  2015   Sydney   Wayne  Jones   Director  &  Chief  Executive  Officer   Indoor  Skydive  Australia  Group  Limited   59   2015  Annual  Report   65 | 2015 Annual Report                                 INDEPENDENT AUDITORS REPORT Additional  Information   The  following  information  is  current  as  at  11  August  2015:   1.   Shareholder  Information   Distribution  of  Shareholders   Category  (size  of  holding):   Number   Ordinary  Shares   1  –  1,000   1,001  –  5,000   5,001  –  10,000   10,001  –  100,000   100,001  and  over   37   124   86   258   59   564   23,381   326,674   731,933   8,460,744   109,866,562   119,409,294   The  number  of  shareholdings  held  in  less  than  marketable  parcels  is  47.   The  names  of  the  substantial  shareholders  listed  in  the  holding  company’s  register  are:     Shareholder:   Number  Of  Shares   %  of  Issued  Capital   Birkdale  Holdings  (QLD)  Pty  Ltd   Excalib-­‐Air  Pty  Ltd   Acorn  Capital  Limited   17,000,001   16,060,000   10,000,000   Greencape  Capital  Pty  Ltd  and  Challenger  Limited   9,648,000   LHC  Capital  Partners  Pty  Ltd   7,370,000   Paradice  Investment  Management  Pty  Ltd   7,462,929   14.48   13.68   9.04   8.22   6.66   6.25   Voting  Rights   ISA  Group  only  has  ordinary  shares  on  issue.  The  voting  rights  attached  to  each  ordinary  share  is  one   vote  per  share  when  a  poll  is  called,  otherwise  each  member  present  at  a  meeting  or  by  proxy  has  one   vote  on  a  show  of  hands.   66 Indoor  Skydive  Australia  Group  Limited   62   2015  Annual  Report   2015 Annual Report |                                                                                   Additional  Information   ADDITIONAL INFORMATION The  following  information  is  current  as  at  11  August  2015:   1.   Shareholder  Information   Distribution  of  Shareholders   Category  (size  of  holding):   Number   Ordinary  Shares   1  –  1,000   1,001  –  5,000   5,001  –  10,000   10,001  –  100,000   100,001  and  over   37   124   86   258   59   564   23,381   326,674   731,933   8,460,744   109,866,562   119,409,294   The  number  of  shareholdings  held  in  less  than  marketable  parcels  is  47.   The  names  of  the  substantial  shareholders  listed  in  the  holding  company’s  register  are:     Shareholder:   Number  Of  Shares   %  of  Issued  Capital   Birkdale  Holdings  (QLD)  Pty  Ltd   Excalib-­‐Air  Pty  Ltd   Acorn  Capital  Limited   17,000,001   16,060,000   10,000,000   Greencape  Capital  Pty  Ltd  and  Challenger  Limited   9,648,000   LHC  Capital  Partners  Pty  Ltd   7,370,000   Paradice  Investment  Management  Pty  Ltd   7,462,929   14.48   13.68   9.04   8.22   6.66   6.25   Voting  Rights   ISA  Group  only  has  ordinary  shares  on  issue.  The  voting  rights  attached  to  each  ordinary  share  is  one   vote  per  share  when  a  poll  is  called,  otherwise  each  member  present  at  a  meeting  or  by  proxy  has  one   vote  on  a  show  of  hands.   Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   67 62   | 2015 Annual Report                                                                                   Additional  Information   ADDITIONAL INFORMATION Additional  Information   20  Largest  Shareholders  –  Ordinary  Shares   Name   NATIONAL  NOMINEES  LIMITED   BIRKDALE  HOLDINGS  (QLD)  PTY  LTD   EXCALIB-­‐AIR  PTY  LTD   Number  of   Ordinary   Fully  Paid   Shares  Held   19,173,192   17,000,001   16,060,000   J  P  MORGAN  NOMINEES  AUSTRALIA  LIMITED   12,693,727   HSBC  CUSTODY  NOMINEES  (AUSTRALIA)  LIMITED   7,097,280   UBS  NOMINEES  PTY  LTD   QUAD  INVESTMENTS  PTY  LTD   BNP  PARIBAS  NOMS  PTY  LTD     CITICORP  NOMINEES  PTY  LIMITED   6,844,761   2,916,667   2,863,843   2,684,812   LYNDCOTE  HOLDINGS  PTY  LTD     2,521,667   IFLY  AUSTRALIA  PTY  LIMITED   2,500,000   PROJECT  GRAVITY  PTY  LTD     1,575,568   HSBC  CUSTODY  NOMINEES  (AUSTRALIA)  LIMITED     CITICORP  NOMINEES  PTY  LIMITED     AUSTRALIAN  INDOOR  SKYDIVING  PTY  LTD     R  &  K  HOOD  INVESTMENTS  PTY  LIMITED     1,271,219   1,189,137   1,175,568   1,000,000   SABRE  ONE  INVESTMENTS  PTY  LTD    961,803   MR  GREGORY  KENNETH  JACK   NULIS  NOMINEES  (AUSTRALIA)  LIMITED     MR  BRETT  AARAN  SHERIDAN   850,000   757,000   415,000   3.   The   address   of   the   principal   registered   office   in   Australia   is   Level   2,   201   Miller   Street   North   Sydney  NSW  2060.    Telephone  02  9325  5900.   4.   Registers   of   securities   are   held   at   Grosvenor   Place,   Level   12,   225   George   Street,   Sydney   NSW   %  Held  of  Issued   Ordinary  Capital   2000.   5.   Stock  Exchange  Listing   Quotation  has  been  granted  for  all  119,409,294  ordinary  shares  of  the  company  on  all  Member   Exchanges  of  the  Australian  Securities  Exchange  Limited.   The   Company   has   on   issue   1,158,457   Performance   Rights   under   the   Indoor   Skydive   Australia   6.   Unquoted  Securities   Group  Limited  Performance  Rights  Plan.   There  are  no  options  over  unissued  shares.   16.06%   14.24%   13.45%   10.63%   5.94%   5.73%   2.44%   2.40%   2.25%   2.11%   2.09%   1.32%   1.07%   1.00%   0.98%   0.84%   0.81%   0.71%   0.63%   0.35%   101,551,245   85.05%   2.   The  name  of  the  company  secretary  is  Fiona  Yiend.     68 www.indoorskydiveaustralia.com.au   Indoor  Skydive  Australia  Group  Limited  –  2014  Annual  Report   63   Indoor  Skydive  Australia  Group  Limited  –  2014  Annual  Report   www.indoorskydiveaustralia.com.au   64   2015 Annual Report |                                                                                                                                                                                       Additional  Information   Additional  Information   ADDITIONAL INFORMATION 3.   4.   The   address   of   the   principal   registered   office   in   Australia   is   Level   2,   201   Miller   Street   North   Sydney  NSW  2060.    Telephone  02  9325  5900.   Registers   of   securities   are   held   at   Grosvenor   Place,   Level   12,   225   George   Street,   Sydney   NSW   2000.   5.   Stock  Exchange  Listing   Quotation  has  been  granted  for  all  119,409,294  ordinary  shares  of  the  company  on  all  Member   Exchanges  of  the  Australian  Securities  Exchange  Limited.   6.   Unquoted  Securities   The   Company   has   on   issue   1,158,457   Performance   Rights   under   the   Indoor   Skydive   Australia   Group  Limited  Performance  Rights  Plan.   There  are  no  options  over  unissued  shares.   20  Largest  Shareholders  –  Ordinary  Shares   Name   %  Held  of  Issued   Ordinary  Capital   J  P  MORGAN  NOMINEES  AUSTRALIA  LIMITED   12,693,727   HSBC  CUSTODY  NOMINEES  (AUSTRALIA)  LIMITED   7,097,280   NATIONAL  NOMINEES  LIMITED   BIRKDALE  HOLDINGS  (QLD)  PTY  LTD   EXCALIB-­‐AIR  PTY  LTD   UBS  NOMINEES  PTY  LTD   QUAD  INVESTMENTS  PTY  LTD   BNP  PARIBAS  NOMS  PTY  LTD     CITICORP  NOMINEES  PTY  LIMITED   LYNDCOTE  HOLDINGS  PTY  LTD     2,521,667   IFLY  AUSTRALIA  PTY  LIMITED   2,500,000   PROJECT  GRAVITY  PTY  LTD     1,575,568   HSBC  CUSTODY  NOMINEES  (AUSTRALIA)  LIMITED     CITICORP  NOMINEES  PTY  LIMITED     FAMILY  A/C>   P/L  S/F  A/C>   SABRE  ONE  INVESTMENTS  PTY  LTD    961,803   NULIS  NOMINEES  (AUSTRALIA)  LIMITED     MR  BRETT  AARAN  SHERIDAN   Number  of   Ordinary   Fully  Paid   Shares  Held   19,173,192   17,000,001   16,060,000   6,844,761   2,916,667   2,863,843   2,684,812   1,271,219   1,189,137   1,175,568   1,000,000   850,000   757,000   415,000   16.06%   14.24%   13.45%   10.63%   5.94%   5.73%   2.44%   2.40%   2.25%   2.11%   2.09%   1.32%   1.07%   1.00%   0.98%   0.84%   0.81%   0.71%   0.63%   0.35%   101,551,245   85.05%   2.   The  name  of  the  company  secretary  is  Fiona  Yiend.     Indoor  Skydive  Australia  Group  Limited  –  2014  Annual  Report   www.indoorskydiveaustralia.com.au   63   www.indoorskydiveaustralia.com.au   Indoor  Skydive  Australia  Group  Limited  –  2014  Annual  Report   64   69 | 2015 Annual Report                                                                                                                                                                                       Corporate  Directory   CORPORATE DIRECTORY Directors   Kenneth  GILLESPIE   Wayne  JONES   Danny  HOGAN   Stephen  BAXTER     David  MURRAY   Malcolm  THOMPSON  (alternate  for   Stephen  Baxter)   Company  Secretary   Fiona  YIEND   Registered  Office   Principle  place  of  business   Share  register   Auditor   Indoor  Skydive  Australia  Group  Ltd   Level  2   201  Miller  Street   North  Sydney  NSW  2060   Indoor  Skydive  Australia  Group  Ltd   Level  2   201  Miller  Street   North  Sydney  NSW  2060   Boardroom  Pty  Limited   Level  12   225  George  Street   Sydney  NSW  2000   RSM  Bird  Cameron  Partners   Level  12   60  Castlereagh  St   Sydney  NSW  2000   Bankers   National  Australia  Bank   Stock  exchange  listing  code:   IDZ   Website   www.indoorskydive.com.au     70 Indoor  Skydive  Australia  Group  Limited   2015  Annual  Report   65   2015 Annual Report |                                                                                                                                     Corporate  Directory   Directors   Kenneth  GILLESPIE   Wayne  JONES   Danny  HOGAN   Stephen  BAXTER     David  MURRAY   Malcolm  THOMPSON  (alternate  for   Stephen  Baxter)   Level  2   201  Miller  Street   North  Sydney  NSW  2060   Level  2   201  Miller  Street   North  Sydney  NSW  2060   Boardroom  Pty  Limited   Level  12   225  George  Street   Sydney  NSW  2000   RSM  Bird  Cameron  Partners   Level  12   60  Castlereagh  St   Sydney  NSW  2000   Company  Secretary   Fiona  YIEND   Registered  Office   Indoor  Skydive  Australia  Group  Ltd   Principle  place  of  business   Indoor  Skydive  Australia  Group  Ltd   Share  register   Auditor   Bankers   National  Australia  Bank   Stock  exchange  listing  code:   IDZ   Website   www.indoorskydive.com.au     Indoor  Skydive  Australia  Group  Limited   65   2015  Annual  Report                                                                                                                                       Indoor Skydive Australia Group Ltd Level 2, 201 Miller Street North Sydney NSW 2060 www.indoorskydiveaustralia.com.au 

Continue reading text version or see original annual report in PDF format above