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