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Weidai Ltd.M o n e y 3 | A n n u a l R e p o r t 2 0 1 5 | M N Y SECURING THE FUTURE Annual Report 2015 For personal use only Annual Report 2015 | MNY Chairman and Managing Director’s Report Corporate Governance Statement Directors’ Report 13 8 BDO Independent Auditor’s Report Directors’ Declaration 25 27 Statement of Financial Position Statement of Changes in Equity 29 Notes to the financial statements 32 30 ASX Additional Information 71 1 Auditor’s Independence Declaration 24 Statement of Profit or Loss and Other Comprehensive Income 28 Statement of Cash Flows 31 Corporate Directory 73 Money3 Corporation Limited For personal use only Annual Report 2015 | MNY Annual Report 2015 | MNY WE WILL LEAD THE TRANSFORMATION OF THE CONSUMER LENDING INDUSTRY IN AUSTRALIA Money3 Corporation Limited Money3 Corporation Limited 1 1 For personal use only Annual Report 2015 | MNY Annual Report 2015 | MNY CHAIRMAN’S AND MANAGING DIRECTOR’S REPORT On behalf of the board of directors of Money3 Corporation Limited (Money3), it is our pleasure to present the Annual Report for financial year ended 30 June 2015 (FY15). Once again, through the commitment of our Board, Management and Staff we have achieved an excellent result for FY15 and now boast 9 consecutive years of profitability. We are continuing to succeed as a scalable financial services company focusing on short to medium term secured and unsecured loans, and we pride ourselves on providing customers with options to better manage their own lives. 2 Vaughan Webber Non Executive Chairman Scott Baldwin Managing Director For personal use only Annual Report 2015 | MNY FY15 KEY HIGHLIGHTS Generated $20.1 million profit before tax, an increase of 84% (2014: $11.0 million) Total revenue of $69.4 million, an increase of 59.5% (2014: $43.5 million) In December 2014 and January 2015 raised $28.6 million via the issue of 20.2 million shares Net profit after tax of $13.9 million, an increase of 78% (2014: $7.8 million) Loans receivable increased by 77.9% to $130.2 million (2014: $73.2 million) Diluted EPS of 9.91 cents per share, an increase of 29.5% (2014: 7.65 cents) Total dividends for the year increased by 16.6% to 5.25 cents (2014: 4.5 cents) Acquired the digital business ‘Cash Train’ complementing Money3’s distribution network and digital capabilities Money3 Corporation Limited 3 For personal use only Annual Report 2015 | MNY CHAIRMAN’S AND MANAGING DIRECTOR’S REPORT (continued) FY15 Loan Receivables up 77.9% on FY14 FY15 Profit (NPAT) of $13.9m up 78% on FY14 s n o i l l i M 140 120 100 80 60 40 20 0 77.9% 73 26 47 33 15 18 17 7 10 130 36 94 13.94 78% 7.83 3.83 2.63 s n o i l l i M 15 10 5 0 FY12 FY13 FY14 FY15 Secured Unsecured FY12 FY13 FY14 FY15 Net profit after tax The transformation of Money3 continued this year with further expansion of the secured lending business through all three distribution channels; Revenue $22.8M Revenue $43.5M Revenue $69.4M FY13 FY14 FY15 Unsecured 73% 4 Secured 27% Unsecured 67% Secured 33% Unsecured 57% Secured 43% Money3 Corporation Limited For personal use only Annual Report 2015 | MNY FY15 Diluted EPS of 9.91 cents up 29.5% on FY14 FY15 DPS of 5.25 cents up 31.3% on FY14 9.91 29.5% 7.65 5.76 5.87 s t n e C 11 9 7 5 3 s t n e C 5.5 5.0 4.5 4.0 3.5 3.0 5.25 16.6% 4.5 4 4 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 Diluted earnings per share Dividend per share Brokers Branches Online EBIT $5.5M EBIT $11.8M EBIT $23.4M FY13 FY14 FY15 Secured 53%* Unsecured 47%* Unsecured 39%* Secured 61%* Unsecured 25%* Secured 75%* * Based on management’s corporate allocation of overheads. Money3 Corporation Limited 5 For personal use only Annual Report 2015 | MNY CHAIRMAN’S AND MANAGING DIRECTOR’S REPORT (continued) Secured Lending The secured lending division operates under two business units: (cid:273)(cid:335) The Loan Centre, providing loans between $2,001 and $35,000 for a period up to 60 months, generated earned income of $22.5 million (2014: $11.8 million). (cid:273)(cid:335) Micro Motors, providing loans between $2,001 and $6,000 for a period of 12 months to 24 months, generated earned income of $7.2 million (2014: $2.7 million). FY15 Financial Achievements: (cid:273)(cid:335) Loans receivable increased 101% to $94.5 million (2014: $47 million) (cid:273)(cid:335) Bad debts as a percentage of revenue for the year were 13.14% (2014: 7.18%) (cid:273)(cid:335) The Secured division advanced $79.3 million in FY15, an 87% increase over the previous year (cid:273)(cid:335) Loans receivable of secured loans now represents over 72% of the outstanding balance of all loans. Unsecured Lending This division is serviced by our branch and online network. During the year unsecured lending showed an increase in loans receivables of 59%. We continued to see customers being referred from the branch network to our secured division and expect this referral of customers to increase in the coming years. FY15 Financial Achievements were: (cid:273)(cid:335) Earned income increased by 36% to $39.3 million (2014: $28.8 million) (cid:273)(cid:335) Loans receivable increased by 37% to $35.7 million (2014: $26 million) (cid:273)(cid:335) Bad debts as a percentage of revenue was 15.86% (2014: 17.6% ) Bad Debts Money3 lends to customers who have often had issues with credit in the past and it is expected that slow and bad debts will be higher than traditional lenders. Money3 considers bad debt a cost of doing business therefore we account for bad debt as a percentage of revenue. Bad debt levels normally sit between 11% and 15% of revenue depending on the maturity and profile of the particular portfolio. Managing bad debts remains a priority of Money3 and the investment in an internal debt recovery team is beginning to deliver positive outcomes with debt recovery improving. Regulations The Federal Government has announced that the Consumer Credit Legislation Amendment (Enhancement) Act 2012 that encompasses a proportion of the loan products offered by Money3 will be reviewed by a three person government appointed panel. The completion of this Government review is expected by the end of 2015. Money3 believes that the current legislation provides good protection for consumers and expects only minor regulatory changes that will continue to foster innovation, minimise regulatory compliance costs and enable consumers to access credit, while ensuring that they are treated fairly and do not have excessively large debt burdens. Dividends The Directors of the company have declared a final dividend of 2.75 cents per share fully franked, payable on the 23 October 2015 to those shareholders on the register at the close of business on the 8 October 2015. The final dividend payable of 2.75 cents per share brings the full year dividend to 5.25 cents per share fully franked, up from 4.5 cents in FY14. Funding On the 4 August 2015 Money3 was given notice by Westpac of its intention to cease their banking relationship with certain small amount credit providers, including Money3. At 30 June 2015 Money3 had drawn down $7.5 million of the $20 million Westpac facility. Money3 is currently reviewing alternative funding options and is confident of finalising new funding arrangements soon. 6 Money3 Corporation Limited For personal use only 7Money3 Corporation LimitedAnnual Report 2015 | MNYOutlookMoney3 currently expects a net profit after tax for the financial year ending 30 June 2016 of $18 million, an increase of 30 per cent on prior year.Money3 has also announced it will transition out of some unsecured loan products in the near future. This in turn will allow continued focus on expansion of the highly profitable secured lending division and we will be looking to introduce some new product offerings in 2015/16.ConclusionThe excellent results of FY15 would not have been achieved without the ongoing commitment of staff and management, and we thank them for their efforts and loyalty.Finally, I would like to thank you, our shareholders, for your continued support as we execute the company’s growth strategy. We are excited by the outlook for the business and look forward to continuing to grow shareholder value.Vaughan WebberNon Executive Chairman Money3 Corporation Limited 30 September 2015Scott BaldwinManaging Director Money3 Corporation Limited 30 September 2015I had a car accident and being a mum to five kids needed a car in a hurry. I previously had a credit default and a part 9 debt agreement, which would have made getting a loan pretty difficult. A finance broker suggested I speak with Money3When I couldn’t find a car, they were really flexible and got me an extra $1,000 so I could purchase a car I liked. Friendly, helpful, I’ll recommend Money3 to family and friends.— Krystie, South MorangFor personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Corporate Governance Statement The Board of Directors (Board) is responsible for the corporate governance of the Company. The Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable. The Board supports the core principles and best practice recommendations of the ASX Corporate Governance Council. However in view of the Company’s size, full adoption of the recommendations is currently not practical. The Board will continue to work towards full adoption of the recommendations in line with growth and development of the Company. The corporate governance policies of the Company and departures from the recommendations are discussed below. This Corporate Governance Statement is structured with reference to the ASX Corporate Governance Principles and Recommendations. Principle 1: Lay solid foundations for management and oversight Money3 has a Board Charter which establishes the functions reserved to the Board and to senior management. The Board is responsible for setting the strategic direction of the Company and for overseeing and monitoring its businesses and affairs. Directors are accountable to the shareholders for the Company's performance. The Board's overriding objective is to increase shareholder value within an appropriate framework that protects the rights and enhances the interests of all shareholders, whilst ensuring that the Company is properly managed. The functions of the Board include: Setting overall financial goals for the Company; (cid:120) (cid:120) Approving strategies, objectives and plans for the Company's businesses to achieve these goals; (cid:120) Ensuring that business risks are identified and approving systems and controls to manage those risks and monitor compliance; (cid:120) Approving the Company's major HR policies and overseeing the development strategies for senior and high performing executives; (cid:120) Approving financial plans and annual budget; (cid:120) Monitoring financial results on an on-going basis; (cid:120) Monitoring executive management and business performance in the implementation and achievement of strategic and business objectives; (cid:120) Approving key management recommendations (such as major capital expenditure, acquisitions, divestments, restructuring and funding); (cid:120) Appointing and removing the Managing Director (MD) and ratifying the appointment and removal of executives reporting directly to the MD (senior executives); (cid:120) Reporting to shareholders on the Company's strategic direction and performance including constructive engagement in the development, execution and modification of the Company's strategies; (cid:120) Determining that satisfactory arrangements are in place for auditing the Company's financial affairs; and (cid:120) Meeting statutory and regulatory requirements and overseeing the way in which business risks and the assets of the Company are managed. In carrying out its responsibilities and functions, the Board may delegate any of its powers to a Board committee, a Director, employee or other person. However, the Board acknowledges that it retains ultimate responsibility for the exercise of such powers under the Corporations Act 2001 (Cth). The Board requires its Directors to address potential conflicts of interest, including a requirement that they declare their interests as required by the Corporations Act and the ASX Listing Rules. 8 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | Corporate Governance Statement The Board of Directors (Board) is responsible for the corporate governance of the Company. The Board guides and monitors the business and affairs of the Company on behalf of the shareholders by whom they are elected and to whom they are accountable. The Board supports the core principles and best practice recommendations of the ASX Corporate Governance Council. However in view of the Company’s size, full adoption of the recommendations is currently not practical. The Board will continue to work towards full adoption of the recommendations in line with growth and development of the Company. The corporate governance policies of the Company and departures from the recommendations are This Corporate Governance Statement is structured with reference to the ASX Corporate Governance Principles and discussed below. Recommendations. Principle 1: Lay solid foundations for management and oversight Money3 has a Board Charter which establishes the functions reserved to the Board and to senior management. The Board is responsible for setting the strategic direction of the Company and for overseeing and monitoring its businesses and affairs. Directors are accountable to the shareholders for the Company's performance. The Board's overriding objective is to increase shareholder value within an appropriate framework that protects the rights and enhances the interests of all shareholders, whilst ensuring that the Company is properly managed. (cid:120) Approving strategies, objectives and plans for the Company's businesses to achieve these goals; Ensuring that business risks are identified and approving systems and controls to manage those risks and monitor The functions of the Board include: Setting overall financial goals for the Company; (cid:120) (cid:120) compliance; performing executives; (cid:120) Approving financial plans and annual budget; (cid:120) Monitoring financial results on an on-going basis; strategic and business objectives; restructuring and funding); (cid:120) Monitoring executive management and business performance in the implementation and achievement of (cid:120) Approving key management recommendations (such as major capital expenditure, acquisitions, divestments, (cid:120) Appointing and removing the Managing Director (MD) and ratifying the appointment and removal of executives reporting directly to the MD (senior executives); (cid:120) Reporting to shareholders on the Company's strategic direction and performance including constructive engagement in the development, execution and modification of the Company's strategies; (cid:120) Determining that satisfactory arrangements are in place for auditing the Company's financial affairs; and (cid:120) Meeting statutory and regulatory requirements and overseeing the way in which business risks and the assets of the Company are managed. In carrying out its responsibilities and functions, the Board may delegate any of its powers to a Board committee, a Director, employee or other person. However, the Board acknowledges that it retains ultimate responsibility for the exercise of such powers under the Corporations Act 2001 (Cth). Principle (cid:69): Structure the (cid:3)oard to add value The Board of Directors is structured to add long term value to Money3. The Board currently consists of one executive and four non-executive directors. (cid:16)n (cid:73)(cid:73)nd (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76) Mr Robert Bryant retired as a director. The only executive director being Mr Baldwin. The non-executive directors, being Ms Bettina Evert, Mr (cid:12)ang Tan, Mr (cid:22)aughan (cid:23)ebber, and Mr Miles Hampton, are regarded for corporate governance purposes as independent, notwithstanding the existence of certain relationships identified in the ASX's Corporate Governance Principles and Recommendations. (cid:60)Box (cid:73).(cid:72) of Principle (cid:73)(cid:61) (cid:14)r (cid:23)aughan (cid:24)e(cid:28)(cid:28)er has extensive business experience initially in accounting and more than (cid:72)3 years in corporate finance in stockbroking firms focussing on creating, funding and executing strategies for mid to small ASX listed companies (cid:14)s (cid:3)ettina (cid:6)vert is a partner of Holman (cid:23)ebb which has not provided legal services to the Company and subsidiaries. (cid:14)r (cid:12)ang (cid:21)an held the position of Chief (cid:7)inancial (cid:16)fficer until (cid:72)(cid:78) September (cid:73)(cid:71)(cid:72)(cid:71). (cid:14)r (cid:14)iles (cid:9)ampton was managing director of ASX listed agribusiness Roberts Ltd for (cid:73)(cid:71) years. Subsequent to his retirement from Roberts Ltd in (cid:73)(cid:71)(cid:71)(cid:77), Mr Hampton has been a director of a number of public and private companies, including Australian Pharmaceutical Industries Ltd, (cid:7)orestry Tasmania, The (cid:22)an Diemen's Land Company and Impact (cid:7)ertilisers. He is currently Chairman of ASX listed MyState Limited and Tas(cid:23)ater. (cid:14)r Christopher (cid:3)ald(cid:49)in (retired (cid:73)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75)) now consults to Brown Baldwin, in previous years he was a partner. Mr Baldwin holds a significant number of securities in the Company but is not a substantial shareholder as defined in section (cid:80) of the Corporations Act. Mr Baldwin is the uncle of Mr Scott Baldwin who is an executive director of the Company. Directors are subject to re-election by rotation in accordance with the ASX listing rules, and in any event no less often than every three years. (cid:120) Approving the Company's major HR policies and overseeing the development strategies for senior and high Principle (cid:70): Promote ethical and responsi(cid:28)le decision(cid:57)ma(cid:37)ing As part of its commitment to recognising the interests of stakeholders, the Company has established Codes of Conduct to guide all employees, executives and directors in respect of the ethical behaviour expected by the Company. These Codes of Conduct cover conflicts of interest, confidentiality, fair dealing, protection of assets, compliance with laws and regulations; whistle blowing, security trading and commitments to stakeholders. Accordingly, the Board fully supports the spirit and letter of the law and the listing rules concerning adequate and reasonable disclosure of information relevant to the Company and its securities in line with contemporary continuous disclosure requirements. Money3 is committed to providing an inclusive workplace and recognises the value individuals with diverse skills, values, backgrounds and experiences will bring to the company. At the core of the company's diversity policy is a commitment to equality and respect. Diversity in recognising and valuing the unique contribution people can make because of their individual background and different skills, experience and perspectives. People differ not just on the basis of race and gender, but also dimensions such as lifestyle, education, physical ability, age and family responsibility. The total number of staff as at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) was 3(cid:76)(cid:72) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:73)(cid:75)(cid:71)) of which (cid:73)(cid:80)(cid:72) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:80)(cid:76)) are female, the Board comprises (cid:77) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:77)) members of which (cid:72) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)) is female, and management has 3(cid:75) members ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:76)) of which (cid:72)(cid:77) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75)) are female. The Board requires its Directors to address potential conflicts of interest, including a requirement that they declare their interests as required by the Corporations Act and the ASX Listing Rules. Money3 has a formal Share Trading Policy, in dealing in the company’s securities in addition to complying with legislative and regulatory obligations. 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 9 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 The Company's Code of Conduct includes the following key principles: - (cid:72). The Company will conduct its business operations with full regard to and in compliance with all legal obligations. (cid:73). The Company's employees, contractors and agents: a. will strive to the utmost of their abilities to deliver quality services to meet our customers' needs and treat our customers with respect, courtesy and a caring attitude toward their business requirements; b. will present themselves in a fit and tidy condition for work and be fully equipped to perform their work safely and competently; c. will adhere to all workplace and occupational health and safety requirements, work instructions and directives and will refrain from any irresponsible, negligent or unsafe actions or work; d. are expected to work in a supportive and cooperative manner, and the Company will not condone any form of harassment of fellow workers. All cases of harassment will be promptly addressed through counselling and conciliation processes; and e. will not knowingly reveal confidential information, trade secrets or information concerning intellectual property or practices, which could be injurious to our customers or our own business interests. 3. The Company encourages the reporting of unlawful(cid:56)unethical behaviour by its directors, employees, contractors and agents and will actively promote ethical behaviour and protection for those who report violations in good faith. (cid:75). The Company encourages individuals to join appropriate organisations and associations that can effectively represent their work interests. (cid:76). The Company will communicate the code of conduct to all its employees, contractors and agents. Principle (cid:71): Safeguard integrity in financial reporting The Board has in place an Audit Committee which comprises a Miles Hampton as Chairman and Ms Bettina Evert, (cid:22)aughan (cid:23)ebber and (cid:12)ang Tan as members. The primary role of the Audit Committee is to monitor and review the effectiveness of the Company's control environment in the areas of operational risk, legal(cid:56)regulatory compliance and financial reporting. It will advise and assist the Board to discharge its responsibility to exercise due care, diligence and skill in relation to: (cid:72). Reporting of financial information to users of financial reports, in particular the quality and reliability of such information; (cid:73). Assessing the consistency of disclosures in the financial statements with other disclosures made by the Company to the financial markets, governmental and other public bodies; 3. Review and application of accounting policies; (cid:75). (cid:7)inancial management; (cid:76). Review of internal and external audit reports to ensure that where weaknesses in controls or procedures have been identified, appropriate and prompt remedial action is taken by management; (cid:77). Evaluation of the Company's compliance and risk management structure and procedures, internal controls and ethical standards; (cid:78). Review of business policies and practices; (cid:79). Conduct of any investigation relating to financial matters, records or accounts, and to report those matters to the Board; (cid:80). Protection of the Company's assets; and (cid:72)(cid:71). Compliance with applicable laws, regulations, standards and best practice guidelines. (cid:5)eclaration of the (cid:14)anaging (cid:5)irector (cid:58)(cid:14)(cid:5)(cid:59) and Chief (cid:7)inancial (cid:16)fficer (cid:58)C(cid:7)(cid:16)(cid:59) Each year the MD and C(cid:7)(cid:16) provide the Board with written confirmation that: (cid:120) (cid:120) (cid:120) The financial reports present a true and fair view, in all material respects, of the Company’s financial condition and operational results and are in accordance with relevant accounting standards; The statement is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board; and The Company’s risk management and internal compliance and control system is operating effectively in all material respects in relation to financial reporting risks. The Board has received the above declaration from the MD and C(cid:7)(cid:16) for this year. 10 1 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | The Company's Code of Conduct includes the following key principles: - (cid:72). The Company will conduct its business operations with full regard to and in compliance with all legal obligations. (cid:73). The Company's employees, contractors and agents: Principle (cid:72): (cid:14)a(cid:37)e timely and (cid:28)alanced disclosure The Board is aware of its continuous disclosure obligations in respect of material information, and embraces the principle of providing access to that information to the widest audience. a. will strive to the utmost of their abilities to deliver quality services to meet our customers' needs and treat our customers with respect, courtesy and a caring attitude toward their business To ensure that these principles are appropriately actioned, the Board has nominated the Company Secretary as having responsibility for: Ensuring that the Company complies with continuous disclosure requirements; (cid:120) (cid:120) (cid:16)verseeing and co-ordinating disclosure of information to ASX, analysts, brokers, shareholders, the media and the (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) public; Educating directors and staff on the Company's disclosure policies and procedures and raising awareness of the principles underlying continuous disclosure; Ensuring that the Chairman and the MD are aware of all sensitive information that may be required by the ASX Listing Rules and the law to be publicly released through the ASX before disclosing it to any person, including analysts and others outside the Company; Ensuring that all information released through the ASX is promptly made available to its bankers and other parties to whom it has a similar reporting responsibility; The further dissemination of information, after it has been released through the ASX, to investors and other interested parties; Posting such information on the Company's website immediately after the ASX confirms that it has received such announcements; and (cid:120) Reviewing all briefings and discussions with media representatives, analysts and major shareholders, to check whether any price sensitive information has been inadvertently disclosed. If so, to immediately announce the information through the ASX. To safeguard against inadvertent disclosure of price sensitive information, the Board has agreed to keep to a minimum the number of directors and staff authorised to speak on the Company's behalf. In order of precedence, the following combinations of officers have authority to speak on behalf of the Company without the prior approval of the Board: The Chairman and(cid:56)or the Managing Director, separately, then The Chairman and a non-executive director, jointly, then (cid:120) (cid:120) (cid:120) Any two non-executive directors and the Managing Director, jointly (by majority), and then (cid:120) In extreme circumstances, any (cid:73) directors, jointly. These officers are also authorised to clarify information that the Company has released publicly through the ASX, but must avoid commenting on other price sensitive matters. All ASX announcements of a non-procedural nature are approved by the Chairman before release. The Company has determined that the Company Secretary must be made aware of any information disclosures in advance, including information to be presented at private briefings. This will minimise the risk of breaching the continuous disclosure requirements. In accordance with the ASX Listing Rules, the Company immediately notifies the ASX of information: (cid:72). Concerning the Company that a reasonable person would expect to have a material effect on the price or value of the Company's securities; and (cid:73). That would, or would be likely to, influence persons who commonly invest in securities in deciding whether to acquire or dispose of the Company's securities. (cid:21)pon confirmation of receipt from the ASX, the Company posts all information disclosed in accordance with this policy on the Company's website in an area accessible by the public. Principle (cid:73): (cid:19)espect the rights of shareholders Money3 recognises the importance of effective communications with shareholders and other parties. Shareholders also have other formal and informal rights provided by the Company’s constitution, regulatory bodies and proper public company behaviour. These include their entitlement to financial statements, attendance and voting at shareholder meetings. The auditor is invited to attend the AGM and be available to answer shareholder questions about the conduct of the audit and the preparation and content of the auditor's report. Shareholder meetings are conducted in an open forum with wide discussion encouraged by the Chairman. 1 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 11 1 1 b. will present themselves in a fit and tidy condition for work and be fully equipped to perform their requirements; work safely and competently; c. will adhere to all workplace and occupational health and safety requirements, work instructions and directives and will refrain from any irresponsible, negligent or unsafe actions or work; d. are expected to work in a supportive and cooperative manner, and the Company will not condone any form of harassment of fellow workers. All cases of harassment will be promptly addressed through counselling and conciliation processes; and e. will not knowingly reveal confidential information, trade secrets or information concerning intellectual property or practices, which could be injurious to our customers or our own business 3. The Company encourages the reporting of unlawful(cid:56)unethical behaviour by its directors, employees, contractors and agents and will actively promote ethical behaviour and protection for those who report (cid:75). The Company encourages individuals to join appropriate organisations and associations that can effectively interests. violations in good faith. represent their work interests. (cid:76). The Company will communicate the code of conduct to all its employees, contractors and agents. Principle (cid:71): Safeguard integrity in financial reporting The Board has in place an Audit Committee which comprises a Miles Hampton as Chairman and Ms Bettina Evert, (cid:22)aughan (cid:23)ebber and (cid:12)ang Tan as members. The primary role of the Audit Committee is to monitor and review the effectiveness of the Company's control environment in the areas of operational risk, legal(cid:56)regulatory compliance and financial reporting. It will advise and assist the Board to discharge its responsibility to exercise due care, diligence and skill in relation to: (cid:72). Reporting of financial information to users of financial reports, in particular the quality and reliability of such information; (cid:73). Assessing the consistency of disclosures in the financial statements with other disclosures made by the Company to the financial markets, governmental and other public bodies; 3. Review and application of accounting policies; (cid:75). (cid:7)inancial management; (cid:76). Review of internal and external audit reports to ensure that where weaknesses in controls or procedures have been identified, appropriate and prompt remedial action is taken by management; (cid:77). Evaluation of the Company's compliance and risk management structure and procedures, internal controls (cid:79). Conduct of any investigation relating to financial matters, records or accounts, and to report those matters to and ethical standards; (cid:78). Review of business policies and practices; the Board; (cid:80). Protection of the Company's assets; and (cid:72)(cid:71). Compliance with applicable laws, regulations, standards and best practice guidelines. (cid:5)eclaration of the (cid:14)anaging (cid:5)irector (cid:58)(cid:14)(cid:5)(cid:59) and Chief (cid:7)inancial (cid:16)fficer (cid:58)C(cid:7)(cid:16)(cid:59) Each year the MD and C(cid:7)(cid:16) provide the Board with written confirmation that: (cid:120) (cid:120) (cid:120) The financial reports present a true and fair view, in all material respects, of the Company’s financial condition and operational results and are in accordance with relevant accounting standards; The statement is founded on a sound system of risk management and internal compliance and control which implements the policies adopted by the Board; and The Company’s risk management and internal compliance and control system is operating effectively in all material respects in relation to financial reporting risks. The Board has received the above declaration from the MD and C(cid:7)(cid:16) for this year. For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Principle (cid:74): (cid:19)ecognise and manage ris(cid:37) The identification and effective management of risk, including calculated risk-taking is viewed as an essential part of the Company’s approach to creating long-term shareholder value. Money3 has established lending policies which are reviewed on a regular basis. The MD and C(cid:7)(cid:16) in providing written confirmation to the Board in accordance with the requirements of Section (cid:73)(cid:80)(cid:76)A ((cid:73)) of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72) must be satisfied that their certification is founded on a sound system of risk management and internal compliance and control, which implements the policies adopted by the Board and that the Company's risk management and internal compliance and control systems are operating efficiently and effectively in all material respects. Principle (cid:75): (cid:19)emunerate fairly and responsi(cid:28)ly The Board is responsible for determining and reviewing compensation arrangements for the Directors themselves, the (cid:15)on-Executive Chairman and the Senior Management team. Money3 has a Remuneration Committee which comprises Mr (cid:12)ang Tan as Chairman, Mr Miles Hampton, Mr (cid:22)aughan (cid:23)ebber and Ms Bettina Evert as the other members. The primary purpose of the Remuneration Committee is to support and report to the Board in fulfilling their responsibilities to shareholders in relation to: (cid:120) (cid:120) (cid:120) Executive remuneration policy; The remuneration of executive directors; The remuneration of persons reporting directly to the managing director, and as appropriate, other executive directors; The Company's recruitment, retention and termination policies and procedures; Superannuation arrangements; and (cid:120) (cid:120) (cid:120) All equity based remuneration. The performance of the Board, Committees, individual Directors and key executives is reviewed regularly against both measurable and qualitative indicators. Performance appraisals are undertaken annually. The performance criteria against which the Board, key executives and committees will be assessed is aligned with key corporate governance needs as well as financial and non-financial objectives. In relation to the payment of bonuses, options and other incentive payments to executives and other staff, discretion is exercised by the Board having regard to individual, team and Company performance relative to specific targets during the period. The expected outcomes of the remuneration structure are to retain and motivate Directors and key executives, attract quality management and provide performance incentives which align performance and Company success in a manner that is market competitive, consistent with best practice and in the interests of shareholders. Details of the nature and amount of each element of remuneration, including both monetary and non-monetary components, for each Director and the ((cid:15)on Director) (cid:16)fficers paid during the year can be found in the Directors' Report. 12 1 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | Principle (cid:74): (cid:19)ecognise and manage ris(cid:37) The identification and effective management of risk, including calculated risk-taking is viewed as an essential part of the Company’s approach to creating long-term shareholder value. Money3 has established lending policies which are reviewed on a regular basis. The MD and C(cid:7)(cid:16) in providing written confirmation to the Board in accordance with the requirements of Section (cid:73)(cid:80)(cid:76)A ((cid:73)) of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72) must be satisfied that their certification is founded on a sound system of risk management and internal compliance and control, which implements the policies adopted by the Board and that the Company's risk management and internal compliance and control systems are operating efficiently and effectively in all material respects. Principle (cid:75): (cid:19)emunerate fairly and responsi(cid:28)ly The Board is responsible for determining and reviewing compensation arrangements for the Directors themselves, the (cid:15)on-Executive Chairman and the Senior Management team. Money3 has a Remuneration Committee which comprises Mr (cid:12)ang Tan as Chairman, Mr Miles Hampton, Mr (cid:22)aughan (cid:23)ebber and Ms Bettina Evert as the other The primary purpose of the Remuneration Committee is to support and report to the Board in fulfilling their responsibilities to shareholders in relation to: Executive remuneration policy; The remuneration of executive directors; Superannuation arrangements; and (cid:120) All equity based remuneration. measurable and qualitative indicators. members. (cid:120) (cid:120) (cid:120) (cid:120) (cid:120) directors; objectives. during the period. The remuneration of persons reporting directly to the managing director, and as appropriate, other executive The Company's recruitment, retention and termination policies and procedures; The performance of the Board, Committees, individual Directors and key executives is reviewed regularly against both Performance appraisals are undertaken annually. The performance criteria against which the Board, key executives and committees will be assessed is aligned with key corporate governance needs as well as financial and non-financial In relation to the payment of bonuses, options and other incentive payments to executives and other staff, discretion is exercised by the Board having regard to individual, team and Company performance relative to specific targets The expected outcomes of the remuneration structure are to retain and motivate Directors and key executives, attract quality management and provide performance incentives which align performance and Company success in a manner that is market competitive, consistent with best practice and in the interests of shareholders. Details of the nature and amount of each element of remuneration, including both monetary and non-monetary components, for each Director and the ((cid:15)on Director) (cid:16)fficers paid during the year can be found in the Directors' Report. (cid:5)irectors(cid:61) (cid:19)eport The directors present the annual financial report on the consolidated entity, consisting of Money3 Corporation Limited and the entities it controlled at the end of, or during the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76). In order to comply with the provisions of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72), the directors report as follows: (cid:5)irectors(cid:61) details The names and details of the Company's Directors in office during the financial year and until the date of this report are as follows. Directors were in office for this entire period unless otherwise stated. (cid:23)aughan (cid:24)e(cid:28)(cid:28)er (cid:3)(cid:55)(cid:6)c (cid:120) (cid:15)on Executive Chairman (cid:120) Member of the Audit and Remuneration Committees (cid:22)aughan has extensive business experience initially in accounting and more than (cid:72)3 years in corporate finance in stockbroking firms focussing on creating, funding and executing strategies for mid to small ASX listed companies. (cid:22)aughan is currently a non-executive director of H(cid:21)B(cid:73)(cid:75) Limited (ASX:H(cid:21)B) and a non-executive director of Anchor Resources Limited (ASX:AHR) and previously Chairman of (cid:23)entworth Holdings Limited (ASX:T(cid:16)P) (cid:3)ettina (cid:6)vert (cid:3)(cid:2) LL(cid:3) (cid:14)(cid:2)(cid:10)C(cid:5) (cid:120) (cid:15)on-Executive Director (cid:120) Member of the Audit and Remuneration Committees Bettina is a partner of Holman (cid:23)ebb, a commercial and insurance law practice established over (cid:77)(cid:71) years ago. She is highly experienced in commercial law and litigation. She was, prior to commencing at Holman (cid:23)ebb, a senior solicitor on the work-out team after the collapse of the Tricontinental Bank in (cid:72)(cid:80)(cid:80)(cid:72) and worked as a senior solicitor at Telstra Corporation advising senior management in relation to corporate governance. Prior to joining Holman (cid:23)ebb, Bettina was a director of Deloitte Touche Thomatsu. Bettina is currently Deputy Chair of the Law Institute of (cid:22)ictoria, Executive Committee, Litigation Section, the Chair of the Courts Practice Committee of the Law Institute of (cid:22)ictoria and a lay member of the CPA Australia Disciplinary Committee which hears professional disciplinary matters relating to members of CPA Australia. (cid:19)o(cid:28)ert (cid:11)ames (cid:3)ryant (cid:120) Managing Director - Resigned ((cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76)) (cid:120) Member of the Audit and Remuneration Committees (cid:16)n (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76) Robert resigned as a director. Before entering the financial services industry in May (cid:73)(cid:71)(cid:71)(cid:71) he was predominantly involved in agricultural related industries for over (cid:73)(cid:76) years. The shift to financial services in (cid:73)(cid:71)(cid:71)(cid:71) saw Robert commence a small cash loans franchise in (cid:22)ictoria. Robert's responsibilities include management and governance, regulation and compliance, expansion and public and government relations. (cid:12)ang (cid:9)ong (cid:21)an (cid:2)C(cid:2) (cid:58)(cid:22)(cid:12)(cid:59) (cid:7)(cid:10)P(cid:2) (cid:58)(cid:2)ust(cid:59) (cid:120) (cid:15)on-Executive Director (cid:120) Chairman of the Remuneration Committee and Member of the Audit Committee (cid:12)ang has been a member of the Institute of Chartered Accountants in England and (cid:23)ales since (cid:72)(cid:80)(cid:79)3, and a (cid:7)ellow of the Institute of Public Accountants in Australia since (cid:72)(cid:80)(cid:80)(cid:79). (cid:12)ang spent (cid:72)(cid:71) years as an Accountant with La Trobe (cid:21)niversity (cid:21)nion. Before coming to Australia, (cid:12)ang was the Group (cid:7)inancial Controller of Tanming Corporation Berhad for (cid:75) years. 1 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 13 1 3 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Scott (cid:11)oseph (cid:3)ald(cid:49)in (cid:3)(cid:55)(cid:6)ng(cid:58)(cid:9)ons(cid:59) (cid:14)(cid:3)(cid:2) G(cid:2)(cid:10)C(cid:5) (cid:120) Managing Director (Appointed to board (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76), appointed MD (cid:73)(cid:80) September(cid:73)(cid:71)(cid:72)(cid:76)) (cid:120) Chief (cid:16)perations (cid:16)fficer Executive Director Scott has previously held a number of management positions with several public listed companies. His previous position was with General Electric as a Marketing Manager covering the Asia region. (cid:14)iles L (cid:9)ampton (cid:3)(cid:6)c (cid:58)(cid:9)ons(cid:59)(cid:53) (cid:7)C(cid:10)S(cid:53) (cid:7)CP(cid:2)(cid:53) (cid:7)(cid:2)(cid:10)C(cid:5) (cid:120) (cid:15)on-Executive Director (Appointed on (cid:72) September (cid:73)(cid:71)(cid:72)(cid:75)) (cid:120) Chairman of the Audit Committee and Member of Remuneration Committee Miles Hampton was managing director of ASX listed agribusiness Roberts Ltd for (cid:73)(cid:71) years. Subsequent to his retirement from Roberts Ltd in (cid:73)(cid:71)(cid:71)(cid:77), Mr Hampton has been a director of a number of public and private companies, including Australian Pharmaceutical Industries Ltd, (cid:7)orestry Tasmania, The (cid:22)an Diemen's Land Company and Impact (cid:7)ertilisers. He is currently Chairman of ASX listed MyState Limited and Tas(cid:23)ater. Christopher (cid:11)ames (cid:3)ald(cid:49)in CP(cid:2) (cid:120) (cid:15)on-Executive Director - Retired ((cid:73)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75)) (cid:120) (cid:7)ormer member of the Audit and Remuneration Committees Christopher commenced work in (cid:72)(cid:80)(cid:77)(cid:71) for a public accountant and had continued his accounting professional work in taxation, business and consultancy in Shepparton as a principal that headed the public accounting practice of Brown Baldwin in Shepparton and Melbourne. Christopher now consults to Brown Baldwin as he has extensive experience in business matters, including taxation and accounting. Company Secretary’s details Craig (cid:2)lan (cid:9)arris CP(cid:2) (cid:120) C(cid:7)(cid:16) and Company Secretary (appointed (cid:72)(cid:78) September (cid:73)(cid:71)(cid:72)(cid:71)) Craig is a Certified Practicing Accountant with over (cid:73)(cid:71) years’ experience in both public and private companies. Craig previous role was as Company Secretary for (cid:23)entworth Holdings Ltd, a listed property management company. Principal activities The principal activities of the consolidated entity during the year were providing financial services specialising in the delivery of small cash loans, secured and unsecured personal loans, cheque cashing, equipment and motor vehicle rental, and international money transfer. Although the company has discontinued the offering of international money transfer, there has been no significant change in nature of the principal activities during the financial year. (cid:5)ividends The Company paid a fully franked final dividend for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) of (cid:73).(cid:73)(cid:76) cents per share on (cid:73)(cid:79) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:75). The Company paid a fully franked interim dividend for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) of (cid:73).(cid:76) cents per share on (cid:73)(cid:75) April (cid:73)(cid:71)(cid:72)(cid:76). (cid:16)n (cid:73)(cid:78)th August (cid:73)(cid:71)(cid:72)(cid:76), the directors declared a fully franked final dividend of (cid:73).(cid:78)(cid:76) cents per share to the holders of fully paid ordinary shares in respect of the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), to be paid to shareholders on (cid:73)3 (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). The dividend will be paid to shareholders on the Register of Members on (cid:79) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). This dividend has not been included as a liability in these financial statements. (cid:19)esults of operations The consolidated net profit after tax for the year was (cid:68)(cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3). 14 1 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | Scott (cid:11)oseph (cid:3)ald(cid:49)in (cid:3)(cid:55)(cid:6)ng(cid:58)(cid:9)ons(cid:59) (cid:14)(cid:3)(cid:2) G(cid:2)(cid:10)C(cid:5) (cid:120) Managing Director (Appointed to board (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76), appointed MD (cid:73)(cid:80) September(cid:73)(cid:71)(cid:72)(cid:76)) (cid:120) Chief (cid:16)perations (cid:16)fficer Executive Director Scott has previously held a number of management positions with several public listed companies. His previous position was with General Electric as a Marketing Manager covering the Asia region. (cid:14)iles L (cid:9)ampton (cid:3)(cid:6)c (cid:58)(cid:9)ons(cid:59)(cid:53) (cid:7)C(cid:10)S(cid:53) (cid:7)CP(cid:2)(cid:53) (cid:7)(cid:2)(cid:10)C(cid:5) (cid:120) (cid:15)on-Executive Director (Appointed on (cid:72) September (cid:73)(cid:71)(cid:72)(cid:75)) (cid:120) Chairman of the Audit Committee and Member of Remuneration Committee Miles Hampton was managing director of ASX listed agribusiness Roberts Ltd for (cid:73)(cid:71) years. Subsequent to his retirement from Roberts Ltd in (cid:73)(cid:71)(cid:71)(cid:77), Mr Hampton has been a director of a number of public and private companies, including Australian Pharmaceutical Industries Ltd, (cid:7)orestry Tasmania, The (cid:22)an Diemen's Land Company and Impact (cid:7)ertilisers. He is currently Chairman of ASX listed MyState Limited and Tas(cid:23)ater. Christopher (cid:11)ames (cid:3)ald(cid:49)in CP(cid:2) (cid:120) (cid:15)on-Executive Director - Retired ((cid:73)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75)) (cid:120) (cid:7)ormer member of the Audit and Remuneration Committees Christopher commenced work in (cid:72)(cid:80)(cid:77)(cid:71) for a public accountant and had continued his accounting professional work in taxation, business and consultancy in Shepparton as a principal that headed the public accounting practice of Brown Baldwin in Shepparton and Melbourne. Christopher now consults to Brown Baldwin as he has extensive experience in business matters, including taxation and accounting. Company Secretary’s details Craig (cid:2)lan (cid:9)arris CP(cid:2) (cid:120) C(cid:7)(cid:16) and Company Secretary (appointed (cid:72)(cid:78) September (cid:73)(cid:71)(cid:72)(cid:71)) Principal activities The principal activities of the consolidated entity during the year were providing financial services specialising in the delivery of small cash loans, secured and unsecured personal loans, cheque cashing, equipment and motor vehicle rental, and international money transfer. Although the company has discontinued the offering of international money transfer, there has been no significant change in nature of the principal activities during the financial year. (cid:5)ividends (cid:73)(cid:79) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:75). (cid:73)(cid:71)(cid:72)(cid:76). The Company paid a fully franked final dividend for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) of (cid:73).(cid:73)(cid:76) cents per share on The Company paid a fully franked interim dividend for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) of (cid:73).(cid:76) cents per share on (cid:73)(cid:75) April (cid:16)n (cid:73)(cid:78)th August (cid:73)(cid:71)(cid:72)(cid:76), the directors declared a fully franked final dividend of (cid:73).(cid:78)(cid:76) cents per share to the holders of fully paid ordinary shares in respect of the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), to be paid to shareholders on (cid:73)3 (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). The dividend will be paid to shareholders on the Register of Members on (cid:79) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). This dividend has not been included as a liability in these financial statements. (cid:19)esults of operations The consolidated net profit after tax for the year was (cid:68)(cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3). (cid:19)evie(cid:49) of operations (cid:16)verall the company has continued to perform well in regards to income and profit generation, shareholder value, and growth of loans receivable, with exceptional results from the secured division. The directors have declared a fully franked dividend of (cid:73).(cid:78)(cid:76) cents. Change in the state of affairs There was no significant change in the state of affairs of Money3. Significant matters su(cid:28)se(cid:43)uent to the reporting date (cid:16)n (cid:73)(cid:78) August (cid:73)(cid:71)(cid:72)(cid:76), the directors declared a fully franked final dividend of (cid:73).(cid:78)(cid:76) cents per share to the holders of fully paid ordinary shares in respect of the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), to be paid to shareholders on (cid:73)3 (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). The dividend will be paid to shareholders on the Register of Members as of (cid:79) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). (cid:16)n (cid:75) August (cid:73)(cid:71)(cid:72)(cid:76), Money3 Corporation Limited received notice from (cid:23)estpac of their intent to cease their banking relationship with certain small consumer credit providers including Money3. (cid:23)estpac have committed to honour all existing contracts with Money3 and the loan facility has a (cid:72)(cid:73) month run off period ending December (cid:73)(cid:71)(cid:72)(cid:77). (cid:16)n (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76), Mr Robert Bryant resigned as Managing Director and Mr Scott Baldwin was appointed as the acting Chief Executive (cid:16)fficer and Managing Director. (cid:16)n the (cid:73)(cid:80) September (cid:73)(cid:71)(cid:72)(cid:76) Mr Scott Baldwin was appointed Managing Director. (cid:15)o other matter or circumstances has arisen since the end of the financial year that has significantly affected or may significantly affect the operations of Money3, the results or the state of affairs of the Company. Li(cid:37)ely developments and e(cid:50)pected results Money3 has announced that it intends to withdraw from a portion of the unsecured SACC loan market. The company has announced that it intends to launch a new (cid:77)(cid:71) month secured loan product targeted at customers seeking a new car, bike, boat or caravan. Craig is a Certified Practicing Accountant with over (cid:73)(cid:71) years’ experience in both public and private companies. Craig previous role was as Company Secretary for (cid:23)entworth Holdings Ltd, a listed property management company. (cid:6)nvironmental regulation and performance The Company's operations are not regulated by any environmental regulation under a law of the Commonwealth or of a state or territory. Share options As at the date of this report, there were (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) options to acquire ordinary shares of Money3 Corporation Limited ((cid:73)(cid:71)(cid:72)(cid:75): were (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)). a(cid:59) Share options granted to directors and e(cid:50)ecutives (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) share options were granted to executives during the current financial year. 1 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 15 1 5 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:28)(cid:59) Share options on issue Details of unissued ordinary shares in Money3 Corporation Limited under option at the date of this report are: (cid:10)ssuing entity (cid:21)ype Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Directors (cid:16)ptions Employee (cid:16)ptions Director (cid:16)ptions Employee (cid:16)ptions Directors (cid:16)ptions Employee (cid:16)ptions Bond (cid:16)ptions Employee (cid:16)ptions Employee (cid:16)ptions (cid:15)o(cid:55) of shares under option (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:80)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) 3,(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:76),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:6)(cid:50)ercise Price (cid:64) (cid:72).(cid:71)(cid:71) (cid:71).(cid:76)(cid:71) (cid:71).(cid:76)(cid:71) (cid:72).(cid:71)(cid:71) (cid:72).(cid:76)(cid:71) (cid:72).(cid:76)(cid:71) (cid:72).3(cid:71) (cid:72).(cid:76)(cid:71) (cid:72).(cid:78)(cid:71) (cid:6)(cid:50)piry (cid:5)ate 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) September (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:78) (cid:73)(cid:72) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) (cid:72)(cid:77) May (cid:73)(cid:71)(cid:72)(cid:79) (cid:73)(cid:71) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:80) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:73)(cid:71) (cid:16)n exercise options convert into one ordinary share of Money3 Corporation Limited. The options carry neither rights to dividends nor voting rights. Shares issued as a result of the e(cid:50)ercise of options During the year, Mr Scott Baldwin exercised (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options converting to (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ordinary shares at (cid:79)(cid:76) cents. (cid:10)ndemnification and insurance of (cid:5)irectors and (cid:16)fficers The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72). The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium. (cid:5)irectors(cid:61) meeting The following table sets out the number of directors' meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member). During the financial year, there were ten Board meetings, two Audit Committee meetings and two Remuneration Committee meeting held. (cid:15)o meeting of the (cid:15)ominations Committee was held during the year. (cid:5)irector (cid:22)aughan (cid:23)ebber Bettina Evert Robert Bryant (cid:12)ang Hong Tan Christopher Baldwin Scott Baldwin Miles Hampton (cid:3)oard meeting (cid:2)udit Committee (cid:9)eld (cid:72)(cid:71) (cid:72)(cid:71) (cid:72)(cid:71) (cid:72)(cid:71) 3 (cid:72)(cid:71) (cid:80) (cid:2)ttended (cid:72)(cid:71) (cid:80) (cid:72)(cid:71) (cid:72)(cid:71) (cid:73) (cid:72)(cid:71) (cid:79) (cid:9)eld (cid:73) (cid:73) (cid:73) (cid:73) (cid:72) (cid:73) (cid:72) (cid:2)ttended (cid:73) (cid:73) (cid:73) (cid:73) (cid:72) (cid:73) (cid:72) (cid:19)emuneration Committee (cid:2)ttended (cid:73) (cid:73) (cid:73) (cid:73) - - (cid:72) (cid:9)eld (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) - (cid:72) (cid:5)irectors’ shareholding The following table sets out each director’s relevant interest in shares or options issued by the Company at the date of this report. (cid:5)irector (cid:16)rdinary Shares (cid:22)aughan (cid:23)ebber Bettina Evert (cid:12)ang Hong Tan Scott Baldwin Miles Hampton (cid:75)(cid:71),3(cid:75)(cid:76) (cid:73)(cid:77)(cid:73),3(cid:76)(cid:77) (cid:76),(cid:72)(cid:77)(cid:80),(cid:71)(cid:77)(cid:78) (cid:73),3(cid:76)(cid:75),3(cid:73)(cid:75) (cid:72)(cid:77)(cid:71),3(cid:75)(cid:76) Partly paid ordinary shares - - - - - (cid:21)ype of (cid:16)ptions - - - Director(cid:56)Employee - (cid:16)ptions over (cid:16)rdinary Shares - - - (cid:73),(cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - 16 1 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:28)(cid:59) Share options on issue Details of unissued ordinary shares in Money3 Corporation Limited under option at the date of this report are: (cid:10)ssuing entity (cid:21)ype (cid:15)o(cid:55) of shares under (cid:6)(cid:50)ercise Price Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Money3 Corporation Ltd Directors (cid:16)ptions Employee (cid:16)ptions Director (cid:16)ptions Employee (cid:16)ptions Directors (cid:16)ptions Employee (cid:16)ptions Bond (cid:16)ptions Employee (cid:16)ptions Employee (cid:16)ptions option (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:80)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) 3,(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:76),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:64) (cid:72).(cid:71)(cid:71) (cid:71).(cid:76)(cid:71) (cid:71).(cid:76)(cid:71) (cid:72).(cid:71)(cid:71) (cid:72).(cid:76)(cid:71) (cid:72).(cid:76)(cid:71) (cid:72).3(cid:71) (cid:72).(cid:76)(cid:71) (cid:72).(cid:78)(cid:71) (cid:6)(cid:50)piry (cid:5)ate 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) September (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:78) (cid:73)(cid:72) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) (cid:72)(cid:77) May (cid:73)(cid:71)(cid:72)(cid:79) (cid:73)(cid:71) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:80) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:73)(cid:71) (cid:16)n exercise options convert into one ordinary share of Money3 Corporation Limited. The options carry neither rights to dividends nor voting rights. Shares issued as a result of the e(cid:50)ercise of options During the year, Mr Scott Baldwin exercised (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options converting to (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ordinary shares at (cid:79)(cid:76) cents. (cid:10)ndemnification and insurance of (cid:5)irectors and (cid:16)fficers The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a director or executive, for which they may be held personally liable, except where there is a lack of good faith. During the financial year, the company paid a premium in respect of a contract to insure the directors and executives of the company against a liability to the extent permitted by the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72). The contract of insurance prohibits disclosure of the nature of liability and the amount of the premium. (cid:5)irectors(cid:61) meeting The following table sets out the number of directors' meetings (including meetings of committees of directors) held during the financial year and the number of meetings attended by each director (while they were a director or committee member). During the financial year, there were ten Board meetings, two Audit Committee meetings and two Remuneration Committee meeting held. (cid:15)o meeting of the (cid:15)ominations Committee was held during the year. (cid:5)irector (cid:22)aughan (cid:23)ebber Bettina Evert Robert Bryant (cid:12)ang Hong Tan Christopher Baldwin Scott Baldwin Miles Hampton this report. (cid:22)aughan (cid:23)ebber Bettina Evert (cid:12)ang Hong Tan Scott Baldwin Miles Hampton (cid:72)(cid:71) (cid:72)(cid:71) (cid:72)(cid:71) (cid:72)(cid:71) 3 (cid:72)(cid:71) (cid:80) (cid:72)(cid:71) (cid:80) (cid:72)(cid:71) (cid:72)(cid:71) (cid:73) (cid:72)(cid:71) (cid:79) (cid:73) (cid:73) (cid:73) (cid:73) (cid:72) (cid:73) (cid:72) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) - (cid:72) (cid:73) (cid:73) (cid:73) (cid:73) - - (cid:72) (cid:5)irectors’ shareholding The following table sets out each director’s relevant interest in shares or options issued by the Company at the date of (cid:5)irector (cid:16)rdinary Shares Partly paid ordinary shares (cid:21)ype of (cid:16)ptions (cid:16)ptions over (cid:16)rdinary Shares (cid:75)(cid:71),3(cid:75)(cid:76) (cid:73)(cid:77)(cid:73),3(cid:76)(cid:77) (cid:76),(cid:72)(cid:77)(cid:80),(cid:71)(cid:77)(cid:78) (cid:73),3(cid:76)(cid:75),3(cid:73)(cid:75) (cid:72)(cid:77)(cid:71),3(cid:75)(cid:76) - - - - - Director(cid:56)Employee (cid:73),(cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - - (cid:73) (cid:73) (cid:73) (cid:73) (cid:72) (cid:73) (cid:72) - - - - (cid:19)emuneration report (cid:58)audited(cid:59) This report outlines the remuneration arrangements in place for directors and executives of Money3. (cid:19)emuneration philosophy The performance of the Company depends upon the quality of its directors and executives. To prosper, the Company must attract, motivate and retain highly skilled directors and executives. To that end, the Company embodies the following principles in its remuneration framework: (cid:120) (cid:120) (cid:120) Provide competitive rewards to attract high calibre executives; (cid:7)ocus on creating sustained shareholder value; Significant portion of executive remuneration at risk, dependent upon meeting predetermined performance benchmarks; and (cid:120) Differentiation of individual rewards commensurate with contribution to overall results and according to individual accountability, performance and potential. The Remuneration Committee is responsible for determining and reviewing compensation arrangements for the directors, Managing Director (MD) and the senior management team. The committee assesses the appropriateness of the nature and amount of remuneration of directors and senior managers on a periodic basis by reference to relevant employment market conditions with the overall objective of ensuring maximum stakeholder benefit from the retention of a high quality board and executive team. (cid:19)emuneration structure In line with best practice corporate governance, the structure of non-executive director, executive director and senior manager remuneration is separate and distinct. (cid:15)on(cid:57)e(cid:50)ecutive director remuneration The Board seeks to set aggregate remuneration at a level which provides the Company with the ability to attract and retain directors of the highest calibre. The Constitution and the ASX Listing Rules specify that the aggregate remuneration of non-executive directors shall be determined from time to time by a general meeting. An amount not exceeding the amount determined is then divided between the non-executive directors as agreed. The current approved aggregate remuneration is (cid:68)(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71). (cid:3)oard meeting (cid:2)udit Committee (cid:19)emuneration Committee (cid:9)eld (cid:2)ttended (cid:9)eld (cid:2)ttended (cid:9)eld (cid:2)ttended Senior management and e(cid:50)ecutive director remuneration The Company aims to reward executives with a level and mix of remuneration commensurate with their position and responsibilities so as to: (cid:120) Reward executives for company and individual performance against targets set by reference to appropriate benchmarks; (cid:120) Align the interests of executives with those of shareholders; (cid:120) (cid:120) Link reward with the strategic goals and performance of the company; and Ensure total remuneration is competitive by market standards. The executive remuneration program is designed to support the Company's reward philosophies and to underpin the Company's growth strategy. The program comprises the following components: (cid:7)ixed remuneration component; and (cid:120) (cid:120) (cid:22)ariable remuneration component including short term incentive (STI) and long term incentive (LTI) Fixed remuneration The level of fixed remuneration is set so as to provide a base level of remuneration which is both appropriate to the position and is competitive in the market. Senior managers are given the opportunity to receive their fixed (primary) remuneration in a variety of forms including cash and fringe benefits such as motor vehicles. 1 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 17 1 7 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:20)aria(cid:23)(cid:32)e remuneration – (cid:39)(cid:29)ort term in(cid:24)enti(cid:42)e (cid:48)(cid:17)(cid:18)(cid:10)(cid:49) The objective of the STI program is to link the achievement of the Company’s operational targets with the remuneration received by the executives charged with meeting those targets. The total potential STI available is set at a level so as to provide sufficient incentive to the senior manager to achieve the operational targets and such that the cost to the Company is reasonable. The individual performance of each executive is also rated and taken into account when determining the amount, if any, of the short term incentive pool allocated to each executive. The aggregate of annual STI payments available for executives across the Company are usually delivered in the form of a cash bonus. Employees and executives participate in performance incentive program under which a budgeted Earnings Before Interest and Tax (EBIT) was established by the directors where the employees and executives are entitled to a share of the profit which exceeds this budget figure. (cid:21)nder the program cash bonuses of (cid:68)(cid:72),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)) have been earned and accrued at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), and approved by the Board on the (cid:73)(cid:78) August (cid:73)(cid:71)(cid:72)(cid:76). (cid:20)aria(cid:23)(cid:32)e remuneration (cid:47) (cid:32)on(cid:28) term in(cid:24)enti(cid:42)e (cid:48)(cid:11)(cid:18)(cid:10)(cid:49) The objective of the LTI plan is to reward senior managers in a manner which aligns this element of remuneration with the creation of shareholder wealth. As such, LTI grants are only made to executives who are able to influence the generation of shareholder wealth and thus have a direct impact on the Company's performance against relevant long term performance hurdles. The executive LTI is currently delivered in the form of options. In the (cid:73)(cid:71)(cid:72)(cid:76) financial year, (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options were granted ((cid:73)(cid:71)(cid:72)(cid:75): 3,(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) to executive directors and executives. (cid:15)o issue of shares was made in (cid:73)(cid:71)(cid:72)(cid:76) ((cid:73)(cid:71)(cid:72)(cid:75): nil) under the LTI plan. Contract of employment All executives of the Company are employed under a letter of appointment. (cid:22)arious notice periods of up to (cid:77) months are required to terminate the appointment. The letters of appointment do not contain specified option incentive entitlements and are rolling with no fixed term. (cid:19)elationship (cid:28)et(cid:49)een remuneration policy and company performance Remuneration paid to key management personnel ((cid:12)MP) has been set at a level to attract and retain appropriately skilled persons. All executive Directors and (cid:12)MP receive a base salary, superannuation and fringe benefits. Performance based bonuses of (cid:73)3(cid:72),(cid:76)(cid:80)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)3(cid:76),(cid:71)(cid:71)(cid:71)) were paid by the Group to (cid:12)MP during the year. During the year (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options were issued ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) to (cid:12)MP. In considering the consolidated entity’s performance and benefits for shareholder wealth, the directors have regard to the indices in respect of the current financial year and the previous four financial years. The following table shows revenue, profits, dividends, share price, EPS and (cid:12)MP remuneration at the end of each year. Revenue (cid:15)et Profit after tax Closing share price Price increase(cid:56)(decrease) (cid:68) Price increase(cid:56)(decrease) (cid:83) Earnings per share Dividend paid per share Total key management personnel remuneration (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)11 (cid:72)3,(cid:76)(cid:72)3,(cid:78)(cid:72)3 (cid:73),(cid:75)(cid:71)(cid:73),(cid:73)(cid:78)(cid:71) (cid:68)(cid:71).(cid:75)(cid:73) ((cid:68)(cid:71).(cid:71)(cid:79)) ((cid:72)(cid:77)(cid:83)) (cid:78).(cid:72)(cid:72) (cid:75).(cid:73)(cid:76) cents (cid:68)(cid:79)3(cid:72),(cid:78)(cid:79)(cid:73) (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:69) (cid:72)(cid:76),(cid:75)(cid:80)(cid:75),(cid:79)(cid:80)3 (cid:73),(cid:76)(cid:73)(cid:76),(cid:79)(cid:75)(cid:71) (cid:68)(cid:71).3(cid:79) ((cid:68)(cid:71).(cid:71)(cid:75)) ((cid:72)(cid:71)(cid:83)) (cid:76).(cid:79)(cid:78) (cid:75).(cid:71)(cid:71) cents (cid:68)(cid:79)(cid:72)(cid:76),3(cid:80)(cid:75) (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:70) (cid:73)(cid:73),(cid:78)(cid:79)(cid:78),(cid:72)(cid:73)(cid:77) 3,(cid:77)(cid:75)(cid:78),(cid:79)(cid:77)(cid:78) (cid:68)(cid:71).(cid:78)(cid:80) (cid:68)(cid:71).(cid:75)(cid:72) (cid:72)(cid:71)(cid:79)(cid:83) (cid:77).(cid:72)(cid:77) (cid:75).(cid:71)(cid:71) cents (cid:68)(cid:78)(cid:79)(cid:75),(cid:71)(cid:79)3 (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:71) (cid:75)3,(cid:76)(cid:71)(cid:78),(cid:78)(cid:71)(cid:79) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:72).(cid:71)(cid:79) (cid:68)(cid:71).(cid:73)(cid:80) 3(cid:78)(cid:83) (cid:79).(cid:72)3 (cid:75).(cid:76)(cid:71) cents (cid:68)(cid:72),(cid:72)3(cid:73),3(cid:77)(cid:76) (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:77)(cid:80),(cid:75)3(cid:75),(cid:73)(cid:72)(cid:75) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:72).(cid:72)(cid:75) (cid:68)(cid:71).(cid:71)(cid:77) (cid:77)(cid:83) (cid:72)(cid:72).(cid:79)(cid:73) (cid:76).(cid:73)(cid:76) cents (cid:72),(cid:78)(cid:73)(cid:72),(cid:75)(cid:77)(cid:78) The above performance indicators of the consolidated entity since listing on (cid:72)(cid:80) (cid:16)ctober (cid:73)(cid:71)(cid:71)(cid:77) are considered when assess the level of KMP’s compensation. 18 1 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 (cid:20)aria(cid:23)(cid:32)e remuneration – (cid:39)(cid:29)ort term in(cid:24)enti(cid:42)e (cid:48)(cid:17)(cid:18)(cid:10)(cid:49) The objective of the STI program is to link the achievement of the Company’s operational targets with the remuneration received by the executives charged with meeting those targets. The total potential STI available is set at a level so as to provide sufficient incentive to the senior manager to achieve the operational targets and such that the cost to the Company is reasonable. The individual performance of each executive is also rated and taken into account when determining the amount, if any, of the short term incentive pool allocated to each executive. The aggregate of annual STI payments available for executives across the Company are usually delivered in the form of a cash bonus. Employees and executives participate in performance incentive program under which a budgeted Earnings Before Interest and Tax (EBIT) was established by the directors where the employees and executives are entitled to a share of the profit which exceeds this budget figure. (cid:21)nder the program cash bonuses of (cid:68)(cid:72),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)) have been earned and accrued at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), and approved by the Board on the (cid:73)(cid:78) August (cid:73)(cid:71)(cid:72)(cid:76). (cid:20)aria(cid:23)(cid:32)e remuneration (cid:47) (cid:32)on(cid:28) term in(cid:24)enti(cid:42)e (cid:48)(cid:11)(cid:18)(cid:10)(cid:49) The objective of the LTI plan is to reward senior managers in a manner which aligns this element of remuneration with the creation of shareholder wealth. As such, LTI grants are only made to executives who are able to influence the generation of shareholder wealth and thus have a direct impact on the Company's performance against relevant long term performance hurdles. The executive LTI is currently delivered in the form of options. In the (cid:73)(cid:71)(cid:72)(cid:76) financial year, (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options were granted ((cid:73)(cid:71)(cid:72)(cid:75): 3,(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) to executive directors and executives. (cid:15)o issue of shares was made in (cid:73)(cid:71)(cid:72)(cid:76) ((cid:73)(cid:71)(cid:72)(cid:75): nil) under the LTI plan. Contract of employment All executives of the Company are employed under a letter of appointment. (cid:22)arious notice periods of up to (cid:77) months are required to terminate the appointment. The letters of appointment do not contain specified option incentive entitlements and are rolling with no fixed term. (cid:19)elationship (cid:28)et(cid:49)een remuneration policy and company performance Remuneration paid to key management personnel ((cid:12)MP) has been set at a level to attract and retain appropriately skilled persons. All executive Directors and (cid:12)MP receive a base salary, superannuation and fringe benefits. Performance based bonuses of (cid:73)3(cid:72),(cid:76)(cid:80)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)3(cid:76),(cid:71)(cid:71)(cid:71)) were paid by the Group to (cid:12)MP during the year. During the year (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options were issued ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) to (cid:12)MP. In considering the consolidated entity’s performance and benefits for shareholder wealth, the directors have regard to the indices in respect of the current financial year and the previous four financial years. The following table shows revenue, profits, dividends, share price, EPS and (cid:12)MP remuneration at the end of each year. Revenue (cid:15)et Profit after tax Closing share price Price increase(cid:56)(decrease) (cid:68) Price increase(cid:56)(decrease) (cid:83) Earnings per share Dividend paid per share Total key management personnel remuneration assess the level of KMP’s compensation. (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)11 (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:69) (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:70) (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:71) (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:72)3,(cid:76)(cid:72)3,(cid:78)(cid:72)3 (cid:73),(cid:75)(cid:71)(cid:73),(cid:73)(cid:78)(cid:71) (cid:72)(cid:76),(cid:75)(cid:80)(cid:75),(cid:79)(cid:80)3 (cid:73),(cid:76)(cid:73)(cid:76),(cid:79)(cid:75)(cid:71) (cid:73)(cid:73),(cid:78)(cid:79)(cid:78),(cid:72)(cid:73)(cid:77) 3,(cid:77)(cid:75)(cid:78),(cid:79)(cid:77)(cid:78) (cid:75)3,(cid:76)(cid:71)(cid:78),(cid:78)(cid:71)(cid:79) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:77)(cid:80),(cid:75)3(cid:75),(cid:73)(cid:72)(cid:75) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:68)(cid:71).(cid:75)(cid:73) ((cid:68)(cid:71).(cid:71)(cid:79)) ((cid:72)(cid:77)(cid:83)) (cid:78).(cid:72)(cid:72) (cid:68)(cid:71).3(cid:79) ((cid:68)(cid:71).(cid:71)(cid:75)) ((cid:72)(cid:71)(cid:83)) (cid:76).(cid:79)(cid:78) (cid:68)(cid:71).(cid:78)(cid:80) (cid:68)(cid:71).(cid:75)(cid:72) (cid:72)(cid:71)(cid:79)(cid:83) (cid:77).(cid:72)(cid:77) (cid:72).(cid:71)(cid:79) (cid:68)(cid:71).(cid:73)(cid:80) 3(cid:78)(cid:83) (cid:79).(cid:72)3 (cid:72).(cid:72)(cid:75) (cid:68)(cid:71).(cid:71)(cid:77) (cid:77)(cid:83) (cid:72)(cid:72).(cid:79)(cid:73) (cid:75).(cid:73)(cid:76) cents (cid:68)(cid:79)3(cid:72),(cid:78)(cid:79)(cid:73) (cid:75).(cid:71)(cid:71) cents (cid:68)(cid:79)(cid:72)(cid:76),3(cid:80)(cid:75) (cid:75).(cid:71)(cid:71) cents (cid:68)(cid:78)(cid:79)(cid:75),(cid:71)(cid:79)3 (cid:75).(cid:76)(cid:71) cents (cid:68)(cid:72),(cid:72)3(cid:73),3(cid:77)(cid:76) (cid:76).(cid:73)(cid:76) cents (cid:72),(cid:78)(cid:73)(cid:72),(cid:75)(cid:77)(cid:78) The above performance indicators of the consolidated entity since listing on (cid:72)(cid:80) (cid:16)ctober (cid:73)(cid:71)(cid:71)(cid:77) are considered when A n n u a l R e p o r t 2 0 1 5 | M N Y Annual Report 2015 | MNY (cid:5)etails of remuneration The (cid:12)MP of Money3 Corporation Limited includes following: Mr (cid:22)aughan (cid:23)ebber (cid:15)on-Executive Chairman Mr Robert Bryant Ms Bettina Evert Managing Director (Resigned (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76)), (cid:15)on-Executive Director Mr Christopher Baldwin (cid:15)on-Executive Director (Retired (cid:73)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75)) Mr (cid:12)ang Hong Tan (cid:15)on-Executive Director Mr Scott (cid:11)oseph Baldwin Executive Director (from (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76)) and Managing Director (from (cid:73)(cid:80) September (cid:73)(cid:71)(cid:72)(cid:76)) Mr Miles Hampton (cid:15)on-Executive Director (Appointed (cid:72) September (cid:73)(cid:71)(cid:72)(cid:75)) Mr Craig Harris Mr Michael Rudd Company Secretary and C(cid:7)(cid:16) General Manager (Appointed 3 (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75)) Mr Michael (cid:12)ani(cid:51)ay Chief Information (cid:16)fficer (Appointed (cid:73) March (cid:73)(cid:71)(cid:72)(cid:76)) There are no (cid:12)MP other than those disclosed above. The compensation of each member of the (cid:12)MP of the consolidated entity is set out below: Long term (cid:28)enefits Long service leave (cid:64) Post(cid:57)employment (cid:28)enefits Superannuation (cid:64) Short term employee (cid:28)enefits Salary (cid:62) fees (cid:64) (cid:2)nnual leave (cid:64) (cid:3)onus (cid:64) (cid:69)(cid:67)1(cid:72) (cid:22). (cid:23)ebber B. Evert R. Bryant (cid:12)ang H. Tan C. Baldwin S. Baldwin M. Hampton C. Harris M. Rudd M. (cid:12)ani(cid:51)ay Total (cid:69)(cid:67)1(cid:71) G. Sam (cid:22). (cid:23)ebber B. Evert R. Bryant (cid:12)ang H. Tan C. Baldwin S. Baldwin C Harris Total (cid:78)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:72)(cid:76),(cid:77)(cid:80)(cid:73) (cid:77)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:77),(cid:80)(cid:73)3 (cid:72)(cid:79)(cid:77),(cid:71)3(cid:77) (cid:76)(cid:75),(cid:73)3(cid:71) (cid:73)(cid:71)3,(cid:71)(cid:78)(cid:78) (cid:72)(cid:79)(cid:78),(cid:77)(cid:73)3 (cid:75)(cid:75),(cid:80)(cid:77)(cid:71) (cid:72),(cid:71)(cid:79)(cid:79),(cid:76)(cid:75)(cid:72) (cid:73)(cid:80),(cid:77)(cid:72)(cid:76) (cid:73)(cid:77),3(cid:71)(cid:78) 3(cid:80),(cid:80)(cid:80)(cid:80) (cid:73)(cid:71)(cid:77),(cid:72)(cid:76)(cid:75) (cid:75)(cid:80),(cid:72)(cid:75)(cid:80) 3(cid:80),(cid:80)(cid:80)(cid:80) (cid:72)(cid:78)(cid:76),(cid:72)(cid:80)(cid:73) (cid:72)(cid:78)(cid:79),(cid:75)(cid:77)(cid:73) (cid:78)(cid:75)(cid:75),(cid:79)(cid:78)(cid:78) - - (cid:77)(cid:72),(cid:77)(cid:71)(cid:71) - - (cid:77)(cid:72),(cid:80)(cid:71)(cid:71) - (cid:77)(cid:79),(cid:71)(cid:80)(cid:71) 3(cid:79),(cid:73)(cid:77)(cid:76) - (cid:73)(cid:73)(cid:80),(cid:79)(cid:76)(cid:76) - - - (cid:76)(cid:71),(cid:71)(cid:71)(cid:71) - - 3(cid:76),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)3(cid:76),(cid:71)(cid:71)(cid:71) - - (cid:73)(cid:71),(cid:78)3(cid:76) - - (cid:73)(cid:71),(cid:80)(cid:73)(cid:79) - (cid:73)(cid:72),(cid:76)(cid:77)(cid:73) (cid:72)(cid:78),(cid:80)(cid:71)(cid:73) 3,(cid:75)(cid:76)(cid:79) (cid:79)(cid:75),(cid:76)(cid:79)(cid:76) - - - (cid:78)(cid:78)(cid:73)(cid:80) - - (cid:72)(cid:71),(cid:79)3(cid:71) (cid:73)(cid:72),(cid:76)(cid:77)(cid:73) (cid:75)(cid:71),(cid:72)(cid:73)(cid:72) (cid:77),(cid:77)(cid:76)(cid:71) (cid:75),(cid:78)(cid:76)(cid:71) (cid:73)(cid:71),(cid:80)(cid:71)(cid:71) (cid:75),(cid:78)(cid:76)(cid:71) (cid:72),(cid:76)(cid:77)(cid:76) (cid:72)(cid:78),(cid:76)(cid:78)(cid:76) (cid:76),(cid:72)(cid:76)(cid:73) (cid:73)(cid:71),(cid:80)(cid:71)(cid:71) (cid:72)(cid:77),(cid:77)(cid:78)3 3,(cid:78)3(cid:78) (cid:72)(cid:71)(cid:73),(cid:77)(cid:76)(cid:73) (cid:73),(cid:78)3(cid:80) (cid:73),(cid:75)33 3,(cid:78)(cid:71)(cid:71) (cid:72)(cid:79),(cid:76)(cid:71)(cid:71) 3,(cid:78)(cid:71)(cid:71) 3,(cid:78)(cid:71)(cid:71) (cid:72)(cid:76),(cid:78)(cid:73)(cid:76) (cid:72)(cid:79),(cid:76)(cid:71)(cid:71) (cid:77)(cid:79),(cid:80)(cid:80)(cid:78) - - 3,(cid:75)(cid:78)(cid:78) - - (cid:77),3(cid:71)(cid:72) - (cid:72)(cid:73),(cid:75)(cid:73)(cid:76) (cid:72)(cid:75)(cid:73) (cid:73)(cid:72) (cid:73)(cid:73),3(cid:77)(cid:77) - - - (cid:72)(cid:78),(cid:75)(cid:80)(cid:77) - - (cid:77),(cid:72)(cid:77)(cid:80) 3,(cid:73)(cid:80)3 (cid:73)(cid:77),(cid:80)(cid:76)(cid:79) Share (cid:28)ased payments (cid:58)options(cid:59) (cid:64) - - (cid:75)(cid:80),333 - - (cid:75)(cid:72),(cid:71)(cid:71)(cid:80) - (cid:78)(cid:77),(cid:79)33 (cid:73)(cid:75),(cid:78)(cid:78)(cid:80) (cid:72),(cid:76)(cid:72)(cid:75) (cid:72)(cid:80)3,(cid:75)(cid:77)(cid:79) - - - (cid:73)(cid:79),(cid:78)(cid:78)(cid:79) - - 3(cid:73),333 (cid:76)(cid:76),3(cid:71)(cid:72) (cid:72)(cid:72)(cid:77),(cid:75)(cid:72)(cid:73) (cid:21)otal (cid:64) (cid:78)(cid:77),(cid:77)(cid:76)(cid:71) (cid:76)(cid:75),(cid:78)(cid:76)(cid:71) 3(cid:78)(cid:72),(cid:78)3(cid:78) (cid:77)(cid:75),(cid:78)(cid:76)(cid:71) (cid:72)(cid:79),(cid:75)(cid:79)(cid:79) 333,(cid:78)(cid:75)(cid:80) (cid:76)(cid:80),3(cid:79)(cid:73) (cid:75)(cid:71)(cid:73),(cid:79)(cid:79)(cid:78) (cid:73)(cid:79)(cid:76),3(cid:79)(cid:75) (cid:76)3,(cid:77)(cid:80)(cid:71) (cid:72),(cid:78)(cid:73)(cid:72),(cid:75)(cid:77)(cid:78) 3(cid:73),3(cid:76)(cid:75) (cid:73)(cid:79),(cid:78)(cid:75)(cid:71) (cid:75)3,(cid:77)(cid:80)(cid:80) 3(cid:73)(cid:79),(cid:77)(cid:76)(cid:78) (cid:76)(cid:73),(cid:79)(cid:75)(cid:80) (cid:75)3,(cid:77)(cid:80)(cid:80) (cid:73)(cid:78)(cid:76),(cid:73)(cid:75)(cid:80) 3(cid:73)(cid:78),(cid:72)(cid:72)(cid:79) (cid:72),(cid:72)3(cid:73),3(cid:77)(cid:76) Except for retirement benefits provided by the superannuation guarantee legislation, there are no retirement benefits for the Directors. The proportion of R. Bryant’s remuneration that is linked to performance is (cid:72)(cid:77).(cid:76)(cid:78)(cid:83) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:76).(cid:73)(cid:72)(cid:83)). The proportion of S.Baldwin's remuneration that is linked to performance is (cid:72)(cid:79).(cid:76)(cid:76)(cid:83) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:73).(cid:78)(cid:73)(cid:83)). The proportion of C.Harris's remuneration that is linked to performance is (cid:72)(cid:77).(cid:80)(cid:71)(cid:83) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:76).(cid:75)3(cid:83)). The proportion of M.Rudd's remuneration that is linked to performance is (cid:72)3.(cid:75)(cid:72)(cid:83). Mr M. (cid:12)ani(cid:51)ay has not received a bonus this financial year. (cid:15)o other (cid:12)MP remuneration linked to performance ((cid:73)(cid:71)(cid:72)(cid:75): nil). The proportion of cash bonus paid(cid:56)payable or forfeited is as follows; R. Bryant C. Baldwin C. Harris M. Rudd Cash (cid:28)onus paid(cid:56)paya(cid:28)le (cid:69)(cid:67)1(cid:72) (cid:69)(cid:67)1(cid:71) Cash (cid:28)onus forfeited (cid:69)(cid:67)1(cid:72) (cid:69)(cid:67)1(cid:71) (cid:72)(cid:71)(cid:71)(cid:83) (cid:72)(cid:71)(cid:71)(cid:83) (cid:72)(cid:71)(cid:71)(cid:83) (cid:72)(cid:71)(cid:71)(cid:83) (cid:72)(cid:71)(cid:71)(cid:83) (cid:72)(cid:71)(cid:71)(cid:83) (cid:72)(cid:71)(cid:71)(cid:83) (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il Loans (cid:49)ith (cid:37)ey management personnel There is currently no loans with key management personnel 1 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited 19 M o n e y 3 C o r p o r a t i o n L i m i t e d | 1 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 The financial statements include the interest on loans with key management personnel: Interest paid to Robert Bryant Service agreements (cid:15)ame: Title: Agreement commenced: Term of agreement Details: (cid:15)ame: Title: Agreement commenced: Term of agreement Details: (cid:15)ame: Title: Agreement commenced: Term of agreement Details: (cid:15)ame: Title: Agreement commenced: Term of agreement Details: Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) - - (cid:76)(cid:72)(cid:79) (cid:76)(cid:72)(cid:79) Scott Baldwin Managing Director (cid:72)3 (cid:11)anuary (cid:73)(cid:71)(cid:71)(cid:80) - Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)3(cid:78)(cid:76),(cid:71)(cid:71)(cid:71) inclusive of superannuation, to be reviewed annually by the Remuneration Committee. (cid:77) month termination notice by either party or (cid:72)(cid:73) months in the event of change of control. Short Term Incentive of up to (cid:76)(cid:71)(cid:83) of the employee’s fixed annual remuneration on terms prescribed by the Remuneration Committee. Long Term Incentive of up to (cid:76)(cid:71)(cid:83) of the employee’s fixed annual remuneration on terms prescribed by the Remuneration Committee. (cid:23)ill be restrained for (cid:77) months post- employment from carrying on or being involved in any business which is in competition with Money3. Craig Harris Company Secretary and Chief (cid:7)inancial (cid:16)fficer 3(cid:72) May (cid:73)(cid:71)(cid:72)(cid:71) - Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)(cid:73)(cid:75)(cid:73),(cid:71)(cid:71)(cid:71) plus superannuation, to be reviewed annually by the Remuneration Committee. 3 month termination notice by either party or (cid:72)(cid:73) months in the event of acquisition. Bonus as per Remuneration Committee approval and (cid:12)PI achievement, non-solicitation and non- compete clauses. Michael Rudd General Manager 3 (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75) - Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)(cid:72)(cid:80)(cid:73),(cid:78)(cid:79)(cid:72) plus superannuation and use of company car, to be reviewed annually by the Remuneration Committee. (cid:72) month termination notice by either party. Bonus as per Remuneration Committee approval and (cid:12)PI achievement, non-solicitation and non-compete clauses. Michael (cid:12)ani(cid:51)ay Chief Information (cid:16)fficer (cid:73) March (cid:73)(cid:71)(cid:72)(cid:76) - Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)(cid:72)(cid:75)(cid:77),(cid:72)(cid:72)(cid:79) plus superannuation, to be reviewed annually by the Remuneration Committee. (cid:72) month termination notice by either party. Bonus as per Remuneration Committee approval and (cid:12)PI achievement, non-solicitation and non-compete clauses. 20 2 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | The financial statements include the interest on loans with key management personnel: Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) - - (cid:69)(cid:67)1(cid:71) (cid:64) (cid:76)(cid:72)(cid:79) (cid:76)(cid:72)(cid:79) Interest paid to Robert Bryant Service agreements (cid:15)ame: Title: Agreement commenced: Term of agreement Details: Scott Baldwin Managing Director (cid:72)3 (cid:11)anuary (cid:73)(cid:71)(cid:71)(cid:80) - Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)3(cid:78)(cid:76),(cid:71)(cid:71)(cid:71) inclusive of superannuation, to be reviewed annually by the Remuneration Committee. (cid:77) month termination notice by either party or (cid:72)(cid:73) months in the event of change of control. Short Term Incentive of up to (cid:76)(cid:71)(cid:83) of the employee’s fixed annual remuneration on terms prescribed by the Remuneration Committee. Long Term Incentive of up to (cid:76)(cid:71)(cid:83) of the employee’s fixed annual remuneration on terms prescribed by the Remuneration Committee. (cid:23)ill be restrained for (cid:77) months post- employment from carrying on or being involved in any business which is in competition with Money3. (cid:15)ame: Title: Craig Harris Company Secretary and Chief (cid:7)inancial (cid:16)fficer Agreement commenced: 3(cid:72) May (cid:73)(cid:71)(cid:72)(cid:71) Term of agreement - Details: Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)(cid:73)(cid:75)(cid:73),(cid:71)(cid:71)(cid:71) plus superannuation, to be reviewed annually by the Remuneration Committee. 3 month termination notice by either party or (cid:72)(cid:73) months in the event of acquisition. Bonus as per Remuneration Committee approval and (cid:12)PI achievement, non-solicitation and non- compete clauses. Michael Rudd General Manager 3 (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75) (cid:15)ame: Title: Agreement commenced: Term of agreement Details: Agreement commenced: (cid:73) March (cid:73)(cid:71)(cid:72)(cid:76) Michael (cid:12)ani(cid:51)ay Chief Information (cid:16)fficer (cid:15)ame: Title: Term of agreement Details: - - Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)(cid:72)(cid:80)(cid:73),(cid:78)(cid:79)(cid:72) plus superannuation and use of company car, to be reviewed annually by the Remuneration Committee. (cid:72) month termination notice by either party. Bonus as per Remuneration Committee approval and (cid:12)PI achievement, non-solicitation and non-compete clauses. Base salary for the year ending 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) of (cid:68)(cid:72)(cid:75)(cid:77),(cid:72)(cid:72)(cid:79) plus superannuation, to be reviewed annually by the Remuneration Committee. (cid:72) month termination notice by either party. Bonus as per Remuneration Committee approval and (cid:12)PI achievement, non-solicitation and non-compete clauses. (cid:23)alue of options The value of options is determined at grant date using the Binomial (cid:16)ption Pricing Model taking into account factors including exercise price, expected volatility and option life and is included in remuneration on a proportion basis from grant date to vesting date. (cid:6)a(cid:16)(cid:25)(cid:10) o(cid:11) options iss(cid:25)(cid:10)(cid:9) to (cid:9)ir(cid:10)ctors an(cid:9) (cid:15)(cid:10)(cid:27) (cid:17)ana(cid:12)(cid:10)(cid:17)(cid:10)nt p(cid:10)rsonn(cid:10)(cid:16) The following table discloses the value of options granted, exercised or lapsed during the year: (cid:23)alue of options granted during the year (cid:64) (cid:23)alue of options e(cid:50)ercised during the year (cid:64) (cid:23)alue of options lapsed during the year (cid:64) (cid:6)(cid:50)piry (cid:5)ate (cid:6)(cid:50)ercise (cid:5)ate Percentage of total remuneration for the year that consists of options (cid:79) Proportion of option remuneration Performance related (cid:79) (cid:15)on(cid:57) Performance related - (cid:79)(cid:78),(cid:71)(cid:71)(cid:71) (cid:75)3,(cid:77)(cid:73)(cid:71) (cid:73)(cid:72),(cid:79)(cid:72)(cid:71) (cid:72)(cid:75)(cid:79),(cid:71)(cid:71)(cid:71) - (cid:78)(cid:75),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:80),(cid:76)(cid:71)(cid:71) (cid:78)(cid:75),(cid:71)(cid:71)(cid:71) (cid:78),(cid:79)(cid:77)(cid:71) (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:80),(cid:72)(cid:71)(cid:71) (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il 3(cid:72)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:80) (cid:72)(cid:75)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:73)(cid:71) (cid:72)(cid:75)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:73)(cid:71) (cid:73)(cid:76)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:76)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:72)(cid:76)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) 3(cid:72)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:77) (cid:73)(cid:73)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:77) (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:77) (cid:73) 3(cid:71) (cid:72)(cid:76) (cid:75)(cid:72) (cid:75)(cid:79) 3 (cid:73)(cid:79) 3(cid:75) (cid:73)3 (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:15)il (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:5)irectors (cid:69)(cid:67)1(cid:72) S Baldwin M Rudd M Rudd M (cid:12)ani(cid:51)ay (cid:69)(cid:67)1(cid:71) R Bryant S Baldwin S Baldwin C Harris C Harris (cid:16)ptions granted during the (cid:73)(cid:71)(cid:72)(cid:76) financial year were granted as an incentive to drive the continuing performance of the Company. The total fair value of these options on grant date was (cid:68)(cid:72)(cid:76)(cid:73),(cid:75)3(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75)(cid:71)(cid:76),(cid:76)(cid:71)(cid:71)). As the options vest over time the cost is expensed in accordance with AASB(cid:73) over the vesting period. In the (cid:73)(cid:71)(cid:72)(cid:76) financial year the expense for key management personnel is (cid:68)(cid:72)(cid:80)3,(cid:75)(cid:77)(cid:79) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:72)(cid:72)(cid:77),(cid:75)(cid:72)(cid:73)). During the year, Mr Scott Baldwin exercised (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options converting to (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ordinary shares at (cid:79)(cid:76) cents. Inputs into the determination of the fair value of options issued to the (cid:12)MP are set out below. (cid:5)irector (cid:57) (cid:6)(cid:50)pire (cid:70)1(cid:56)1(cid:69)(cid:56)(cid:69)(cid:67)1(cid:72) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:70)(cid:67)(cid:56)(cid:67)(cid:76)(cid:56)(cid:69)(cid:67)1(cid:74) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire 1(cid:73)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:74) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:69)1(cid:56)1(cid:67)(cid:56)(cid:69)(cid:67)1(cid:75) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:70)(cid:67)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:75) (cid:5)irector(cid:57) (cid:6)(cid:50)pire (cid:70)(cid:67)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:75) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:69)(cid:67)(cid:56)1(cid:67)(cid:56)(cid:69)(cid:67)1(cid:76) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire 1(cid:71)(cid:56)(cid:67)(cid:71)(cid:56)(cid:69)(cid:67)(cid:69)(cid:67) Exercise price Grant date Expiry date Share price at grant date Expected volatility Expected dividend yield Risk free rate (cid:68)(cid:72).(cid:71)(cid:71) (cid:73)(cid:78)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:71)(cid:80) 3(cid:72)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)(cid:76) (cid:68)(cid:71).(cid:76)(cid:71) 3(cid:71)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:73) 3(cid:71)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:68)(cid:71).(cid:76)(cid:71) (cid:72)(cid:77)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:73) (cid:72)(cid:77)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:68)(cid:72).(cid:71)(cid:71) (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)3 (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:71).(cid:75)(cid:76) (cid:75)(cid:71)(cid:83) (cid:78).33(cid:83) (cid:76).(cid:71)(cid:71)(cid:71)(cid:83) (cid:68)(cid:71).(cid:75)3 (cid:68)(cid:71).(cid:75)3 (cid:68)(cid:72).(cid:71)(cid:76) (cid:68)(cid:72).(cid:71)(cid:71) (cid:75)(cid:71)(cid:83) (cid:75)(cid:71)(cid:83) (cid:80).(cid:76)(cid:71)(cid:83) (cid:73).(cid:76)(cid:73)(cid:83) (cid:80).(cid:76)(cid:71)(cid:83) (cid:73).(cid:76)(cid:73)(cid:83) 3(cid:73)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) 3(cid:73)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:80) (cid:68)(cid:72).(cid:73)(cid:71) (cid:68)(cid:72).(cid:78)(cid:71) (cid:72)(cid:76)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:72)(cid:76) (cid:72)(cid:75)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:73)(cid:71) (cid:68)(cid:72).(cid:76)(cid:73) 3(cid:73)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3(cid:72)(cid:83) 3.(cid:76)(cid:83) 3(cid:72)(cid:83) 3.(cid:76)(cid:83) 3.(cid:75)(cid:83) (cid:72).(cid:79)(cid:75)(cid:83) (cid:72).(cid:79)(cid:75)(cid:83) 2 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 21 2 1 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Share (cid:28)ased compensation (cid:14)(cid:36)tion(cid:39) (cid:16)ptions are granted under the Money3 Corporation Limited's Director and Employee Share (cid:16)ption Plan. (cid:16)ptions are granted under the plan for no consideration. The board determines the quantity and terms of options to be granted. The valuations of options are independently determined by independent experts using the Binomial option pricing model taking into account the terms and conditions upon which the instruments were granted. The following table discloses terms and conditions of each grant of options provided as compensation. (cid:10)ssue (cid:5)ate (cid:16)ptions Granted (cid:6)(cid:50)ercise Price (cid:6)(cid:50)piry (cid:5)ate (cid:23)esting (cid:5)ate S Baldwin S Baldwin C Harris C Harris R Bryant C Harris (cid:73)(cid:78) (cid:15)ov (cid:73)(cid:71)(cid:71)(cid:80) (cid:72)(cid:77) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:73) 3(cid:71) Sep (cid:73)(cid:71)(cid:72)(cid:73) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)3 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)3 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)3 S Baldwin 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)3 M Rudd M Rudd (cid:73)(cid:71) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:76) April (cid:73)(cid:71)(cid:72)(cid:76) M (cid:12)ani(cid:51)ay (cid:72)(cid:76) April (cid:73)(cid:71)(cid:72)(cid:76) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:78)(cid:71) (cid:68)(cid:72).(cid:78)(cid:71) 3(cid:72) Dec (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:72) Dec (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:77) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) Sep (cid:73)(cid:71)(cid:72)(cid:78) 3(cid:71) Sep (cid:73)(cid:71)(cid:72)(cid:76) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:79) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:77) (cid:73)(cid:71) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:80) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:73)(cid:71) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:72)(cid:79) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:73)(cid:71) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:72)(cid:79) (cid:14)a(cid:50)imum total value of issue yet to vest (cid:64) (cid:77),(cid:71)(cid:79)(cid:77) (cid:75)(cid:78),(cid:71)(cid:71)(cid:71) (cid:75)(cid:78),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:80),(cid:76)(cid:71)(cid:71) (cid:72)(cid:75)(cid:79),(cid:71)(cid:71)(cid:71) (cid:78)(cid:75),(cid:71)(cid:71)(cid:71) (cid:78)(cid:75),(cid:71)(cid:71)(cid:71) (cid:79)(cid:78),(cid:71)(cid:71)(cid:71) (cid:75)3,(cid:77)(cid:73)(cid:71) (cid:73)(cid:72),(cid:79)(cid:72)(cid:71) The options will vest if an event occurs which gives rise to a change in control of the Company. (cid:16)ptions issued during the 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) financial year were (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)). Share options carry no rights to dividends and no voting rights. In accordance with the terms of the share option schemes, options may be exercised at any time from the date on which they vest to the date of their expiry, subject to any additional specific requirements of the particular allocation. At the company's (cid:73)(cid:71)(cid:72)(cid:75) Annual General Meeting Money3 Corporation Limited received more than (cid:80)(cid:80).3(cid:79)(cid:83) of (cid:65)yes(cid:65) votes on its remuneration report for the (cid:73)(cid:71)(cid:72)(cid:75) financial year. (cid:12)ey management personnel e(cid:43)uity holdings Details of key management personnel equity holdings of the Group, including their personally related parties are disclosed below. There were no shares granted during the reporting period as compensation. (cid:22)aughan (cid:23)ebber Robert Bryant (cid:12)ang Hong Tan Christopher Baldwin Scott Baldwin Bettina Evert Craig Harris Miles Hampton Michael Rudd Michael (cid:12)ani(cid:51)ay (cid:21)otal (cid:3)alance at 1 (cid:11)uly (cid:69)(cid:67)1(cid:71) 3(cid:71),(cid:71)(cid:71)(cid:71) (cid:80),(cid:78)(cid:76)(cid:77),(cid:79)(cid:75)(cid:80) (cid:76),(cid:72)(cid:73)(cid:78),(cid:77)(cid:79)(cid:78) (cid:72),(cid:72)(cid:72)(cid:76),(cid:80)(cid:73)(cid:79) (cid:73),(cid:71)(cid:71)(cid:71),(cid:72)(cid:71)(cid:79) (cid:73)(cid:75)(cid:79),(cid:75)(cid:79)(cid:73) (cid:73)(cid:75)(cid:75),(cid:78)(cid:75)(cid:78) - (cid:72)(cid:71)(cid:76),(cid:71)(cid:71)(cid:71) - 1(cid:75)(cid:53)(cid:73)(cid:69)(cid:75)(cid:53)(cid:75)(cid:67)1 Granted as remuneration - - - - - - - - - - (cid:57) (cid:16)n e(cid:50)ercise of options (cid:15)et change other(cid:60) - - - - (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - (cid:72)(cid:71),3(cid:75)(cid:76) (33(cid:80),(cid:77)(cid:73)(cid:79)) (cid:75)(cid:72),3(cid:79)(cid:71) ((cid:72),(cid:72)(cid:72)(cid:76),(cid:80)(cid:73)(cid:79))(cid:63) (cid:72)(cid:76)(cid:75),(cid:73)(cid:72)(cid:77) (cid:72)3,(cid:79)(cid:78)(cid:75) (cid:73)(cid:72),(cid:78)(cid:72)(cid:71) (cid:72)(cid:77)(cid:71),3(cid:75)(cid:76) (cid:80)(cid:76),(cid:77)(cid:76)(cid:73) 3(cid:79),(cid:80)3(cid:78) (cid:3)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:75)(cid:71),3(cid:75)(cid:76) (cid:80),(cid:75)(cid:72)(cid:78),(cid:73)(cid:73)(cid:72) (cid:76),(cid:72)(cid:77)(cid:80),(cid:71)(cid:77)(cid:78) - (cid:73),3(cid:76)(cid:75),3(cid:73)(cid:75) (cid:73)(cid:77)(cid:73),3(cid:76)(cid:77) (cid:73)(cid:77)(cid:77),(cid:75)(cid:76)(cid:78) (cid:72)(cid:77)(cid:71),3(cid:75)(cid:76) (cid:73)(cid:71)(cid:71),(cid:77)(cid:76)(cid:73) 3(cid:79),(cid:80)3(cid:78) (cid:69)(cid:67)(cid:67)(cid:53)(cid:67)(cid:67)(cid:67) (cid:58)(cid:76)1(cid:76)(cid:53)(cid:67)(cid:76)(cid:74)(cid:59) 1(cid:74)(cid:53)(cid:76)(cid:67)(cid:76)(cid:53)(cid:74)(cid:67)(cid:71) (cid:62)(cid:15)et change other refers to the shares purchased, sold, or issued under the DRP. (cid:63)Equity holdings not included as no longer a director at balance date. 22 2 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | - - - (cid:77),(cid:80)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - - (cid:78)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - - - - S Baldwin C Harris R Bryant M Rudd M (cid:12)ani(cid:51)ay (cid:21)otal (cid:3)alance as at 1 (cid:11)uly (cid:69)(cid:67)1(cid:71) (cid:73),(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:19)eceived as remuneration (cid:16)ptions e(cid:50)ercised (cid:15)et change other (cid:3)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:21)otal e(cid:50)ercisa(cid:28)le and vested (cid:21)otal options vested (cid:21)otal options unvested - - - - - - (cid:73),(cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - - - - (cid:73),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78),3(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:16)ptions over ordinary shares in (cid:14)oney(cid:70) Corporation Limited held during the financial year (cid:28)y each director of (cid:14)oney(cid:70) Corporation Limited and (cid:37)ey management personnel of the consolidated entity(cid:53) including their personally related parties are set out (cid:28)elo(cid:49)(cid:55) Share (cid:28)ased compensation (cid:14)(cid:36)tion(cid:39) (cid:16)ptions are granted under the Money3 Corporation Limited's Director and Employee Share (cid:16)ption Plan. (cid:16)ptions are granted under the plan for no consideration. The board determines the quantity and terms of options to be granted. The valuations of options are independently determined by independent experts using the Binomial option pricing model taking into account the terms and conditions upon which the instruments were granted. The following table discloses terms and conditions of each grant of options provided as compensation. (cid:10)ssue (cid:5)ate (cid:6)(cid:50)ercise Price (cid:6)(cid:50)piry (cid:5)ate (cid:23)esting (cid:5)ate (cid:16)ptions Granted S Baldwin S Baldwin C Harris C Harris R Bryant C Harris (cid:73)(cid:78) (cid:15)ov (cid:73)(cid:71)(cid:71)(cid:80) (cid:72)(cid:77) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:73) 3(cid:71) Sep (cid:73)(cid:71)(cid:72)(cid:73) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)3 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)3 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)3 S Baldwin 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)3 M Rudd M Rudd (cid:73)(cid:71) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:76) April (cid:73)(cid:71)(cid:72)(cid:76) M (cid:12)ani(cid:51)ay (cid:72)(cid:76) April (cid:73)(cid:71)(cid:72)(cid:76) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:78)(cid:71) (cid:68)(cid:72).(cid:78)(cid:71) 3(cid:72) Dec (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:72) Dec (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:77) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) Sep (cid:73)(cid:71)(cid:72)(cid:78) 3(cid:71) Sep (cid:73)(cid:71)(cid:72)(cid:76) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:79) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ov (cid:73)(cid:71)(cid:72)(cid:77) (cid:73)(cid:71) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:80) (cid:73)(cid:72) (cid:16)ct (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:73)(cid:71) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:72)(cid:79) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:73)(cid:71) (cid:72)(cid:75) April (cid:73)(cid:71)(cid:72)(cid:79) (cid:14)a(cid:50)imum total value of issue yet to vest (cid:64) (cid:77),(cid:71)(cid:79)(cid:77) (cid:75)(cid:78),(cid:71)(cid:71)(cid:71) (cid:75)(cid:78),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:80),(cid:76)(cid:71)(cid:71) (cid:72)(cid:75)(cid:79),(cid:71)(cid:71)(cid:71) (cid:78)(cid:75),(cid:71)(cid:71)(cid:71) (cid:78)(cid:75),(cid:71)(cid:71)(cid:71) (cid:79)(cid:78),(cid:71)(cid:71)(cid:71) (cid:75)3,(cid:77)(cid:73)(cid:71) (cid:73)(cid:72),(cid:79)(cid:72)(cid:71) The options will vest if an event occurs which gives rise to a change in control of the Company. (cid:16)ptions issued during the 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) financial year were (cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)). Share options carry no rights to dividends and no voting rights. In accordance with the terms of the share option schemes, options may be exercised at any time from the date on which they vest to the date of their expiry, subject to any additional specific requirements of the particular allocation. At the company's (cid:73)(cid:71)(cid:72)(cid:75) Annual General Meeting Money3 Corporation Limited received more than (cid:80)(cid:80).3(cid:79)(cid:83) of (cid:65)yes(cid:65) votes on its remuneration report for the (cid:73)(cid:71)(cid:72)(cid:75) financial year. (cid:12)ey management personnel e(cid:43)uity holdings Details of key management personnel equity holdings of the Group, including their personally related parties are disclosed below. There were no shares granted during the reporting period as compensation. (cid:3)alance at 1 (cid:11)uly (cid:69)(cid:67)1(cid:71) Granted as remuneration (cid:16)n e(cid:50)ercise of options (cid:15)et change other(cid:60) (cid:3)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:22)aughan (cid:23)ebber Robert Bryant (cid:12)ang Hong Tan Christopher Baldwin Scott Baldwin Bettina Evert Craig Harris Miles Hampton Michael Rudd Michael (cid:12)ani(cid:51)ay (cid:21)otal 3(cid:71),(cid:71)(cid:71)(cid:71) (cid:80),(cid:78)(cid:76)(cid:77),(cid:79)(cid:75)(cid:80) (cid:76),(cid:72)(cid:73)(cid:78),(cid:77)(cid:79)(cid:78) (cid:72),(cid:72)(cid:72)(cid:76),(cid:80)(cid:73)(cid:79) (cid:73),(cid:71)(cid:71)(cid:71),(cid:72)(cid:71)(cid:79) (cid:73)(cid:75)(cid:79),(cid:75)(cid:79)(cid:73) (cid:73)(cid:75)(cid:75),(cid:78)(cid:75)(cid:78) (cid:72)(cid:71)(cid:76),(cid:71)(cid:71)(cid:71) - - 1(cid:75)(cid:53)(cid:73)(cid:69)(cid:75)(cid:53)(cid:75)(cid:67)1 - - - - - - - - - - (cid:57) (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - - - - - (cid:72)(cid:71),3(cid:75)(cid:76) (33(cid:80),(cid:77)(cid:73)(cid:79)) (cid:75)(cid:72),3(cid:79)(cid:71) ((cid:72),(cid:72)(cid:72)(cid:76),(cid:80)(cid:73)(cid:79))(cid:63) (cid:72)(cid:76)(cid:75),(cid:73)(cid:72)(cid:77) (cid:72)3,(cid:79)(cid:78)(cid:75) (cid:73)(cid:72),(cid:78)(cid:72)(cid:71) (cid:72)(cid:77)(cid:71),3(cid:75)(cid:76) (cid:80)(cid:76),(cid:77)(cid:76)(cid:73) 3(cid:79),(cid:80)3(cid:78) (cid:75)(cid:71),3(cid:75)(cid:76) (cid:80),(cid:75)(cid:72)(cid:78),(cid:73)(cid:73)(cid:72) (cid:76),(cid:72)(cid:77)(cid:80),(cid:71)(cid:77)(cid:78) - (cid:73),3(cid:76)(cid:75),3(cid:73)(cid:75) (cid:73)(cid:77)(cid:73),3(cid:76)(cid:77) (cid:73)(cid:77)(cid:77),(cid:75)(cid:76)(cid:78) (cid:72)(cid:77)(cid:71),3(cid:75)(cid:76) (cid:73)(cid:71)(cid:71),(cid:77)(cid:76)(cid:73) 3(cid:79),(cid:80)3(cid:78) (cid:69)(cid:67)(cid:67)(cid:53)(cid:67)(cid:67)(cid:67) (cid:58)(cid:76)1(cid:76)(cid:53)(cid:67)(cid:76)(cid:74)(cid:59) 1(cid:74)(cid:53)(cid:76)(cid:67)(cid:76)(cid:53)(cid:74)(cid:67)(cid:71) (cid:62)(cid:15)et change other refers to the shares purchased, sold, or issued under the DRP. (cid:63)Equity holdings not included as no longer a director at balance date. End of Remuneration Report (Audited) Proceedings on (cid:28)ehalf of the company (cid:15)o person has applied to the Court for leave to bring proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the Company for all or part of these proceedings. (cid:15)o proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section (cid:73)3(cid:78) of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72). (cid:15)on-Audit Services There were no non audit services provided by the auditor during the (cid:73)(cid:71)(cid:72)(cid:76) or (cid:73)(cid:71)(cid:72)(cid:75) financial years. (cid:2)uditor(cid:61)s independence declaration The auditor's independence declaration as required under section 3(cid:71)(cid:78)C of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72) is set out on page (cid:73)(cid:75) of the financial report. Signed in accordance with a resolution of the Directors (cid:16)n behalf of the directors (cid:22)aughan (cid:23)ebber Chairman Melbourne Dated 3(cid:71) September (cid:73)(cid:71)(cid:72)(cid:76) 2 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 23 2 3 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Auditor’s Independence Declaration Tel: +61 3 9603 1700 Fax: +61 3 9602 3870 www.bdo.com.au Level 14, 140 William St Melbourne VIC 3000 GPO Box 5099 Melbourne VIC 3001 Australia DECLARATION OF INDEPENDENCE BY DAVID GARVEY TO THE DIRECTORS OF MONEY3 CORPORATION LIMITED As lead auditor of Money3 Corporation Limited for the year ended 30 June 2015, I declare that, to the best of my knowledge and belief, there have been: 1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and 2. No contraventions of any applicable code of professional conduct in relation to the audit. This declaration is in respect of Money3 Corporation Limited and the entities it controlled during the period. David Garvey Partner BDO East Coast Partnership Melbourne, 30 September 2015 BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. 24 2 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t Auditor’s Independence Declaration (cid:3)(cid:5)(cid:16) (cid:10)ndependent (cid:2)uditors (cid:19)eport 2 0 1 5 M N Y Annual Report 2015 | MNY | Tel: +61 3 9603 1700 Fax: +61 3 9602 3870 www.bdo.com.au Level 14, 140 William St Melbourne VIC 3000 GPO Box 5099 Melbourne VIC 3001 Australia INDEPENDENT AUDITOR’S REPORT To the members of Money3 Corporation Limited Report on the Financial Report We have audited the accompanying financial report of Money3 Corporation Limited, which comprises the consolidated statement of financial position as at 30 June 2015, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the year’s end or from time to time during the financial year. Directors’ Responsibility for the Financial Report The directors of the company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In Note 1(a), the directors also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards. Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the financial report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation, other than for the acts or omissions of financial services licensees. 2 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 25 2 5 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:3)(cid:5)(cid:16) (cid:10)ndependent (cid:2)uditors (cid:19)eport (cid:58)continued(cid:59) Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of Money3 Corporation Limited, would be in the same terms if given to the directors as at the time of this auditor’s report. Opinion In our opinion: (a) the financial report of Money3 Corporation Limited is in accordance with the Corporations Act 2001, including: (i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2015 and of its performance for the year ended on that date; and (ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and (b) the financial report also complies with International Financial Reporting Standards as disclosed in Note 1(a). Report on the Remuneration Report We have audited the Remuneration Report included in pages 17 to 23 of the directors’ report for the year ended 30 June 2015. The directors of the company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. Opinion In our opinion, the Remuneration Report of Money3 Corporation Limited for the year ended 30 June 2015 complies with section 300A of the Corporations Act 2001. BDO East Coast Partnership David Garvey Partner Melbourne, 30 September 2015 26 2 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited 2 For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:3)(cid:5)(cid:16) (cid:10)ndependent (cid:2)uditors (cid:19)eport (cid:58)continued(cid:59) (cid:5)irectors(cid:61) (cid:5)eclaration The directors of Money3 Corporation Limited declare that: (cid:72). in the directors’ opinion the financial statements and notes and the Remuneration report in the Directors Report set out on pages (cid:72)3 to (cid:72)(cid:80), are in accordance with the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72), including: (cid:72)(a) (cid:72)(b) giving a true and fair view of the consolidated entity’s financial position as at 30 June (cid:73)(cid:71)(cid:72)(cid:76) and of its performance, for the financial year ended on that date; and complying with Australian Accounting Standards (including the Australian Accounting Interpretations), Corporations Regulations (cid:73)(cid:71)(cid:71)(cid:72) and other mandatory professional reporting requirements; (cid:73). 3. the financial report also complies with International (cid:7)inancial Reporting Standards issued by the International Accounting Standards Board (IASB) as disclosed in (cid:15)ote (cid:72)(a); and there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable. The directors have been given the declarations required by Section (cid:73)(cid:80)(cid:76)A of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72) by the Managing Director and chief financial officer for the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76). Signed in accordance with a resolution of the directors pursuant to section (cid:73)(cid:80)(cid:76)((cid:76)) of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72). (cid:16)n behalf of the Directors (cid:22)aughan (cid:23)ebber Chairman Melbourne Dated 3(cid:71) September (cid:73)(cid:71)(cid:72)(cid:76) 2 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 27 2 7 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Statement of Profit or Loss and (cid:16)ther Comprehensive (cid:10)ncome for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) (cid:19)evenue from continuing operations (cid:16)ther (cid:10)ncome (cid:21)otal (cid:10)ncome (cid:6)(cid:50)penses from operating activities: Employee benefit (cid:16)ccupancy Advertising Legal and professional Bad debts and allowance for impairment losses Depreciation (cid:66) amortisation (cid:16)ther expenses (cid:7)inance Costs Loss on sale of property, plant and equipment Impairment of property, plant and equipment (cid:21)otal (cid:6)(cid:50)penses Profit (cid:28)efore income ta(cid:50) from continuing operations (cid:15)otes (cid:73) 3 Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73)(cid:76)(cid:53)(cid:71)(cid:70)(cid:71)(cid:53)(cid:69)1(cid:71) (cid:71)(cid:70)(cid:53)(cid:72)(cid:67)(cid:74)(cid:53)(cid:74)(cid:67)(cid:75) (cid:73)(cid:71),(cid:78)3(cid:72) - (cid:73)(cid:76)(cid:53)(cid:71)(cid:72)(cid:71)(cid:53)(cid:76)(cid:71)(cid:72) (cid:71)(cid:70)(cid:53)(cid:72)(cid:67)(cid:74)(cid:53)(cid:74)(cid:67)(cid:75) 3 3 3 3 (cid:73)(cid:72),(cid:73)(cid:76)(cid:75),(cid:80)(cid:76)(cid:80) (cid:72)(cid:75),(cid:80)(cid:76)(cid:71),(cid:80)3(cid:71) 3,(cid:79)(cid:73)(cid:77),(cid:78)3(cid:72) 3,(cid:72)(cid:71)(cid:75),(cid:72)(cid:79)(cid:77) (cid:72),(cid:79)3(cid:76),(cid:79)(cid:79)(cid:75) (cid:72)(cid:71),(cid:72)(cid:75)(cid:78),(cid:73)3(cid:72) (cid:80)3(cid:73),(cid:76)(cid:80)(cid:79) (cid:75),(cid:75)(cid:80)(cid:71),(cid:79)(cid:77)(cid:71) 3,(cid:78)(cid:73)(cid:78),(cid:73)(cid:77)(cid:73) - - (cid:71)(cid:76)(cid:53)(cid:70)1(cid:76)(cid:53)(cid:74)11 (cid:69)(cid:67)(cid:53)1(cid:70)(cid:72)(cid:53)(cid:69)(cid:70)(cid:71) 3,(cid:75)(cid:73)(cid:78),(cid:75)(cid:73)(cid:79) (cid:72),(cid:75)(cid:76)(cid:76),(cid:75)(cid:78)(cid:78) (cid:72),(cid:72)(cid:75)(cid:72),(cid:77)(cid:73)(cid:72) (cid:77),(cid:72)(cid:73)(cid:72),(cid:73)(cid:77)(cid:72) (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:73),(cid:78)(cid:73)(cid:75),(cid:72)(cid:73)(cid:73) (cid:80)(cid:78)(cid:79),(cid:71)(cid:72)(cid:79) 3(cid:79)(cid:78),(cid:80)(cid:78)(cid:73) (cid:72)(cid:80)(cid:71),(cid:78)(cid:75)(cid:72) (cid:70)(cid:69)(cid:53)(cid:72)(cid:71)(cid:73)(cid:53)(cid:69)(cid:70)(cid:72) 1(cid:67)(cid:53)(cid:76)(cid:73)1(cid:53)(cid:71)(cid:74)(cid:70) Income tax expense (cid:76) ((cid:77),(cid:72)(cid:80)(cid:75),(cid:77)(cid:72)(cid:80)) (3,(cid:72)(cid:73)(cid:80),(cid:79)3(cid:71)) Profit after income ta(cid:50) for the year from continuing operations 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) (cid:21)otal comprehensive income for the year net of ta(cid:50) 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) Profit attri(cid:28)uta(cid:28)le to: (cid:16)(cid:49)ners of (cid:14)oney(cid:70) Corporation Limited (cid:21)otal comprehensive income attri(cid:28)uta(cid:28)le to: (cid:16)(cid:49)ners of (cid:14)oney(cid:70) Corporation Limited Basic earnings per share (cents) Diluted earnings per share (cents) 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) (cid:77) (cid:77) (cid:72)(cid:72).(cid:79)(cid:73) (cid:80).(cid:80)(cid:72) (cid:79).(cid:72)3 (cid:78).(cid:77)(cid:76) The statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes. 28 2 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | Statement of Profit or Loss and (cid:16)ther Comprehensive (cid:10)ncome for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) Statement of (cid:7)inancial Position as at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) (cid:19)evenue from continuing operations (cid:16)ther (cid:10)ncome (cid:21)otal (cid:10)ncome (cid:6)(cid:50)penses from operating activities: Employee benefit (cid:16)ccupancy Advertising Legal and professional (cid:16)ther expenses (cid:7)inance Costs Bad debts and allowance for impairment losses Depreciation (cid:66) amortisation Loss on sale of property, plant and equipment Impairment of property, plant and equipment (cid:21)otal (cid:6)(cid:50)penses Profit (cid:28)efore income ta(cid:50) from continuing operations Consolidated Consolidated (cid:15)otes (cid:69)(cid:67)1(cid:72) (cid:64) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73)(cid:76)(cid:53)(cid:71)(cid:70)(cid:71)(cid:53)(cid:69)1(cid:71) (cid:71)(cid:70)(cid:53)(cid:72)(cid:67)(cid:74)(cid:53)(cid:74)(cid:67)(cid:75) (cid:73)(cid:71),(cid:78)3(cid:72) - (cid:73)(cid:76)(cid:53)(cid:71)(cid:72)(cid:71)(cid:53)(cid:76)(cid:71)(cid:72) (cid:71)(cid:70)(cid:53)(cid:72)(cid:67)(cid:74)(cid:53)(cid:74)(cid:67)(cid:75) (cid:73)(cid:72),(cid:73)(cid:76)(cid:75),(cid:80)(cid:76)(cid:80) (cid:72)(cid:75),(cid:80)(cid:76)(cid:71),(cid:80)3(cid:71) 3,(cid:79)(cid:73)(cid:77),(cid:78)3(cid:72) 3,(cid:72)(cid:71)(cid:75),(cid:72)(cid:79)(cid:77) (cid:72),(cid:79)3(cid:76),(cid:79)(cid:79)(cid:75) (cid:72)(cid:71),(cid:72)(cid:75)(cid:78),(cid:73)3(cid:72) (cid:80)3(cid:73),(cid:76)(cid:80)(cid:79) (cid:75),(cid:75)(cid:80)(cid:71),(cid:79)(cid:77)(cid:71) 3,(cid:78)(cid:73)(cid:78),(cid:73)(cid:77)(cid:73) - - (cid:71)(cid:76)(cid:53)(cid:70)1(cid:76)(cid:53)(cid:74)11 (cid:69)(cid:67)(cid:53)1(cid:70)(cid:72)(cid:53)(cid:69)(cid:70)(cid:71) 3,(cid:75)(cid:73)(cid:78),(cid:75)(cid:73)(cid:79) (cid:72),(cid:75)(cid:76)(cid:76),(cid:75)(cid:78)(cid:78) (cid:72),(cid:72)(cid:75)(cid:72),(cid:77)(cid:73)(cid:72) (cid:77),(cid:72)(cid:73)(cid:72),(cid:73)(cid:77)(cid:72) (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:73),(cid:78)(cid:73)(cid:75),(cid:72)(cid:73)(cid:73) (cid:80)(cid:78)(cid:79),(cid:71)(cid:72)(cid:79) 3(cid:79)(cid:78),(cid:80)(cid:78)(cid:73) (cid:72)(cid:80)(cid:71),(cid:78)(cid:75)(cid:72) (cid:70)(cid:69)(cid:53)(cid:72)(cid:71)(cid:73)(cid:53)(cid:69)(cid:70)(cid:72) 1(cid:67)(cid:53)(cid:76)(cid:73)1(cid:53)(cid:71)(cid:74)(cid:70) Income tax expense (cid:76) ((cid:77),(cid:72)(cid:80)(cid:75),(cid:77)(cid:72)(cid:80)) (3,(cid:72)(cid:73)(cid:80),(cid:79)3(cid:71)) Profit after income ta(cid:50) for the year from continuing operations 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) (cid:21)otal comprehensive income for the year net of ta(cid:50) 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) Profit attri(cid:28)uta(cid:28)le to: (cid:16)(cid:49)ners of (cid:14)oney(cid:70) Corporation Limited (cid:21)otal comprehensive income attri(cid:28)uta(cid:28)le to: (cid:16)(cid:49)ners of (cid:14)oney(cid:70) Corporation Limited Basic earnings per share (cents) Diluted earnings per share (cents) 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) 1(cid:70)(cid:53)(cid:76)(cid:71)(cid:67)(cid:53)(cid:73)1(cid:72) (cid:74)(cid:53)(cid:75)(cid:70)1(cid:53)(cid:73)(cid:71)(cid:70) (cid:72)(cid:72).(cid:79)(cid:73) (cid:80).(cid:80)(cid:72) (cid:79).(cid:72)3 (cid:78).(cid:77)(cid:76) The statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes. (cid:73) 3 3 3 3 3 (cid:77) (cid:77) (cid:2)SS(cid:6)(cid:21)S Current assets Cash and cash equivalents Loans and other receivables (cid:16)ther assets (cid:21)otal current assets (cid:15)on current assets Loans and other receivables (cid:16)ther assets Property, plant (cid:66) equipment Intangible assets Deferred tax assets (cid:21)otal non current assets (cid:21)otal assets L(cid:10)(cid:2)(cid:3)(cid:10)L(cid:10)(cid:21)(cid:10)(cid:6)S Current lia(cid:28)ilities Trade and other payables Derivative financial liabilities Borrowings Current tax payables Provisions (cid:21)otal current lia(cid:28)ilities (cid:15)on current lia(cid:28)ilities Borrowings Provisions (cid:21)otal non current lia(cid:28)ilities (cid:21)otal lia(cid:28)ilities (cid:15)et assets (cid:6)(cid:18)(cid:22)(cid:10)(cid:21)(cid:26) Issued capital Reserves Retained earnings (cid:21)otal e(cid:43)uity Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:15)otes (cid:80) (cid:72)(cid:71) (cid:72)(cid:72) (cid:72)(cid:71) (cid:72)(cid:72) (cid:72)(cid:73) (cid:72)3 (cid:76)(d) (cid:72)(cid:75) (cid:72)(cid:77) (cid:72)(cid:78) (cid:76)(c) (cid:72)(cid:76) (cid:72)(cid:78) (cid:72)(cid:76) (cid:72)(cid:79) (cid:72)(cid:80) (cid:75) (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) (cid:79)(cid:79),(cid:76)(cid:75)(cid:78),(cid:72)(cid:78)(cid:71) 3(cid:71)(cid:80),(cid:79)(cid:79)(cid:75) 1(cid:67)1(cid:53)(cid:69)(cid:74)(cid:72)(cid:53)(cid:69)(cid:73)(cid:67) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 (cid:75)(cid:78),(cid:71)(cid:73)(cid:78),(cid:73)(cid:80)(cid:71) (cid:72)(cid:75)3,(cid:71)(cid:77)(cid:73) (cid:74)(cid:67)(cid:53)(cid:75)(cid:71)(cid:76)(cid:53)(cid:71)1(cid:72) (cid:75)(cid:72),(cid:78)(cid:71)(cid:79),(cid:77)(cid:79)(cid:80) (cid:73)(cid:77),(cid:72)(cid:78)(cid:80),(cid:72)(cid:76)(cid:80) (cid:76)(cid:71)(cid:78),(cid:73)(cid:80)(cid:72) (cid:73),(cid:76)(cid:78)(cid:72),(cid:72)(cid:71)(cid:80) (cid:72)(cid:80),3(cid:78)(cid:75),(cid:73)3(cid:78) (cid:73),(cid:80)(cid:71)(cid:77),(cid:80)3(cid:75) (cid:73)(cid:74)(cid:53)(cid:67)(cid:73)(cid:75)(cid:53)(cid:69)(cid:73)(cid:67) 3(cid:75)(cid:71),(cid:79)(cid:77)(cid:80) (cid:73),(cid:71)(cid:76)(cid:72),3(cid:73)3 (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:71)(cid:72)(cid:53)(cid:75)(cid:73)(cid:67)(cid:53)(cid:74)(cid:76)(cid:73) 1(cid:73)(cid:75)(cid:53)(cid:70)(cid:71)(cid:70)(cid:53)(cid:72)(cid:69)(cid:67) 11(cid:73)(cid:53)(cid:74)1(cid:67)(cid:53)(cid:69)11 (cid:75),(cid:78)(cid:72)(cid:71),(cid:75)(cid:71)(cid:77) (cid:76)(cid:76),3(cid:73)3 (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (cid:75),(cid:73)(cid:77)(cid:75),3(cid:79)(cid:80) (cid:72),(cid:73)(cid:77)(cid:75),(cid:80)(cid:80)(cid:77) 1(cid:74)(cid:53)(cid:74)(cid:73)(cid:75)(cid:53)(cid:67)(cid:76)(cid:73) (cid:73),(cid:73)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) - - 3,(cid:71)(cid:72)3,(cid:79)(cid:73)(cid:76) (cid:79)(cid:79)(cid:72),(cid:73)(cid:73)(cid:76) (cid:73)(cid:53)1(cid:75)(cid:74)(cid:53)(cid:74)(cid:76)(cid:67) (cid:73)(cid:78),(cid:78)3(cid:79),(cid:78)(cid:76)(cid:71) (cid:73)(cid:80),3(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:71)(cid:79),(cid:80)(cid:75)(cid:79) (cid:69)(cid:74)(cid:53)(cid:75)(cid:71)(cid:74)(cid:53)(cid:73)(cid:76)(cid:75) (cid:71)(cid:72)(cid:53)(cid:73)1(cid:72)(cid:53)(cid:74)(cid:76)(cid:71) 1(cid:69)(cid:69)(cid:53)(cid:74)(cid:69)(cid:74)(cid:53)(cid:74)(cid:69)(cid:73) (cid:79)(cid:77),(cid:79)(cid:73)3 (cid:69)(cid:76)(cid:53)(cid:71)(cid:69)(cid:73)(cid:53)(cid:75)(cid:69)(cid:70) (cid:70)(cid:72)(cid:53)(cid:73)1(cid:71)(cid:53)(cid:73)1(cid:70) (cid:75)1(cid:53)(cid:67)(cid:76)(cid:72)(cid:53)(cid:72)(cid:76)(cid:75) (cid:72)(cid:71)(cid:73),(cid:72)(cid:79)(cid:71),(cid:76)(cid:72)(cid:71) (cid:78)(cid:72),(cid:72)(cid:80)(cid:76),(cid:75)(cid:73)(cid:76) (cid:73),(cid:78)(cid:80)(cid:72),3(cid:72)(cid:72) (cid:72)(cid:78),(cid:78)(cid:76)(cid:76),(cid:80)(cid:71)(cid:76) (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) (cid:80),(cid:78)(cid:72)3,(cid:72)(cid:71)(cid:80) 1(cid:69)(cid:69)(cid:53)(cid:74)(cid:69)(cid:74)(cid:53)(cid:74)(cid:69)(cid:73) (cid:75)1(cid:53)(cid:67)(cid:76)(cid:72)(cid:53)(cid:72)(cid:76)(cid:75) The statement of financial position is to be read in conjunction with the attached notes 2 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 29 2 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 Statement of Changes in (cid:6)(cid:43)uity for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) Consolidated At (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)3 Profit after income tax expense for the year (cid:16)ther comprehensive loss for the year, net of tax Total comprehensive income(cid:56)(loss) for the year (cid:10)ssued Capital (cid:64) (cid:71)(cid:72)(cid:53)(cid:67)(cid:76)(cid:74)(cid:53)(cid:72)(cid:75)(cid:75) - - - (cid:19)etained (cid:6)arnings (cid:64) (cid:73)(cid:53)(cid:67)(cid:73)(cid:69)(cid:53)(cid:70)(cid:76)(cid:76) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 - (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:21)ransactions (cid:49)ith o(cid:49)ners in their capacity as o(cid:49)ners: Issue of shares Transaction costs arising for share issue Deferred tax asset due to transaction costs arising for share issue Employee share options -value of employees service (cid:16)ptions exercised (cid:73)(cid:76),(cid:76)(cid:76)(cid:77),(cid:80)(cid:72)(cid:79) ((cid:80)(cid:80)(cid:77),(cid:73)(cid:71)(cid:80)) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 - (cid:72)(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - Dividend paid (cid:72),(cid:71)(cid:80)(cid:79),(cid:73)(cid:77)(cid:76)(cid:62) ((cid:75),(cid:72)(cid:79)(cid:71),(cid:80)33) (cid:19)eserves (cid:64) (cid:21)otal (cid:64) (cid:72)(cid:72)(cid:53)(cid:74)(cid:73)(cid:76) (cid:72)1(cid:53)(cid:69)1(cid:72)(cid:53)(cid:74)(cid:72)(cid:73) - - - - - - (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) - - (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 - (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:73)(cid:76),(cid:76)(cid:76)(cid:77),(cid:80)(cid:72)(cid:79) ((cid:80)(cid:80)(cid:77),(cid:73)(cid:71)(cid:80)) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) (cid:72)(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) (3,(cid:71)(cid:79)(cid:73),(cid:77)(cid:77)(cid:79)) Closing (cid:28)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:71) (cid:74)1(cid:53)1(cid:76)(cid:72)(cid:53)(cid:71)(cid:69)(cid:72) (cid:76)(cid:53)(cid:74)1(cid:70)(cid:53)1(cid:67)(cid:76) 1(cid:75)(cid:74)(cid:53)(cid:67)(cid:73)(cid:71) (cid:75)1(cid:53)(cid:67)(cid:76)(cid:72)(cid:53)(cid:72)(cid:76)(cid:75) At (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75) (cid:74)1(cid:53)1(cid:76)(cid:72)(cid:53)(cid:71)(cid:69)(cid:72) (cid:76)(cid:53)(cid:74)1(cid:70)(cid:53)1(cid:67)(cid:76) 1(cid:75)(cid:74)(cid:53)(cid:67)(cid:73)(cid:71) Profit after income tax expense for the year (cid:16)ther comprehensive income for the year, net of tax Total comprehensive income for the year - - - (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) - (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:21)ransactions (cid:49)ith o(cid:49)ners in their capacity as o(cid:49)ners: Issue of shares Transaction costs arising for share issue Deferred tax asset due to transaction costs arising for share issue Employee share options -value of employees service (cid:16)ptions exercised Bond (cid:16)ptions Issued Dividend paid (cid:73)(cid:80),(cid:76)(cid:73)3,(cid:75)(cid:75)(cid:73) ((cid:78)(cid:76)3,(cid:78)(cid:76)(cid:76)) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) - (cid:72)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - - - (cid:75)1(cid:53)(cid:67)(cid:76)(cid:72)(cid:53)(cid:72)(cid:76)(cid:75) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) - (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:73)(cid:80),(cid:76)(cid:73)3,(cid:75)(cid:75)(cid:73) ((cid:78)(cid:76)3,(cid:78)(cid:76)(cid:76)) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) - - - - - - (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) - (cid:73),3(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),3(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:79)(cid:72)(cid:80),(cid:73)(cid:78)(cid:72)(cid:62) ((cid:76),(cid:79)(cid:80)(cid:78),(cid:79)(cid:72)(cid:80)) - ((cid:75),(cid:71)(cid:78)(cid:79),(cid:76)(cid:75)(cid:79)) Closing (cid:28)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) 1(cid:67)(cid:69)(cid:53)1(cid:75)(cid:67)(cid:53)(cid:72)1(cid:67) 1(cid:74)(cid:53)(cid:74)(cid:72)(cid:72)(cid:53)(cid:76)(cid:67)(cid:72) (cid:69)(cid:53)(cid:74)(cid:76)1(cid:53)(cid:70)11 1(cid:69)(cid:69)(cid:53)(cid:74)(cid:69)(cid:74)(cid:53)(cid:74)(cid:69)(cid:73) (cid:62)Shares issued to shareholders that elect to participate in the Dividend Reinvestment Plan. The statement of changes in equity is to be read in conjunction with the attached notes. 30 3 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | Statement of Cash (cid:7)lo(cid:49)s for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) Cash flo(cid:49)s from operating activities (cid:15)et fees and charges from customers (cid:15)et funds advanced to customers for loans Payments to suppliers and employees (GST Inclusive) Interest received (cid:7)inance costs Income tax paid Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:15)otes (cid:76)(cid:79),(cid:79)(cid:77)(cid:77),(cid:78)(cid:75)(cid:75) 3(cid:78),3(cid:71)(cid:79),(cid:72)(cid:77)3 ((cid:76)(cid:76),(cid:79)(cid:77)(cid:76),(cid:76)(cid:80)(cid:80)) ((cid:75)(cid:71),(cid:76)(cid:71)(cid:72),(cid:72)(cid:80)(cid:78)) (33,3(cid:78)(cid:79),(cid:77)(cid:76)(cid:76)) ((cid:73)(cid:73),(cid:73)(cid:71)(cid:73),(cid:71)(cid:72)(cid:76)) (cid:75)(cid:73)(cid:71),(cid:73)3(cid:80) ((cid:73),(cid:77)3(cid:78),(cid:71)(cid:80)(cid:73)) ((cid:76),(cid:77)(cid:80)(cid:79),(cid:80)(cid:71)(cid:76)) (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) ((cid:72),(cid:77)3(cid:79),(cid:71)(cid:72)(cid:79)) ((cid:73),(cid:71)(cid:73)3,(cid:75)(cid:75)(cid:72)) (cid:15)et cash used in operating activities (cid:73)(cid:71)(b) (3(cid:79),(cid:73)(cid:80)3,(cid:73)(cid:77)(cid:79)) ((cid:73)(cid:79),(cid:80)33,(cid:78)(cid:77)3) Cash flo(cid:49)s from investing activities Payment for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for purchase of business (cid:15)et cash used in investing activities (cid:73)(cid:72) ((cid:72),(cid:73)(cid:79)(cid:78),(cid:75)(cid:71)(cid:73)) ((cid:72),(cid:73)(cid:79)(cid:80),3(cid:78)(cid:76)) (cid:72)(cid:73)(cid:71),(cid:71)(cid:71)(cid:71) (3,(cid:80)(cid:79)(cid:78),(cid:73)3(cid:79)) ((cid:76),(cid:72)(cid:76)(cid:75),(cid:77)(cid:75)(cid:71)) (cid:78)(cid:78)(cid:73),(cid:73)(cid:75)(cid:72) - ((cid:76)(cid:72)(cid:78),(cid:72)3(cid:75)) Cash flo(cid:49)s from financing activities Proceeds from share issue Proceeds from borrowings Repayment of borrowings Dividend paid (cid:15)et cash provided (cid:28)y financing activities (cid:73)(cid:79),(cid:78)(cid:80)(cid:73),(cid:77)(cid:72)(cid:78) (cid:72)(cid:71),(cid:80)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (3,(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) ((cid:75),(cid:71)(cid:78)(cid:79),(cid:76)(cid:75)(cid:79)) 3(cid:73),(cid:72)(cid:79)(cid:78),(cid:71)(cid:76)(cid:72) (cid:73)(cid:75),(cid:78)(cid:71)(cid:71),(cid:78)(cid:71)(cid:80) 3(cid:71),(cid:77)(cid:73)(cid:75),(cid:71)(cid:71)(cid:71) (3,(cid:76)(cid:76)(cid:75),(cid:71)(cid:71)(cid:71)) (3,(cid:71)(cid:79)(cid:73),(cid:77)(cid:77)(cid:79)) (cid:75)(cid:79),(cid:77)(cid:79)(cid:79),(cid:71)(cid:75)(cid:72) Total comprehensive income for the year (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:15)et increase(cid:56)(cid:58)decrease(cid:59) in cash held (cid:58)11(cid:53)(cid:69)(cid:73)(cid:67)(cid:53)(cid:75)(cid:72)(cid:74)(cid:59) 1(cid:76)(cid:53)(cid:69)(cid:70)(cid:74)(cid:53)1(cid:71)(cid:71) Cash and cash e(cid:43)uivalents at the (cid:28)eginning of the year (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 (cid:75),(cid:75)(cid:75)(cid:72),(cid:80)(cid:72)(cid:80) Cash and cash e(cid:43)uivalents at end of the year (cid:73)(cid:71)(a) 1(cid:69)(cid:53)(cid:71)1(cid:75)(cid:53)(cid:69)(cid:67)(cid:73) (cid:69)(cid:70)(cid:53)(cid:73)(cid:74)(cid:76)(cid:53)(cid:67)(cid:73)(cid:70) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) The statement of cash flows is to be read in conjunction with the attached notes. Statement of Changes in (cid:6)(cid:43)uity for the year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) Consolidated (cid:10)ssued Capital (cid:64) (cid:71)(cid:72)(cid:53)(cid:67)(cid:76)(cid:74)(cid:53)(cid:72)(cid:75)(cid:75) (cid:19)etained (cid:6)arnings (cid:64) (cid:73)(cid:53)(cid:67)(cid:73)(cid:69)(cid:53)(cid:70)(cid:76)(cid:76) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:19)eserves (cid:64) (cid:21)otal (cid:64) (cid:72)(cid:72)(cid:53)(cid:74)(cid:73)(cid:76) (cid:72)1(cid:53)(cid:69)1(cid:72)(cid:53)(cid:74)(cid:72)(cid:73) At (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)3 Profit after income tax expense for the year (cid:16)ther comprehensive loss for the year, net of tax Total comprehensive income(cid:56)(loss) for the year (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:21)ransactions (cid:49)ith o(cid:49)ners in their capacity as o(cid:49)ners: Issue of shares Transaction costs arising for share issue Deferred tax asset due to transaction costs arising for share issue Employee share options -value of employees service (cid:16)ptions exercised Dividend paid (cid:73)(cid:76),(cid:76)(cid:76)(cid:77),(cid:80)(cid:72)(cid:79) ((cid:80)(cid:80)(cid:77),(cid:73)(cid:71)(cid:80)) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 (cid:72)(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - - - - - - - - - (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) - - - - - - - - - - - - - - - - (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 - (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:73)(cid:76),(cid:76)(cid:76)(cid:77),(cid:80)(cid:72)(cid:79) ((cid:80)(cid:80)(cid:77),(cid:73)(cid:71)(cid:80)) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) (cid:72)(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) (cid:75)1(cid:53)(cid:67)(cid:76)(cid:72)(cid:53)(cid:72)(cid:76)(cid:75) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) - (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:73)(cid:80),(cid:76)(cid:73)3,(cid:75)(cid:75)(cid:73) ((cid:78)(cid:76)3,(cid:78)(cid:76)(cid:76)) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) (cid:72)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),3(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:75),(cid:71)(cid:78)(cid:79),(cid:76)(cid:75)(cid:79)) Closing (cid:28)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:71) (cid:74)1(cid:53)1(cid:76)(cid:72)(cid:53)(cid:71)(cid:69)(cid:72) (cid:76)(cid:53)(cid:74)1(cid:70)(cid:53)1(cid:67)(cid:76) 1(cid:75)(cid:74)(cid:53)(cid:67)(cid:73)(cid:71) (cid:75)1(cid:53)(cid:67)(cid:76)(cid:72)(cid:53)(cid:72)(cid:76)(cid:75) (cid:72),(cid:71)(cid:80)(cid:79),(cid:73)(cid:77)(cid:76)(cid:62) ((cid:75),(cid:72)(cid:79)(cid:71),(cid:80)33) (3,(cid:71)(cid:79)(cid:73),(cid:77)(cid:77)(cid:79)) At (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75) (cid:74)1(cid:53)1(cid:76)(cid:72)(cid:53)(cid:71)(cid:69)(cid:72) (cid:76)(cid:53)(cid:74)1(cid:70)(cid:53)1(cid:67)(cid:76) 1(cid:75)(cid:74)(cid:53)(cid:67)(cid:73)(cid:71) Profit after income tax expense for the year (cid:16)ther comprehensive income for the year, net of tax (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:21)ransactions (cid:49)ith o(cid:49)ners in their capacity as o(cid:49)ners: Issue of shares Transaction costs arising for share issue Deferred tax asset due to transaction costs arising for share issue Employee share options -value of employees service (cid:16)ptions exercised Bond (cid:16)ptions Issued Dividend paid (cid:73)(cid:80),(cid:76)(cid:73)3,(cid:75)(cid:75)(cid:73) ((cid:78)(cid:76)3,(cid:78)(cid:76)(cid:76)) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) (cid:72)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:79)(cid:72)(cid:80),(cid:73)(cid:78)(cid:72)(cid:62) ((cid:76),(cid:79)(cid:80)(cid:78),(cid:79)(cid:72)(cid:80)) (cid:73),3(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) Closing (cid:28)alance as at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) 1(cid:67)(cid:69)(cid:53)1(cid:75)(cid:67)(cid:53)(cid:72)1(cid:67) 1(cid:74)(cid:53)(cid:74)(cid:72)(cid:72)(cid:53)(cid:76)(cid:67)(cid:72) (cid:69)(cid:53)(cid:74)(cid:76)1(cid:53)(cid:70)11 1(cid:69)(cid:69)(cid:53)(cid:74)(cid:69)(cid:74)(cid:53)(cid:74)(cid:69)(cid:73) (cid:62)Shares issued to shareholders that elect to participate in the Dividend Reinvestment Plan. The statement of changes in equity is to be read in conjunction with the attached notes. - - - - - - - - - 3 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 31 3 1 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the financial statements Contents (cid:72) (cid:73) 3 (cid:75) (cid:76) (cid:77) (cid:78) (cid:79) (cid:80) (cid:72)(cid:71) (cid:72)(cid:72) (cid:72)(cid:73) (cid:72)3 (cid:72)(cid:75) (cid:72)(cid:76) (cid:72)(cid:77) (cid:72)(cid:78) (cid:72)(cid:79) (cid:72)(cid:80) (cid:73)(cid:71) (cid:73)(cid:72) (cid:73)(cid:73) (cid:73)3 (cid:73)(cid:75) (cid:73)(cid:76) (cid:73)(cid:77) (cid:73)(cid:78) (cid:73)(cid:79) (cid:73)(cid:80) 3(cid:71) Summary of significant accounting policies Revenue (cid:16)ther items included in net profit from continuing operations Retained earnings Income tax Earnings per share Dividends Share based payments Cash and cash equivalents Loans and other receivables (cid:16)ther assets Property, plant and equipment Intangible assets Trade and other payables Provisions Derivative financial liabilities Borrowings Issued capital Reserves Statement of cash flows Business combinations Significant matters subsequent to the reporting date Segment information Contingent liabilities Controlled entities (cid:7)inancial instruments Leases Auditors remuneration Related party disclosures Parent entity financial information ASX Additional information 32 3 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the financial statements (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) Contents (cid:10)ntroduction Summary of significant accounting policies (cid:16)ther items included in net profit from continuing operations (cid:72) (cid:73) 3 (cid:75) (cid:76) (cid:77) (cid:78) (cid:79) (cid:80) (cid:72)(cid:71) (cid:72)(cid:72) (cid:72)(cid:73) (cid:72)3 (cid:72)(cid:75) (cid:72)(cid:76) (cid:72)(cid:78) (cid:72)(cid:79) (cid:72)(cid:80) (cid:73)(cid:71) (cid:73)(cid:72) (cid:73)(cid:73) (cid:73)3 (cid:73)(cid:75) (cid:73)(cid:76) (cid:73)(cid:77) (cid:73)(cid:78) (cid:73)(cid:79) (cid:73)(cid:80) 3(cid:71) Revenue Retained earnings Income tax Earnings per share Dividends Share based payments Cash and cash equivalents Loans and other receivables (cid:16)ther assets Property, plant and equipment Intangible assets Trade and other payables Provisions Borrowings Issued capital Reserves Statement of cash flows Business combinations Segment information Contingent liabilities Controlled entities (cid:7)inancial instruments Leases Auditors remuneration Related party disclosures Parent entity financial information ASX Additional information (cid:72)(cid:77) Derivative financial liabilities Significant matters subsequent to the reporting date The financial report covers Money3 Corporation Limited (“Money3” or “Company”) and its controlled entities. Money3 is a Company limited by shares whose shares are publicly traded on the Australian Securities Exchange (“ASX”). Money3 is incorporated and domiciled in Australia. The presentation currency and functional currency of the Group is Australian dollars and amounts are rounded to the nearest dollar. Separate financial statements for Money3 Corporation Limited as an individual entity are no longer presented as the consequence of a change to the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72), however, limited financial information for Money3 Corporation Limited as an individual entity is included in (cid:15)ote 3(cid:71). The principal activity of the Group during the financial year was to provide small cash loans in the form of line of credit and personal loans, car loans, cheque cashing, equipment and motor vehicle rental. The financial report was authorised for issue by the Board of Directors of Money3 Corporation Limited at a directors meeting on the date shown on the Declaration by the Board of Directors attached to the (cid:7)inancial Statements. 1(cid:55) Summary of significant accounting policies a(cid:59) (cid:3)asis of accounting The financial report is a general purpose financial report which has been prepared in accordance with the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72), Australian Accounting Standards and Interpretations and complies with other requirements of the law, as appropriate for profit oriented entities. The financial report comprises the consolidated financial statements of the group. The financial statements comply with International (cid:7)inancial Reporting Standards (I(cid:7)RS) as issued by the International Accounting Standards Board (IASB). The financial statements have been prepared on an accrual basis and are based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. The financial statements have been prepared in accordance with Australian Accounting Standards, which are based on the Company continuing as a going concern which assumes the realisation of assets and the extinguishment of liabilities in the normal course of business and at the amounts stated in the financial report. The following significant accounting policies have been adopted in the preparation and presentation of the financial report. The accounting policies have been consistently applied and except where there is a change in accounting policy, are consistent with those of the previous year. (cid:15)e(cid:49)(cid:53) revised or amending accounting standards and (cid:10)nterpretations adopted The consolidated entity has adopted all of the new, revised or amending Accounting Standards and Interpretations issued by the Australian Accounting Standards Board ('AASB') that are mandatory for the current reporting period. The adoption of these Accounting Standards and Interpretations did not have any significant impact on the financial performance or position of the consolidated entity. The following Accounting Standards and Interpretations are most relevant to the consolidated entity: (cid:2)(cid:2)(cid:17)(cid:3) (cid:52)(cid:50)(cid:51)(cid:52)(cid:47)(cid:53) (cid:2)mendment(cid:39) to (cid:2)u(cid:39)tra(cid:32)ian (cid:2)(cid:24)(cid:24)ountin(cid:28) (cid:17)tandard(cid:39) (cid:47) (cid:14)(cid:27)(cid:27)(cid:39)ettin(cid:28) Finan(cid:24)ia(cid:32) (cid:2)(cid:39)(cid:39)et(cid:39) and Finan(cid:24)ia(cid:32) (cid:11)ia(cid:23)i(cid:32)itie(cid:39) The consolidated entity has applied AASB (cid:73)(cid:71)(cid:72)(cid:73)-3 from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75). The amendments add application guidance to address inconsistencies in the application of the offsetting criteria in AASB (cid:72)3(cid:73) '(cid:7)inancial Instruments: Presentation', by clarifying the meaning of 'currently has a legally enforceable right of set-off'; and clarifies that some gross settlement systems may be considered to be equivalent to net settlement. 3 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 33 3 3 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) (cid:2)(cid:2)(cid:17)(cid:3) (cid:52)(cid:50)(cid:51)(cid:53)(cid:47)(cid:53) (cid:2)mendment(cid:39) to (cid:2)(cid:2)(cid:17)(cid:3) (cid:51)(cid:53)(cid:56) (cid:47) (cid:16)e(cid:24)o(cid:42)era(cid:23)(cid:32)e (cid:2)mount (cid:5)i(cid:39)(cid:24)(cid:32)o(cid:39)ure(cid:39) (cid:27)or (cid:13)on(cid:47)Finan(cid:24)ia(cid:32) (cid:2)(cid:39)(cid:39)et(cid:39) The consolidated entity has applied AASB (cid:73)(cid:71)(cid:72)3-3 from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75). The disclosure requirements of AASB (cid:72)3(cid:77) 'Impairment of Assets' have been enhanced to require additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposals. Additionally, if measured using a present value technique, the discount rate is required to be disclosed. (cid:2)(cid:2)(cid:17)(cid:3) (cid:52)(cid:50)(cid:51)(cid:54)(cid:47)(cid:51) (cid:2)mendment(cid:39) to (cid:2)u(cid:39)tra(cid:32)ian (cid:2)(cid:24)(cid:24)ountin(cid:28) (cid:17)tandard(cid:39) (cid:48)(cid:15)art(cid:39) (cid:2) to (cid:4)(cid:49) The consolidated entity has applied Parts A to C of AASB (cid:73)(cid:71)(cid:72)(cid:75)-(cid:72) from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75). These amendments affect the following standards: AASB (cid:73) 'Share-based Payment': clarifies the definition of 'vesting condition' by separately defining a 'performance condition' and a 'service condition' and amends the definition of 'market condition'; AASB 3 'Business Combinations': clarifies that contingent consideration in a business combination is subsequently measured at fair value with changes in fair value recognised in profit or loss irrespective of whether the contingent consideration is within the scope of AASB (cid:80); AASB (cid:79) '(cid:16)perating Segments': amended to require disclosures of judgements made in applying the aggregation criteria and clarifies that a reconciliation of the total reportable segment assets to the entity's assets is required only if segment assets are reported regularly to the chief operating decision maker; AASB (cid:72)3 '(cid:7)air (cid:22)alue Measurement': clarifies that the portfolio exemption applies to the valuation of contracts within the scope of AASB (cid:80) and AASB (cid:72)3(cid:80); AASB (cid:72)(cid:72)(cid:77) 'Property, Plant and Equipment' and AASB (cid:72)3(cid:79) 'Intangible Assets': clarifies that on revaluation, restatement of accumulated depreciation will not necessarily be in the same proportion to the change in the gross carrying value of the asset; AASB (cid:72)(cid:73)(cid:75) 'Related Party Disclosures': extends the definition of 'related party' to include a management entity that provides (cid:12)MP services to the entity or its parent and requires disclosure of the fees paid to the management entity; AASB (cid:72)(cid:75)(cid:71) 'Investment Property': clarifies that the acquisition of an investment property may constitute a business combination. (cid:28)(cid:59) (cid:15)e(cid:49) (cid:2)ccounting Standards and (cid:10)nterpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76). The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below. The following Accounting Standards and Interpretations are most relevant to the consolidated entity: (cid:2)(cid:2)(cid:17)(cid:3) (cid:57) Finan(cid:24)ia(cid:32) (cid:10)n(cid:39)trument(cid:39) This standard is applicable to annual reporting periods beginning on or after (cid:72) (cid:11)anuary (cid:73)(cid:71)(cid:72)(cid:79). The standard replaces all previous versions of AASB (cid:80) and completes the project to replace IAS 3(cid:80) '(cid:7)inancial Instruments: Recognition and Measurement'. AASB (cid:80) introduces new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for- trading) in other comprehensive income ('(cid:16)CI'). (cid:7)or financial liabilities, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in (cid:16)CI (unless it would create an accounting mismatch). (cid:15)ew simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. (cid:15)ew impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment will be measured under a (cid:72)(cid:73)-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. The standard introduces additional new disclosures. The consolidated entity will adopt this standard from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:79) but the impact of its adoption is yet to be assessed by the consolidated entity. 34 3 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) (cid:2)(cid:2)(cid:17)(cid:3) (cid:52)(cid:50)(cid:51)(cid:53)(cid:47)(cid:53) (cid:2)mendment(cid:39) to (cid:2)(cid:2)(cid:17)(cid:3) (cid:51)(cid:53)(cid:56) (cid:47) (cid:16)e(cid:24)o(cid:42)era(cid:23)(cid:32)e (cid:2)mount (cid:5)i(cid:39)(cid:24)(cid:32)o(cid:39)ure(cid:39) (cid:27)or (cid:13)on(cid:47)Finan(cid:24)ia(cid:32) (cid:2)(cid:39)(cid:39)et(cid:39) The consolidated entity has applied AASB (cid:73)(cid:71)(cid:72)3-3 from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75). The disclosure requirements of AASB (cid:72)3(cid:77) 'Impairment of Assets' have been enhanced to require additional information about the fair value measurement when the recoverable amount of impaired assets is based on fair value less costs of disposals. Additionally, if measured using a present value technique, the discount rate is required to be disclosed. (cid:2)(cid:2)(cid:17)(cid:3) (cid:52)(cid:50)(cid:51)(cid:54)(cid:47)(cid:51) (cid:2)mendment(cid:39) to (cid:2)u(cid:39)tra(cid:32)ian (cid:2)(cid:24)(cid:24)ountin(cid:28) (cid:17)tandard(cid:39) (cid:48)(cid:15)art(cid:39) (cid:2) to (cid:4)(cid:49) The consolidated entity has applied Parts A to C of AASB (cid:73)(cid:71)(cid:72)(cid:75)-(cid:72) from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75). These amendments affect the following standards: AASB (cid:73) 'Share-based Payment': clarifies the definition of 'vesting condition' by separately defining a 'performance condition' and a 'service condition' and amends the definition of 'market condition'; AASB 3 'Business Combinations': clarifies that contingent consideration in a business combination is subsequently measured at fair value with changes in fair value recognised in profit or loss irrespective of whether the contingent consideration is within the scope of AASB (cid:80); AASB (cid:79) '(cid:16)perating Segments': amended to require disclosures of judgements made in applying the aggregation criteria and clarifies that a reconciliation of the total reportable segment assets to the entity's assets is required only if segment assets are reported regularly to the chief operating decision maker; AASB (cid:72)3 '(cid:7)air (cid:22)alue Measurement': clarifies that the portfolio exemption applies to the valuation of contracts within the scope of AASB (cid:80) and AASB (cid:72)3(cid:80); AASB (cid:72)(cid:72)(cid:77) 'Property, Plant and Equipment' and AASB (cid:72)3(cid:79) 'Intangible Assets': clarifies that on revaluation, restatement of accumulated depreciation will not necessarily be in the same proportion to the change in the gross carrying value of the asset; AASB (cid:72)(cid:73)(cid:75) 'Related Party Disclosures': extends the definition of 'related party' to include a management entity that provides (cid:12)MP services to the entity or its parent and requires disclosure of the fees paid to the management entity; AASB (cid:72)(cid:75)(cid:71) 'Investment Property': clarifies that the acquisition of an investment property may constitute a business combination. (cid:28)(cid:59) (cid:15)e(cid:49) (cid:2)ccounting Standards and (cid:10)nterpretations not yet mandatory or early adopted Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet mandatory, have not been early adopted by the consolidated entity for the annual reporting period ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76). The consolidated entity's assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant to the consolidated entity, are set out below. The following Accounting Standards and Interpretations are most relevant to the consolidated entity: (cid:2)(cid:2)(cid:17)(cid:3) (cid:57) Finan(cid:24)ia(cid:32) (cid:10)n(cid:39)trument(cid:39) This standard is applicable to annual reporting periods beginning on or after (cid:72) (cid:11)anuary (cid:73)(cid:71)(cid:72)(cid:79). The standard replaces all previous versions of AASB (cid:80) and completes the project to replace IAS 3(cid:80) '(cid:7)inancial Instruments: Recognition and Measurement'. AASB (cid:80) introduces new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost, if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows, which arise on specified dates and solely principal and interest. All other financial instrument assets are to be classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for- trading) in other comprehensive income ('(cid:16)CI'). (cid:7)or financial liabilities, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in (cid:16)CI (unless it would create an accounting mismatch). (cid:15)ew simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. (cid:15)ew impairment requirements will use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment will be measured under a (cid:72)(cid:73)-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. The standard introduces additional new disclosures. The consolidated entity will adopt this standard from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:79) but the impact of its adoption is yet to be assessed by the consolidated entity. (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) (cid:28)(cid:59) (cid:15)e(cid:49) (cid:2)ccounting Standards and (cid:10)nterpretations not yet mandatory or early adopted (cid:2)(cid:2)(cid:17)(cid:3) (cid:51)(cid:55) (cid:16)e(cid:42)enue (cid:27)rom (cid:4)ontra(cid:24)t(cid:39) (cid:43)it(cid:29) (cid:4)u(cid:39)tomer(cid:39) This standard is applicable to annual reporting periods beginning on or after (cid:72) (cid:11)anuary (cid:73)(cid:71)(cid:72)(cid:78). The standard provides a single standard for revenue recognition. The core principle of the standard is that an entity will recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard will require: contracts (either written, verbal or implied) to be identified, together with the separate performance obligations within the contract; determine the transaction price, adjusted for the time value of money excluding credit risk; allocation of the transaction price to the separate performance obligations on a basis of relative stand-alone selling price of each distinct good or service, or estimation approach if no distinct observable prices exist; and recognition of revenue when each performance obligation is satisfied. Credit risk will be presented separately as an expense rather than adjusted to revenue. (cid:7)or goods, the performance obligation would be satisfied when the customer obtains control of the goods. (cid:7)or services, the performance obligation is satisfied when the service has been provided, typically for promises to transfer services to customers. (cid:7)or performance obligations satisfied over time, an entity would select an appropriate measure of progress to determine how much revenue should be recognised as the performance obligation is satisfied. Contracts with customers will be presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Sufficient quantitative and qualitative disclosure is required to enable users to understand the contracts with customers; the significant judgments made in applying the guidance to those contracts; and any assets recognised from the costs to obtain or fulfil a contract with a customer. The consolidated entity will adopt this standard from (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:78) but the impact of its adoption is yet to be assessed by the consolidated entity. c(cid:59) Parent entity financial information The financial information for the parent entity Money3 Corporation Limited, disclosed in note 3(cid:71) has been prepared on the same basis as the consolidated financial statements. d(cid:59) Principles of consolidation (cid:15)rin(cid:24)i(cid:36)(cid:32)e(cid:39) o(cid:27) (cid:24)on(cid:39)o(cid:32)idation The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Money3 Corporation Limited ('company' or 'parent entity') as at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) and the results of all subsidiaries for the year then ended. Money3 Corporation Limited and its subsidiaries together are referred to in these financial statements as the 'consolidated entity'. Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They are de-consolidated from the date that control ceases. Intercompany transactions, balances and unrealised gains on transactions between entities in the consolidated entity are eliminated. (cid:21)nrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the consolidated entity. The acquisition of subsidiaries is accounted for using the acquisition method of accounting. A change in ownership interest, without the loss of control, is accounted for as an equity transaction, where the difference between the consideration transferred and the book value of the share of the non-controlling interest acquired is recognised directly in equity attributable to the parent. (cid:15)on-controlling interest in the results and equity of subsidiaries are shown separately in the statement of profit or loss and other comprehensive income, statement of financial position and statement of changes in equity of the consolidated entity. Losses incurred by the consolidated entity are attributed to the non-controlling interest in full, even if that results in a deficit balance. 3 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 35 3 5 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Stat ements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) d(cid:59) Principles of consolidation (cid:58)continued(cid:59) (cid:23)here the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. e(cid:59) Critical accounting estimates(cid:53) assumptions and (cid:36)udgements In the application of Australian Accounting Standards, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revisions affect both current and future periods. (cid:11)udgments made in the application of Australian Accounting Standards that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable in the relevant notes to the financial statements. (cid:11)udgments made in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements concern the estimated impairment of investments in subsidiaries in the parent entity, associated goodwill on consolidation of subsidiaries, allowance for doubtful debts and share based payments. (cid:8)ood(cid:43)i(cid:32)(cid:32) The consolidated entity tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in (cid:15)ote (cid:72)(j). The Directors are of the opinion that there has been no impairment of goodwill. Refer to (cid:15)ote (cid:72)3 for further details. (cid:2)(cid:32)(cid:32)o(cid:43)an(cid:24)e (cid:27)or dou(cid:23)t(cid:27)u(cid:32) de(cid:23)t(cid:39) The Company assesses impairment regularly. The allowance for impairment losses represents management's estimate of the losses incurred in the loan book as at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) based on past experience and judgement. At 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), the allowances for impairment losses were (cid:68)(cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78)). (cid:17)(cid:29)are (cid:23)a(cid:39)ed (cid:36)a(cid:45)ment(cid:39) Share based payments are accounting for at fair valued using the Black Scholes and in previous years Binomial model was used. See (cid:15)ote (cid:79) for further discussion. f(cid:59) Cash and cash e(cid:43)uivalents Cash and cash equivalents in the Statement of (cid:7)inancial Position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. (cid:7)or the purposes of the Statement of Cash (cid:7)lows, cash and cash equivalents consist of cash and cash equivalents as defined above. g(cid:59) Loans and other receiva(cid:28)les Loans and other receivables are non-derivative financial assets, with fixed and determinable payments that are not quoted in an active market. Loans and other receivables are initially recognised at fair value, including direct transaction costs, and are subsequently measured at amortised cost using the effective interest method. Collectability of receivables are reviewed on an ongoing basis, and an allowance for impairment losses is recognised when there is objective evidence that the collection of the full amount is no longer probable. Bad debts are written off when identified. Receivables from related parties are recognised and carried at the nominal amount due. Loans and other receivables are due for settlement at various times in line with the terms of their contracts. 36 3 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Stat ements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) d(cid:59) Principles of consolidation (cid:58)continued(cid:59) (cid:23)here the consolidated entity loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling interest in the subsidiary together with any cumulative translation differences recognised in equity. The consolidated entity recognises the fair value of the consideration received and the fair value of any investment retained together with any gain or loss in profit or loss. e(cid:59) Critical accounting estimates(cid:53) assumptions and (cid:36)udgements In the application of Australian Accounting Standards, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revisions affect both current and future periods. (cid:11)udgments made in the application of Australian Accounting Standards that have significant effects on the financial statements and estimates with a significant risk of material adjustments in the next year are disclosed, where applicable in the relevant notes to the financial statements. (cid:11)udgments made in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements concern the estimated impairment of investments in subsidiaries in the parent entity, associated goodwill on consolidation of subsidiaries, allowance for doubtful debts and share based payments. The consolidated entity tests annually whether goodwill has suffered any impairment in accordance with the accounting policy stated in (cid:15)ote (cid:72)(j). The Directors are of the opinion that there has been no impairment of goodwill. (cid:8)ood(cid:43)i(cid:32)(cid:32) Refer to (cid:15)ote (cid:72)3 for further details. (cid:2)(cid:32)(cid:32)o(cid:43)an(cid:24)e (cid:27)or dou(cid:23)t(cid:27)u(cid:32) de(cid:23)t(cid:39) (cid:17)(cid:29)are (cid:23)a(cid:39)ed (cid:36)a(cid:45)ment(cid:39) was used. See (cid:15)ote (cid:79) for further discussion. f(cid:59) Cash and cash e(cid:43)uivalents The Company assesses impairment regularly. The allowance for impairment losses represents management's estimate of the losses incurred in the loan book as at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) based on past experience and judgement. At 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), the allowances for impairment losses were (cid:68)(cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78)). Share based payments are accounting for at fair valued using the Black Scholes and in previous years Binomial model Cash and cash equivalents in the Statement of (cid:7)inancial Position comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. (cid:7)or the purposes of the Statement of Cash (cid:7)lows, cash and cash equivalents consist of cash and cash equivalents as defined above. g(cid:59) Loans and other receiva(cid:28)les Loans and other receivables are non-derivative financial assets, with fixed and determinable payments that are not quoted in an active market. Loans and other receivables are initially recognised at fair value, including direct transaction costs, and are subsequently measured at amortised cost using the effective interest method. Collectability of receivables are reviewed on an ongoing basis, and an allowance for impairment losses is recognised when there is objective evidence that the collection of the full amount is no longer probable. Bad debts are written off when identified. Receivables from related parties are recognised and carried at the nominal amount due. Loans and other receivables are due for settlement at various times in line with the terms of their contracts. 3 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d A n n u a l R e p o r t 2 0 1 5 | M N Y Annual Report 2015 | MNY (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) h(cid:59) (cid:10)nvestments and other financial assets (cid:58)continued(cid:59) h(cid:59) (cid:10)nvestments and other financial assets Investments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. They are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on the purpose of the acquisition and subsequent reclassification to other categories is restricted. (cid:7)inancial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. Finan(cid:24)ia(cid:32) a(cid:39)(cid:39)et(cid:39) at (cid:27)air (cid:42)a(cid:32)ue t(cid:29)rou(cid:28)(cid:29) (cid:36)ro(cid:27)it or (cid:32)o(cid:39)(cid:39) (cid:7)inancial assets at fair value through profit or loss are either: i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit; or ii) designated as such upon initial recognition, where they are managed on a fair value basis or to eliminate or significantly reduce an accounting mismatch. Except for effective hedging instruments, derivatives are also categorised as fair value through profit or loss. (cid:7)air value movements are recognised in profit or loss. (cid:2)(cid:42)ai(cid:32)a(cid:23)(cid:32)e(cid:47)(cid:27)or(cid:47)(cid:39)a(cid:32)e (cid:27)inan(cid:24)ia(cid:32) a(cid:39)(cid:39)et(cid:39) Available-for-sale financial assets are non-derivative financial assets, principally equity securities, that are either designated as available-for-sale or not classified as any other category. After initial recognition, fair value movements are recognised in other comprehensive income through the available-for-sale reserve in equity. Cumulative gain or loss previously reported in the available-for-sale reserve is recognised in profit or loss when the asset is derecognised or impaired. (cid:10)m(cid:36)airment o(cid:27) (cid:27)inan(cid:24)ia(cid:32) a(cid:39)(cid:39)et(cid:39) The consolidated entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. (cid:16)bjective evidence includes significant financial difficulty of the issuer or obligor; a breach of contract such as default or delinquency in payments; the lender granting to a borrower concessions due to economic or legal reasons that the lender would not otherwise do; it becomes probable that the borrower will enter bankruptcy or other financial reorganisation; the disappearance of an active market for the financial asset; or observable data indicating that there is a measurable decrease in estimated future cash flows. The amount of the impairment allowance for financial assets carried at cost is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the current market rate of return for similar financial assets. Available-for-sale financial assets are considered impaired when there has been a significant or prolonged decline in value below initial cost. Subsequent increments in value are recognised in other comprehensive income through the available-for-sale reserve. i(cid:59) (cid:3)usiness com(cid:28)inations The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or other assets are acquired. The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree. (cid:7)or each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss. (cid:16)n the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated entity's operating or accounting policies and other pertinent conditions in existence at the acquisition- date. (cid:23)here the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is recognised in profit or loss. M o n e y 3 C o r p o r a t i o n L i m i t e d | 3 7 Money3 Corporation Limited 37 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continu ed(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) i(cid:59) (cid:3)usiness com(cid:28)inations Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer. Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) (cid:72)(cid:73) months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value. (cid:36)(cid:59) (cid:10)ntangi(cid:28)le assets All intangible assets acquired in a business combination are identified and recognised separately from goodwill where they satisfy the definition of an intangible asset and their fair value can be measured reliably. (cid:8)ood(cid:43)i(cid:32)(cid:32) Goodwill represents the excess of the cost of acquisition over the fair value of the entity's share of the net identifiable assets of the acquired business at the date of acquisition. Goodwill is not amortised. Instead, goodwill is tested for impairment, annually or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. (cid:4)u(cid:39)tomer (cid:32)i(cid:39)t(cid:39) The customer list acquire in a business combination are amortised on a straight line basis over the period of their expected benefit, being their finite life of (cid:76) years. (cid:17)o(cid:27)t(cid:43)are Costs incurred in developing products or systems that will contribute to future periods through revenue generation and(cid:56)or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. (cid:37)(cid:59) (cid:10)mpairment of non(cid:57)financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amorti(cid:51)ation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. (cid:16)ther assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impaired loss is recogni(cid:51)ed for the amount by which the assets carrying amount may not be recoverable. At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). (cid:23)here the asset does not generate cash flows that are independent from other assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. 38 3 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continu ed(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) i(cid:59) (cid:3)usiness com(cid:28)inations Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes in the fair value of contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity. The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest in the acquirer. Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the earlier of (i) (cid:72)(cid:73) months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine fair value. All intangible assets acquired in a business combination are identified and recognised separately from goodwill where they satisfy the definition of an intangible asset and their fair value can be measured reliably. Goodwill represents the excess of the cost of acquisition over the fair value of the entity's share of the net identifiable assets of the acquired business at the date of acquisition. Goodwill is not amortised. Instead, goodwill is tested for impairment, annually or more frequently if events or changes in circumstances indicate that it might be impaired and is carried at cost less accumulated impairment losses. (cid:36)(cid:59) (cid:10)ntangi(cid:28)le assets (cid:8)ood(cid:43)i(cid:32)(cid:32) (cid:4)u(cid:39)tomer (cid:32)i(cid:39)t(cid:39) (cid:17)o(cid:27)t(cid:43)are Costs incurred in developing products or systems that will contribute to future periods through revenue generation and(cid:56)or cost reduction are capitalised to software and systems. Costs capitalised include external direct costs of materials and service, direct payroll and payroll related costs of employees’ time spent on the project. (cid:37)(cid:59) (cid:10)mpairment of non(cid:57)financial assets Goodwill and intangible assets that have an indefinite useful life are not subject to amorti(cid:51)ation and are tested annually for impairment or more frequently if events or changes in circumstances indicate that they might be impaired. (cid:16)ther assets are tested for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. An impaired loss is recogni(cid:51)ed for the amount by which the assets carrying amount may not be recoverable. At each reporting date, the consolidated entity reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). (cid:23)here the asset does not generate cash flows that are independent from other assets, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs. (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) l(cid:59) (cid:2)c(cid:43)uisition of assets The cost method of accounting is used for all acquisitions of assets regardless of whether shares or other assets are acquired. Cost is determined as the fair value of the assets given up, shares issued or liabilities undertaken at the date of acquisition. Acquisition related costs are expensed as incurred. (cid:23)here shares are issued in an acquisition, the value of the shares is determined having reference to existing markets. m(cid:59) Property(cid:53) plant and e(cid:43)uipment Plant and equipment, leasehold improvements and equipment under finance lease are stated at cost less accumulated depreciation and any impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the item. Depreciation is provided on property, plant and equipment and is calculated on a diminishing value basis over its estimated useful life net of estimated residual values. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period. The following rates are used in the calculation of depreciation: Class of (cid:7)i(cid:50)ed (cid:2)sset Leasehold Improvements Motor (cid:22)ehicles (cid:7)urniture, Equipment and (cid:7)ittings Rental Assets (cid:10)m(cid:36)airment (cid:5)epreciation (cid:19)ate (cid:73)(cid:71)(cid:83) to 3(cid:71)(cid:83) or remaining life of the lease (cid:73)(cid:71)(cid:83) to (cid:76)(cid:71)(cid:83) (cid:73)(cid:71)(cid:83) to 3(cid:78).(cid:76)(cid:83) 33(cid:83) to (cid:76)(cid:71)(cid:83) The carrying values of plant and equipment are reviewed for impairment at each reporting date, with recoverable amount being estimated when events or changes in circumstances indicate that the carrying value may be impaired. Impairment exists when the carrying value of an asset or cash-generating unit exceeds its estimated recoverable amount. The asset or cash-generating unit is then written down to its recoverable amount. Impairment losses are recognised in the Profit or Loss. The customer list acquire in a business combination are amortised on a straight line basis over the period of their expected benefit, being their finite life of (cid:76) years. (cid:5)i(cid:39)(cid:36)o(cid:39)a(cid:32)(cid:39) An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal. Any gain or loss arising on disposal of an asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the year the asset is disposed. n(cid:59) (cid:21)rade and other paya(cid:28)les Trade and other payables are recognised when the consolidated entity becomes obliged to make future payments resulting from the purchase of goods and services. The amounts are unsecured and are usually paid within 3(cid:71) days of recognition. o(cid:59) Goods and services ta(cid:50) (cid:58)GS(cid:21)(cid:59) Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST) except: (cid:72). where the amount of GST incurred is not recoverable from the taxation authority, it is recognised as part of (cid:75). the cost of acquisition of an asset or as part of an item of expense, or for receivables and payables which are recognised inclusive of GST, the net amount of GST recoverable from, or payable to the taxation authority is included as part of receivables or payables in the Statement of (cid:7)inancial Position. Receivables and payables are stated with the amount of GST included. Cash flows are included in the Statement of Cash (cid:7)lows on a gross basis. The GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, is classified as an operating cash flow. 3 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 39 3 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) p(cid:59) Provisions Provisions are recognised when the economic entity has a present obligation (legal, equitable or constructive) as a result of a present or past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. (cid:23)here a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the discounted present value of those cash flows. As that discount is unwound it gives rise to interest expense in the Profit or Loss. (cid:23)hen some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. (cid:23)here discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. (cid:43)(cid:59) (cid:10)ssued capital Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds received. r(cid:59) (cid:19)evenue recognition Revenue is recognised to the extent that it is probable that the economic benefits will flow to the economic entity and the revenue can be reliably measured. (cid:11)oan (cid:27)ee(cid:39) and (cid:24)(cid:29)ar(cid:28)e(cid:39) Revenue associated with loans such as application and credit fees are deferred and recognised over the life of the loans using the effective interest rate method over the loan period. (cid:10)ntere(cid:39)t in(cid:24)ome (cid:27)or (cid:27)inan(cid:24)ia(cid:32) in(cid:39)titution(cid:39) Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. (cid:5)i(cid:42)idend(cid:39) Revenue is recognised when Money3 Corporation Limited has the right to receive the payment. (cid:4)(cid:29)e(cid:37)ue (cid:4)a(cid:39)(cid:29)in(cid:28) Revenue is recognised in the Profit or Loss when the service is performed and there are no unfulfilled service obligations that will restrict the entitlement to receive the sales consideration. (cid:16)enta(cid:32) in(cid:24)ome Rental income is recognised in the Profit or Loss as rent accrues on a daily basis in line with lease agreements. The company has a policy of ceasing to recognise income on operating leases when a rental payment is not made on time. Revenue will only recommence accruing when payments recommence. 40 4 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Stateme nts for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) p(cid:59) Provisions Provisions are recognised when the economic entity has a present obligation (legal, equitable or constructive) as a result of a present or past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting date, taking into account the risks and uncertainties surrounding the obligation. (cid:23)here a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the discounted present value of those cash flows. As that discount is unwound it gives rise to interest expense in the Profit or Loss. (cid:23)hen some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that recovery will be received and the amount of the receivable can be measured reliably. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. (cid:23)here discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. (cid:43)(cid:59) (cid:10)ssued capital received. r(cid:59) (cid:19)evenue recognition the revenue can be reliably measured. (cid:11)oan (cid:27)ee(cid:39) and (cid:24)(cid:29)ar(cid:28)e(cid:39) Issued and paid up capital is recognised at the fair value of the consideration received by the Company. Transaction costs arising on the issue of ordinary shares are recognised directly in equity as a reduction of the share proceeds Revenue is recognised to the extent that it is probable that the economic benefits will flow to the economic entity and Revenue associated with loans such as application and credit fees are deferred and recognised over the life of the loans using the effective interest rate method over the loan period. (cid:10)ntere(cid:39)t in(cid:24)ome (cid:27)or (cid:27)inan(cid:24)ia(cid:32) in(cid:39)titution(cid:39) Revenue is recognised as the interest accrues (using the effective interest method, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. (cid:5)i(cid:42)idend(cid:39) (cid:4)(cid:29)e(cid:37)ue (cid:4)a(cid:39)(cid:29)in(cid:28) (cid:16)enta(cid:32) in(cid:24)ome Revenue is recognised when Money3 Corporation Limited has the right to receive the payment. Revenue is recognised in the Profit or Loss when the service is performed and there are no unfulfilled service obligations that will restrict the entitlement to receive the sales consideration. Rental income is recognised in the Profit or Loss as rent accrues on a daily basis in line with lease agreements. The company has a policy of ceasing to recognise income on operating leases when a rental payment is not made on time. Revenue will only recommence accruing when payments recommence. s(cid:59) (cid:6)mployee (cid:28)enefits (cid:21)a(cid:28)e(cid:39) and (cid:39)a(cid:32)arie(cid:39) and (cid:39)(cid:29)ort term em(cid:36)(cid:32)o(cid:45)ee (cid:23)ene(cid:27)it(cid:39) The provision for employee benefits relates to liabilities for wages and salaries and annual leave expected to be settled within (cid:72)(cid:73) months of the reporting date and is recognised in respect of employees' service up to the reporting date measured at the amounts expected to be paid when the liabilities are settled. (cid:11)on(cid:28) term em(cid:36)(cid:32)o(cid:45)ee (cid:23)ene(cid:27)it(cid:39) The liability for long service leave and annual leave not expected to be settled within (cid:72)(cid:73) months is recognised in the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows. (cid:17)u(cid:36)erannuation The amount charged to the Profit or Loss in respect of superannuation represents the contributions made by the consolidated entity to the employees' nominated superannuation funds. t(cid:59) (cid:10)ncome ta(cid:50) Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable profit or loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively enacted by the reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent that it is unpaid (or refundable). Deferred tax is accounted for using the comprehensive balance sheet liability method in respect of temporary differences arising from differences between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base for those items. In principle, deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recogni(cid:51)ed to the extent that it is probable that sufficient taxable amounts will be available against deductible temporary differences or unused tax losses and tax offsets can be utilised. However, deferred tax assets and liabilities are not recognised if the temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result of a business combination) which affects neither taxable income nor accounting profit. (cid:7)urthermore, a deferred tax liability is not recognised in relation to taxable temporary differences arising from goodwill. Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, branches, associates and joint ventures except where the consolidated entity is able to control the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with these investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period(s) when the assets and liabilities giving rise to them are realised or settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by reporting date. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the consolidated entity expects, at reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances they relate to are levied by the same taxation authority. Current tax assets and liabilities are offset where the entity has a legally enforceable right to offset and the entity intends to settle its current tax assets and liabilities on a net basis. 4 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 41 4 1 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) t(cid:59) (cid:10)ncome ta(cid:50) Current and deferred tax is recognised as an expense or income in the Statement of Profit or Loss and (cid:16)ther Comprehensive Income, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill. (cid:16)n (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:71) Money3 Corporation Limited ('the head entity') and its wholly-owned Australian controlled entities formed a tax consolidated group under the tax consolidation regime. The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the group allocation approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group. In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by subsidiaries to the head entity. u(cid:59) Leases Leases under which the Company or its controlled entities assume substantially all the risks and benefits of ownership are classified as finance leases. (cid:16)ther leases are classified as operating leases. (cid:18)(cid:29)e (cid:8)rou(cid:36) a(cid:39) (cid:32)e(cid:39)(cid:39)ee (cid:16)perating leases Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit or Loss and (cid:16)ther Comprehensive Income on a straight line basis over the term of the lease. (cid:18)(cid:29)e (cid:8)rou(cid:36) a(cid:39) (cid:32)e(cid:39)(cid:39)or Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. v(cid:59) (cid:3)orro(cid:49)ings Borrowings are initially measured at fair value, net of transaction costs. Borrowings are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders’ equity, net of income tax effects. Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of the liability for at least (cid:72)(cid:73) month after the reporting date. Borrowing costs are recognised as an expense in the period in which they are incurred except borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period to get ready for its intended use or sale. In this case the borrowing costs are capitalised as part of the cost of such a qualifying asset. 42 4 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) t(cid:59) (cid:10)ncome ta(cid:50) Current and deferred tax is recognised as an expense or income in the Statement of Profit or Loss and (cid:16)ther Comprehensive Income, except when it relates to items credited or debited directly to equity, in which case the deferred tax is also recognised directly in equity, or where it arises from the initial accounting for a business combination, in which case it is taken into account in the determination of goodwill. (cid:16)n (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:71) Money3 Corporation Limited ('the head entity') and its wholly-owned Australian controlled entities formed a tax consolidated group under the tax consolidation regime. The head entity and the controlled entities in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the group allocation approach in determining the appropriate amount of taxes to allocate to members of the tax consolidated group. In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by subsidiaries to the head entity. Leases under which the Company or its controlled entities assume substantially all the risks and benefits of ownership are classified as finance leases. (cid:16)ther leases are classified as operating leases. u(cid:59) Leases (cid:18)(cid:29)e (cid:8)rou(cid:36) a(cid:39) (cid:32)e(cid:39)(cid:39)ee (cid:16)perating leases (cid:18)(cid:29)e (cid:8)rou(cid:36) a(cid:39) (cid:32)e(cid:39)(cid:39)or v(cid:59) (cid:3)orro(cid:49)ings Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Payments made under operating leases are charged to the Statement of Profit or Loss and (cid:16)ther Comprehensive Income on a straight line basis over the term of the lease. Rental income from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term. Borrowings are initially measured at fair value, net of transaction costs. Borrowings are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or, where appropriate, a shorter period. The fair value of the liability portion of a convertible bond is determined using a market interest rate for an equivalent non-convertible bond. This amount is recorded as a liability on an amortised cost basis until extinguished on conversion or maturity of the bonds. The remainder of the proceeds is allocated to the conversion option. This is recognised and included in shareholders’ equity, net of income tax effects. Borrowings are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of the liability for at least (cid:72)(cid:73) month after the reporting date. Borrowing costs are recognised as an expense in the period in which they are incurred except borrowing costs that are directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period to get ready for its intended use or sale. In this case the borrowing costs are capitalised as part of the cost of such a qualifying asset. (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:55) Summary of significant accounting policies (cid:58)continued(cid:59) (cid:49)(cid:59) (cid:5)erivative financial instruments Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged. (cid:50)(cid:59) Share (cid:28)ased payment arrangements Goods or services received or acquired in a share-based payment transaction are recognised as an increase in equity if the goods or services were received in an equity-settled share based payment transaction or as a liability if the goods and services were acquired in a cash settled share-based payment transaction. (cid:7)or equity settled share-based payments, goods or services received are measured directly at the fair value of the goods and services received provided this can be estimated reliably. If a reliable estimate cannot be made the value of the goods or services is determined indirectly by reference to the fair value of the equity instruments issued. The share option reserve is used to record the grant of share options to directors and senior employees. Amounts are transferred out of the reserve account into issued capital when the options are exercised or to retained earnings if the options lapse unexercised. y(cid:59) (cid:6)arnings per share (cid:3)a(cid:39)i(cid:24) earnin(cid:28)(cid:39) (cid:36)er (cid:39)(cid:29)are Basic earnings per share is calculated by dividing the profit attributable to equity holders of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year. (cid:5)i(cid:32)uted earnin(cid:28)(cid:39) (cid:36)er (cid:39)(cid:29)are Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares. (cid:23)here a net loss is made for the period, basic EPS and diluted EPS are the same, because, the inclusion of options in the earnings per share calculations does not result in further dilution. (cid:52)(cid:59) (cid:5)ividends Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the financial year but not distributed at reporting date. aa(cid:59) Comparative figures Comparative figures have been adjusted to conform to changes in presentation for the current financial year where required by accounting standards. 4 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 43 4 3 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ende d (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:55) (cid:19)evenue (cid:19)evenue from operating activities Loan fees and charges Cheque cashing fees Rental income (cid:16)ther (cid:19)evenue from non(cid:57)operating activities Interest income from financial institutions (cid:21)otal revenue from continuing operations Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:77)(cid:78),(cid:79)(cid:75)(cid:80),(cid:76)(cid:80)(cid:71) (cid:80)(cid:80)(cid:77),(cid:71)(cid:79)(cid:79) (cid:80)(cid:72),(cid:72)(cid:79)(cid:71) (cid:78)(cid:78),(cid:72)(cid:72)(cid:78) (cid:77)(cid:80),(cid:71)(cid:72)3,(cid:80)(cid:78)(cid:76) (cid:75)(cid:73)(cid:71),(cid:73)3(cid:80) (cid:77)(cid:80),(cid:75)3(cid:75),(cid:73)(cid:72)(cid:75) (cid:75)(cid:71),(cid:77)(cid:79)(cid:71),(cid:73)3(cid:72) (cid:80)(cid:75)(cid:80),(cid:79)(cid:78)(cid:71) (cid:72),(cid:71)3(cid:71),(cid:77)3(cid:77) (cid:78)(cid:73)(cid:75),(cid:73)(cid:73)(cid:77) (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:75)3,(cid:76)(cid:71)(cid:78),(cid:78)(cid:71)(cid:79) (cid:70)(cid:55) (cid:16)ther items included in net profit from continuing operations Profit before income tax has been determined after: (cid:16)ther (cid:10)ncome Profit on sale property, plant and equipment (cid:73)(cid:71),(cid:78)3(cid:72) - (cid:6)mployee (cid:28)enefit e(cid:50)pense Salary and employee benefits expense Share based payments Defined contributed superannuation Annual bonus provision Payroll tax (cid:16)ther employment costs Total Employee benefit expense (cid:5)epreciation and amortisation e(cid:50)pense Leasehold improvements Motor vehicles (cid:7)urniture, equipment and fittings Rental assets Intangible Asset – Client list Total depreciation and amortisation expense (cid:16)ther e(cid:50)penses Communication (cid:16)ther expenses Total other expenses (cid:16)perating lease Minimum rent payments (cid:7)inance costs (cid:29)a(cid:30) Interest on loans and bonds Amortisation of bond issue costs Total finance costs (cid:72)(cid:76),(cid:80)(cid:73)(cid:76),(cid:76)(cid:79)(cid:78) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) (cid:72),3(cid:75)(cid:78),(cid:77)(cid:71)(cid:77) (cid:72),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78)(cid:79)(cid:79),33(cid:72) (cid:72),(cid:75)(cid:75)(cid:75),(cid:72)(cid:79)(cid:79) (cid:73)(cid:72),(cid:73)(cid:76)(cid:75),(cid:80)(cid:76)(cid:80) (cid:73)(cid:79)(cid:80),(cid:75)(cid:75)(cid:72) (cid:72)(cid:73),(cid:71)(cid:78)(cid:75) 3(cid:77)(cid:77),(cid:79)33 - (cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71) (cid:80)3(cid:73),(cid:76)(cid:80)(cid:79) (cid:72),(cid:78)(cid:77)(cid:73),(cid:73)(cid:71)(cid:72) (cid:73),(cid:78)(cid:73)(cid:79),(cid:77)(cid:76)(cid:80) (cid:75),(cid:75)(cid:80)(cid:71),(cid:79)(cid:77)(cid:71) (cid:72)(cid:72),3(cid:77)(cid:71),(cid:77)(cid:77)(cid:72) (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) (cid:80)(cid:77)3,(cid:77)(cid:73)(cid:76) (cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:75)(cid:79),(cid:78)(cid:73)(cid:72) (cid:72),(cid:71)(cid:80)(cid:77),(cid:77)(cid:73)(cid:79) (cid:72)(cid:75),(cid:80)(cid:76)(cid:71),(cid:80)3(cid:71) (cid:73)(cid:72)(cid:78),(cid:80)(cid:73)(cid:71) (cid:72)(cid:77),(cid:73)(cid:71)(cid:80) 33(cid:75),(cid:78)(cid:72)(cid:75) (cid:76)(cid:80)(cid:80),(cid:79)(cid:73)(cid:73) - (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:72),(cid:71)(cid:72)(cid:79),(cid:79)(cid:72)(cid:77) (cid:72),(cid:78)(cid:71)(cid:76),3(cid:71)(cid:77) (cid:73),(cid:78)(cid:73)(cid:75),(cid:72)(cid:73)(cid:73) (cid:73),(cid:78)(cid:79)3,(cid:78)(cid:76)(cid:79) (cid:73),(cid:75)(cid:73)3,(cid:78)(cid:75)(cid:76) (cid:73),(cid:80)(cid:78)3,(cid:76)(cid:72)(cid:73) (cid:78)(cid:76)3,(cid:78)(cid:76)(cid:71) 3,(cid:78)(cid:73)(cid:78),(cid:73)(cid:77)(cid:73) (cid:76)(cid:72)(cid:71),(cid:76)(cid:72)(cid:79) (cid:75)(cid:77)(cid:78),(cid:76)(cid:71)(cid:71) (cid:80)(cid:78)(cid:79),(cid:71)(cid:72)(cid:79) (cid:29)a(cid:30) The weighted average interest rate on funds borrowed generally is (cid:79).(cid:76)(cid:83) p.a. ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:72).(cid:77)(cid:83) p.a.) 44 4 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ende d (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:70)(cid:55) (cid:16)ther items included in net profit from continuing operations Profit before income tax has been determined after: (cid:16)ther (cid:10)ncome Profit on sale property, plant and equipment (cid:73)(cid:71),(cid:78)3(cid:72) - (cid:72)(cid:76),(cid:80)(cid:73)(cid:76),(cid:76)(cid:79)(cid:78) (cid:72)(cid:72),3(cid:77)(cid:71),(cid:77)(cid:77)(cid:72) (cid:69)(cid:55) (cid:19)evenue (cid:19)evenue from operating activities Loan fees and charges Cheque cashing fees Rental income (cid:16)ther (cid:19)evenue from non(cid:57)operating activities Interest income from financial institutions (cid:21)otal revenue from continuing operations (cid:6)mployee (cid:28)enefit e(cid:50)pense Salary and employee benefits expense Share based payments Defined contributed superannuation Annual bonus provision Payroll tax (cid:16)ther employment costs Total Employee benefit expense (cid:5)epreciation and amortisation e(cid:50)pense Leasehold improvements Motor vehicles (cid:7)urniture, equipment and fittings Rental assets Intangible Asset – Client list Total depreciation and amortisation expense (cid:16)ther e(cid:50)penses Communication (cid:16)ther expenses Total other expenses (cid:16)perating lease Minimum rent payments (cid:7)inance costs (cid:29)a(cid:30) Interest on loans and bonds Amortisation of bond issue costs Total finance costs Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:77)(cid:78),(cid:79)(cid:75)(cid:80),(cid:76)(cid:80)(cid:71) (cid:80)(cid:80)(cid:77),(cid:71)(cid:79)(cid:79) (cid:80)(cid:72),(cid:72)(cid:79)(cid:71) (cid:78)(cid:78),(cid:72)(cid:72)(cid:78) (cid:77)(cid:80),(cid:71)(cid:72)3,(cid:80)(cid:78)(cid:76) (cid:75)(cid:73)(cid:71),(cid:73)3(cid:80) (cid:77)(cid:80),(cid:75)3(cid:75),(cid:73)(cid:72)(cid:75) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) (cid:72),3(cid:75)(cid:78),(cid:77)(cid:71)(cid:77) (cid:72),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78)(cid:79)(cid:79),33(cid:72) (cid:72),(cid:75)(cid:75)(cid:75),(cid:72)(cid:79)(cid:79) (cid:73)(cid:72),(cid:73)(cid:76)(cid:75),(cid:80)(cid:76)(cid:80) (cid:73)(cid:79)(cid:80),(cid:75)(cid:75)(cid:72) (cid:72)(cid:73),(cid:71)(cid:78)(cid:75) 3(cid:77)(cid:77),(cid:79)33 - (cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71) (cid:80)3(cid:73),(cid:76)(cid:80)(cid:79) (cid:72),(cid:78)(cid:77)(cid:73),(cid:73)(cid:71)(cid:72) (cid:73),(cid:78)(cid:73)(cid:79),(cid:77)(cid:76)(cid:80) (cid:75),(cid:75)(cid:80)(cid:71),(cid:79)(cid:77)(cid:71) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:75)(cid:71),(cid:77)(cid:79)(cid:71),(cid:73)3(cid:72) (cid:80)(cid:75)(cid:80),(cid:79)(cid:78)(cid:71) (cid:72),(cid:71)3(cid:71),(cid:77)3(cid:77) (cid:78)(cid:73)(cid:75),(cid:73)(cid:73)(cid:77) (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:75)3,(cid:76)(cid:71)(cid:78),(cid:78)(cid:71)(cid:79) (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) (cid:80)(cid:77)3,(cid:77)(cid:73)(cid:76) (cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76)(cid:75)(cid:79),(cid:78)(cid:73)(cid:72) (cid:72),(cid:71)(cid:80)(cid:77),(cid:77)(cid:73)(cid:79) (cid:72)(cid:75),(cid:80)(cid:76)(cid:71),(cid:80)3(cid:71) (cid:73)(cid:72)(cid:78),(cid:80)(cid:73)(cid:71) (cid:72)(cid:77),(cid:73)(cid:71)(cid:80) 33(cid:75),(cid:78)(cid:72)(cid:75) (cid:76)(cid:80)(cid:80),(cid:79)(cid:73)(cid:73) - (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:72),(cid:71)(cid:72)(cid:79),(cid:79)(cid:72)(cid:77) (cid:72),(cid:78)(cid:71)(cid:76),3(cid:71)(cid:77) (cid:73),(cid:78)(cid:73)(cid:75),(cid:72)(cid:73)(cid:73) (cid:73),(cid:78)(cid:79)3,(cid:78)(cid:76)(cid:79) (cid:73),(cid:75)(cid:73)3,(cid:78)(cid:75)(cid:76) (cid:73),(cid:80)(cid:78)3,(cid:76)(cid:72)(cid:73) (cid:78)(cid:76)3,(cid:78)(cid:76)(cid:71) 3,(cid:78)(cid:73)(cid:78),(cid:73)(cid:77)(cid:73) (cid:76)(cid:72)(cid:71),(cid:76)(cid:72)(cid:79) (cid:75)(cid:77)(cid:78),(cid:76)(cid:71)(cid:71) (cid:80)(cid:78)(cid:79),(cid:71)(cid:72)(cid:79) (cid:71)(cid:55) (cid:19)etained (cid:6)arnings Retained earnings at (cid:72) (cid:11)uly (cid:15)et profit Dividends Paid (note (cid:78)) Retained earnings at 3(cid:71) (cid:11)une (cid:72)(cid:55) (cid:10)ncome (cid:21)a(cid:50) Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:80),(cid:78)(cid:72)3,(cid:72)(cid:71)(cid:80) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) ((cid:76),(cid:79)(cid:80)(cid:78),(cid:79)(cid:72)(cid:80)) (cid:72)(cid:78),(cid:78)(cid:76)(cid:76),(cid:80)(cid:71)(cid:76) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:77),(cid:71)(cid:77)(cid:73),3(cid:80)(cid:80) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 ((cid:75),(cid:72)(cid:79)(cid:71),(cid:80)33) (cid:80),(cid:78)(cid:72)3,(cid:72)(cid:71)(cid:80) a(cid:59) (cid:10)ncome ta(cid:50) e(cid:50)pense recognised in the Statement of profit and loss and other comprehensive income Current ta(cid:50) e(cid:50)pense Current tax expense in respect of current year Adjustments recognised in current year in relation to the current tax of previous years (cid:77),(cid:80)(cid:75)(cid:80),(cid:75)(cid:77)(cid:79) - (cid:75),(cid:73)3(cid:80),(cid:73)3(cid:72) (3(cid:71)(cid:77),(cid:72)(cid:71)(cid:76)) Deferred tax Deferred tax income related to the origination and reversal of temporary differences in relation to deferred tax assets Total tax expense in the Statement of profit or loss and other comprehensive Income ((cid:78)(cid:76)(cid:75),(cid:79)(cid:75)(cid:80)) ((cid:79)(cid:71)3,(cid:73)(cid:80)(cid:77)) (cid:77),(cid:72)(cid:80)(cid:75),(cid:77)(cid:72)(cid:80) 3,(cid:72)(cid:73)(cid:80),(cid:79)3(cid:71) (cid:28)(cid:59) (cid:21)he prima facie income ta(cid:50) e(cid:50)pense on pre(cid:57)ta(cid:50) accounting profit from operations reconciles to the income ta(cid:50) e(cid:50)pense in the financial statements as follo(cid:49)s Profit from continuing operations before income tax expense (cid:69)(cid:67)(cid:53)1(cid:70)(cid:72)(cid:53)(cid:69)(cid:70)(cid:71) 1(cid:67)(cid:53)(cid:76)(cid:73)1(cid:53)(cid:71)(cid:74)(cid:70) Income tax calculated at 3(cid:71)(cid:83) ((cid:73)(cid:71)(cid:72)(cid:75): 3(cid:71)(cid:83)) Add(cid:56)(less) tax effect of: Share based payments Amortisation of customer contacts Deductible finance costs (cid:16)ther timing differences (cid:16)ver provision in prior years Income tax expense (cid:77),(cid:71)(cid:75)(cid:71),(cid:76)(cid:78)(cid:71) 3,(cid:73)(cid:79)(cid:79),(cid:75)(cid:75)(cid:72) (cid:78)(cid:75),(cid:78)(cid:78)(cid:75) (cid:78)(cid:80),(cid:73)(cid:78)(cid:76) - - (cid:77),(cid:72)(cid:80)(cid:75),(cid:77)(cid:72)(cid:80) - (cid:77),(cid:72)(cid:80)(cid:75),(cid:77)(cid:72)(cid:80) 3(cid:80),3(cid:79)(cid:80) - ((cid:72)(cid:73)(cid:72),(cid:80)3(cid:73)) (cid:73)3(cid:71),(cid:71)3(cid:78) 3,(cid:75)3(cid:76),(cid:80)3(cid:76) (3(cid:71)(cid:77),(cid:72)(cid:71)(cid:76)) 3,(cid:72)(cid:73)(cid:80),(cid:79)3(cid:71) The tax rate used in the above reconciliation is the corporate tax rate of 3(cid:71)(cid:83) payable by Australian corporate entities on taxable profits under Australian tax law. There has been no change in the corporate tax rate when compared with the previous reporting period. c(cid:59) Current ta(cid:50) lia(cid:28)ilities Income tax payable attributable to: Entities in the consolidated group (cid:75),(cid:73)(cid:77)(cid:75),3(cid:79)(cid:80) (cid:75),(cid:73)(cid:77)(cid:75),3(cid:79)(cid:80) 3,(cid:71)(cid:72)3,(cid:79)(cid:73)(cid:76) 3,(cid:71)(cid:72)3,(cid:79)(cid:73)(cid:76) (cid:29)a(cid:30) The weighted average interest rate on funds borrowed generally is (cid:79).(cid:76)(cid:83) p.a. ((cid:73)(cid:71)(cid:72)(cid:75): (cid:72)(cid:72).(cid:77)(cid:83) p.a.) 4 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 45 4 5 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statemen ts for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:72)(cid:55) (cid:10)ncome (cid:21)a(cid:50) (cid:58)continued ) d(cid:59) (cid:5)eferred ta(cid:50) (cid:28)alances Deferred tax assets comprises: Capital raising costs Provisions and accruals Movements: (cid:16)pening balance Credited to profit or loss Credited to equity Closing balance e(cid:59) (cid:21)a(cid:50) losses Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:75)(cid:75)(cid:77),(cid:78)(cid:79)(cid:71) (cid:73),(cid:75)(cid:77)(cid:71),(cid:72)(cid:76)(cid:75) (cid:73),(cid:80)(cid:71)(cid:77),(cid:80)3(cid:75) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:78)(cid:76)(cid:75),(cid:79)(cid:75)(cid:80) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) (cid:73),(cid:80)(cid:71)(cid:77),(cid:80)3(cid:75) 3(cid:79)(cid:78),(cid:79)(cid:72)(cid:71) (cid:72),(cid:76)3(cid:79),(cid:72)(cid:75)(cid:79) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:79)(cid:73)3,(cid:78)(cid:80)(cid:80) (cid:79)(cid:71)3,(cid:73)(cid:80)(cid:77) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:21)nused tax losses for which no deferred tax assets has been recognised - - (cid:73)(cid:55) (cid:6)arnings per share a(cid:59) (cid:3)asic and diluted earnings per share Basic earnings per share (cents per share) Diluted earnings per share (cents per share) Consolidated (cid:69)(cid:67)1(cid:72) Cents Consolidated (cid:69)(cid:67)1(cid:71) Cents (cid:72)(cid:72).(cid:79)(cid:73) (cid:80).(cid:80)(cid:72) (cid:79).(cid:72)3 (cid:78).(cid:77)(cid:76) (cid:28)(cid:59) (cid:21)he earnings and (cid:49)eighted average num(cid:28)er of ordinary shares used in the calculation of (cid:28)asic and diluted earnings per share are as follo(cid:49)s: Earnings used in basic and diluted earnings per share (net profit after tax) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:23)eighted average number of ordinary shares for the purpose of basic earnings per share (cid:23)eighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share as follows: (cid:23)eighted average number of ordinary shares basic Dilutive potential ordinary shares (cid:23)eighted average number of ordinary shares and potential ordinary shares used in calculation of diluted earnings per share (cid:58)i(cid:59) (cid:16)ptions (cid:15)um(cid:28)er (cid:15)um(cid:28)er (cid:72)(cid:72)(cid:78),(cid:80)(cid:77)(cid:78),(cid:80)(cid:71)(cid:80) (cid:80)(cid:77),3(cid:73)(cid:79),(cid:72)(cid:73)(cid:75) (cid:72)(cid:72)(cid:78),(cid:80)(cid:77)(cid:78),(cid:80)(cid:71)(cid:80) (cid:73)(cid:73),(cid:78)(cid:71)(cid:72),(cid:78)(cid:79)(cid:72) (cid:80)(cid:77),3(cid:73)(cid:79),(cid:72)(cid:73)(cid:75) (cid:77),(cid:71)(cid:79)(cid:71),(cid:80)(cid:76)(cid:80) (cid:72)(cid:75)(cid:71),(cid:77)(cid:77)(cid:80),(cid:77)(cid:80)(cid:71) (cid:72)(cid:71)(cid:73),(cid:75)(cid:71)(cid:80),(cid:71)(cid:79)3 (cid:16)ptions granted to employees are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share. Details relating to options are set out in note (cid:79). 46 4 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:72)(cid:55) (cid:10)ncome (cid:21)a(cid:50) (cid:58)continued ) d(cid:59) (cid:5)eferred ta(cid:50) (cid:28)alances Deferred tax assets comprises: Capital raising costs Provisions and accruals Movements: (cid:16)pening balance Credited to profit or loss Credited to equity Closing balance e(cid:59) (cid:21)a(cid:50) losses (cid:73)(cid:55) (cid:6)arnings per share (cid:69)(cid:67)1(cid:72) (cid:64) (cid:75)(cid:75)(cid:77),(cid:78)(cid:79)(cid:71) (cid:73),(cid:75)(cid:77)(cid:71),(cid:72)(cid:76)(cid:75) (cid:73),(cid:80)(cid:71)(cid:77),(cid:80)3(cid:75) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:78)(cid:76)(cid:75),(cid:79)(cid:75)(cid:80) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) (cid:73),(cid:80)(cid:71)(cid:77),(cid:80)3(cid:75) (cid:69)(cid:67)1(cid:71) (cid:64) 3(cid:79)(cid:78),(cid:79)(cid:72)(cid:71) (cid:72),(cid:76)3(cid:79),(cid:72)(cid:75)(cid:79) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:79)(cid:73)3,(cid:78)(cid:80)(cid:80) (cid:79)(cid:71)3,(cid:73)(cid:80)(cid:77) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) Consolidated Consolidated (cid:69)(cid:67)1(cid:72) Cents (cid:69)(cid:67)1(cid:71) Cents (cid:72)(cid:72).(cid:79)(cid:73) (cid:80).(cid:80)(cid:72) (cid:79).(cid:72)3 (cid:78).(cid:77)(cid:76) (cid:15)um(cid:28)er (cid:15)um(cid:28)er (cid:72)(cid:72)(cid:78),(cid:80)(cid:77)(cid:78),(cid:80)(cid:71)(cid:80) (cid:80)(cid:77),3(cid:73)(cid:79),(cid:72)(cid:73)(cid:75) (cid:72)(cid:72)(cid:78),(cid:80)(cid:77)(cid:78),(cid:80)(cid:71)(cid:80) (cid:73)(cid:73),(cid:78)(cid:71)(cid:72),(cid:78)(cid:79)(cid:72) (cid:80)(cid:77),3(cid:73)(cid:79),(cid:72)(cid:73)(cid:75) (cid:77),(cid:71)(cid:79)(cid:71),(cid:80)(cid:76)(cid:80) (cid:72)(cid:75)(cid:71),(cid:77)(cid:77)(cid:80),(cid:77)(cid:80)(cid:71) (cid:72)(cid:71)(cid:73),(cid:75)(cid:71)(cid:80),(cid:71)(cid:79)3 (cid:21)nused tax losses for which no deferred tax assets has been recognised - - a(cid:59) (cid:3)asic and diluted earnings per share Basic earnings per share (cents per share) Diluted earnings per share (cents per share) (cid:28)(cid:59) (cid:21)he earnings and (cid:49)eighted average num(cid:28)er of ordinary shares used in the calculation of (cid:28)asic and diluted earnings per share are as follo(cid:49)s: Earnings used in basic and diluted earnings per share (net profit after tax) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:23)eighted average number of ordinary shares for the purpose of basic earnings per share (cid:23)eighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per share as follows: (cid:23)eighted average number of ordinary shares basic Dilutive potential ordinary shares (cid:23)eighted average number of ordinary shares and potential ordinary shares used in calculation of diluted earnings per share (cid:58)i(cid:59) (cid:16)ptions (cid:16)ptions granted to employees are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share to the extent to which they are dilutive. The options have not been included in the determination of basic earnings per share. Details relating to options are set out in note (cid:79). (cid:15)otes to the (cid:7)inancial Statemen ts for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) Consolidated Consolidated (cid:74)(cid:55) (cid:5)ividends (cid:19)ecognised amounts (cid:7)ully paid ordinary shares (cid:7)inal dividend fully franked at 3(cid:71)(cid:83) tax rate Interim dividend fully franked at 3(cid:71)(cid:83) tax rate (cid:22)nrecognised amounts (cid:7)ully paid ordinary shares (cid:69)(cid:67)1(cid:72) Cents per share (cid:69)(cid:67)1(cid:72) (cid:64) (cid:69)(cid:67)1(cid:71) Cents per share (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73).(cid:76) (cid:73).(cid:76) (cid:73),(cid:77)(cid:79)(cid:79),(cid:73)(cid:73)(cid:72) 3,(cid:73)(cid:71)(cid:80),(cid:76)(cid:80)(cid:79) (cid:73).(cid:73)(cid:76) (cid:73) (cid:73),(cid:71)(cid:78)(cid:80),(cid:75)(cid:72)(cid:71) (cid:73),(cid:72)(cid:71)(cid:72),(cid:76)(cid:73)3 (cid:7)inal dividend fully franked at 3(cid:71)(cid:83) tax rate (cid:73).(cid:78)(cid:76) 3,(cid:76)(cid:76)(cid:75),(cid:75)(cid:77)3 (cid:73).(cid:76) (cid:73),(cid:77)(cid:78)(cid:80),(cid:77)(cid:79)3 (cid:16)n (cid:73)(cid:78) August (cid:73)(cid:71)(cid:72)(cid:76), the directors declared a fully franked final dividend of (cid:73).(cid:78)(cid:76) cents per share to the holders of fully paid ordinary shares in respect of the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), to be paid to shareholders on (cid:73)3 (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). The dividend will be paid to shareholders on the Register of Members on (cid:79) (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). This dividend has not been included as a liability in these financial statements. The total estimated dividend to be paid is (cid:68)3,(cid:76)(cid:76)(cid:75),(cid:75)(cid:77)3. (cid:7)ran(cid:37)ing Credits (cid:7)ranking credits available for subsequent financial years based on a tax rate of 3(cid:71)(cid:83) ((cid:73)(cid:71)(cid:72)(cid:75) – 3(cid:71)(cid:83)) (i) Impact on franking account balance of dividends not recognised (ii) Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)(cid:71),(cid:72)(cid:78)(cid:80),(cid:78)(cid:79)(cid:73) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:76),(cid:76)(cid:79)(cid:73),(cid:72)(cid:72)(cid:76) ((cid:72),(cid:76)(cid:73)3,3(cid:75)(cid:72)) ((cid:72),(cid:72)(cid:75)(cid:79),(cid:75)3(cid:76)) (i) The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for: - franking credit that will arise from the payment of the amount of the provision for income tax; - franking debits that will arise from the payment of dividends recognised as a liability at the reporting date; and - franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date. (ii) The consolidated group has been formed into a consolidated tax group therefore the franking credits have been consolidated to the parent entity to pay fully franked dividends to shareholders on (cid:73)3 (cid:16)ctober (cid:73)(cid:71)(cid:72)(cid:76). The impact on the franking account of the dividend recommended by the directors since year end, but not recognised as liability at year end, will be a reduction in the franking account of (cid:68)(cid:72),(cid:76)(cid:73)3,3(cid:75)(cid:72)((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:72),(cid:72)(cid:75)(cid:79),(cid:75)3(cid:76)). (cid:75)(cid:55) Share (cid:28)ased payments Movement in the share options of the consolidated entity during the financial year are summari(cid:51)ed below. Balance at (cid:72) (cid:11)uly Lapsed during the financial period Exercised during the financial period Granted during the financial period Balance at 3(cid:71) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:15)um(cid:28)er (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) - ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) (cid:72)(cid:79),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:69)(cid:67)1(cid:71) (cid:15)um(cid:28)er 3,(cid:76)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) - ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:15)o options were forfeited, or expired during the period. The Company has a total of (cid:75),(cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options on issue ((cid:73)(cid:71)(cid:72)(cid:75): (cid:75),(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options) to the Directors (or their nominees) ((cid:65)Director (cid:16)ptions(cid:65)). (cid:10)ssue (cid:5)ate (cid:16)ptions Granted (cid:6)(cid:50)ercise Price (cid:6)(cid:50)piry (cid:5)ate (cid:23)esting (cid:5)ate Scott Baldwin Scott Baldwin Scott Baldwin (cid:73)(cid:78) (cid:15)ovember (cid:73)(cid:71)(cid:71)(cid:80) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:73) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)3 Robert Bryant 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)3 (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:76) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:78) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:77) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:77) 4 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 47 4 7 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:75)(cid:55) Share (cid:28)ased payments (cid:58)continued(cid:59) (cid:16)ptions on issue have the following conditions:- (cid:120) (cid:120) (cid:120) The options vest in full when an event occurs which give rise to a change in control of the Company. If the Company after having granted these options restructures its issued share capital, ASX Listing Rules will apply to the number of Shares issued to the option holder on exercise of an option. Employee and director options will not be listed on ASX but application will be made for quotation of the shares resulting from the exercise of the options. (cid:120) (cid:16)ptions issued in relation to the bond issue are listed on the ASX under the ASX code M(cid:15)(cid:25)(cid:16). (cid:120) (cid:16)n issue of the resulting shares, they will rank equally with ordinary shares on issue at that time. (cid:120) Share options carry no rights to dividends and no voting rights. In accordance with the terms of the share option schemes, options may be exercised at any time from the date on which they vest to the date of their expiry, subject to any additional specific requirements of the particular allocation Consideration received on the exercise of options is recognised as contributed equity. During the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options were exercised ((cid:73)(cid:71)(cid:72)(cid:75): (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)). The weighted average share price during the year was (cid:68)(cid:72).3(cid:73) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:71).(cid:80)(cid:79)) (cid:16)ptions are granted under the Money3 Corporation Limited's Director and Employee Share (cid:16)ption Plan. (cid:16)ptions are granted under the plan for no consideration. The board meets to determine eligibility for the granting of options, and to determine the quantity and terms of options that will be granted. The valuation of options is determined by an independent expert using the Black Scholes or Binomial option pricing models taking into account the terms and conditions upon which the instruments were granted. (cid:16)ptions granted under the plan carry no dividend or voting rights. The expected price volatility is based on the historical volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information. The model inputs for options on issue at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) included: (cid:5)irector (cid:57) (cid:6)(cid:50)pire (cid:70)1(cid:56)1(cid:69)(cid:56)(cid:69)(cid:67)1(cid:72) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:70)(cid:67)(cid:56)(cid:67)(cid:76)(cid:56)(cid:69)(cid:67)1(cid:74) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire 1(cid:73)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:74) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:69)1(cid:56)1(cid:67)(cid:56)(cid:69)(cid:67)1(cid:75) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:70)(cid:67)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:75) (cid:5)irector(cid:57) (cid:6)(cid:50)pire (cid:70)(cid:67)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:75) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:69)(cid:67)(cid:56)1(cid:67)(cid:56)(cid:69)(cid:67)1(cid:76) (cid:3)ond (cid:6)(cid:50)pire 1(cid:73)(cid:56)(cid:72)(cid:56)(cid:69)(cid:67)1(cid:75) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire 1(cid:71)(cid:56)(cid:67)(cid:71)(cid:56)(cid:69)(cid:67)(cid:69)(cid:67) Exercise price Grant date Expiry date Share price at grant date Expected volatility Expected dividend yield Risk free rate (cid:68)(cid:72).(cid:71)(cid:71) (cid:73)(cid:78)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:71)(cid:80) 3(cid:72)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)(cid:76) (cid:68)(cid:71).(cid:76)(cid:71) 3(cid:71)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:73) 3(cid:71)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:68)(cid:71).(cid:76)(cid:71) (cid:72)(cid:77)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:73) (cid:72)(cid:77)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:68)(cid:72).(cid:71)(cid:71) (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)3 (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:76)(cid:71) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:80) (cid:68)(cid:72).3(cid:71) (cid:73)(cid:72)(cid:56)(cid:78)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:77)(cid:56)(cid:76)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:78)(cid:71) (cid:72)(cid:76)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:72)(cid:76) (cid:72)(cid:75)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:73)(cid:71) (cid:68)(cid:71).(cid:75)(cid:76) (cid:75)(cid:71)(cid:83) (cid:78).33(cid:83) (cid:76).(cid:71)(cid:71)(cid:71)(cid:83) (cid:68)(cid:71).(cid:75)3 (cid:75)(cid:71)(cid:83) (cid:80).(cid:76)(cid:71)(cid:83) (cid:73).(cid:76)(cid:73)(cid:83) (cid:68)(cid:71).(cid:75)3 (cid:68)(cid:72).(cid:71)(cid:76) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:73)(cid:71) (cid:68)(cid:72).(cid:71)(cid:75) (cid:68)(cid:72).(cid:76)(cid:73) (cid:75)(cid:71)(cid:83) 3(cid:73)(cid:83) 3(cid:73)(cid:83) 3(cid:73)(cid:83) (cid:80).(cid:76)(cid:71)(cid:83) (cid:73).(cid:76)(cid:73)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) 3(cid:72)(cid:83) (cid:75)(cid:83) 33(cid:83) (cid:75)(cid:83) (cid:72).(cid:79)(cid:75)(cid:83) (cid:73).(cid:79)(cid:76)(cid:83) 3(cid:72)(cid:83) 3.(cid:76)(cid:83) (cid:72).(cid:79)(cid:75)(cid:83) The following reconciles the outstanding share options granted under (cid:16)ption Plan at the beginning and end of the financial year. Balance at beginning of year Granted during the year (cid:7)orfeited during the year Exercised during year Lapsed during year Expired during the year Balance at end of year (cid:23)eighted average remaining contractual life Exercisable at the end of the financial year (cid:69)(cid:67)1(cid:72) (cid:15)o of options (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:79),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - - (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) 3.(cid:72)(cid:71) years (cid:72)(cid:76),(cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:69)(cid:67)1(cid:72) (cid:24)eighted average e(cid:50)ercise price (cid:64) (cid:72).(cid:71)(cid:77) (cid:72).3(cid:77) - (cid:71).(cid:79)(cid:76) - - (cid:72).(cid:73)(cid:78) - (cid:72).3(cid:71) (cid:69)(cid:67)1(cid:71) (cid:15)o of options 3,(cid:76)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - - (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) 3.(cid:79)(cid:73) years (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:69)(cid:67)1(cid:71) (cid:24)eighted average e(cid:50)ercise price (cid:64) (cid:71).(cid:76)(cid:77) (cid:72).(cid:75)(cid:75) - (cid:71).(cid:78)(cid:71) - - (cid:72).(cid:71)(cid:77) - (cid:71).(cid:79)(cid:76) 48 4 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:75)(cid:55) Share (cid:28)ased payments (cid:58)continued(cid:59) (cid:16)ptions on issue have the following conditions:- (cid:120) (cid:120) (cid:120) (cid:120) The options vest in full when an event occurs which give rise to a change in control of the Company. If the Company after having granted these options restructures its issued share capital, ASX Listing Rules will apply to the number of Shares issued to the option holder on exercise of an option. Employee and director options will not be listed on ASX but application will be made for quotation of the shares resulting from the exercise of the options. (cid:120) (cid:16)ptions issued in relation to the bond issue are listed on the ASX under the ASX code M(cid:15)(cid:25)(cid:16). (cid:120) (cid:16)n issue of the resulting shares, they will rank equally with ordinary shares on issue at that time. Share options carry no rights to dividends and no voting rights. In accordance with the terms of the share option schemes, options may be exercised at any time from the date on which they vest to the date of their expiry, subject to any additional specific requirements of the particular allocation Consideration received on the exercise of options is recognised as contributed equity. During the financial year ended 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) options were exercised ((cid:73)(cid:71)(cid:72)(cid:75): (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)). The weighted average share price during the year was (cid:68)(cid:72).3(cid:73) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:71).(cid:80)(cid:79)) (cid:16)ptions are granted under the Money3 Corporation Limited's Director and Employee Share (cid:16)ption Plan. (cid:16)ptions are granted under the plan for no consideration. The board meets to determine eligibility for the granting of options, and to determine the quantity and terms of options that will be granted. The valuation of options is determined by an independent expert using the Black Scholes or Binomial option pricing models taking into account the terms and conditions upon which the instruments were granted. (cid:16)ptions granted under the plan carry no dividend or voting rights. The expected price volatility is based on the historical volatility (based on the remaining life of the options), adjusted for any expected changes to future volatility due to publicly available information. The model inputs for options on issue at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) included: (cid:5)irector (cid:57) (cid:6)(cid:50)pire (cid:6)mployee(cid:57) (cid:6)mployee(cid:57) (cid:6)mployee(cid:57) (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:6)(cid:50)pire (cid:6)(cid:50)pire (cid:6)(cid:50)pire (cid:5)irector(cid:57) (cid:6)(cid:50)pire (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:3)ond (cid:6)(cid:50)pire (cid:6)mployee(cid:57) (cid:6)(cid:50)pire (cid:70)1(cid:56)1(cid:69)(cid:56)(cid:69)(cid:67)1(cid:72) (cid:70)(cid:67)(cid:56)(cid:67)(cid:76)(cid:56)(cid:69)(cid:67)1(cid:74) 1(cid:73)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:74) (cid:69)1(cid:56)1(cid:67)(cid:56)(cid:69)(cid:67)1(cid:75) (cid:70)(cid:67)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:75) (cid:70)(cid:67)(cid:56)11(cid:56)(cid:69)(cid:67)1(cid:75) (cid:69)(cid:67)(cid:56)1(cid:67)(cid:56)(cid:69)(cid:67)1(cid:76) 1(cid:73)(cid:56)(cid:72)(cid:56)(cid:69)(cid:67)1(cid:75) 1(cid:71)(cid:56)(cid:67)(cid:71)(cid:56)(cid:69)(cid:67)(cid:69)(cid:67) Exercise price Grant date Expiry date Share price at grant date Expected volatility Expected dividend yield Risk free rate (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) (cid:73)(cid:78)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:71)(cid:80) 3(cid:71)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:73) (cid:72)(cid:77)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:73) (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)3 3(cid:72)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71)(cid:56)(cid:71)(cid:80)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) (cid:73)(cid:72)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71)(cid:56)(cid:72)(cid:72)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:68)(cid:72).(cid:76)(cid:71) (cid:68)(cid:72).3(cid:71) (cid:68)(cid:72).(cid:78)(cid:71) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:73)(cid:72)(cid:56)(cid:78)(cid:56)(cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:76)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:72)(cid:76) (cid:73)(cid:71)(cid:56)(cid:72)(cid:71)(cid:56)(cid:73)(cid:71)(cid:72)(cid:80) (cid:72)(cid:77)(cid:56)(cid:76)(cid:56)(cid:73)(cid:71)(cid:72)(cid:79) (cid:72)(cid:75)(cid:56)(cid:71)(cid:75)(cid:56)(cid:73)(cid:71)(cid:73)(cid:71) (cid:68)(cid:71).(cid:75)(cid:76) (cid:75)(cid:71)(cid:83) (cid:78).33(cid:83) (cid:76).(cid:71)(cid:71)(cid:71)(cid:83) (cid:68)(cid:71).(cid:75)3 (cid:75)(cid:71)(cid:83) (cid:80).(cid:76)(cid:71)(cid:83) (cid:73).(cid:76)(cid:73)(cid:83) (cid:68)(cid:71).(cid:75)3 (cid:68)(cid:72).(cid:71)(cid:76) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:72).(cid:73)(cid:71) (cid:68)(cid:72).(cid:71)(cid:75) (cid:68)(cid:72).(cid:76)(cid:73) (cid:75)(cid:71)(cid:83) 3(cid:73)(cid:83) 3(cid:73)(cid:83) 3(cid:73)(cid:83) (cid:80).(cid:76)(cid:71)(cid:83) (cid:73).(cid:76)(cid:73)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) (cid:75).(cid:73)(cid:76)(cid:83) 3.(cid:75)(cid:83) 3(cid:72)(cid:83) (cid:75)(cid:83) 33(cid:83) (cid:75)(cid:83) (cid:72).(cid:79)(cid:75)(cid:83) (cid:73).(cid:79)(cid:76)(cid:83) 3(cid:72)(cid:83) 3.(cid:76)(cid:83) (cid:72).(cid:79)(cid:75)(cid:83) The following reconciles the outstanding share options granted under (cid:16)ption Plan at the beginning and end of the financial year. (cid:69)(cid:67)1(cid:72) (cid:69)(cid:67)1(cid:72) (cid:69)(cid:67)1(cid:71) (cid:69)(cid:67)1(cid:71) (cid:15)o of options e(cid:50)ercise price (cid:15)o of options e(cid:50)ercise price (cid:24)eighted average (cid:24)eighted average Balance at beginning of year Granted during the year (cid:7)orfeited during the year Exercised during year Lapsed during year Expired during the year Balance at end of year (cid:23)eighted average remaining contractual life Exercisable at the end of the financial year (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:79),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - - - (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) 3.(cid:72)(cid:71) years (cid:72)(cid:76),(cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:64) (cid:72).(cid:71)(cid:77) (cid:72).3(cid:77) (cid:71).(cid:79)(cid:76) (cid:72).(cid:73)(cid:78) (cid:72).3(cid:71) - - - - 3,(cid:76)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - - - (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) 3.(cid:79)(cid:73) years (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:64) (cid:71).(cid:76)(cid:77) (cid:72).(cid:75)(cid:75) (cid:71).(cid:78)(cid:71) (cid:72).(cid:71)(cid:77) (cid:71).(cid:79)(cid:76) - - - - (cid:76)(cid:55) Cash and cash e(cid:43)uivalents Cash at bank and in hand (cid:4)(cid:10)conci(cid:16)iation to cas(cid:13) an(cid:9) cas(cid:13) (cid:10)(cid:21)(cid:25)i(cid:26)a(cid:16)(cid:10)nts at t(cid:13)(cid:10) (cid:10)n(cid:9) o(cid:11) (cid:11)inancia(cid:16) (cid:27)(cid:10)ar The above figures are reconciled to cash and cash equivalents at the end of the financial year as shown in the statement of cash flows as follows: Cash and cash equivalents Cash at bank and in hand Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 The Group's exposure to interest rate risk is discussed in note (cid:73)(cid:77). The maximum expose to credit risk at the end of the financial year is the carrying amount of each class of cash and cash equivalents mentioned above. 1(cid:67)(cid:55) Loans and other receiva(cid:28)les Loans and other receivables (cid:72)3(cid:78),(cid:71)(cid:78)(cid:75),(cid:76)(cid:80)3 (cid:78)(cid:78),(cid:72)(cid:72)(cid:80),(cid:72)(cid:73)(cid:77) Allowance for impairment losses Current receivables (cid:15)on-current receivables Total receivables ((cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75)) (cid:72)3(cid:71),(cid:73)(cid:76)(cid:76),(cid:79)(cid:76)(cid:80) (cid:79)(cid:79),(cid:76)(cid:75)(cid:78),(cid:72)(cid:78)(cid:71) (cid:75)(cid:72),(cid:78)(cid:71)(cid:79),(cid:77)(cid:79)(cid:80) (cid:72)3(cid:71),(cid:73)(cid:76)(cid:76),(cid:79)(cid:76)(cid:80) (3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78)) (cid:78)3,(cid:73)(cid:71)(cid:77),(cid:75)(cid:75)(cid:80) (cid:75)(cid:78),(cid:71)(cid:73)(cid:78),(cid:73)(cid:80)(cid:71) (cid:73)(cid:77),(cid:72)(cid:78)(cid:80),(cid:72)(cid:76)(cid:80) (cid:78)3,(cid:73)(cid:71)(cid:77),(cid:75)(cid:75)(cid:80) Loans and other receivables have been aged according to their original due date in the below ageing analysis, including where repayment terms for certain long outstanding trade receivables have been renegotiated. The carrying value of loan receivables after allowance for impairment losses is considered a reasonable approximation of fair value. The following basis has been used to assess the allowance for impairment losses required for loans: an individual account by account assessment based on past credit history; any prior knowledge of debtor insolvency or other credit risk; and (cid:120) (cid:120) (cid:120) working with client managers on weekly basis to assess past due items to determine recoverability. An allowance has been made for estimated irrecoverable loans amounts arising from the past provision of services, determined by reference to past default experience. During the current financial year, the allowance for doubtful debts increased by (cid:68)(cid:73),(cid:80)(cid:71)(cid:77),(cid:71)(cid:76)(cid:78) ((cid:73)(cid:71)(cid:72)(cid:75): increased by (cid:68)(cid:73),(cid:80)(cid:73)3,(cid:80)(cid:75)(cid:72)) in the Group. These amounts relate mainly to customers experiencing financial hardships. This movement was recognised in the Profit or Loss. During the year the Group’s bad debt expense increased by (cid:68)(cid:75),(cid:71)(cid:73)(cid:76),(cid:80)(cid:78)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): increased by (cid:68)3,(cid:77)(cid:77)(cid:80),(cid:73)(cid:79)(cid:77)). The consolidated entity actively reviews loans receivable for their recoverability and these debts are expensed immediately when non recoverability is identified. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable in the financial statements. The Group does not hold any collateral as security over loans below (cid:68)(cid:76),(cid:71)(cid:71)(cid:71), and as such did not take possession of any collateral for loans in this category. Security is generally taken for loans above (cid:68)(cid:76),(cid:71)(cid:71)(cid:71) and is secured by collateral of approximately (cid:68)(cid:79)3,(cid:71)(cid:73)3,(cid:76)(cid:79)3 ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:75)3,3(cid:76)(cid:77),(cid:77)(cid:77)(cid:75)). The total fair value of securities held for certain loans receivable is impracticable to determine for accounting disclosure as is the fair value of any collateral sold or repledged. However, the security position against individual debtors is considered by management in their evaluation of the recoverable amount. Refer to (cid:15)ote (cid:73)(cid:77) for more information on the risk management policy of the Group and the credit quality of the entity’s loans and other receivables. 4 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 49 4 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:67)(cid:55) Loans and other receiva(cid:28)les (cid:58)continued(cid:59) The following table provides an analysis of past due receivables; Consolidated The ageing of the receivables past due is: (cid:72) to 3 months 3 to (cid:77) months Gross (cid:64) (cid:72)(cid:80),(cid:71)(cid:78)(cid:75),(cid:76)(cid:73)(cid:78) (cid:69)(cid:67)1(cid:72) (cid:2)llo(cid:49)ance (cid:64) ((cid:75),(cid:78)(cid:73)(cid:79),(cid:80)(cid:80)(cid:71)) (cid:69)(cid:67)1(cid:71) (cid:15)et (cid:64) (cid:72)(cid:75),3(cid:75)(cid:76),(cid:76)3(cid:78) Gross (cid:64) (cid:80),(cid:72)(cid:75)(cid:73),(cid:71)(cid:77)(cid:72) (cid:2)llo(cid:49)ance (cid:64) ((cid:73),(cid:78)3(cid:79),(cid:79)(cid:78)(cid:75)) (cid:15)et (cid:64) (cid:77),(cid:75)(cid:71)3,(cid:72)(cid:79)(cid:78) (cid:75),(cid:76)(cid:73)(cid:75),(cid:77)(cid:80)(cid:80) ((cid:72),(cid:72)33,(cid:75)(cid:76)(cid:73)) 3,3(cid:80)(cid:72),(cid:73)(cid:75)(cid:78) (cid:73),(cid:77)(cid:72)(cid:73),(cid:71)(cid:72)(cid:78) ((cid:78)(cid:79)(cid:73),(cid:76)3(cid:76)) (cid:72),(cid:79)(cid:73)(cid:80),(cid:75)(cid:79)(cid:73) More than (cid:77) months 3,(cid:78)(cid:71)(cid:77),(cid:72)(cid:79)(cid:73) ((cid:80)(cid:76)(cid:77),(cid:73)(cid:80)(cid:73)) (cid:73),(cid:78)(cid:75)(cid:80),(cid:79)(cid:80)(cid:71) (cid:72),3(cid:71)(cid:77),(cid:71)(cid:71)(cid:80) (3(cid:80)(cid:72),(cid:73)(cid:77)(cid:79)) (cid:80)(cid:72)(cid:75),(cid:78)(cid:75)(cid:72) Total (cid:73)(cid:78),3(cid:71)(cid:76),(cid:75)(cid:71)(cid:79) ((cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75)) (cid:73)(cid:71),(cid:75)(cid:79)(cid:77),(cid:77)(cid:78)(cid:75) (cid:72)3,(cid:71)(cid:77)(cid:71),(cid:71)(cid:79)(cid:78) (3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78)) (cid:80),(cid:72)(cid:75)(cid:78),(cid:75)(cid:72)(cid:71) A reconciliation of the movement in the provision for impairment of loans and other receivables is shown below: (cid:16)pening balance Additional provisions Receivables written off as uncollectible Bad debts recovered Closing balance Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) 3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78) (cid:72)(cid:71),(cid:72)(cid:75)(cid:78),(cid:73)3(cid:72) ((cid:79),(cid:80)(cid:71)(cid:80),3(cid:71)3) (cid:72),(cid:77)(cid:77)(cid:79),(cid:72)(cid:73)(cid:80) (cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:80)(cid:79)(cid:79),(cid:78)3(cid:77) (cid:77),(cid:72)(cid:73)(cid:72),(cid:73)(cid:77)(cid:72) (3,(cid:80)(cid:72)(cid:78),(cid:71)(cid:78)(cid:76)) (cid:78)(cid:72)(cid:80),(cid:78)(cid:76)(cid:76) 3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78) The creation and release of provision for impaired receivables has been included in the profit and loss. Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash. 11(cid:55) (cid:16)ther assets Current Prepayments (cid:16)ther (cid:15)on(cid:57)Current Rental deposits There were no past due and impaired other debtors. (cid:73)(cid:80)(cid:79),(cid:72)(cid:78)(cid:73) (cid:72)(cid:72),(cid:78)(cid:72)(cid:73) 3(cid:71)(cid:80),(cid:79)(cid:79)(cid:75) (cid:72)3(cid:72),(cid:72)(cid:80)(cid:80) (cid:72)(cid:72),(cid:79)(cid:77)3 (cid:72)(cid:75)3,(cid:71)(cid:77)(cid:73) (cid:76)(cid:71)(cid:78),(cid:73)(cid:80)(cid:72) 3(cid:75)(cid:71),(cid:79)(cid:77)(cid:80) 50 5 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:69)(cid:55) Property(cid:53) plant and e(cid:43)uipment (cid:69)(cid:67)1(cid:72) (cid:14)otor vehicles (cid:19)ental (cid:2)ssets Leasehold (cid:10)mprovements (cid:64) (cid:64) (cid:64) (cid:7)urniture(cid:53) (cid:6)(cid:43)uipment and (cid:7)ittings (cid:64) 1(cid:67)(cid:55) Loans and other receiva(cid:28)les (cid:58)continued(cid:59) The following table provides an analysis of past due receivables; The ageing of the receivables past due is: Consolidated (cid:72) to 3 months 3 to (cid:77) months Gross (cid:64) (cid:69)(cid:67)1(cid:72) (cid:2)llo(cid:49)ance (cid:64) (cid:15)et (cid:64) Gross (cid:64) (cid:69)(cid:67)1(cid:71) (cid:2)llo(cid:49)ance (cid:64) (cid:15)et (cid:64) (cid:72)(cid:80),(cid:71)(cid:78)(cid:75),(cid:76)(cid:73)(cid:78) ((cid:75),(cid:78)(cid:73)(cid:79),(cid:80)(cid:80)(cid:71)) (cid:72)(cid:75),3(cid:75)(cid:76),(cid:76)3(cid:78) (cid:80),(cid:72)(cid:75)(cid:73),(cid:71)(cid:77)(cid:72) ((cid:73),(cid:78)3(cid:79),(cid:79)(cid:78)(cid:75)) (cid:77),(cid:75)(cid:71)3,(cid:72)(cid:79)(cid:78) (cid:75),(cid:76)(cid:73)(cid:75),(cid:77)(cid:80)(cid:80) ((cid:72),(cid:72)33,(cid:75)(cid:76)(cid:73)) 3,3(cid:80)(cid:72),(cid:73)(cid:75)(cid:78) (cid:73),(cid:77)(cid:72)(cid:73),(cid:71)(cid:72)(cid:78) ((cid:78)(cid:79)(cid:73),(cid:76)3(cid:76)) (cid:72),(cid:79)(cid:73)(cid:80),(cid:75)(cid:79)(cid:73) More than (cid:77) months 3,(cid:78)(cid:71)(cid:77),(cid:72)(cid:79)(cid:73) ((cid:80)(cid:76)(cid:77),(cid:73)(cid:80)(cid:73)) (cid:73),(cid:78)(cid:75)(cid:80),(cid:79)(cid:80)(cid:71) (cid:72),3(cid:71)(cid:77),(cid:71)(cid:71)(cid:80) (3(cid:80)(cid:72),(cid:73)(cid:77)(cid:79)) (cid:80)(cid:72)(cid:75),(cid:78)(cid:75)(cid:72) Total (cid:73)(cid:78),3(cid:71)(cid:76),(cid:75)(cid:71)(cid:79) ((cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75)) (cid:73)(cid:71),(cid:75)(cid:79)(cid:77),(cid:77)(cid:78)(cid:75) (cid:72)3,(cid:71)(cid:77)(cid:71),(cid:71)(cid:79)(cid:78) (3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78)) (cid:80),(cid:72)(cid:75)(cid:78),(cid:75)(cid:72)(cid:71) A reconciliation of the movement in the provision for impairment of loans and other receivables is shown below: The creation and release of provision for impaired receivables has been included in the profit and loss. Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash. Receivables written off as uncollectible (cid:16)pening balance Additional provisions Bad debts recovered Closing balance 11(cid:55) (cid:16)ther assets Current Prepayments (cid:16)ther (cid:15)on(cid:57)Current Rental deposits There were no past due and impaired other debtors. Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) 3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78) (cid:72)(cid:71),(cid:72)(cid:75)(cid:78),(cid:73)3(cid:72) ((cid:79),(cid:80)(cid:71)(cid:80),3(cid:71)3) (cid:72),(cid:77)(cid:77)(cid:79),(cid:72)(cid:73)(cid:80) (cid:77),(cid:79)(cid:72)(cid:79),(cid:78)3(cid:75) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:80)(cid:79)(cid:79),(cid:78)3(cid:77) (cid:77),(cid:72)(cid:73)(cid:72),(cid:73)(cid:77)(cid:72) (3,(cid:80)(cid:72)(cid:78),(cid:71)(cid:78)(cid:76)) (cid:78)(cid:72)(cid:80),(cid:78)(cid:76)(cid:76) 3,(cid:80)(cid:72)(cid:73),(cid:77)(cid:78)(cid:78) (cid:73)(cid:80)(cid:79),(cid:72)(cid:78)(cid:73) (cid:72)(cid:72),(cid:78)(cid:72)(cid:73) 3(cid:71)(cid:80),(cid:79)(cid:79)(cid:75) (cid:72)3(cid:72),(cid:72)(cid:80)(cid:80) (cid:72)(cid:72),(cid:79)(cid:77)3 (cid:72)(cid:75)3,(cid:71)(cid:77)(cid:73) (cid:76)(cid:71)(cid:78),(cid:73)(cid:80)(cid:72) 3(cid:75)(cid:71),(cid:79)(cid:77)(cid:80) (cid:75)(cid:77),(cid:76)(cid:72)(cid:80) - (cid:72),3(cid:78)(cid:75),3(cid:80)(cid:78) (cid:72),(cid:72)(cid:76)(cid:71),(cid:72)(cid:80)3 (cid:73),(cid:76)(cid:78)(cid:72),(cid:72)(cid:71)(cid:80) (cid:69)(cid:67)1(cid:71) (cid:14)otor vehicles (cid:19)ental (cid:2)ssets Leasehold (cid:10)mprovements (cid:64) (cid:64) (cid:64) (cid:7)urniture(cid:53) (cid:6)(cid:43)uipment and (cid:7)ittings (cid:64) (cid:73)(cid:71)(cid:71),(cid:79)(cid:75)3 - ((cid:78)(cid:71),(cid:80)(cid:73)(cid:78)) (cid:72)(cid:73)(cid:80),(cid:80)(cid:72)(cid:77) (cid:72)(cid:73)(cid:80),(cid:77)(cid:75)(cid:71) (cid:72)(cid:73),(cid:71)(cid:78)(cid:75) ((cid:76)(cid:79),3(cid:72)(cid:78)) (cid:79)3,3(cid:80)(cid:78) (cid:76)(cid:73)(cid:77),(cid:78)(cid:72)(cid:80) - ((cid:72)(cid:71)(cid:75),(cid:78)(cid:76)3) (cid:75)(cid:73)(cid:72),(cid:80)(cid:77)(cid:77) (cid:76)(cid:73)(cid:77),(cid:78)(cid:72)(cid:80) - ((cid:72)(cid:71)(cid:75),(cid:78)(cid:76)3) (cid:75)(cid:73)(cid:72),(cid:80)(cid:77)(cid:77) (cid:73),(cid:71)(cid:76)(cid:78),(cid:76)(cid:71)(cid:71) (cid:77)3(cid:76),(cid:73)(cid:78)(cid:78) - (cid:73),(cid:77)(cid:80)(cid:73),(cid:78)(cid:78)(cid:78) (cid:73),(cid:76)(cid:80)(cid:75),(cid:78)(cid:72)(cid:71) (cid:76)(cid:77)(cid:76),(cid:79)(cid:76)(cid:72) ((cid:80)3(cid:77)) 3,(cid:72)(cid:76)(cid:80),(cid:77)(cid:73)(cid:76) (cid:72),(cid:71)(cid:73)(cid:79),(cid:80)3(cid:80) (cid:73)(cid:79)(cid:80),(cid:75)(cid:75)(cid:72) - (cid:72),3(cid:72)(cid:79),3(cid:79)(cid:71) (cid:72),(cid:77)(cid:75)3,(cid:72)(cid:76)(cid:72) 3(cid:77)(cid:77),(cid:79)33 ((cid:76)(cid:76)(cid:73)) (cid:73),(cid:71)(cid:71)(cid:80),(cid:75)3(cid:73) (cid:73)3(cid:78),(cid:80)(cid:73)(cid:78) 3(cid:71),(cid:73)(cid:79)(cid:77) ((cid:77)(cid:78),3(cid:78)(cid:71)) (cid:73)(cid:71)(cid:71),(cid:79)(cid:75)3 (cid:72)(cid:77)(cid:76),(cid:75)(cid:77)(cid:71) (cid:72)(cid:77),(cid:73)(cid:71)(cid:80) - ((cid:76)(cid:73),(cid:71)(cid:73)(cid:80)) (cid:72)(cid:73)(cid:80),(cid:77)(cid:75)(cid:71) (cid:73),(cid:76)(cid:77)3,(cid:78)(cid:72)(cid:78) 3(cid:75)(cid:73),(cid:80)(cid:71)(cid:80) ((cid:73),3(cid:78)(cid:80),(cid:80)(cid:71)(cid:78)) (cid:76)(cid:73)(cid:77),(cid:78)(cid:72)(cid:80) (cid:80)(cid:78)(cid:72),(cid:72)(cid:80)(cid:73) (cid:76)(cid:80)(cid:80),(cid:79)(cid:73)(cid:73) (cid:72)(cid:80)(cid:71),(cid:78)(cid:75)(cid:72) ((cid:72),(cid:73)3(cid:76),(cid:71)3(cid:77)) (cid:76)(cid:73)(cid:77),(cid:78)(cid:72)(cid:80) (cid:72),3(cid:80)3,(cid:79)(cid:76)(cid:76) (cid:77)(cid:77)3,(cid:77)(cid:75)(cid:76) - (cid:73),(cid:71)(cid:76)(cid:78),(cid:76)(cid:71)(cid:71) (cid:73),3(cid:75)(cid:73),(cid:72)(cid:78)(cid:76) (cid:73)(cid:76)(cid:73),(cid:76)3(cid:76) - (cid:73),(cid:76)(cid:80)(cid:75),(cid:78)(cid:72)(cid:71) (cid:79)(cid:72)(cid:72),(cid:71)(cid:72)(cid:80) (cid:73)(cid:72)(cid:78),(cid:80)(cid:73)(cid:71) - - (cid:72),(cid:71)(cid:73)(cid:79),(cid:80)3(cid:80) (cid:72),3(cid:71)(cid:79),(cid:75)3(cid:78) 33(cid:75),(cid:78)(cid:72)(cid:75) - - (cid:72),(cid:77)(cid:75)3,(cid:72)(cid:76)(cid:72) (cid:21)otal (cid:64) (cid:76),3(cid:78)(cid:80),(cid:78)(cid:78)(cid:73) (cid:72),(cid:73)(cid:71)(cid:72),(cid:72)(cid:73)(cid:79) ((cid:72)(cid:78)(cid:77),(cid:77)(cid:72)(cid:77)) (cid:77),(cid:75)(cid:71)(cid:75),(cid:73)(cid:79)(cid:75) 3,3(cid:73)(cid:79),(cid:75)(cid:75)(cid:80) (cid:77)(cid:77)(cid:79),3(cid:75)(cid:79) ((cid:72)(cid:77)3,(cid:77)(cid:73)(cid:73)) 3,(cid:79)33,(cid:72)(cid:78)(cid:76) (cid:21)otal (cid:64) (cid:77),(cid:76)3(cid:78),(cid:77)(cid:78)(cid:75) (cid:72),(cid:73)(cid:79)(cid:80),3(cid:78)(cid:76) ((cid:73),(cid:75)(cid:75)(cid:78),(cid:73)(cid:78)(cid:78)) (cid:76),3(cid:78)(cid:80),(cid:78)(cid:78)(cid:73) 3,(cid:73)(cid:76)(cid:77),(cid:72)(cid:71)(cid:79) (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:72)(cid:80)(cid:71),(cid:78)(cid:75)(cid:72) ((cid:72),(cid:73)(cid:79)(cid:78),(cid:71)(cid:77)(cid:76)) 3,3(cid:73)(cid:79),(cid:75)(cid:75)(cid:80) Gross carrying amount Balance at (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75) Additions Disposals (cid:3)alance at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:2)ccumulated (cid:5)epreciation Balance at (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75) Depreciation expense Disposals Balance at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) (cid:15)et carrying amount As at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) Gross carrying amount Balance at (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)3 Additions Disposals (cid:3)alance at (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:71) (cid:2)ccumulated (cid:5)epreciation Balance at (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)3 Depreciation expense Impairment of assets Disposals Balance at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) (cid:15)et carrying amount As at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) (cid:78)(cid:72),(cid:73)(cid:71)3 - (cid:72),(cid:71)(cid:73)(cid:79),(cid:76)(cid:77)(cid:72) (cid:80)(cid:76)(cid:72),(cid:76)(cid:76)(cid:80) (cid:73),(cid:71)(cid:76)(cid:72),3(cid:73)3 See accounting policy in (cid:15)ote (cid:72)(m), regarding useful life assumptions. 5 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 51 5 1 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:70)(cid:55) (cid:10)ntangi(cid:28)le assets Goodwill allocated to: Secured operations (cid:21)nsecured operations Customer contacts Less Accumulated amortisation Total Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)(cid:71),(cid:73)(cid:80)(cid:75),(cid:79)(cid:76)(cid:75) (cid:78),(cid:71)(cid:78)(cid:79),(cid:77)33 (cid:72)(cid:78),3(cid:78)3,(cid:75)(cid:79)(cid:78) (cid:73),(cid:73)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71)) (cid:73),(cid:71)(cid:71)(cid:71),(cid:78)(cid:76)(cid:71) (cid:72)(cid:71),(cid:73)(cid:80)(cid:75),(cid:79)(cid:76)(cid:75) (cid:76),(cid:71)(cid:77)(cid:79),(cid:77)33 (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) - - - (cid:72)(cid:80),3(cid:78)(cid:75),(cid:73)3(cid:78) (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) Reconciliations Reconciliation of the fair values at the beginning and end of the current financial year are set out below: Balance at (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)3 Balance at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) Addition from business acquisition Amortisation expense Balance at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) (cid:3)ac(cid:37)ground Goodwill (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) Customer contacts - (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:73),(cid:71)(cid:72)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72)(cid:78),3(cid:76)3,(cid:75)(cid:79)(cid:78) - (cid:73),(cid:73)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71)) (cid:73),(cid:71)(cid:71)(cid:71),(cid:78)(cid:76)(cid:71) Total (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:75),(cid:73)(cid:78)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71)) (cid:72)(cid:80),3(cid:78)(cid:75),(cid:73)3(cid:78) Goodwill is allocated for impairment testing purposes to two cash generating units (CG(cid:21)'s), being the secured operations and unsecured operations. The recoverable amount of the cash generating unit is based on a number of key assumptions as detailed below. Due to the growth of the business the directors have reorganised the reporting structure and monitor operations on the basis of secured lending, unsecured lending. In accordance with the requirement of accounting standard AASB (cid:72)3(cid:77) Impairment of Assets the reallocation of goodwill between the new segments was based on a relative value approach. Good(cid:49)ill (cid:10)mpairment tests and (cid:37)ey assumptions used As at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), the directors have approved the (cid:73)(cid:71)(cid:72)(cid:77) Budget and the assumptions that it is based as reasonable taking into consideration the historic performance of the company. Therefore directors concluded that there is no impairment of goodwill ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)nil). The following are the key assumptions used in testing the recoverable value of goodwill: a(cid:46) (cid:17)e(cid:24)ured o(cid:36)eration(cid:39) Cash flo(cid:49)s The value in use calculations use cash flow projections based on past operating results and budgets approved by the directors for the 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) financial year extended over a further four year period, in total covering a five-year period and a terminal value. The 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) financial year budget allows a growth in operating expenses of (cid:72)(cid:80)(cid:83) and an increase in revenue of (cid:73)(cid:73)(cid:83), which is supported by the increase in funding during the (cid:73)(cid:71)(cid:72)(cid:76) financial year. Gro(cid:49)th rate The terminal value growth used to extrapolate cash flows beyond the five year period is (cid:73).(cid:76)(cid:83). Projected revenue growth beyond the one-year period has been extrapolated using a (cid:75)(cid:83) per annum growth rate. Projected operating costs beyond the one-year period have been extrapolated using a (cid:73).(cid:76)(cid:83) to (cid:75)(cid:83) growth rate. 52 5 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)(cid:71),(cid:73)(cid:80)(cid:75),(cid:79)(cid:76)(cid:75) (cid:78),(cid:71)(cid:78)(cid:79),(cid:77)33 (cid:72)(cid:78),3(cid:78)3,(cid:75)(cid:79)(cid:78) (cid:73),(cid:73)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71)) (cid:73),(cid:71)(cid:71)(cid:71),(cid:78)(cid:76)(cid:71) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)(cid:71),(cid:73)(cid:80)(cid:75),(cid:79)(cid:76)(cid:75) (cid:76),(cid:71)(cid:77)(cid:79),(cid:77)33 (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) - - - (cid:72)(cid:80),3(cid:78)(cid:75),(cid:73)3(cid:78) (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) 1(cid:70)(cid:55) (cid:10)ntangi(cid:28)le assets Goodwill allocated to: Secured operations (cid:21)nsecured operations Customer contacts Less Accumulated amortisation Total Reconciliations Balance at (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)3 Balance at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) Addition from business acquisition Amortisation expense Balance at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) (cid:3)ac(cid:37)ground Reconciliation of the fair values at the beginning and end of the current financial year are set out below: Goodwill (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:73),(cid:71)(cid:72)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72)(cid:78),3(cid:76)3,(cid:75)(cid:79)(cid:78) Customer contacts - - (cid:73),(cid:73)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71)) (cid:73),(cid:71)(cid:71)(cid:71),(cid:78)(cid:76)(cid:71) Total (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:72)(cid:76),3(cid:77)3,(cid:75)(cid:79)(cid:78) (cid:75),(cid:73)(cid:78)(cid:76),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:77)(cid:75),(cid:73)(cid:76)(cid:71)) (cid:72)(cid:80),3(cid:78)(cid:75),(cid:73)3(cid:78) Goodwill is allocated for impairment testing purposes to two cash generating units (CG(cid:21)'s), being the secured operations and unsecured operations. The recoverable amount of the cash generating unit is based on a number of key assumptions as detailed below. Due to the growth of the business the directors have reorganised the reporting structure and monitor operations on the basis of secured lending, unsecured lending. In accordance with the requirement of accounting standard AASB (cid:72)3(cid:77) Impairment of Assets the reallocation of goodwill between the new segments was based on a relative value approach. (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:70)(cid:55) (cid:10)ntangi(cid:28)le assets (cid:58)continued(cid:59) (cid:10)mpairment tests and (cid:37)ey assumptions used (cid:58)continued(cid:59) (cid:5)iscount rate The discount rate applied to the cash flow projections is (cid:72)(cid:72)(cid:83) pre tax. The discount rate is derived using the capital asset pricing model by estimating the company’s weighted average cost of capital with appropriate adjustment for cost of equity, risk free rate of interest, market risk premium and the beta of GICS Class (cid:72)(cid:78) – Diversified (cid:7)inancials sector. Based on the above, the recoverable amount of the secured operations division exceed the carrying amount by (cid:68)(cid:73)(cid:80)(cid:73),(cid:78)(cid:71)(cid:72),(cid:73)(cid:72)(cid:72). (cid:23)(cid:46) (cid:19)n(cid:39)e(cid:24)ured o(cid:36)eration(cid:39) Cash flo(cid:49)s The value in use calculations use cash flow projections based on past operating results and budgets approved by the directors for the 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) financial year extended over a further four year period, in total covering a five-year period and a terminal value. The 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) financial year budget allows for a growth in operating expenses of (cid:72)(cid:78)(cid:83) and an increase in revenue of (cid:72)(cid:76)(cid:83). Gro(cid:49)th rate The terminal value growth used to extrapolate cash flows beyond the five year period is (cid:73).(cid:76)(cid:83). Projected revenue growth beyond the one-year period have been extrapolated using a steady (cid:75)(cid:83) per annum growth rate. Projected operating costs beyond the one-year period have been extrapolated using a (cid:73).(cid:76)(cid:83) to (cid:75)(cid:83) growth rate. (cid:5)iscount rate The discount rate applied to the cash flow projections is (cid:72)3(cid:83) pre tax. The discount rate is derived using the capital asset pricing model by estimating the company’s weighted average cost of capital with appropriate adjustment for cost of equity, risk free rate of interest, market risk premium and the beta of GICS Class (cid:72)(cid:78) – Diversified (cid:7)inancials sector. Based on the above, the recoverable amount of the unsecured operations division exceed the carrying amount by (cid:68)(cid:72)(cid:79)3,(cid:72)(cid:78)3,3(cid:76)(cid:77). Good(cid:49)ill (cid:10)mpairment tests and (cid:37)ey assumptions used (cid:24)(cid:46) (cid:52)(cid:50)(cid:51)(cid:55) a(cid:39)(cid:39)um(cid:36)tion(cid:39) As at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76), the directors have approved the (cid:73)(cid:71)(cid:72)(cid:77) Budget and the assumptions that it is based as reasonable taking into consideration the historic performance of the company. Therefore directors concluded that there is no In (cid:73)(cid:71)(cid:72)(cid:75) the key assumptions used to calculate cash flows were a growth in operating expenses of 3(cid:71)(cid:83) in (cid:73)(cid:71)(cid:72)(cid:76) and in the following years of (cid:73).(cid:76)(cid:83) to 3.(cid:76)(cid:83), increase of revenue of 3(cid:80)(cid:83) in (cid:73)(cid:71)(cid:72)(cid:76) and in the following years of (cid:73).(cid:76)(cid:83) to (cid:76)(cid:83). impairment of goodwill ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)nil). The following are the key assumptions used in testing the recoverable value of goodwill: Management believe that any reasonable possible change in the key assumptions on which the recoverable amount is based would not cause the carrying amount to exceed the recoverable amount of the CG(cid:21)'s. a(cid:46) (cid:17)e(cid:24)ured o(cid:36)eration(cid:39) Cash flo(cid:49)s Gro(cid:49)th rate The value in use calculations use cash flow projections based on past operating results and budgets approved by the directors for the 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) financial year extended over a further four year period, in total covering a five-year period and a terminal value. The 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:77) financial year budget allows a growth in operating expenses of (cid:72)(cid:80)(cid:83) and an increase in revenue of (cid:73)(cid:73)(cid:83), which is supported by the increase in funding during the (cid:73)(cid:71)(cid:72)(cid:76) financial year. The terminal value growth used to extrapolate cash flows beyond the five year period is (cid:73).(cid:76)(cid:83). Projected revenue growth beyond the one-year period has been extrapolated using a (cid:75)(cid:83) per annum growth rate. Projected operating costs beyond the one-year period have been extrapolated using a (cid:73).(cid:76)(cid:83) to (cid:75)(cid:83) growth rate. 1(cid:71)(cid:55) (cid:21)rade and other paya(cid:28)les Current Trade and other payables Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:75),(cid:78)(cid:72)(cid:71),(cid:75)(cid:71)(cid:77) (cid:73),(cid:73)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) Trade creditors and other creditors are non-interest bearing liabilities. Trade creditor payments are processed once they have reached 3(cid:71) days from the date of invoice for electronic funds transfer payments or cheque payment or 3(cid:71) days from the end of the month of invoice for other payments. (cid:15)o interest is charged on trade payables. All amounts are short term and the carrying values are considered to be a reasonable approximation of fair value. 5 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 53 5 3 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:72)(cid:55) Provisions Current Employee benefits – current (i) Lease make good (cid:15)on(cid:57)Current Employee benefits – non-current (cid:72),(cid:73)3(cid:80),(cid:80)(cid:80)(cid:77) (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:73)(cid:77)(cid:75),(cid:80)(cid:80)(cid:77) (cid:79)(cid:71)(cid:77),(cid:73)(cid:76)(cid:76) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) (cid:79)(cid:79)(cid:72),(cid:73)(cid:73)(cid:76) (cid:72)(cid:71)(cid:79),(cid:80)(cid:75)(cid:79) (cid:79)(cid:77),(cid:79)(cid:73)3 (i) The current provision for employee benefits includes accrued annual leave and long service leave. (cid:7)or long service leave it covers all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount of the provision of (cid:68)(cid:72),(cid:73)(cid:77)(cid:75),(cid:80)(cid:80)(cid:77) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:79)(cid:71)(cid:77),(cid:73)(cid:76)(cid:76)) is presented as current, since the group does not have an unconditional right to defer settlement for any of these obligations. However based on past experience, the group does not expect all employees to take the full amount of accrued long service leave or require payment within the next (cid:72)(cid:73) months. The current leave obligations expected to be settled after (cid:72)(cid:73) months is (cid:68)(cid:72)(cid:71)(cid:79),(cid:80)(cid:75)(cid:79) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:79)(cid:77),(cid:79)(cid:73)3) Lease ma(cid:37)e good The provision represents the present value of the estimated costs to make good the premises leased by the consolidated entity at the end of the respective lease terms. (cid:14)ovement in provisions Movements in each class of provision during the financial year, other than employee benefits, are set out below: Lease ma(cid:37)e good Carrying amount at start of the year Additional provisions recognised Amounts used Amounts reversed 1(cid:73)(cid:55) (cid:5)erivative financial lia(cid:28)ilities Current Interest rate swap Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) (3(cid:76),(cid:80)(cid:78)(cid:71)) (3(cid:80),(cid:71)(cid:71)(cid:71)) (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) ((cid:76)(cid:79),(cid:77)(cid:73)(cid:71)) ((cid:75)(cid:72),3(cid:79)(cid:71)) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) (cid:76)(cid:76),3(cid:73)3 (cid:76)(cid:76),3(cid:73)3 - - The interest rate swap was taken out to mitigate the interest rate risk associated the receivables funding facility. The interest rate swap expires on the (cid:73)(cid:73)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) 54 5 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:72)(cid:55) Provisions Current Employee benefits – current (i) Lease make good (cid:15)on(cid:57)Current Employee benefits – non-current (i) The current provision for employee benefits includes accrued annual leave and long service leave. (cid:7)or long service leave it covers all unconditional entitlements where employees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The entire amount of the provision of (cid:68)(cid:72),(cid:73)(cid:77)(cid:75),(cid:80)(cid:80)(cid:77) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:79)(cid:71)(cid:77),(cid:73)(cid:76)(cid:76)) is presented as current, since the group does not have an unconditional right to defer settlement for any of these obligations. However based on past experience, the group does not expect all employees to take the full amount of accrued long service leave or require payment within the next (cid:72)(cid:73) months. The current leave obligations expected to be settled after (cid:72)(cid:73) months is (cid:68)(cid:72)(cid:71)(cid:79),(cid:80)(cid:75)(cid:79) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:79)(cid:77),(cid:79)(cid:73)3) Lease ma(cid:37)e good The provision represents the present value of the estimated costs to make good the premises leased by the consolidated entity at the end of the respective lease terms. Movements in each class of provision during the financial year, other than employee benefits, are set out below: Consolidated Consolidated (cid:14)ovement in provisions Lease ma(cid:37)e good Carrying amount at start of the year Additional provisions recognised Amounts used Amounts reversed 1(cid:73)(cid:55) (cid:5)erivative financial lia(cid:28)ilities Current Interest rate swap (cid:72),(cid:73)3(cid:80),(cid:80)(cid:80)(cid:77) (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:73)(cid:77)(cid:75),(cid:80)(cid:80)(cid:77) (cid:79)(cid:71)(cid:77),(cid:73)(cid:76)(cid:76) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) (cid:79)(cid:79)(cid:72),(cid:73)(cid:73)(cid:76) (cid:72)(cid:71)(cid:79),(cid:80)(cid:75)(cid:79) (cid:79)(cid:77),(cid:79)(cid:73)3 (cid:69)(cid:67)1(cid:72) (cid:64) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) (3(cid:76),(cid:80)(cid:78)(cid:71)) (3(cid:80),(cid:71)(cid:71)(cid:71)) (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) (cid:76)(cid:76),3(cid:73)3 (cid:76)(cid:76),3(cid:73)3 (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) ((cid:76)(cid:79),(cid:77)(cid:73)(cid:71)) ((cid:75)(cid:72),3(cid:79)(cid:71)) (cid:78)(cid:75),(cid:80)(cid:78)(cid:71) - - The interest rate swap was taken out to mitigate the interest rate risk associated the receivables funding facility. The interest rate swap expires on the (cid:73)(cid:73)(cid:56)(cid:72)(cid:73)(cid:56)(cid:73)(cid:71)(cid:72)(cid:78) 1(cid:74)(cid:55) (cid:3)orro(cid:49)ings Current Bank loan (cid:15)on Current Bonds -Bonds face value -(cid:21)namortised bond issue and option costs (cid:7)air value disclosures (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) - - 3(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73),(cid:73)(cid:77)(cid:72),(cid:73)(cid:76)(cid:71)) (cid:73)(cid:78),(cid:78)3(cid:79),(cid:78)(cid:76)(cid:71) 3(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:77)(cid:77)(cid:71),(cid:71)(cid:71)(cid:71)) (cid:73)(cid:80),3(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) The fair value of current borrowings approximates their carrying amount as the impact of discounting is not significant. (cid:7)air values of long term financial liabilities are based on cash flows discounted using fixed effective market interest rates available to the Group. (cid:7)inance costs of (cid:68)3,(cid:71)(cid:72)(cid:76),(cid:71)(cid:71)(cid:71) have been recognised to be amortised over the life of the bonds, which in effect discounts the (cid:68)3(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) face value of the bonds to (cid:68)(cid:73)(cid:77),(cid:80)(cid:79)(cid:76),(cid:71)(cid:71)(cid:71). (cid:15)o fair value changes have been included in profit or loss for the period as financial liabilities are carried at amortised cost in the Statement of (cid:7)inancial Position. (cid:3)an(cid:37) loans Bank liabilities are denominated in Australian dollars. The bank facility is secured by a floating charge over the Group’s assets. Bank overdraft, bank loans and bills of exchange when utilised, bear interest at commercially negotiated rates. All bank borrowings are subject to adherence to gearing and interest covenants and are subject to annual review. The loan bears interest at the bank’s prime rates plus a margin payable monthly in arrears. (cid:19)eceiva(cid:28)les funding A (cid:68)(cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) securitised funding facility has been established using Money3 secured trade debtors that meet specific criteria. As at the 3(cid:71) (cid:11)une (cid:68)(cid:72)(cid:79),(cid:78)(cid:80)(cid:75),(cid:73)(cid:79)(cid:71) of Money3 trade debtor’s meet the specific criteria of the securitisation funding facility. The facility term is (cid:72)(cid:73) months extendable annually at the discretion of (cid:23)estpac, and the interest rate is based on a base rate plus a margin. (cid:3)onds (cid:16)n the (cid:72)(cid:75) May (cid:73)(cid:71)(cid:72)(cid:75) the first tranche of the bond issue was made of (cid:68)(cid:72)(cid:76),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) and the second tranche was issued on 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:75) of (cid:68)(cid:72)(cid:76),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71). The bonds have a maturity of (cid:75) years and an interest rate of (cid:80)(cid:83) paid quarterly. There is a general security deed over all the company’s assets. The initial subscribers under the bond issue will receive (cid:76)(cid:71) options for every (cid:68)(cid:72)(cid:71)(cid:71) invested. The exercise price of the options is (cid:68)(cid:72).3(cid:71) and can be exercised any time prior to maturity date. 5 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 55 5 5 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:73)(cid:55) (cid:3)orro(cid:49)ings (cid:58)continued(cid:59) (cid:7)inancing facilities availa(cid:28)le (cid:21)otal facilities - Bank overdraft - Receivables funding facilities (cid:7)acilities used at reporting date - Bank overdraft - Receivables funding facilities (cid:7)acilities unused at reporting date - Bank overdraft - Receivables funding facilities (cid:21)otal facilities - (cid:7)acilities used at reporting date - (cid:7)acilities unused at reporting date (cid:2)ssets pledged as security (cid:15)on(cid:57)current (cid:7)loating charge - Receivables funding facilities - Plant and equipment (cid:21)otal assets pledged as security Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) - (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) - (cid:72)(cid:73),(cid:76)(cid:73)(cid:78),(cid:71)(cid:72)(cid:79) (cid:72)(cid:73),(cid:76)(cid:73)(cid:78),(cid:71)(cid:72)(cid:79) (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (cid:72)(cid:73),(cid:76)(cid:73)(cid:78),(cid:71)(cid:72)(cid:79) (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:79),(cid:78)(cid:80)(cid:75),(cid:73)(cid:79)(cid:71) (cid:73),(cid:76)(cid:78)(cid:72),(cid:72)(cid:71)(cid:80) (cid:73)(cid:72),3(cid:77)(cid:76),3(cid:79)(cid:80) - (cid:73),(cid:71)(cid:76)(cid:72),3(cid:73)3 (cid:73),(cid:71)(cid:76)(cid:72),3(cid:73)3 (cid:21)nder the arrangement of the bank borrowing facilities, all property, plant and equipment of the Group has been pledged as security. The holder of the security does not have the right to sell or re-pledge the assets. Details of the Groups risk exposure arising from borrowings are provided in (cid:15)ote (cid:73)(cid:77). 56 5 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:73)(cid:55) (cid:3)orro(cid:49)ings (cid:58)continued(cid:59) (cid:7)inancing facilities availa(cid:28)le (cid:21)otal facilities - Bank overdraft - Receivables funding facilities (cid:7)acilities used at reporting date - Bank overdraft - Receivables funding facilities (cid:7)acilities unused at reporting date - Bank overdraft - Receivables funding facilities (cid:21)otal facilities - (cid:7)acilities used at reporting date - (cid:7)acilities unused at reporting date (cid:2)ssets pledged as security (cid:15)on(cid:57)current (cid:7)loating charge - Receivables funding facilities - Plant and equipment (cid:21)otal assets pledged as security Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) - - - (cid:72)(cid:73),(cid:76)(cid:73)(cid:78),(cid:71)(cid:72)(cid:79) (cid:72)(cid:73),(cid:76)(cid:73)(cid:78),(cid:71)(cid:72)(cid:79) (cid:78),(cid:75)(cid:78)(cid:73),(cid:80)(cid:79)(cid:73) (cid:72)(cid:73),(cid:76)(cid:73)(cid:78),(cid:71)(cid:72)(cid:79) (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:79),(cid:78)(cid:80)(cid:75),(cid:73)(cid:79)(cid:71) (cid:73),(cid:76)(cid:78)(cid:72),(cid:72)(cid:71)(cid:80) (cid:73)(cid:72),3(cid:77)(cid:76),3(cid:79)(cid:80) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - - - - - (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:71)(cid:76)(cid:72),3(cid:73)3 (cid:73),(cid:71)(cid:76)(cid:72),3(cid:73)3 (cid:21)nder the arrangement of the bank borrowing facilities, all property, plant and equipment of the Group has been pledged as security. The holder of the security does not have the right to sell or re-pledge the assets. Details of the Groups risk exposure arising from borrowings are provided in (cid:15)ote (cid:73)(cid:77). 1(cid:75)(cid:55) (cid:10)ssued capital (cid:7)ully paid ordinary shares (cid:58)a(cid:59) (cid:14)ovement in shares on issue Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)(cid:71)(cid:73),(cid:72)(cid:79)(cid:71),(cid:73)(cid:71)(cid:80) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:78)(cid:72),(cid:72)(cid:80)(cid:76),(cid:75)(cid:73)(cid:76) Movement in the shares on issue of the consolidated entity during the financial year are summari(cid:51)ed below. Balance at the beginning of the financial year Issued during the year: Issue of shares to public at (cid:68)(cid:72).(cid:75)(cid:76) each Issue of shares to public at (cid:68)(cid:72).(cid:71)(cid:71) each Issue of shares to public at (cid:68)(cid:71).(cid:79)(cid:76) each Issue of shares to public at (cid:68)(cid:71).(cid:80)(cid:80)(cid:76)(cid:75) each Issue of shares to shareholders under the Share Purchase Plan at (cid:68)(cid:72).(cid:75)(cid:76) each Share issue costs Deferred tax credit Issue of shares due to exercise of options at (cid:68)(cid:71).(cid:78)(cid:71) each Issue of shares due to exercise of options at (cid:68)(cid:71).(cid:79)(cid:76) each Issue of shares to employees at (cid:68)(cid:72).(cid:71)(cid:71) each Issue of shares to employees at (cid:68)(cid:72).(cid:71)(cid:75) each Issue of shares on DRP Balance at end of financial year 3(cid:71) (cid:11)une (cid:58)(cid:28)(cid:59) (cid:14)ovements in share options Consolidated (cid:69)(cid:67)1(cid:72) Consolidated (cid:69)(cid:67)1(cid:71) (cid:15)um(cid:28)er of ordinary shares (cid:72)(cid:71)(cid:78),(cid:72)(cid:79)(cid:78),3(cid:73)(cid:78) (cid:23)alue (cid:64) (cid:78)(cid:72),(cid:72)(cid:80)(cid:76),(cid:75)(cid:73)(cid:76) (cid:15)um(cid:28)er of ordinary shares (cid:78)(cid:79),(cid:73)(cid:73)(cid:73),(cid:75)3(cid:73) (cid:23)alue (cid:64) (cid:75)(cid:76),(cid:71)(cid:80)(cid:78),(cid:76)(cid:79)(cid:79) (cid:72)3,(cid:78)(cid:80)3,(cid:72)(cid:71)(cid:76) - - - (cid:73)(cid:71),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:73) - - - (cid:72)(cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:75),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:77)(cid:72)(cid:76),3(cid:75)(cid:80) (cid:72)(cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:72),(cid:80)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:77)(cid:71)(cid:78),(cid:80)(cid:72)(cid:79) (cid:77),(cid:75)(cid:77)(cid:77),(cid:75)(cid:77)(cid:73) (cid:80),3(cid:78)(cid:77),3(cid:78)(cid:71) - - - - - (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72)(cid:75)(cid:72),(cid:75)(cid:72)(cid:75) ((cid:78)(cid:76)3,(cid:78)(cid:76)(cid:76)) (cid:73)(cid:73)(cid:77),(cid:72)(cid:73)(cid:78) - (cid:72)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:72)(cid:75)(cid:78),(cid:71)(cid:78)(cid:72) (cid:72),(cid:75)(cid:77)(cid:75),(cid:79)(cid:80)(cid:76) (cid:72)(cid:73)(cid:80),(cid:73)(cid:76)3,(cid:73)(cid:71)3 (cid:72),(cid:79)(cid:72)(cid:79),(cid:80)(cid:77)(cid:80) (cid:72)(cid:71)(cid:73),(cid:72)(cid:79)(cid:71),(cid:73)(cid:71)(cid:80) - - (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:75)(cid:80),(cid:71)(cid:71)(cid:71) - (cid:72),(cid:72)(cid:71)(cid:71),(cid:76)(cid:75)(cid:77) (cid:72)(cid:71)(cid:78),(cid:72)(cid:79)(cid:78),3(cid:73)(cid:78) ((cid:80)(cid:80)(cid:77),(cid:73)(cid:71)(cid:80)) (cid:73)(cid:80)(cid:79),(cid:79)(cid:77)3 (cid:72)(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) - (cid:75)(cid:80),(cid:71)(cid:71)(cid:71) - (cid:72),(cid:71)(cid:80)(cid:79),(cid:73)(cid:77)(cid:76) (cid:78)(cid:72),(cid:72)(cid:80)(cid:76),(cid:75)(cid:73)(cid:76) Movement in the share options of the consolidated entity during the financial year are summari(cid:51)ed below. Balance at (cid:72) (cid:11)uly Granted during the financial period Exercised during the financial period Lapsed during the financial period (cid:69)(cid:67)1(cid:72) (cid:15)um(cid:28)er (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72)(cid:79),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - (cid:69)(cid:67)1(cid:71) (cid:15)um(cid:28)er 3,(cid:76)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:75),(cid:76)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) - Balance at the end of the financial period (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:58)c(cid:59) (cid:21)erms and conditions of issued capital (cid:14)rdinar(cid:45) (cid:39)(cid:29)are(cid:39) (cid:16)rdinary shares have the right to receive dividends as declared and, in the event of winding up the Company, to participate in the proceeds from the sale of all surplus assets in proportion to the number of and amounts paid up on shares held. (cid:16)rdinary shares entitle their holder to one vote, either in person or by proxy, at a meeting of the Company. The company does not have limited authorised capital and issued shares have no par value. (cid:14)(cid:36)tion(cid:39) The company has (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) options on issue at the end of the financial year. The holders of the options are not permitted to exercise those options until after the vesting date. 5 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 57 5 7 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) 1(cid:76)(cid:55) (cid:19)eserves Share option reserve Balance at (cid:72) (cid:11)uly Share based payments expensed for the year Bond (cid:16)ptions issued Lapsed options transferred to accumulated profits Balance at 3(cid:71) (cid:11)une Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) (cid:73),3(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) - (cid:73),(cid:78)(cid:80)(cid:72),3(cid:72)(cid:72) (cid:76)(cid:76),(cid:78)(cid:77)(cid:80) (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) - (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) The share option reserve is used to recognise the fair value of options issued to employees and bond holders but not exercised. (cid:69)(cid:67)(cid:55) Statement of cash flo(cid:49)s (cid:58)a(cid:59) (cid:19)econciliation of cash Cash at the end of the year as shown in the Statement of Cash (cid:7)lows is reconciled to the related items in the Statement of (cid:7)inancial Position as follows: Cash at bank and on hand Bank overdraft Cash at bank and on hand (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) - (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 - (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 (cid:58)(cid:28)(cid:59) (cid:19)econciliation of operating profit after income ta(cid:50) to net cash flo(cid:49)s from operating activities (cid:15)et Profit after tax (cid:15)on cash items: Depreciation and amortisation expense Impairment of property, plant and equipment Profit on sale of property, plant and equipment Bad and doubtful debts allowance Amortisation of cost of bonds Interest capitalised Share based payments Changes in (cid:14)ovements in assets and lia(cid:28)ilities: (Increase)(cid:56)decrease in assets Trade and other receivables Deferred tax assets Increase(cid:56)(decrease) in liabilities Trade and other payables Current tax payable Derivative financial liabilities Provisions Cash flows from operations (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:80)3(cid:73),(cid:76)(cid:80)(cid:79) - ((cid:73)(cid:71),(cid:78)3(cid:72)) (cid:72)(cid:71),(cid:72)(cid:75)(cid:78),(cid:73)3(cid:72) (cid:78)(cid:76)3,(cid:78)(cid:76)(cid:71) - (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) ((cid:77)(cid:78),(cid:76)(cid:73)(cid:80),(cid:79)(cid:79)(cid:76)) ((cid:78)(cid:76)(cid:75),(cid:79)(cid:75)(cid:80)) (cid:73),(cid:75)(cid:79)(cid:71),(cid:71)3(cid:79) (cid:72),(cid:73)(cid:76)(cid:71),(cid:76)(cid:77)(cid:75) (cid:76)(cid:76),3(cid:73)3 (cid:73)(cid:71)(cid:73),(cid:79)3(cid:72) (3(cid:79),(cid:73)(cid:80)3,(cid:73)(cid:77)(cid:79)) (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:72)(cid:80)(cid:71),(cid:78)(cid:75)(cid:72) 3(cid:79)(cid:78),(cid:80)(cid:78)(cid:73) (cid:73),(cid:80)(cid:73)3,(cid:80)(cid:75)(cid:72) - ((cid:77)(cid:77)(cid:71),(cid:71)(cid:71)(cid:71)) (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) ((cid:75)3,3(cid:78)(cid:79),(cid:80)(cid:80)3) ((cid:72),(cid:72)(cid:71)(cid:73),(cid:72)(cid:76)(cid:80)) (cid:80)(cid:77)(cid:73),(cid:73)(cid:72)(cid:73) (cid:73),(cid:73)(cid:71)(cid:79),(cid:76)(cid:75)(cid:79) (cid:75)(cid:71)(cid:73),3(cid:78)(cid:73) ((cid:73)(cid:79),(cid:80)33,(cid:78)(cid:77)3) (cid:58)c(cid:59) (cid:15)on cash financing and investment activities: There were no non cash financing and investing activities during the year. 58 5 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 | M N Y Annual Report 2015 | MNY 1(cid:76)(cid:55) (cid:19)eserves Share option reserve Balance at (cid:72) (cid:11)uly Bond (cid:16)ptions issued Balance at 3(cid:71) (cid:11)une Share based payments expensed for the year Lapsed options transferred to accumulated profits exercised. (cid:69)(cid:67)(cid:55) Statement of cash flo(cid:49)s (cid:58)a(cid:59) (cid:19)econciliation of cash (cid:15)et Profit after tax (cid:15)on cash items: Depreciation and amortisation expense Impairment of property, plant and equipment Profit on sale of property, plant and equipment Bad and doubtful debts allowance Amortisation of cost of bonds Interest capitalised Share based payments Changes in (cid:14)ovements in assets and lia(cid:28)ilities: (Increase)(cid:56)decrease in assets Trade and other receivables Deferred tax assets Increase(cid:56)(decrease) in liabilities Trade and other payables Current tax payable Derivative financial liabilities Provisions Cash flows from operations (cid:58)c(cid:59) (cid:15)on cash financing and investment activities: There were no non cash financing and investing activities during the year. - - - (cid:80)3(cid:73),(cid:76)(cid:80)(cid:79) ((cid:73)(cid:71),(cid:78)3(cid:72)) (cid:72)(cid:71),(cid:72)(cid:75)(cid:78),(cid:73)3(cid:72) (cid:78)(cid:76)3,(cid:78)(cid:76)(cid:71) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) ((cid:77)(cid:78),(cid:76)(cid:73)(cid:80),(cid:79)(cid:79)(cid:76)) ((cid:78)(cid:76)(cid:75),(cid:79)(cid:75)(cid:80)) (cid:73),(cid:75)(cid:79)(cid:71),(cid:71)3(cid:79) (cid:72),(cid:73)(cid:76)(cid:71),(cid:76)(cid:77)(cid:75) (cid:76)(cid:76),3(cid:73)3 (cid:73)(cid:71)(cid:73),(cid:79)3(cid:72) (3(cid:79),(cid:73)(cid:80)3,(cid:73)(cid:77)(cid:79)) (cid:72),(cid:72)(cid:77)(cid:79),(cid:77)(cid:77)(cid:76) (cid:72)(cid:80)(cid:71),(cid:78)(cid:75)(cid:72) 3(cid:79)(cid:78),(cid:80)(cid:78)(cid:73) (cid:73),(cid:80)(cid:73)3,(cid:80)(cid:75)(cid:72) - ((cid:77)(cid:77)(cid:71),(cid:71)(cid:71)(cid:71)) (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) ((cid:75)3,3(cid:78)(cid:79),(cid:80)(cid:80)3) ((cid:72),(cid:72)(cid:71)(cid:73),(cid:72)(cid:76)(cid:80)) (cid:80)(cid:77)(cid:73),(cid:73)(cid:72)(cid:73) (cid:73),(cid:73)(cid:71)(cid:79),(cid:76)(cid:75)(cid:79) (cid:75)(cid:71)(cid:73),3(cid:78)(cid:73) ((cid:73)(cid:79),(cid:80)33,(cid:78)(cid:77)3) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued (cid:59) Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) (cid:73)(cid:75)(cid:80),(cid:73)(cid:75)(cid:78) (cid:73),3(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) - (cid:73),(cid:78)(cid:80)(cid:72),3(cid:72)(cid:72) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:76)(cid:76),(cid:78)(cid:77)(cid:80) (cid:72)3(cid:72),(cid:73)(cid:80)(cid:76) - (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) (cid:69)1(cid:55) (cid:3)usiness com(cid:28)inations (cid:16)n (cid:79) December (cid:73)(cid:71)(cid:72)(cid:75) Money3 Corporation Ltd purchased the business of Paid International Ltd for consideration of (cid:68)3,(cid:80)(cid:79)(cid:78),(cid:73)3(cid:79). The acquisition of the business added (cid:68)(cid:77),(cid:75)(cid:72)(cid:71),(cid:76)(cid:71)(cid:75) of revenue from operations and generated a profits of (cid:68)(cid:77)(cid:71)3,(cid:80)(cid:73)(cid:79) before tax. The acquisition adds to Money3 Corporations Limited’s web presence and complements the existing business. Goodwill of (cid:68)(cid:73),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) represents the expected synergies with other parts of the business and the increased web presence that Money3 Corporation Ltd will obtain. The other intangible assets – customer contacts have been valued at what is commonly paid for leads in the market by the number of customer contacts received, and will be amortised over (cid:76) years. If the acquisition occurred on (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:75), the full year contribution would have been revenues of (cid:68)(cid:72)(cid:71),(cid:79)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) and a profit before tax of (cid:68)(cid:72),3(cid:75)(cid:71),(cid:71)(cid:71)(cid:71). The accounting for this acquisition has only been provisionally accounted for at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) as valuations for customer contact and the associated tax effect are yet to be finalised. The share option reserve is used to recognise the fair value of options issued to employees and bond holders but not Details of the acquisition are as follows; Cash at the end of the year as shown in the Statement of Cash (cid:7)lows is reconciled to the related items in the Statement of (cid:7)inancial Position as follows: Cash at bank and on hand Bank overdraft Cash at bank and on hand (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 - (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:77) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 (cid:58)(cid:28)(cid:59) (cid:19)econciliation of operating profit after income ta(cid:50) to net cash flo(cid:49)s from operating activities Employee Benefits Creditors Intangible assets – customer contacts (cid:15)et assets acquired Goodwill (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 Acquisition date fair value of the total consideration transferred Representing: Cash paid or payable to vendor Cash used to acquire business, net of cash acquired: Acquisition- date fair value of the total consideration transferred (cid:15)et cash used Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) ((cid:73)(cid:71)3,(cid:71)(cid:77)(cid:76)) ((cid:79)(cid:75),(cid:77)(cid:80)(cid:78)) (cid:73),(cid:73)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:80)(cid:78)(cid:78),(cid:73)3(cid:79) (cid:73),(cid:71)(cid:72)(cid:71),(cid:71)(cid:71)(cid:71) 3,(cid:80)(cid:79)(cid:78),(cid:73)3(cid:79) 3,(cid:80)(cid:79)(cid:78),(cid:73)3(cid:79) 3,(cid:80)(cid:79)(cid:78),(cid:73)3(cid:79) 3,(cid:80)(cid:79)(cid:78),(cid:73)3(cid:79) (cid:69)(cid:69)(cid:55) Significant matters su(cid:28)se(cid:43)uent to the reporting date (cid:16)n (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76), Mr Robert Bryant retired as Managing Director and executive director and Mr Scott Baldwin was appointed as the acting Chief Executive (cid:16)fficer and Managing Director. (cid:16)n the (cid:73)(cid:80) September (cid:73)(cid:71)(cid:72)(cid:76) Mr Scott Baldwin was appointed Managing Director. (cid:16)n (cid:75) August (cid:73)(cid:71)(cid:72)(cid:76), Money3 Corporation Limited received notice from (cid:23)estpac of their intent to cease their banking relationship with certain small consumer credit providers including Money3. The (cid:23)estpac securitisation facility is currently drawn down to approximately (cid:68)(cid:72)(cid:71) million. (cid:23)estpac have committed to honour all existing contracts with Money3. The existing facility has a (cid:72)(cid:73) month run off period after December (cid:73)(cid:71)(cid:72)(cid:76). (cid:15)o other matters or circumstances has arisen since the end of the financial year that have significantly affected or may significantly affect the operations of the Company, the results or the state of affairs of the Company in future years. 5 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 59 5 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements fo r the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:70)(cid:55) Segment information A segment is a component of the consolidated entity that engages in business activities to provide products or services within a particular economic environment. Management has identified two distinct operating segments that are used to make decisions on the allocation of resources and assess their performance. The two segments are as follows: Secured operations This segment provides lending facilities based on the provision of an underlying asset as security. (cid:22)nsecured operations This segment provides services and lending facilities without the provision of an underlying asset as security. The performance of each segment is measured by the segment profit earned by each segment without the allocation of central administration costs and directors' salaries, interest income and expense in relation to corporate facilities, bad debt collection and tax expense. This is the measure reported to the Managing Director for the purpose of resource allocation and assessment of segment performance. The unallocated assets include various corporate assets held at a corporate level that have not been allocated to the underlying segments. The unallocated liabilities include various corporate liabilities held at a corporate level that have not been allocated to the underlying segments. Money3 Corporation Ltd only operates in Australia and therefore does not provide segment information of geographic location. 60 6 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | follows: Secured operations (cid:22)nsecured operations underlying segments. the underlying segments. location. The performance of each segment is measured by the segment profit earned by each segment without the allocation of central administration costs and directors' salaries, interest income and expense in relation to corporate facilities, bad debt collection and tax expense. This is the measure reported to the Managing Director for the purpose of resource allocation and assessment of segment performance. The unallocated assets include various corporate assets held at a corporate level that have not been allocated to the The unallocated liabilities include various corporate liabilities held at a corporate level that have not been allocated to Money3 Corporation Ltd only operates in Australia and therefore does not provide segment information of geographic (cid:15)otes to the (cid:7)inancial Statements fo r the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:70)(cid:55) Segment information A segment is a component of the consolidated entity that engages in business activities to provide products or services within a particular economic environment. Management has identified two distinct operating segments that are used to make decisions on the allocation of resources and assess their performance. The two segments are as This segment provides lending facilities based on the provision of an underlying asset as security. (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:70)(cid:55) Segment information (cid:58)continued(cid:59) Consolidated – (cid:69)(cid:67)1(cid:72) Secured (cid:22)nsecured Segment (cid:21)otal (cid:64) (cid:64) (cid:64) (cid:6)liminations (cid:56)(cid:22)nallocated (cid:64) (cid:21)otal (cid:64) (cid:19)evenue Revenue from continuing operations (cid:73)(cid:80),(cid:78)(cid:71)(cid:75),(cid:75)(cid:76)(cid:79) 3(cid:80),(cid:73)3(cid:73),3(cid:80)(cid:80) (cid:77)(cid:79),(cid:80)3(cid:77),(cid:79)(cid:76)(cid:78) - (cid:77)(cid:79),(cid:80)3(cid:77),(cid:79)(cid:76)(cid:78) Interest revenue (cid:16)ther revenue Total Revenue (cid:75),(cid:80)(cid:76)(cid:79) (cid:80),(cid:73)(cid:73)(cid:73) (cid:72)(cid:75),(cid:75)(cid:72)(cid:80) (cid:78)(cid:72),(cid:77)3(cid:76) (cid:73)(cid:80),(cid:78)(cid:72)(cid:79),(cid:77)3(cid:79) 3(cid:80),3(cid:72)(cid:79),(cid:75)(cid:76)3 (cid:72)(cid:80),3(cid:78)(cid:78) (cid:79)(cid:71),(cid:79)(cid:76)(cid:78) (cid:77)(cid:80),(cid:71)3(cid:78),(cid:71)(cid:80)(cid:72) (cid:75)(cid:71)(cid:71),(cid:79)(cid:77)(cid:73) (3,(cid:78)3(cid:80)) 3(cid:80)(cid:78),(cid:72)(cid:73)3 (cid:75)(cid:73)(cid:71),(cid:73)3(cid:80) (cid:78)(cid:78),(cid:72)(cid:72)(cid:79) (cid:77)(cid:80),(cid:75)3(cid:75),(cid:73)(cid:72)(cid:75) This segment provides services and lending facilities without the provision of an underlying asset as security. (cid:6)(cid:3)(cid:10)(cid:21)(cid:5)(cid:2) (cid:73)(cid:71),(cid:75)(cid:76)(cid:76),3(cid:75)(cid:71) (cid:72)(cid:72),(cid:77)(cid:75)3,(cid:73)3(cid:73) 3(cid:73),(cid:71)(cid:80)(cid:79),(cid:76)(cid:78)(cid:73) ((cid:78),(cid:78)(cid:73)3,(cid:78)(cid:72)(cid:78)) (cid:73)(cid:75),3(cid:78)(cid:75),(cid:79)(cid:76)(cid:76) Depreciation, amortisation, and impairment (cid:7)inance costs Interest revenue Profit (cid:28)efore income ta(cid:50) Income Tax Profit after income ta(cid:50) (cid:2)ssets Segment assets (cid:5)na(cid:16)(cid:16)ocat(cid:10)(cid:9) ass(cid:10)ts(cid:28) Cash and cash equivalents Property, plant and equipment (cid:16)ther receivables (cid:16)ther assets Prepayments Deferred tax assets (cid:21)otal assets Lia(cid:28)ilities Segment liabilities (cid:5)na(cid:16)(cid:16)ocat(cid:10)(cid:9) ass(cid:10)ts(cid:28) Trade and other payables Derivative financial liabilities Current tax payables Provisions Borrowings (cid:21)otal lia(cid:28)ilities ((cid:80)3(cid:73),(cid:76)(cid:80)(cid:79)) (3,(cid:78)(cid:73)(cid:78),(cid:73)(cid:77)(cid:73)) (cid:75)(cid:73)(cid:71),(cid:73)3(cid:80) (cid:73)(cid:71),(cid:72)3(cid:76),(cid:73)3(cid:75) ((cid:77),(cid:72)(cid:80)(cid:75),(cid:77)(cid:72)(cid:80)) (cid:72)3,(cid:80)(cid:75)(cid:71),(cid:77)(cid:72)(cid:76) (cid:72)(cid:71)(cid:75),(cid:71)(cid:78)(cid:73),(cid:80)3(cid:80) (cid:76)(cid:72),(cid:80)(cid:80)(cid:79),(cid:73)(cid:73)3 (cid:72)(cid:76)(cid:77),(cid:71)(cid:78)(cid:72),(cid:72)(cid:77)(cid:72) ((cid:73),(cid:77)(cid:71)(cid:72),(cid:78)(cid:73)(cid:73)) (cid:72)(cid:76)3,(cid:75)(cid:77)(cid:80),(cid:75)(cid:75)(cid:71) (cid:72)(cid:71),3(cid:80)(cid:75),3(cid:73)(cid:72) (cid:72),(cid:73)(cid:73)(cid:71),(cid:79)(cid:71)(cid:71) (cid:78)(cid:71),(cid:71)(cid:79)(cid:79) (cid:72)(cid:73)(cid:80),(cid:78)(cid:77)(cid:72) (cid:72)(cid:76)(cid:73),(cid:72)(cid:78)(cid:77) (cid:73),(cid:80)(cid:71)(cid:77),(cid:80)3(cid:75) (cid:72)(cid:77)(cid:79),3(cid:75)3,(cid:76)(cid:73)(cid:71) (cid:76)(cid:80),(cid:80)(cid:77)(cid:75),(cid:71)(cid:71)(cid:79) (cid:72)(cid:79),(cid:80)(cid:75)(cid:73),(cid:80)(cid:75)(cid:79) (cid:78)(cid:79),(cid:80)(cid:71)(cid:77),(cid:80)(cid:76)(cid:77) ((cid:77)(cid:79),(cid:79)(cid:79)(cid:78),(cid:79)(cid:75)(cid:73)) (cid:72)(cid:71),(cid:71)(cid:72)(cid:80),(cid:72)(cid:72)(cid:75) (cid:73),(cid:72)(cid:77)(cid:75),(cid:73)(cid:78)3 (cid:76)(cid:76),3(cid:73)3 (cid:75),(cid:73)(cid:77)(cid:75),3(cid:79)(cid:80) (cid:72),3(cid:78)3,(cid:80)(cid:75)(cid:76) (cid:73)(cid:78),(cid:78)3(cid:79),(cid:78)(cid:76)(cid:71) (cid:75)(cid:76),(cid:77)(cid:72)(cid:76),(cid:78)(cid:80)(cid:75) 6 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 61 6 1 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:70)(cid:55) Segment information (cid:58)continued(cid:59) Consolidated – (cid:69)(cid:67)1(cid:71) (cid:19)evenue Revenue from continuing operations Interest revenue (cid:16)ther revenue Total Revenue (cid:6)(cid:3)(cid:10)(cid:21)(cid:5)(cid:2) Depreciation, amortisation, and impairment (cid:7)inance costs Interest revenue Profit (cid:28)efore income ta(cid:50) Income Tax Profit after income ta(cid:50) (cid:2)ssets Segment assets (cid:5)na(cid:16)(cid:16)ocat(cid:10)(cid:9) ass(cid:10)ts(cid:28) Cash and cash equivalents Property, plant and equipment (cid:16)ther receivables (cid:16)ther assets Deferred tax assets (cid:21)otal assets Lia(cid:28)ilities Segment liabilities (cid:5)na(cid:16)(cid:16)ocat(cid:10)(cid:9) ass(cid:10)ts(cid:28) Trade and other payables Current tax payables Provisions Borrowings (cid:21)otal lia(cid:28)ilities Secured (cid:22)nsecured Segment (cid:21)otal (cid:64) (cid:64) (cid:64) (cid:6)liminations (cid:56)(cid:22)nallocated (cid:64) (cid:21)otal (cid:64) (cid:72)(cid:75),(cid:76)(cid:72)(cid:77),(cid:78)(cid:80)(cid:78) (cid:73)(cid:79),(cid:79)(cid:77)(cid:79),(cid:72)(cid:77)(cid:77) (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 - (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 - - - - - - (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) - - (cid:72)(cid:75),(cid:76)(cid:72)(cid:77),(cid:78)(cid:80)(cid:78) (cid:73)(cid:79),(cid:79)(cid:77)(cid:79),(cid:72)(cid:77)(cid:77) (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:75)3,(cid:76)(cid:71)(cid:78),(cid:78)(cid:71)(cid:79) (cid:80),(cid:75)(cid:78)(cid:80),(cid:75)(cid:76)3 (cid:80),(cid:75)(cid:71)3,(cid:78)(cid:75)(cid:78) (cid:72)(cid:79),(cid:79)(cid:79)3,(cid:73)(cid:71)(cid:71) ((cid:76),(cid:78)(cid:71)(cid:78),(cid:71)(cid:75)(cid:79)) (cid:72)3,(cid:72)(cid:78)(cid:77),(cid:72)(cid:76)(cid:73) ((cid:72),3(cid:76)(cid:80),(cid:75)(cid:71)(cid:77)) ((cid:80)(cid:78)(cid:79),(cid:71)(cid:72)(cid:79)) (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:72)(cid:71),(cid:80)(cid:77)(cid:72),(cid:75)(cid:78)3 (3,(cid:72)(cid:73)(cid:80),(cid:79)3(cid:71)) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:76)(cid:71),(cid:77)(cid:79)(cid:73),(cid:73)(cid:77)(cid:73) (cid:75)(cid:73),3(cid:71)(cid:80),(cid:72)(cid:79)(cid:79) (cid:80)(cid:73),(cid:80)(cid:80)(cid:72),(cid:75)(cid:76)(cid:71) ((cid:72),(cid:76)(cid:75)(cid:73),(cid:77)(cid:72)(cid:71)) (cid:80)(cid:72),(cid:75)(cid:75)(cid:79),(cid:79)(cid:75)(cid:71) (cid:73)(cid:73),(cid:72)(cid:76)(cid:80),(cid:80)(cid:72)(cid:75) (cid:80)(cid:73)(cid:79),(cid:72)(cid:78)(cid:72) 3(cid:78),(cid:76)(cid:72)(cid:78) (cid:73)(cid:71)(cid:80),(cid:79)(cid:72)(cid:72) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:72)(cid:72)(cid:77),(cid:78)(cid:72)(cid:71),(cid:73)(cid:72)(cid:72) 3(cid:71),(cid:79)(cid:76)(cid:76),(cid:78)(cid:80)3 (cid:72)(cid:78),(cid:75)(cid:75)(cid:72),(cid:76)(cid:79)(cid:77) (cid:75)(cid:79),(cid:73)(cid:80)(cid:78),3(cid:78)(cid:80) ((cid:75)(cid:77),(cid:78)(cid:71)(cid:79),3(cid:72)(cid:77)) (cid:72),(cid:76)(cid:79)(cid:80),(cid:71)(cid:77)3 (cid:78)(cid:71)3,(cid:77)(cid:78)(cid:78) 3,(cid:71)(cid:72)3,(cid:79)(cid:73)(cid:76) (cid:80)(cid:77)(cid:79),(cid:71)(cid:75)(cid:79) (cid:73)(cid:80),3(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) 3(cid:76),(cid:77)(cid:72)(cid:75),(cid:77)(cid:72)3 62 6 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)un e (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:70)(cid:55) Segment information (cid:58)continued(cid:59) Consolidated – (cid:69)(cid:67)1(cid:71) (cid:19)evenue Revenue from continuing operations Interest revenue (cid:16)ther revenue Total Revenue (cid:6)(cid:3)(cid:10)(cid:21)(cid:5)(cid:2) impairment (cid:7)inance costs Interest revenue Depreciation, amortisation, and Profit (cid:28)efore income ta(cid:50) Income Tax Profit after income ta(cid:50) (cid:2)ssets Segment assets (cid:5)na(cid:16)(cid:16)ocat(cid:10)(cid:9) ass(cid:10)ts(cid:28) Cash and cash equivalents Property, plant and equipment (cid:16)ther receivables (cid:16)ther assets Deferred tax assets (cid:21)otal assets Lia(cid:28)ilities Segment liabilities (cid:5)na(cid:16)(cid:16)ocat(cid:10)(cid:9) ass(cid:10)ts(cid:28) Trade and other payables Current tax payables Provisions Borrowings (cid:21)otal lia(cid:28)ilities Secured (cid:22)nsecured Segment (cid:21)otal (cid:64) (cid:64) (cid:64) (cid:64) (cid:6)liminations (cid:56)(cid:22)nallocated (cid:21)otal (cid:64) (cid:72)(cid:75),(cid:76)(cid:72)(cid:77),(cid:78)(cid:80)(cid:78) (cid:73)(cid:79),(cid:79)(cid:77)(cid:79),(cid:72)(cid:77)(cid:77) (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 - - - - - - (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) - (cid:72)(cid:75),(cid:76)(cid:72)(cid:77),(cid:78)(cid:80)(cid:78) (cid:73)(cid:79),(cid:79)(cid:77)(cid:79),(cid:72)(cid:77)(cid:77) (cid:75)3,3(cid:79)(cid:75),(cid:80)(cid:77)3 (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:75)3,(cid:76)(cid:71)(cid:78),(cid:78)(cid:71)(cid:79) - - (cid:80),(cid:75)(cid:78)(cid:80),(cid:75)(cid:76)3 (cid:80),(cid:75)(cid:71)3,(cid:78)(cid:75)(cid:78) (cid:72)(cid:79),(cid:79)(cid:79)3,(cid:73)(cid:71)(cid:71) ((cid:76),(cid:78)(cid:71)(cid:78),(cid:71)(cid:75)(cid:79)) (cid:72)3,(cid:72)(cid:78)(cid:77),(cid:72)(cid:76)(cid:73) (cid:76)(cid:71),(cid:77)(cid:79)(cid:73),(cid:73)(cid:77)(cid:73) (cid:75)(cid:73),3(cid:71)(cid:80),(cid:72)(cid:79)(cid:79) (cid:80)(cid:73),(cid:80)(cid:80)(cid:72),(cid:75)(cid:76)(cid:71) ((cid:72),(cid:76)(cid:75)(cid:73),(cid:77)(cid:72)(cid:71)) (cid:80)(cid:72),(cid:75)(cid:75)(cid:79),(cid:79)(cid:75)(cid:71) 3(cid:71),(cid:79)(cid:76)(cid:76),(cid:78)(cid:80)3 (cid:72)(cid:78),(cid:75)(cid:75)(cid:72),(cid:76)(cid:79)(cid:77) (cid:75)(cid:79),(cid:73)(cid:80)(cid:78),3(cid:78)(cid:80) ((cid:75)(cid:77),(cid:78)(cid:71)(cid:79),3(cid:72)(cid:77)) (cid:72),(cid:76)(cid:79)(cid:80),(cid:71)(cid:77)3 ((cid:72),3(cid:76)(cid:80),(cid:75)(cid:71)(cid:77)) ((cid:80)(cid:78)(cid:79),(cid:71)(cid:72)(cid:79)) (cid:72)(cid:73)(cid:73),(cid:78)(cid:75)(cid:76) (cid:72)(cid:71),(cid:80)(cid:77)(cid:72),(cid:75)(cid:78)3 (3,(cid:72)(cid:73)(cid:80),(cid:79)3(cid:71)) (cid:78),(cid:79)3(cid:72),(cid:77)(cid:75)3 (cid:73)(cid:73),(cid:72)(cid:76)(cid:80),(cid:80)(cid:72)(cid:75) (cid:80)(cid:73)(cid:79),(cid:72)(cid:78)(cid:72) 3(cid:78),(cid:76)(cid:72)(cid:78) (cid:73)(cid:71)(cid:80),(cid:79)(cid:72)(cid:72) (cid:72),(cid:80)(cid:73)(cid:76),(cid:80)(cid:76)(cid:79) (cid:72)(cid:72)(cid:77),(cid:78)(cid:72)(cid:71),(cid:73)(cid:72)(cid:72) (cid:78)(cid:71)3,(cid:77)(cid:78)(cid:78) 3,(cid:71)(cid:72)3,(cid:79)(cid:73)(cid:76) (cid:80)(cid:77)(cid:79),(cid:71)(cid:75)(cid:79) (cid:73)(cid:80),3(cid:75)(cid:71),(cid:71)(cid:71)(cid:71) 3(cid:76),(cid:77)(cid:72)(cid:75),(cid:77)(cid:72)3 (cid:69)(cid:71)(cid:55) Contingent lia(cid:28)ilities The Company has no contingent liabilities as at 3(cid:71) (cid:11)une (cid:73)(cid:71)(cid:72)(cid:76) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:15)il). (cid:69)(cid:72)(cid:55) Controlled entities The consolidated financial statements incorporate the assets and liabilities and results of the following subsidiaries in accordance with the accounting policy described in (cid:15)ote (cid:72) (d). Controlled entities of Money3 Corporation Limited (parent entity) (cid:15)ame Country of (cid:10)ncorporation Percentage of e(cid:43)uity held (cid:28)y the consolidated entity (cid:69)(cid:67)1(cid:72) (cid:69)(cid:67)1(cid:71) Money3 Loans Pty Ltd (formerly Money3 Ballarat Pty Ltd) Money3 Services Pty Ltd (formerly Money3 Dandenong Pty Ltd) Money3 (cid:7)ranchising Pty Ltd Money3 Branches Pty Ltd (formerly Money3 Reservoir Pty Ltd) Money3 (cid:23)odonga Pty Ltd Antein Pty Ltd (Glenroy) Bellavita Pty Ltd ((cid:15)orthcote) Hallowed Holdings Pty Ltd (Clayton) (cid:12)irney Pty Ltd (Coburg) (cid:15)exia Pty Ltd ((cid:23)erribee) Pechino Pty Ltd ((cid:7)rankston) Salday Pty Ltd (St Albans) Tannaster Pty Ltd (Moonee Ponds) Tristace Pty Ltd (Geelong) M3 Auto Trust (cid:15)o(cid:72) Australian Car Leasing Pty Ltd (cid:21)otal Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia Australia (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:72)(cid:71)(cid:71) (cid:2)c(cid:43)uisition (cid:5)ate (cid:72) (cid:15)ovember (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:15)ovember (cid:73)(cid:71)(cid:71)(cid:77) (cid:72)(cid:77) April (cid:73)(cid:71)(cid:71)(cid:78) (cid:72) (cid:15)ovember (cid:73)(cid:71)(cid:71)(cid:77) (cid:72)3 March (cid:73)(cid:71)(cid:71)(cid:79) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:72) (cid:11)uly (cid:73)(cid:71)(cid:71)(cid:77) (cid:10)nvestment (cid:69)(cid:67)1(cid:72) (cid:64) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) (cid:73) 3,(cid:72)(cid:71)(cid:71),(cid:76)(cid:71)(cid:71) 3,(cid:72)(cid:71)(cid:71),(cid:76)(cid:71)(cid:71) 3,(cid:71)3(cid:78),(cid:76)(cid:71)(cid:71) 3,(cid:71)3(cid:78),(cid:76)(cid:71)(cid:71) (cid:73),(cid:80)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:80)(cid:78)(cid:71),(cid:71)(cid:71)(cid:71) (cid:75)(cid:79)3,(cid:78)(cid:76)(cid:71) (cid:75)(cid:79)3,(cid:78)(cid:76)(cid:71) (cid:72),(cid:77)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:77)(cid:77)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:77)(cid:79)(cid:78),(cid:76)(cid:71)(cid:71) (cid:72),(cid:77)(cid:79)(cid:78),(cid:76)(cid:71)(cid:71) (cid:75)(cid:79)3,(cid:78)(cid:76)(cid:71) (cid:75)(cid:79)3,(cid:78)(cid:76)(cid:71) (cid:73),(cid:79)(cid:80)(cid:79),(cid:71)(cid:71)(cid:71) (cid:73),(cid:79)(cid:80)(cid:79),(cid:71)(cid:71)(cid:71) (cid:72),(cid:78)(cid:75)(cid:72),(cid:76)(cid:71)(cid:71) (cid:72),(cid:78)(cid:75)(cid:72),(cid:76)(cid:71)(cid:71) (cid:73)(cid:79) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75) 3 May (cid:73)(cid:71)(cid:72)3 - (cid:72) - (cid:72) 1(cid:75)(cid:53)(cid:67)(cid:73)(cid:74)(cid:53)(cid:72)11 1(cid:75)(cid:53)(cid:67)(cid:73)(cid:74)(cid:53)(cid:72)11 All entities operated solely in their place of incorporation. The Group does not actively engage in the trading of financial assets for speculative purposes. The most significant financial risks to which the Group is exposed to are described below. There have been no changes to these risks since the previous financial year. 6 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 63 6 3 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:73)(cid:55) (cid:7)inancial instruments The Group is exposed to a variety of financial risks through its use of financial instruments. This note discloses the Group’s objectives, policies and processes for managing and measuring these risks. The Group’s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets. The Board of Directors ensures that the Group maintains a competent management structure capable of defining, analysing, measuring and reporting on the effective control of risk inherent in the Group’s underlying financial activities and the instruments used to manage risk. (cid:12)ey financial risks including interest rate risk and credit risk are reviewed by management on a regular basis and are communicated to the board so that it can evaluate and impose its oversight responsibility. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. Specific ris(cid:37)s (cid:120) Market risk (including foreign currency risk, interest rate risk and price risk) (cid:120) (cid:120) Credit risk Liquidity risk (cid:7)inancial assets (cid:56) lia(cid:28)ilities used The principal categories of financial assets (cid:56) liabilities used by Money3 Corporation Limited are: Loans and other receivables Cash at bank (cid:120) (cid:120) (cid:120) Borrowings (cid:120) Derivative financial liabilities (cid:120) Trade and other payables (cid:16)(cid:28)(cid:36)ectives(cid:53) policies and processes The risk management policies of Money3 Corporation Limited seek to mitigate the above risks and reduce volatility on the financial performance of the Group. (cid:7)inancial risk management is carried out centrally by the (cid:7)inance Department of Money3 Corporation Limited. Capital ris(cid:37) management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The group overall strategy remains unchanged from (cid:73)(cid:71)(cid:72)(cid:75). In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The capital structure of the Group consists of debt, which includes the borrowings disclosed in (cid:15)ote (cid:72)(cid:78), cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in (cid:15)otes (cid:72)(cid:79),(cid:72)(cid:80) and (cid:75) respectively. (cid:15)one of the Group’s entities is subject to externally imposed capital requirements. (cid:21)nder the arrangement of the hire purchase and bank borrowing facilities, all property, plant and equipment of the Group has been pledged as security. The holder of the security does not have the right to sell or re-pledge the assets. (cid:8)earin(cid:28) ratio The Group's Board of Directors reviews the capital structure on a semi-annual basis. As a part of this review the board considers the cost of capital and the risks associated with each class of capital. Based on recommendations of the board the Group will balance its overall capital structure through the payment of dividends, new share issues and share buy-backs as well as the issue of new debt or the redemption of existing debt. 64 6 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:73)(cid:55) (cid:7)inancial instruments The Group is exposed to a variety of financial risks through its use of financial instruments. This note discloses the Group’s objectives, policies and processes for managing and measuring these risks. The Group’s overall risk management plan seeks to minimise potential adverse effects due to the unpredictability of financial markets. The Board of Directors ensures that the Group maintains a competent management structure capable of defining, analysing, measuring and reporting on the effective control of risk inherent in the Group’s underlying financial activities and the instruments used to manage risk. (cid:12)ey financial risks including interest rate risk and credit risk are reviewed by management on a regular basis and are communicated to the board so that it can evaluate and impose its oversight responsibility. The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. (cid:120) Market risk (including foreign currency risk, interest rate risk and price risk) The principal categories of financial assets (cid:56) liabilities used by Money3 Corporation Limited are: Specific ris(cid:37)s (cid:120) (cid:120) Credit risk Liquidity risk (cid:7)inancial assets (cid:56) lia(cid:28)ilities used Loans and other receivables (cid:120) (cid:120) Cash at bank (cid:120) Borrowings (cid:120) Derivative financial liabilities (cid:120) Trade and other payables (cid:16)(cid:28)(cid:36)ectives(cid:53) policies and processes of Money3 Corporation Limited. Capital ris(cid:37) management The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The group overall strategy remains unchanged from (cid:73)(cid:71)(cid:72)(cid:75). In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The capital structure of the Group consists of debt, which includes the borrowings disclosed in (cid:15)ote (cid:72)(cid:78), cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in (cid:15)otes (cid:72)(cid:79),(cid:72)(cid:80) and (cid:75) respectively. (cid:15)one of the Group’s entities is subject to externally imposed capital requirements. (cid:21)nder the arrangement of the hire purchase and bank borrowing facilities, all property, plant and equipment of the Group has been pledged as security. The holder of the security does not have the right to sell or re-pledge the assets. (cid:8)earin(cid:28) ratio The Group's Board of Directors reviews the capital structure on a semi-annual basis. As a part of this review the board considers the cost of capital and the risks associated with each class of capital. Based on recommendations of the board the Group will balance its overall capital structure through the payment of dividends, new share issues and share buy-backs as well as the issue of new debt or the redemption of existing debt. (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:73)(cid:55) (cid:7)inancial instruments (cid:58)continued(cid:59) Capital ris(cid:37) management (cid:58)continued(cid:59) (cid:7)inancial assets Debt (cid:29)a(cid:30) Cash and cash equivalents (cid:15)et cash(cid:56)(debt) Equity – issued capital Debt to equity ratio (cid:15)ote (cid:72)(cid:78) (cid:80) (cid:72)(cid:79) Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (3(cid:76),(cid:73)(cid:72)(cid:72),(cid:78)3(cid:73)) (cid:72)(cid:73),(cid:75)(cid:72)(cid:79),(cid:73)(cid:71)(cid:76) ((cid:73)(cid:73),(cid:78)(cid:80)3,(cid:76)(cid:73)(cid:78)) ((cid:73)(cid:80),3(cid:75)(cid:71),(cid:71)(cid:71)(cid:71)) (cid:73)3,(cid:77)(cid:78)(cid:80),(cid:71)(cid:77)3 ((cid:76),(cid:77)(cid:77)(cid:71),(cid:80)3(cid:78)) (cid:72)(cid:71)(cid:73),(cid:72)(cid:79)(cid:71),(cid:76)(cid:72)(cid:71) (cid:78)(cid:72),(cid:72)(cid:80)(cid:76),(cid:75)(cid:73)(cid:76) 3(cid:75).(cid:76)(cid:83) (cid:75)(cid:72).(cid:73)(cid:83) (cid:29)a(cid:30) Debt is defined as long-term and short-term borrowings, as detailed in (cid:15)ote (cid:72)(cid:78). (cid:48)a(cid:49) (cid:12)ar(cid:31)et ri(cid:39)(cid:31) (cid:58)i(cid:59) (cid:7)oreign currency ris(cid:37) Money3 Corporation Limited has no significant exposure to foreign currency risk. (cid:58)ii(cid:59) (cid:10)nterest rate ris(cid:37) The company's exposure to market interest rates relates primarily to the company's short term deposits held, deposits at call and borrowings. The interest income earned or paid on these balances can vary due to interest rate change. Money3 Corporation Limited does not have a significant interest rate risk as its long term borrowing are at a fixed rate and interest rate risk on the short term borrowings has been minimised by the use of an interest rate swap . (cid:58)iii(cid:59) Price ris(cid:37) Price risk is the risk that future cashflows derived from financial instruments will be changed as a result of a market price movement, other than interest rates. The company and group are not exposed to any material price risk. The risk management policies of Money3 Corporation Limited seek to mitigate the above risks and reduce volatility on the financial performance of the Group. (cid:7)inancial risk management is carried out centrally by the (cid:7)inance Department (cid:48)(cid:23)(cid:49) (cid:4)redit ri(cid:39)(cid:31) Credit risk is managed on the Group basis. Credit risk arises from cash and cash equivalents and deposits with banks and financial institutions, as well as credit exposures to outstanding receivables, net of any allowance for impairment losses, as disclosed in the Statement of (cid:7)inancial Position and notes to the financial report. Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the consolidated entity. (cid:23)ith the exception of its dealings with core customers, the consolidated entity has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral or other security where appropriate, as a means of mitigating the risk of financial loss from defaults. The consolidated entity measures credit risk on a fair value basis. Money3's core customers are financially challenged and generally have a bad credit history and are lacking in budgeting ability. Money3 obtains security on loans greater than (cid:68)(cid:76),(cid:71)(cid:71)(cid:71). The company assesses credit risk by reference to historical information such as existing customers and whether loans are secured or unsecured. At balance date, loans neither past due or impaired are (cid:68)(cid:72)(cid:71)(cid:80),(cid:78)(cid:77)(cid:80),(cid:72)(cid:79)(cid:76) ((cid:73)(cid:71)(cid:72)(cid:75):(cid:68) (cid:75)(cid:77),(cid:71)(cid:76)(cid:80),(cid:71)3(cid:80)), with (cid:68)(cid:78)(cid:76),(cid:73)3(cid:80),(cid:72)(cid:76)(cid:77) representing secured loans ((cid:73)(cid:71)(cid:72)(cid:75):(cid:68) (cid:75)3,(cid:76)(cid:80)(cid:72),(cid:80)3(cid:79)) and (cid:68)(cid:73)(cid:78),(cid:78)(cid:72)(cid:72),(cid:73)(cid:80)(cid:76) representing unsecured loans ((cid:73)(cid:71)(cid:72)(cid:75):(cid:68) (cid:72)(cid:80),(cid:80)(cid:77)(cid:71),3(cid:75)(cid:75)) The consolidated entity does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar characteristics, given the number and diversity of debtors. 6 4 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 65 6 5 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:73)(cid:55) (cid:7)inancial instruments (cid:58)continued(cid:59) Capital ris(cid:37) management (cid:58)continued(cid:59) (cid:58)(cid:28)(cid:59) Credit ris(cid:37) analysis (cid:58)continued(cid:59) The management of Money3 manages credit risk by adopting the procedures and policies which: Lend for short term; (cid:120) Assess each application on the borrower’s capacity to service the loan; (cid:120) Match repayment dates to borrowers pay dates and pay cycles; (cid:120) (cid:120) (cid:23)here possible, obtain security on loans greater than (cid:68)(cid:76),(cid:71)(cid:71)(cid:71); (cid:120) Require repayment of loans by direct debit or pay deductions or during settlements; (cid:120) (cid:120) Have the ability to adjust repayments when customers face further financial difficulties; and (cid:120) Align debt collection processes with the Consumer Credit Code. Implement prompt follow up when a repayment is missed; This strategy is consistent with the prior year. (cid:48)(cid:24)(cid:49) (cid:11)i(cid:37)uidit(cid:45) ri(cid:39)(cid:31) ana(cid:32)(cid:45)(cid:39)i(cid:39) Liquidity risk is the risk that the company will not be able to pay their debts as and when they fall due. The company has borrowings and finance lease liability; and the directors ensure that the cash on hand is sufficient to meet the commitments of the company and group at all times. Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. This strategy is consistent with the prior year. Liquidity risk includes the risk that, as a result of our operational liquidity requirements Money3: (cid:120) will not have sufficient funds to settle a transaction on the due date; (cid:120) will be forced to sell financial assets at a value which is less than what they are worth; and (cid:120) may be unable to settle or recover a financial asset at all. To help reduce these risks, where possible Money3’s strategy is to borrow long term and lend short term, maintain an overdraft facility and adequate cash reserves. The ratio of current borrowings to Current Debtors is considered to be low. (cid:14)aturity of financial lia(cid:28)ilities The Group holds the following financial instruments. Amounts presented below represent the future undiscounted principal and interest cash flows. (cid:69)(cid:67)1(cid:72) (cid:7)inancial Liabilities: Borrowings Derivative financial liabilities Trade and other payables Total (cid:7)inancial Liabilities (cid:69)(cid:67)1(cid:71) (cid:7)inancial Liabilities: Borrowings Trade and other payables Total (cid:7)inancial Liabilities Consolidated (cid:80) 1 year (cid:64) 1(cid:57)(cid:72) years (cid:64) (cid:81) (cid:72) years (cid:64) (cid:21)otal (cid:64) (cid:72)(cid:71),(cid:72)(cid:79)(cid:71),3(cid:78)(cid:80) 3(cid:76),(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:77)(cid:71),(cid:73)3(cid:73) (cid:75),(cid:78)(cid:72)(cid:71),(cid:75)(cid:71)(cid:77) (cid:72)(cid:75),(cid:80)(cid:76)(cid:72),(cid:71)(cid:72)(cid:78) - - 3(cid:76),(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) Consolidated (cid:80) 1 year (cid:64) 1(cid:57)(cid:72) years (cid:64) (cid:81) (cid:72) years (cid:64) (cid:73),(cid:78)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:73)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) (cid:75),(cid:80)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) 3(cid:79),(cid:72)(cid:71)(cid:78),3(cid:80)(cid:78) - 3(cid:79),(cid:72)(cid:71)(cid:78),3(cid:80)(cid:78) - - - - - - (cid:75)(cid:76),(cid:76)(cid:79)(cid:71),3(cid:78)(cid:80) (cid:77)(cid:71),(cid:73)3(cid:73) (cid:75),(cid:78)(cid:72)(cid:71),(cid:75)(cid:71)(cid:77) (cid:76)(cid:71),3(cid:76)(cid:72),(cid:71)(cid:72)(cid:78) (cid:21)otal (cid:64) (cid:75)(cid:71),(cid:79)(cid:71)(cid:78),3(cid:80)(cid:78) (cid:73),(cid:73)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) (cid:75)3,(cid:72)(cid:71)(cid:71),(cid:72)3(cid:78) The above contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities at the reporting date. 66 6 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:73)(cid:55) (cid:7)inancial instruments (cid:58)continued(cid:59) Capital ris(cid:37) management (cid:58)continued(cid:59) (cid:58)(cid:28)(cid:59) Credit ris(cid:37) analysis (cid:58)continued(cid:59) The management of Money3 manages credit risk by adopting the procedures and policies which: (cid:120) Assess each application on the borrower’s capacity to service the loan; (cid:120) Match repayment dates to borrowers pay dates and pay cycles; (cid:120) Lend for short term; (cid:120) (cid:23)here possible, obtain security on loans greater than (cid:68)(cid:76),(cid:71)(cid:71)(cid:71); (cid:120) Require repayment of loans by direct debit or pay deductions or during settlements; (cid:120) Implement prompt follow up when a repayment is missed; (cid:120) Have the ability to adjust repayments when customers face further financial difficulties; and (cid:120) Align debt collection processes with the Consumer Credit Code. This strategy is consistent with the prior year. (cid:48)(cid:24)(cid:49) (cid:11)i(cid:37)uidit(cid:45) ri(cid:39)(cid:31) ana(cid:32)(cid:45)(cid:39)i(cid:39) Liquidity risk is the risk that the company will not be able to pay their debts as and when they fall due. The company has borrowings and finance lease liability; and the directors ensure that the cash on hand is sufficient to meet the commitments of the company and group at all times. Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. This strategy is consistent with the prior year. Liquidity risk includes the risk that, as a result of our operational liquidity requirements Money3: (cid:120) will not have sufficient funds to settle a transaction on the due date; (cid:120) will be forced to sell financial assets at a value which is less than what they are worth; and (cid:120) may be unable to settle or recover a financial asset at all. To help reduce these risks, where possible Money3’s strategy is to borrow long term and lend short term, maintain an overdraft facility and adequate cash reserves. The ratio of current borrowings to Current Debtors is considered to be The Group holds the following financial instruments. Amounts presented below represent the future undiscounted (cid:14)aturity of financial lia(cid:28)ilities principal and interest cash flows. low. (cid:69)(cid:67)1(cid:72) (cid:7)inancial Liabilities: Borrowings Derivative financial liabilities Trade and other payables Total (cid:7)inancial Liabilities (cid:69)(cid:67)1(cid:71) (cid:7)inancial Liabilities: Borrowings Trade and other payables Total (cid:7)inancial Liabilities at the reporting date. Consolidated (cid:80) 1 year (cid:64) 1(cid:57)(cid:72) years (cid:64) (cid:81) (cid:72) years (cid:64) (cid:21)otal (cid:64) (cid:72)(cid:71),(cid:72)(cid:79)(cid:71),3(cid:78)(cid:80) 3(cid:76),(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:77)(cid:71),(cid:73)3(cid:73) (cid:75),(cid:78)(cid:72)(cid:71),(cid:75)(cid:71)(cid:77) (cid:72)(cid:75),(cid:80)(cid:76)(cid:72),(cid:71)(cid:72)(cid:78) 3(cid:76),(cid:75)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) Consolidated (cid:73),(cid:78)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:73),(cid:73)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) (cid:75),(cid:80)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) 3(cid:79),(cid:72)(cid:71)(cid:78),3(cid:80)(cid:78) 3(cid:79),(cid:72)(cid:71)(cid:78),3(cid:80)(cid:78) - - - - - - - - - (cid:75)(cid:76),(cid:76)(cid:79)(cid:71),3(cid:78)(cid:80) (cid:77)(cid:71),(cid:73)3(cid:73) (cid:75),(cid:78)(cid:72)(cid:71),(cid:75)(cid:71)(cid:77) (cid:76)(cid:71),3(cid:76)(cid:72),(cid:71)(cid:72)(cid:78) (cid:75)(cid:71),(cid:79)(cid:71)(cid:78),3(cid:80)(cid:78) (cid:73),(cid:73)(cid:80)(cid:73),(cid:78)(cid:75)(cid:71) (cid:75)3,(cid:72)(cid:71)(cid:71),(cid:72)3(cid:78) (cid:80) 1 year (cid:64) 1(cid:57)(cid:72) years (cid:64) (cid:81) (cid:72) years (cid:64) (cid:21)otal (cid:64) (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:73)(cid:55) (cid:7)inancial instruments (cid:58)continued(cid:59) (cid:14)aturity of financial lia(cid:28)ilities (cid:58)continued(cid:59) Also affecting liquidity are cash at bank and non interest bearing receivables and payables. Liquidity risk associated with these financial instruments is represented by the carrying amounts as shown above. d(cid:59) (cid:7)air value estimation The carrying amount of financial assets and financial liabilities recorded in the financial statements approximates their net fair values. The net fair values of financial assets and financial liabilities are determined as follows: (cid:120) (cid:120) the net fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices; and the net fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow theory. The carrying value less impairment provision of trade receivables and payables is a reasonable approximation of their fair values due to the short-term nature of trade receivables. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The decrease in interest rates by (cid:71).(cid:76)(cid:83) effects the present value of the bonds by increasing their value by (cid:68)(cid:75)(cid:80)(cid:72),33(cid:80) which has not been taken to account. (cid:69)(cid:74)(cid:55) Leases (cid:16)perating leases (cid:16)perating leases relate to branch premises which have lease terms of up to (cid:76) years with in some instances an unexercised option to extend for a further (cid:76) years. All operating leases contain market rent review clauses when an option to renew is exercised. Lease expenditure commitments (cid:16)perating leases (non-cancellable) Minimum lease payments - not later than one year - later than one year but not later than five years - more than five years Total minimum payments Leases as lessor Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73),(cid:73)(cid:75)(cid:77),(cid:77)(cid:71)(cid:73) (cid:73),3(cid:78)(cid:72),(cid:79)(cid:80)3 - (cid:73),3(cid:76)3,(cid:80)33 (cid:73),(cid:77)(cid:80)(cid:75),(cid:79)(cid:71)(cid:73) - (cid:75),(cid:77)(cid:72)(cid:79),(cid:75)(cid:80)(cid:76) (cid:76),(cid:71)(cid:75)(cid:79),(cid:78)3(cid:76) The consolidated entity leases out its rental assets under operating leases. The future minimum lease payments under non-cancellable operating leases are as follows: Minimum lease payments receivable - not later than one year - later than one year but not later than five years Total minimum payments receivable (cid:72)(cid:72),(cid:73)(cid:72)(cid:72) (cid:79),(cid:77)(cid:75)(cid:71) (cid:72)(cid:80),(cid:79)(cid:76)(cid:72) (cid:72)(cid:71)(cid:80),(cid:76)(cid:72)(cid:80) (cid:75)(cid:71),(cid:79)(cid:80)3 (cid:72)(cid:76)(cid:71),(cid:75)(cid:72)(cid:73) The above contractual maturities reflect the gross cash flows, which may differ to the carrying values of the liabilities 6 6 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 67 6 7 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:75)(cid:55) (cid:2)uditors remuneration Amounts received or due and receivable by the auditors for: Auditing or reviewing the financial reports Taxation services Total remuneration of auditors (cid:69)(cid:76)(cid:55) (cid:19)elated party disclosures (cid:58)a(cid:59) Parent and ultimate controlling entity Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)3(cid:79),(cid:71)(cid:76)(cid:71) (cid:76),(cid:72)(cid:79)(cid:72) (cid:72)(cid:75)3,(cid:73)3(cid:72) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)3(cid:75),(cid:77)(cid:80)(cid:76) - (cid:72)3(cid:75),(cid:77)(cid:80)(cid:76) The parent and ultimate controlling entity is Money3 Corporation Limited which is incorporated and domiciled in Australia. (cid:58)(cid:28)(cid:59) (cid:12)ey management personnel’s remuneration The aggregate compensation of the key management personnel of the Group is set out below: Short term employee benefits Post employment benefits Long term benefits Share based payments Total (cid:72),(cid:75)(cid:71)(cid:73),(cid:80)(cid:79)(cid:72) (cid:72)(cid:71)(cid:73),(cid:77)(cid:76)(cid:73) (cid:73)(cid:73),3(cid:77)(cid:77) (cid:72)(cid:80)3,(cid:75)(cid:77)(cid:79) (cid:80)(cid:72)(cid:80),(cid:80)(cid:80)(cid:79) (cid:77)(cid:79),(cid:80)(cid:80)(cid:78) (cid:73)(cid:77),(cid:80)(cid:76)(cid:79) (cid:72)(cid:72)(cid:77),(cid:75)(cid:72)(cid:73) (cid:72),(cid:78)(cid:73)(cid:72),(cid:75)(cid:77)(cid:78) (cid:72),(cid:72)3(cid:73),3(cid:77)(cid:76) (cid:58)c(cid:59) (cid:6)(cid:43)uity interests in controlled entities Details of the percentage of ordinary shares held in controlled entities are disclosed in (cid:15)ote (cid:73)(cid:76) to the financial statements. (cid:58)d(cid:59) Loan disclosures Mr Geoffrey Baldwin holds bonds from the Company to the value of (cid:68)(cid:73)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:73)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)) Mr Baldwin is the father of Mr Scott Baldwin (executive director). During the year, (cid:72)(cid:73)(cid:76),(cid:71)(cid:71)(cid:71) options were issued to Mr Geoffrey Baldwin in relation to the previously mentioned bonds. Mr Brian Baldwin holds bonds from the Company to the value of (cid:68)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)), the brother of Mr Scott Baldwin. During the year, (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) options were issued to Mr Brian Baldwin in relation to the previously mentioned bonds. These bonds are made on normal commercial terms and conditions and at market rates. Interest is charged at a commercial rate of (cid:80)(cid:83). There are no loans made by the disclosing entity or any of its subsidiaries to any key management personnel, including their personally related entities. 68 6 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:69)(cid:76)(cid:55) (cid:19)elated party disclosures (cid:58)continued(cid:59) (cid:58)e(cid:59) (cid:16)ther transactions (cid:49)ith (cid:37)ey management personnel or their related entities The financial statements include the following items of expenses that resulted from transactions other than compensation or equity holdings with key management personnel or their related entities: Interest paid to: Geoffrey Baldwin Brian Baldwin Simon Baldwin G(cid:66)(cid:22) Livestock Pty Ltd Robert Bryant Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) Consolidated (cid:69)(cid:67)1(cid:71) (cid:64) (cid:73)(cid:73),(cid:73)(cid:71)(cid:80) (cid:75),(cid:75)(cid:75)(cid:73) - - - (cid:73)(cid:77),(cid:77)(cid:76)(cid:72) (cid:73)3,(cid:80)(cid:73)(cid:79) (cid:76),(cid:73)(cid:77)(cid:71) (cid:72)(cid:72),(cid:71)(cid:72)(cid:75) (cid:72),(cid:73)(cid:80)(cid:80) (cid:76)(cid:72)(cid:79) (cid:75)(cid:73),(cid:71)(cid:72)(cid:80) (cid:72),(cid:75)(cid:71)(cid:73),(cid:80)(cid:79)(cid:72) (cid:72)(cid:71)(cid:73),(cid:77)(cid:76)(cid:73) (cid:73)(cid:73),3(cid:77)(cid:77) (cid:72)(cid:80)3,(cid:75)(cid:77)(cid:79) (cid:80)(cid:72)(cid:80),(cid:80)(cid:80)(cid:79) (cid:77)(cid:79),(cid:80)(cid:80)(cid:78) (cid:73)(cid:77),(cid:80)(cid:76)(cid:79) (cid:72)(cid:72)(cid:77),(cid:75)(cid:72)(cid:73) (cid:72),(cid:78)(cid:73)(cid:72),(cid:75)(cid:77)(cid:78) (cid:72),(cid:72)3(cid:73),3(cid:77)(cid:76) Transactions between the consolidated entity and these parties are conducted on normal commercial terms. (cid:58)f(cid:59) (cid:21)ransactions (cid:49)ith other related parties (cid:22)aughan (cid:23)ebber is an employee of (cid:23)ilson HTM with which Money3 has engaged to place equity. (cid:23)ilson HTM has been paid for services of (cid:68)(cid:77)(cid:79)(cid:77),(cid:72)(cid:77)(cid:80) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:73),(cid:71)(cid:75)(cid:79),(cid:73)(cid:71)(cid:71)). Marian Harris was an employee of Money3 until (cid:11)anuary (cid:73)(cid:71)(cid:72)(cid:76) and is also the wife of Mr Craig Harris. All transactions with related parties are at arm’s length on normal commercial terms and conditions and at market rates. Details of the percentage of ordinary shares held in controlled entities are disclosed in (cid:15)ote (cid:73)(cid:76) to the financial There are no other related party transactions (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) Consolidated Consolidated (cid:69)(cid:67)1(cid:72) (cid:64) (cid:72)3(cid:79),(cid:71)(cid:76)(cid:71) (cid:76),(cid:72)(cid:79)(cid:72) (cid:72)(cid:75)3,(cid:73)3(cid:72) (cid:69)(cid:67)1(cid:71) (cid:64) (cid:72)3(cid:75),(cid:77)(cid:80)(cid:76) - (cid:72)3(cid:75),(cid:77)(cid:80)(cid:76) The parent and ultimate controlling entity is Money3 Corporation Limited which is incorporated and domiciled in The aggregate compensation of the key management personnel of the Group is set out below: (cid:69)(cid:75)(cid:55) (cid:2)uditors remuneration Amounts received or due and receivable by the auditors for: Auditing or reviewing the financial reports Taxation services Total remuneration of auditors (cid:69)(cid:76)(cid:55) (cid:19)elated party disclosures (cid:58)a(cid:59) Parent and ultimate controlling entity Australia. (cid:58)(cid:28)(cid:59) (cid:12)ey management personnel’s remuneration Short term employee benefits Post employment benefits Long term benefits Share based payments Total (cid:58)c(cid:59) (cid:6)(cid:43)uity interests in controlled entities statements. (cid:58)d(cid:59) Loan disclosures Mr Geoffrey Baldwin holds bonds from the Company to the value of (cid:68)(cid:73)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:73)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)) Mr Baldwin is the father of Mr Scott Baldwin (executive director). During the year, (cid:72)(cid:73)(cid:76),(cid:71)(cid:71)(cid:71) options were issued to Mr Geoffrey Baldwin in relation to the previously mentioned bonds. Mr Brian Baldwin holds bonds from the Company to the value of (cid:68)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:68)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)), the brother of Mr Scott Baldwin. During the year, (cid:73)(cid:76),(cid:71)(cid:71)(cid:71) options were issued to Mr Brian Baldwin in relation to the previously mentioned These bonds are made on normal commercial terms and conditions and at market rates. Interest is charged at a There are no loans made by the disclosing entity or any of its subsidiaries to any key management personnel, including bonds. commercial rate of (cid:80)(cid:83). their personally related entities. 6 8 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 69 6 9 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:70)(cid:67)(cid:55) Parent entity financial information a(cid:59) Summary financial information The financial position and results of Money3 Corporation Ltd, the parent entity, are as follows: (cid:17)tatement o(cid:27) (cid:27)inan(cid:24)ia(cid:32) (cid:36)o(cid:39)ition (cid:21)otal current assets (cid:21)otal assets (cid:21)otal current lia(cid:28)ilities (cid:21)otal lia(cid:28)ilities (cid:15)et assets (cid:6)(cid:18)(cid:22)(cid:10)(cid:21)(cid:26) Issued capital Share option reserves Retained earnings (cid:21)otal e(cid:43)uity Company (cid:69)(cid:67)1(cid:72) (cid:64) Company (cid:69)(cid:67)1(cid:71) (cid:64) 1(cid:67)(cid:53)(cid:73)(cid:70)(cid:69)(cid:53)(cid:75)(cid:71)(cid:76) (cid:69)(cid:69)(cid:53)(cid:70)(cid:71)(cid:75)(cid:53)(cid:70)(cid:71)(cid:70) 1(cid:71)(cid:69)(cid:53)(cid:69)(cid:76)(cid:72)(cid:53)(cid:69)1(cid:69) 1(cid:67)(cid:75)(cid:53)(cid:76)(cid:72)(cid:67)(cid:53)(cid:75)(cid:73)(cid:69) (cid:75)(cid:53)(cid:74)(cid:73)(cid:75)(cid:53)(cid:76)(cid:76)(cid:75) (cid:72)(cid:53)(cid:76)(cid:75)(cid:73)(cid:53)(cid:69)(cid:71)(cid:69) (cid:70)(cid:75)(cid:72)(cid:53)(cid:74)(cid:74)(cid:75)(cid:53)(cid:71)1(cid:67) 1(cid:67)(cid:73)(cid:53)(cid:72)1(cid:73)(cid:53)(cid:75)(cid:67)(cid:69) (cid:70)(cid:72)(cid:53)(cid:71)1(cid:70)(cid:53)(cid:67)(cid:73)(cid:72) (cid:74)(cid:70)(cid:53)(cid:72)(cid:70)(cid:74)(cid:53)(cid:74)(cid:76)(cid:74) (cid:72)(cid:71)3,(cid:75)(cid:79)(cid:72),(cid:71)(cid:73)(cid:77) (cid:78)(cid:73),(cid:75)(cid:80)(cid:76),(cid:80)(cid:75)(cid:72) (cid:73),(cid:78)(cid:80)(cid:72),3(cid:72)(cid:72) (cid:73)(cid:75)(cid:75),(cid:75)(cid:77)(cid:76) (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) (cid:79)(cid:76)(cid:75),(cid:78)(cid:80)(cid:73) 1(cid:67)(cid:73)(cid:53)(cid:72)1(cid:73)(cid:53)(cid:75)(cid:67)(cid:69) (cid:74)(cid:70)(cid:53)(cid:72)(cid:70)(cid:74)(cid:53)(cid:74)(cid:76)(cid:74) (cid:17)tatement o(cid:27) (cid:36)ro(cid:27)it or (cid:32)o(cid:39)(cid:39) and ot(cid:29)er (cid:24)om(cid:36)re(cid:29)en(cid:39)i(cid:42)e in(cid:24)ome Profit for the period from continuing operations (cid:76),(cid:73)(cid:79)(cid:78),(cid:75)(cid:80)(cid:73) (cid:73),(cid:76)(cid:73)(cid:78),(cid:79)(cid:79)(cid:73) Total comprehensive income (cid:76),(cid:73)(cid:79)(cid:78),(cid:75)(cid:80)(cid:73) (cid:73),(cid:76)(cid:73)(cid:78),(cid:79)(cid:79)(cid:73) (cid:28)(cid:59) Guarantees entered into (cid:28)y the parent entity The parent entity has not entered into guarantees for any of its subsidiaries. c(cid:59) Contingent lia(cid:28)ilities of the parent entity The parent entity has no contingent liabilities at the time of the report. d(cid:59) Contractual commitments (cid:28)y the parent entity The parent entity has no contractual commitments at the time of the report. 70 7 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t 2 0 1 5 M N Y Annual Report 2015 | MNY | (cid:15)otes to the (cid:7)inancial Statements for the year ended (cid:70)(cid:67) (cid:11)une (cid:69)(cid:67)1(cid:72) (cid:58)continued(cid:59) (cid:70)(cid:67)(cid:55) Parent entity financial information a(cid:59) Summary financial information The financial position and results of Money3 Corporation Ltd, the parent entity, are as follows: (cid:17)tatement o(cid:27) (cid:27)inan(cid:24)ia(cid:32) (cid:36)o(cid:39)ition (cid:21)otal current assets (cid:21)otal assets (cid:21)otal current lia(cid:28)ilities (cid:21)otal lia(cid:28)ilities (cid:15)et assets (cid:6)(cid:18)(cid:22)(cid:10)(cid:21)(cid:26) Issued capital Share option reserves Retained earnings (cid:21)otal e(cid:43)uity Company Company (cid:69)(cid:67)1(cid:72) (cid:64) (cid:69)(cid:67)1(cid:71) (cid:64) 1(cid:67)(cid:53)(cid:73)(cid:70)(cid:69)(cid:53)(cid:75)(cid:71)(cid:76) (cid:69)(cid:69)(cid:53)(cid:70)(cid:71)(cid:75)(cid:53)(cid:70)(cid:71)(cid:70) 1(cid:71)(cid:69)(cid:53)(cid:69)(cid:76)(cid:72)(cid:53)(cid:69)1(cid:69) 1(cid:67)(cid:75)(cid:53)(cid:76)(cid:72)(cid:67)(cid:53)(cid:75)(cid:73)(cid:69) (cid:75)(cid:53)(cid:74)(cid:73)(cid:75)(cid:53)(cid:76)(cid:76)(cid:75) (cid:72)(cid:53)(cid:76)(cid:75)(cid:73)(cid:53)(cid:69)(cid:71)(cid:69) (cid:70)(cid:75)(cid:72)(cid:53)(cid:74)(cid:74)(cid:75)(cid:53)(cid:71)1(cid:67) 1(cid:67)(cid:73)(cid:53)(cid:72)1(cid:73)(cid:53)(cid:75)(cid:67)(cid:69) (cid:70)(cid:72)(cid:53)(cid:71)1(cid:70)(cid:53)(cid:67)(cid:73)(cid:72) (cid:74)(cid:70)(cid:53)(cid:72)(cid:70)(cid:74)(cid:53)(cid:74)(cid:76)(cid:74) (cid:72)(cid:71)3,(cid:75)(cid:79)(cid:72),(cid:71)(cid:73)(cid:77) (cid:78)(cid:73),(cid:75)(cid:80)(cid:76),(cid:80)(cid:75)(cid:72) (cid:73),(cid:78)(cid:80)(cid:72),3(cid:72)(cid:72) (cid:73)(cid:75)(cid:75),(cid:75)(cid:77)(cid:76) (cid:72)(cid:79)(cid:78),(cid:71)(cid:77)(cid:75) (cid:79)(cid:76)(cid:75),(cid:78)(cid:80)(cid:73) 1(cid:67)(cid:73)(cid:53)(cid:72)1(cid:73)(cid:53)(cid:75)(cid:67)(cid:69) (cid:74)(cid:70)(cid:53)(cid:72)(cid:70)(cid:74)(cid:53)(cid:74)(cid:76)(cid:74) (cid:17)tatement o(cid:27) (cid:36)ro(cid:27)it or (cid:32)o(cid:39)(cid:39) and ot(cid:29)er (cid:24)om(cid:36)re(cid:29)en(cid:39)i(cid:42)e in(cid:24)ome Profit for the period from continuing operations (cid:76),(cid:73)(cid:79)(cid:78),(cid:75)(cid:80)(cid:73) (cid:73),(cid:76)(cid:73)(cid:78),(cid:79)(cid:79)(cid:73) Total comprehensive income (cid:76),(cid:73)(cid:79)(cid:78),(cid:75)(cid:80)(cid:73) (cid:73),(cid:76)(cid:73)(cid:78),(cid:79)(cid:79)(cid:73) (cid:28)(cid:59) Guarantees entered into (cid:28)y the parent entity The parent entity has not entered into guarantees for any of its subsidiaries. c(cid:59) Contingent lia(cid:28)ilities of the parent entity The parent entity has no contingent liabilities at the time of the report. d(cid:59) Contractual commitments (cid:28)y the parent entity The parent entity has no contractual commitments at the time of the report. (cid:2)S(cid:25) (cid:2)dditional (cid:10)nformation Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is as follows. The information is current as at (cid:72)(cid:80) August (cid:73)(cid:71)(cid:72)(cid:76). (cid:58)a(cid:59) (cid:5)istri(cid:28)ution of e(cid:43)uity securities The number of shareholders, by si(cid:51)e of holding, in each class of share are: (cid:5)istri(cid:28)ution of Shareholdings (cid:16)rdinary Shares (cid:22)nlisted (cid:16)ptions Listed (cid:16)ptions (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:72) and (cid:16)ver (cid:72)(cid:71),(cid:71)(cid:71)(cid:72) to (cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:76),(cid:71)(cid:71)(cid:72) to (cid:72)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:72) to (cid:76),(cid:71)(cid:71)(cid:71) (cid:72) to (cid:72),(cid:71)(cid:71)(cid:71) Total (cid:15)um(cid:28)er of (cid:9)olders (cid:72)3(cid:77) (cid:78)(cid:72)(cid:75) (cid:75)(cid:71)(cid:75) (cid:79)(cid:78)(cid:77) (cid:75)(cid:80)3 (cid:15)um(cid:28)er of Shares (cid:72)(cid:71)(cid:72),(cid:79)(cid:73)(cid:73),(cid:79)(cid:71)(cid:72) (cid:73)(cid:72),(cid:77)(cid:75)(cid:72),(cid:75)(cid:77)(cid:73) (cid:73),(cid:80)(cid:79)3,(cid:75)3(cid:78) (cid:73),(cid:76)(cid:73)(cid:72),(cid:72)(cid:76)3 (cid:73)(cid:78)(cid:71),(cid:75)3(cid:79) (cid:15)um(cid:28)er of (cid:9)olders (cid:72)(cid:75) (cid:72)(cid:72) - - - (cid:15)um(cid:28)er of (cid:16)ptions (cid:80),(cid:76)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:72)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) - - - (cid:73),(cid:77)(cid:73)3 (cid:72)(cid:73)(cid:80),(cid:73)3(cid:80),(cid:73)(cid:80)(cid:72) (cid:73)(cid:76) (cid:72)(cid:71),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) (cid:15)um(cid:28)er of (cid:9)olders (cid:72)(cid:72) 3(cid:71) (cid:73)(cid:73) 3 (cid:72) (cid:77)(cid:78) (cid:15)um(cid:28)er of (cid:16)ptions (cid:72)3,(cid:77)(cid:72)3,(cid:77)(cid:73)(cid:75) (cid:72),(cid:72)(cid:78)(cid:72),(cid:76)(cid:71)(cid:71) (cid:73)(cid:71)(cid:78),(cid:78)(cid:71)(cid:71) (cid:77),(cid:72)(cid:78)(cid:77) (cid:72),(cid:71)(cid:71)(cid:71) (cid:72)(cid:76),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) The number of shareholders holding less than a marketable parcel of shares are (cid:73)(cid:71)(cid:73) (cid:73)(cid:78),(cid:72)(cid:75)(cid:80) (cid:58)(cid:28)(cid:59) (cid:21)(cid:49)enty largest holders of (cid:43)uoted shares are: (cid:15)ame of (cid:9)older (cid:72) Citicorp (cid:15)ominees Pty Limited (cid:73). Tiga Trading Pty Ltd 3. Hosking (cid:7)inancial Investments Pty Ltd (cid:84)Hosking Investment A(cid:56)C(cid:85) (cid:75). Rocsange Pty Ltd (cid:84)S Superannuation (cid:7)und A(cid:56)C(cid:85) (cid:76). Thorney (cid:16)pportunities Ltd (cid:77). HSBC Custody (cid:15)ominees (Australia) Limited (cid:78) Rubi Holdings Pty Ltd (cid:84)(cid:11)ohn Rubino S(cid:56)(cid:7) A(cid:56)C(cid:85) (cid:79). Platey Pty Ltd (cid:80). B(cid:15)P Paribas (cid:15)oms Pty Ltd (cid:84)DRP(cid:85) (cid:72)(cid:71) (cid:11) P Morgan (cid:15)ominees Australia Limited (cid:72)(cid:72). Picton Cove Pty Ltd (cid:72)(cid:73). Cranchi Pty Ltd (cid:72)3. Belstock Pty Ltd (cid:72)(cid:75). Matooka Pty Ltd (cid:84)Mako A(cid:56)C(cid:85) (cid:72)(cid:76) RBC Investor Services Australia (cid:15)ominees Pty Limited (cid:84)BkCust A(cid:56)C(cid:85) (cid:72)(cid:77). Baldwin Brothers Investments Pty Ltd (cid:84)Inspiration A(cid:56)C(cid:85) (cid:72)(cid:78). Mr (cid:12)ang Hong Tan (cid:66) Mrs Hwea Chong Tan (cid:84)Tan Superannuation A(cid:56)C(cid:85) (cid:72)(cid:79). Citicorp (cid:15)ominees Pty Limited (cid:84)Colonial (cid:7)irst State Inv A(cid:56)C(cid:85) (cid:72)(cid:80). Thirty-(cid:7)ifth Celebration Pty Ltd (cid:84)(cid:11)C McBain Super (cid:7)und A(cid:56)C(cid:85) (cid:73)(cid:71). Aust Executor Trustees Ltd (cid:84)DS Capital Growth (cid:7)und(cid:85) Listed (cid:16)rdinary Shares (cid:15)o(cid:55) of Shares (cid:79) of (cid:9)olding (cid:79),(cid:75)(cid:77)(cid:80),(cid:79)(cid:76)(cid:71) (cid:78),(cid:73)(cid:75)(cid:72),(cid:78)3(cid:73) (cid:77),(cid:80)(cid:79)(cid:76),(cid:72)3(cid:78) (cid:77),(cid:72)(cid:76)(cid:75),3(cid:77)(cid:77) (cid:76),(cid:77)(cid:78)(cid:78),(cid:78)(cid:80)(cid:78) 3,(cid:79)(cid:79)(cid:78),(cid:76)(cid:71)(cid:75) 3,(cid:78)(cid:78)(cid:71),3(cid:75)(cid:76) 3,(cid:77)(cid:75)(cid:72),(cid:78)(cid:78)(cid:75) 3,(cid:73)(cid:78)(cid:77),(cid:78)(cid:79)(cid:77) (cid:73),(cid:79)(cid:78)(cid:79),(cid:72)(cid:77)(cid:80) (cid:73),(cid:72)(cid:79)(cid:76),(cid:72)(cid:78)3 (cid:73),(cid:71)(cid:72)(cid:71),3(cid:75)(cid:76) (cid:72),(cid:80)(cid:71)(cid:71),(cid:73)(cid:79)(cid:79) (cid:72),(cid:78)(cid:80)(cid:73),(cid:72)(cid:72)(cid:79) (cid:72),(cid:78)(cid:76)(cid:76),(cid:71)(cid:71)(cid:71) (cid:72),(cid:76)3(cid:75),(cid:79)(cid:78)(cid:75) (cid:72),3(cid:76)(cid:75),(cid:72)(cid:72)3 (cid:72),3(cid:76)3,(cid:71)3(cid:79) (cid:72),(cid:73)(cid:78)(cid:71),(cid:75)(cid:75)(cid:80) (cid:72),(cid:73)(cid:71)(cid:71),(cid:78)(cid:80)(cid:72) (cid:77).(cid:76)(cid:76) (cid:76).(cid:77)(cid:71) (cid:76).(cid:75)(cid:71) (cid:75).(cid:78)(cid:77) (cid:75).3(cid:80) 3.(cid:71)(cid:72) (cid:73).(cid:80)(cid:73) (cid:73).(cid:79)(cid:73) (cid:73).(cid:76)(cid:75) (cid:73).(cid:73)3 (cid:72).(cid:77)(cid:80) (cid:72).(cid:76)(cid:77) (cid:72).(cid:75)(cid:78) (cid:72).3(cid:80) (cid:72).3(cid:77) (cid:72).(cid:72)(cid:80) (cid:72).(cid:71)(cid:76) (cid:72).(cid:71)(cid:76) (cid:71).(cid:80)(cid:79) (cid:71).(cid:80)3 (cid:21)op t(cid:49)enty shareholders (cid:21)otal issued capital (cid:73)(cid:75)(cid:53)(cid:70)(cid:70)(cid:76)(cid:53)(cid:73)(cid:71)(cid:76) 1(cid:69)(cid:76)(cid:53)(cid:69)(cid:70)(cid:76)(cid:53)(cid:69)(cid:76)1 (cid:72)(cid:69)(cid:55)(cid:75)(cid:75) 1(cid:67)(cid:67)(cid:55)(cid:67)(cid:67) 7 0 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 71 7 1 For personal use only M N Y Annual Report 2015 | MNY | A n n u a l R e p o r t 2 0 1 5 (cid:58)c(cid:59) Su(cid:28)stantial shareholders The names of the substantial shareholders who have notified the Company in accordance with section (cid:77)(cid:78)(cid:72)B of the Corporations Act (cid:73)(cid:71)(cid:71)(cid:72) are: Tiga Trading Pty Ltd (cid:66) Associated entities Roscange Pty Ltd Hosking (cid:7)inancial Investments Pty Ltd Pie (cid:7)und Management Limited (cid:58)d(cid:59) (cid:23)oting rights The company only has ordinary shares on issue. (cid:15)o(cid:55) of Shares (cid:72)(cid:73),(cid:80)(cid:72)(cid:80),(cid:76)(cid:73)(cid:80) (cid:78),(cid:80)(cid:80)(cid:73),(cid:73)(cid:73)(cid:72) (cid:78),(cid:75)(cid:78)3,(cid:73)(cid:75)(cid:71) (cid:77),(cid:78)(cid:77)(cid:78),(cid:80)(cid:73)(cid:78) (cid:79) (cid:9)eld (cid:72)(cid:71).(cid:71)(cid:71)(cid:83) (cid:77).(cid:72)(cid:79)(cid:83) (cid:77).(cid:80)(cid:78)(cid:83) (cid:76).(cid:73)(cid:78)(cid:83) Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show of hands. (cid:58)e(cid:59) (cid:16)ption holders information The Company has issued (or may issue in the future) (cid:16)ptions over unissued capital. The Company has a total of (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)) options on issue as follows: (cid:5)irector (cid:16)ptions The Company has issued nil options during the year ((cid:73)(cid:71)(cid:72)(cid:75): 3,(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) to the Directors (or their nominees) ((cid:65)Director (cid:16)ptions(cid:65)). (cid:10)ssue (cid:5)ate (cid:16)ptions Granted (cid:6)(cid:50)ercise Price (cid:6)(cid:50)piry (cid:5)ate (cid:23)esting (cid:5)ate Scott Baldwin (cid:73)(cid:78) (cid:15)ovember (cid:73)(cid:71)(cid:71)(cid:80) Scott Baldwin 3(cid:71) September (cid:73)(cid:71)(cid:72)(cid:73) Scott Baldwin 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)3 (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:77) (cid:120) (cid:120) The options vest in full when an event occurs which give rise to a change in control of the Company. If the Company after having granted these options restructure its issued share capital, ASX Listing Rules will apply to the number of Shares issued to the option holder on exercise of an option. (cid:120) (cid:16)ptions will not be listed on ASX but application will be made for quotation of the shares resulting from the exercise of the options. (cid:120) (cid:16)n issue of the resulting shares, they will rank equally with ordinary shares on issue at that time. (cid:58)f(cid:59) (cid:16)n(cid:57)mar(cid:37)et (cid:28)uy(cid:57)(cid:28)ac(cid:37) There is a current on-market buy-back of the Company's securities. 72 7 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited For personal use only | 2 0 1 5 M N Y Annual Report 2015 | MNY M N Y | A n n u a l R e p o r t 2 0 1 5 A n n u a l R e p o r t The names of the substantial shareholders who have notified the Company in accordance with section (cid:77)(cid:78)(cid:72)B of the (cid:4)or(cid:36)orate (cid:10)n(cid:27)ormation Money3 Corporation Limited is a company incorporated and domiciled in Australia. (cid:15)o(cid:55) of Shares (cid:72)(cid:73),(cid:80)(cid:72)(cid:80),(cid:76)(cid:73)(cid:80) (cid:78),(cid:80)(cid:80)(cid:73),(cid:73)(cid:73)(cid:72) (cid:78),(cid:75)(cid:78)3,(cid:73)(cid:75)(cid:71) (cid:77),(cid:78)(cid:77)(cid:78),(cid:80)(cid:73)(cid:78) (cid:79) (cid:9)eld (cid:72)(cid:71).(cid:71)(cid:71)(cid:83) (cid:77).(cid:72)(cid:79)(cid:83) (cid:77).(cid:80)(cid:78)(cid:83) (cid:76).(cid:73)(cid:78)(cid:83) (cid:58)c(cid:59) Su(cid:28)stantial shareholders Corporations Act (cid:73)(cid:71)(cid:71)(cid:72) are: Tiga Trading Pty Ltd (cid:66) Associated entities Roscange Pty Ltd Hosking (cid:7)inancial Investments Pty Ltd Pie (cid:7)und Management Limited (cid:58)d(cid:59) (cid:23)oting rights The company only has ordinary shares on issue. proxy has one vote on a show of hands. (cid:58)e(cid:59) (cid:16)ption holders information Each ordinary share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by The Company has issued (or may issue in the future) (cid:16)ptions over unissued capital. The Company has a total of (cid:73)(cid:76),(cid:77)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71) ((cid:73)(cid:71)(cid:72)(cid:75): (cid:78),(cid:79)(cid:76)(cid:71),(cid:71)(cid:71)(cid:71)) options on issue as follows: (cid:5)irector (cid:16)ptions (cid:16)ptions(cid:65)). The Company has issued nil options during the year ((cid:73)(cid:71)(cid:72)(cid:75): 3,(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71)) to the Directors (or their nominees) ((cid:65)Director (cid:10)ssue (cid:5)ate (cid:16)ptions Granted (cid:6)(cid:50)ercise Price (cid:6)(cid:50)piry (cid:5)ate (cid:23)esting (cid:5)ate Scott Baldwin (cid:73)(cid:78) (cid:15)ovember (cid:73)(cid:71)(cid:71)(cid:80) Scott Baldwin 3(cid:71) September (cid:73)(cid:71)(cid:72)(cid:73) Scott Baldwin 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)3 (cid:73)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:72),(cid:71)(cid:71)(cid:71),(cid:71)(cid:71)(cid:71) (cid:68)(cid:72).(cid:71)(cid:71) (cid:68)(cid:71).(cid:76)(cid:71) (cid:68)(cid:72).(cid:76)(cid:71) 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:72) December (cid:73)(cid:71)(cid:72)(cid:75) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:78) (cid:72)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:76) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:79) 3(cid:71) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:77) (cid:120) (cid:120) The options vest in full when an event occurs which give rise to a change in control of the Company. If the Company after having granted these options restructure its issued share capital, ASX Listing Rules will apply to the number of Shares issued to the option holder on exercise of an option. (cid:120) (cid:16)ptions will not be listed on ASX but application will be made for quotation of the shares resulting from the (cid:120) (cid:16)n issue of the resulting shares, they will rank equally with ordinary shares on issue at that time. exercise of the options. (cid:58)f(cid:59) (cid:16)n(cid:57)mar(cid:37)et (cid:28)uy(cid:57)(cid:28)ac(cid:37) There is a current on-market buy-back of the Company's securities. (cid:4)om(cid:36)an(cid:45) (cid:5)ire(cid:24)tor(cid:39) (cid:22)aughan (cid:23)ebber B.Ec (cid:15)on Executive Chairman Bettina Evert BA LLB MAICD (cid:15)on Executive Director Robert (cid:11)ames Bryant Managing Director (Resigned (cid:73)(cid:73) (cid:11)uly (cid:73)(cid:71)(cid:72)(cid:76)) (cid:12)ang Hong Tan ACA ((cid:21)(cid:12)) (cid:7)IPA (Aust) (cid:15)on Executive Director Christopher (cid:11)ames Baldwin CPA (cid:15)on Executive Director (Retired (cid:73)(cid:77) (cid:15)ovember (cid:73)(cid:71)(cid:72)(cid:75)) Scott (cid:11)oseph Baldwin B.Eng (Hons) MBA GAICD Executive Director Miles L Hampton BEc (Hons), (cid:7)CIS, (cid:7)CPA, (cid:7)AICD (cid:15)on Executive Director (Appointed (cid:72) September (cid:73)(cid:71)(cid:72)(cid:75)) (cid:4)om(cid:36)an(cid:45) (cid:17)e(cid:24)retar(cid:45) Craig Alan Harris CPA (cid:9)ead (cid:14)(cid:27)(cid:27)i(cid:24)e Level (cid:72), (cid:75)(cid:71) Graduate Road Bundoora (cid:22)ictoria 3(cid:71)(cid:79)3 Telephone (cid:71)3 (cid:80)(cid:71)(cid:80)3 (cid:79)(cid:73)(cid:76)(cid:76) (cid:7)acsimile (cid:71)3 (cid:80)(cid:71)(cid:80)3 (cid:79)(cid:73)(cid:73)(cid:78) (cid:16)e(cid:28)i(cid:39)tered (cid:14)(cid:27)(cid:27)i(cid:24)e Level (cid:72), (cid:75)(cid:79) High Street (cid:15)orthcote (cid:22)ictoria 3(cid:71)(cid:78)(cid:71) (cid:17)(cid:29)are (cid:16)e(cid:28)i(cid:39)tr(cid:45) Link Market Services Limited Level (cid:72), 333 Collins Street Melbourne (cid:22)ictoria 3(cid:71)(cid:71)(cid:71) (cid:17)o(cid:32)i(cid:24)itor(cid:39) (cid:7)oster (cid:15)icholson Legal Pty Ltd Level (cid:78), (cid:75)(cid:73)(cid:71) Collins Street Melbourne (cid:22)ictoria 3(cid:71)(cid:71)(cid:71) (cid:2)uditor(cid:39) BD(cid:16) East Coast Partnership Level (cid:72)(cid:75), (cid:72)(cid:75)(cid:71) (cid:23)illiam Street Melbourne (cid:22)ictoria 3(cid:71)(cid:71)(cid:71) (cid:3)an(cid:31)er(cid:39) (cid:23)estpac Banking Corporation (cid:72)(cid:76)(cid:71) Collins Street Melbourne (cid:22)ictoria 3(cid:71)(cid:71)(cid:71) (cid:17)to(cid:24)(cid:31) (cid:6)x(cid:24)(cid:29)an(cid:28)e (cid:11)i(cid:39)tin(cid:28) Money3 Corporation Limited shares are listed on the Australian Securities Exchange (ASX code (cid:14)(cid:15)(cid:26)) (cid:21)e(cid:23)(cid:39)ite www.money3.com.au 7 2 | M o n e y 3 C o r p o r a t i o n L i m i t e d Money3 Corporation Limited M o n e y 3 C o r p o r a t i o n L i m i t e d | 73 7 3 For personal use only Annual Report 2015 | MNY This page has been left blank intentionally. 74 Money3 Corporation Limited For personal use only www.colliercreative.com.au #MNY0003 For personal use only M o n e y 3 | A n n u a l R e p o r t 2 0 1 5 | M N Y www.money3.com.au For personal use only
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