Home' Annual Report : Annual Report 2015 Contents LOANS TO KEY MANAGEMENT PERSONNEL
There are no loans between key management personnel
and CPA Australia.
OTHER TRANSACTIONS OF KEY MANAGEMENT
PERSONNEL AND KEY MANAGEMENT PERSONNEL
In 2007, CPA Australia entered into a memorandum
of understanding with two other accounting bodies IPA
and CAANZ to jointly promote the Association of
Accounting Technicians (AAT) as the peak organisation
representing the para-professional segment of the
accounting profession through the provisions of loan
funds. A Current / Non-current loan receivable from AAT is
$350,000 before interest which is charged monthly at the
rate of 0.5 per cent per annum above the 90 day Bank Bill
Rate. Interest income earned on the loan in 2015 was $9,686.
Repayment terms for the loan were extended in 2012,
with the first instalment now due in 2016 and the loan to be
fully paid by June 2021. Nicholas Diss, deputy chief financial
officer and Jeff Hughes, chief operating officer – member
services are Directors of the AAT Board.
Management has assessed the AAT loan and an impairment
provision has been recognised in 2015 for the full amount
of the loan.
Adam Awty, chief operating officer – commercial and
company secretary, Jeff Hughes, chief operating officer –
member services and Priya Dharshini A / P Terumalay,
general manager Malaysia, are Directors of CPA Australia
(Malaysia) Sdn Bhd.
Robert Thomason, executive general manager – education,
Jeff Hughes, chief operating officer – member services,
Deborah Leung, general manager greater China,
and Nicholas Diss, deputy chief financial officer
are Directors of CPA Australia (Shanghai).
Graeme Wade, President and Chairman of CPA Australia
(effective 1 June 2015), Tyrone Carlin, Deputy President
of CPA Australia (effective 1 June 2015), Michele Dolin,
Director of CPA Australia (effective 1 July 2015),
Richard Petty, Director of CPA Australia (effective
1 June 2015), and Suzanne Haddan (effective 1 June
2015) are Directors of CPA Australia Advice. Alex Malley,
chief executive officer, Adam Awty, chief operating
officer – commercial, Jeff Hughes, chief operating officer
– member services and Craig Laughton, general council
are key management personnel of CPA Australia Advice.
CPA Australia has provided a non-current interest free
loan to CPA Australia Advice of $1,150,000 due to be
fully paid by 2025.
During the year, CPA Australia paid professional indemnity
and Directors’ and officers’ liability insurance in respect of
its Directors. The insurance contract providing this cover
does not allow CPA Australia to disclose either the extent
of cover or the premium paid.
AUDITOR OF PARENT ENTITY
Audit of financial report
Other assurance services
Audit of financial reports
for foreign subsidiaries
The auditor of the company is Deloitte Touche Tohmatsu.
Any activity which involves the engagement of the
company auditor must adhere to the Board endorsed
principles and require the prior approval of the Board Audit
and Risk Committee to ensure there is no conflict of interest.
As a general principle, the use of the external auditors
is limited to the provision of statutory audit work and
non-discretionary audit-related work. Where the statutory
auditor is deemed to be the most appropriate to carry out
professional development, article authoring or CPA Program
authoring and support at program workshops, this is to
be documented and provided to the Board Audit and Risk
Committee for endorsement annually.
There are no commercial sponsorships in Australia
or Shanghai (where Deloitte is also the local auditor).
However, offshore divisions can enter into sponsorships
with their local Deloitte office where Price Waterhouse
Coopers, Ernst & Young and KPMG will also be represented.
Sponsorships can be raised for member awards where the
member is the direct recipient of the cash benefit.
During 2015, CPA Australia received revenue in the form of
sponsorship from Deloitte Hong Kong for the CPA Australia
Career Expo Hong Kong and CPA Australia 2015 Congress
Hong Kong; Deloitte Singapore provided sponsorship for
CPA Australia Career Expo Singapore and CPA Australia
2015 Congress Singapore; and Deloitte Malaysia provided
sponsorship for CPA Australia Career Expo Malaysia and
CPA Australia 2015 Congress Malaysia.
19. INVESTMENT IN
CPA Australia (M) Sdn. Bhd.
CPA Australia (Shanghai) Ltd
CPA Australia Advice Pty Ltd
The amount of investment represents the historical capital invested into each entity, which may be different to the fair value
of that investment.
CPA Australia (Malaysia) Sdn Bhd is incorporated in Malaysia in order to facilitate the provision of ser vices to members in Malaysia.
CPA Australia (Shanghai) is incorporated in China in order to facilitate the provision of ser vices to members in Shanghai.
CPA Australia Advice is incorporated in Australia in order to provide high quality, independent and transparent financial advice
under the impending Australian Financial Services Licence (AFSL) and Australian Credit Licence (ACL).
20. SUPERANNUATION AND
DEFINED BENEFIT PLAN
Employees have the choice to contribute either to the
CPA Australia superannuation plan of the ANZ Smar t
Choice corporate superannuation (‘the plan’) or their own
nominated fund. Employees may contribute to the funds
at various percentages of their total salar y cost.
The plan provides both accumulation and defined benefit
divisions. Eligibility to enter the defined benefit divisions
ceased on 31 December 1999.
Actuarial gains and losses are recognised immediately
through the Statement of comprehensive income in the
year in which they occur.
Defined benefit members receive lump sum benefits
on retirement, death, disablement and withdrawal.
The defined benefit section of the fund is closed to new
members. All new members receive accumulation benefits
only. At 31 December 2015, the defined benefit plan had
The Superannuation Industry (Supervision) (SIS) legislation
governs the superannuation industry and provides the
framework within which superannuation funds operate.
The SIS Regulations require an ac tuarial valuation to be
performed for each defined benefit superannuation fund
ever y three years, or ever y year if the fund pays defined
benefit pensions unless an exemption has been obtained.
GOVERNANCE OF THE FUND
The Fund’s Trustee is responsible for the governance of the
Fund. The Trustee has a legal obligation to act solely in the
best interests of Fund beneficiaries. The Trustee has the
• Administration of the Fund and the payment to the
beneficiaries from Fund asset s when required in
accordance with the Fund rules
• Management and investment of the Fund assets
• Compliance with superannuation law and other
The prudential regulator, the Australian Prudential
Regulation Authority (APRA), licenses and supervises
regulated superannuation plans.
There are a number of risks to which the Fund exposes the
employer. The more significant risks relating to the defined
• Investment risk – the risk that investment returns will
be lower than assumed and the employer will need to
increase contributions to offset this shortfall
• Salary growth risk – the risk that wages or salaries (on
which future benefits amounts will be based) will rise more
rapidly than assumed, increasing defined benefit amounts
and thereby requiring additional employer contributions
• Legislative risk – the risk is that legislative changes could
be made which increase the cost of providing the defined
• Timing of members leaving service – as the Fund has
only a small number of members, if members with large
benefits or groups of members leave, this may have an
impact on the financial position of the Fund, depending
on the financial position of the Fund at the time they leave.
The impact may be positive or negative, depending upon
the circumstances and timing of the withdrawal
The defined benefit asset s are invested in the Legg Mason
Balanced investment option. The assets are diversified
within this investment option and therefore the Fund has
no significant concentration of investment risk.
There were no Fund amendments affecting the defined
benefits payable, curtailments or settlements during the year.
CPA AUSTRALIA 2015 INTEGRATED REPORT
90 fINANCIAL REPORT
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