australian institute of management | 2014 annual...

ANNUAL REPORT2014

ANNUAL REPORT 2014 AUSTRALIAN INSTITUTE OF MANAGEMENT2

To the managers and leaders of today and tomorrow...You are the drivers of change. You have the power to change the world, for better or for worse.

Be big. Be bold. Be brave. Don’t stand still. Don’t blend in. Don’t be a passenger.

Love what you do. Serve the greater good. Make the world a better place.

Improve the lives of the people around you and people around the world.

Your decisions and actions have far-reaching consequences. Therefore, be of the highest integrity. Be true, be authentic, be genuine.

Be a lifelong learner. Continually seek knowledge to succeed.

Inspire yourself and those around you. Pursue big dreams, realise big ideas.

Aim to be the best you can possibly be.

AIM HIGH.

04FROM THE CHAIR

12DIRECTORS’ REPORT

08HIGHLIGHTS OF 2014

12OPERATING AND FINANCIAL REVIEW

16DIRECTORS

27CONSOLIDATED STATEMENT OF FINANCIAL POSITION

31NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

18DIRECTORS’ PROFILES

28CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

55INDEPENDENT AUDITOR’S REPORT

29CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY

30CONSOLIDATED STATEMENT OF CASH FLOWS

CONTENTS


I am pleased to enclose the detailed annual report of the Institute which represents the first year of trading as a nationally

unified Australian Institute of Management. In this year, one of the most momentous in AIM’s history, we have reshaped and

refocused the organisation to ensure that we build on our long heritage as the champion for management and leadership

training in Australia and protect the financial resources that have been accumulated through the support of our loyal members

over the past 70 plus years.

The first year post merger Four out of five divisions of AIM: Qld/NT, NSW/ACT, SA, and Vic/Tas merged and formed AIM Group effective from 1 January

2014. The Board of AIM WA decided to remain as a separate entity and expressed a desire to engage and collaborate with

the merged entity. On 1 November 2014, AIM National also merged with AIM Group dissolving the over 70 year old federated

structure.

During 2014, your Board and management focused on restructuring all aspects of AIM Group ranging from courses, systems,

services, promotions mix, brand and importantly the membership value proposition.

There has also been a strong focus on the financial performance of the Group, which in some areas and regions was viewed

as unsatisfactory by the Board. To ensure long term financial stability and preserve the 75-year history of the Institute and its

constitutional mission, decisions were made to divest certain subsidiary businesses, cease others, and rationalize duplication in

the Institute’s cost base. The merger afforded us the opportunity to do this.

AIM’s position in the education and training sector The Board sought to undertake an independent review of our training business against the backdrop of recent significant change

within the vocational education and training (VET) sector where we offer our courses. The review pointed to public policy

settings that increasingly encourage private competition in the market. This means that we must now compete for patronage

of our management courses with new competitors who are highly capitalized or can access capital to replicate our educational

offering and compete on price with government assistance through federal initiatives such as VET FEE Help.

The market in which AIM has traditionally operated has changed fundamentally and AIM must change fundamentally to ensure

its survival. As one would expect from a peak management organisation, armed with this knowledge, your Board developed and

assessed a range of options that could be implemented to allow us to adapt to these new market dynamics.

After consulting with potential partners, and taking advice on legal, taxation and accounting issues, we decided that we needed

to substantially alter how we do business in this landscape to sustain the long term future of AIM for the benefit of members and

to preserve the legacy of Australia’s finest management institute.

The result is that AIM has effectively been split into two entities namely our membership Company (AIM Group Limited) and our

registered Training Company (AIM Education & Training).

membership Company – (AIM Group Limited) is the existing membership company and Institute of which you are a member. It

holds all group assets, buildings, the AIM brand, and cash including the proceeds from the profitable divestment of commercial

buildings in Sydney and Melbourne.

The consolidated balance sheet of the membership Company is the strongest it has been in AIM’s history with members’ equity

invested in building assets and long term high yield low to medium risk financial instruments through AIM’s investment advisors,

fund manager JBWere.

The membership Company will maintain its not-for-profit status and fulfil the mission prescribed in our constitution as the

preeminent voice of management and leadership in Australia. Its revenues will be derived from several sources including your

membership subscriptions.

This restructure secures and sustains AIM and your membership opportunities long into the future.

FROM THE CHAIR

5 ANNUAL REPORT 2014 AUSTRALIAN INSTITUTE OF MANAGEMENT

Training Company – The Training Company has partnered with one of Australia’s leading private equity firms, CHAMP Ventures.

Having been approached by several private equity firms, as well as having received expressions of interest from businesses

operating in the education & training industry, the Board agreed to allow CHAMP Ventures to invest in our Training Company.

CHAMP Ventures has a long and highly successful track record with companies such as SEEK, Lorna Jane, Healthcare and

Study Group. This combined with their strong willingness to work collaboratively with AIM Group into the future influenced our

decision to partner with them.

The partnership with CHAMP Ventures will see them invest up to $15 million which will be deployed in a way that will see us

more effectively commercialise our training business at both the operational and governance level. AIM Group will retain an

equity stake in the Training Company including representation on the Training Company Board. In addition we have successfully

negotiated commercial lease arrangements that will allow the Training Company to operate out of our member owned buildings

in Brisbane and Adelaide, as well as delivering a royalty for the use of the AIM Brand & Trade Mark.

Most importantly and strategically, our partnership with CHAMP Ventures avoids the need and associated risk of further investing

members’ equity and cash in the Training Company, instead preserving AIM’s balance sheet to execute AIM’s mission for the

benefit of all members.

The Board recognises that this was a significant piece of restructuring work that couldn’t have been undertaken without the

assistance and guidance of our advisers who we would like to formally thank:

> PricewaterhouseCoopers

> Ernst & Young

> McCullough Robertson

> Johnson Winter & Slattery

Financial results including the impact of partnership with CHAMP VenturesFor accounting purposes, to correctly disclose the impact of the transaction with CHAMP Ventures, the training business is

categorised as the disposal group in the consolidated financial statements. The disposal group is reported in these financial

statements in the current period as a discontinued operation. The disposal group is recorded in the balance sheet at 31

December 2014 at the fair value of the consideration to be received which is $ nil. As a result, the net assets of the disposal

group have been classified as assets/liabilities held for sale and an impairment charge has been recorded to value them at sale

consideration of $nil.

A summary of the overall results of the year ended 31 December 2014 is as below:

MEMBERSHIP BUSINESS TRAINING BUSINESS TOTAL CONSOLIDATED

Revenue 5,433,874 42,967,805 48,401,679

Operating expenses (6,088,118) (54,082,783) (60,170,901)

Operating loss (654,244) (11,114,978) (11,769,222)

Impairment of Training assets - (14,683,167) (14,683,167)

Net loss (654,244) (25,798,145) (26,452,389)


What does this mean for members?Apart from securing the financial health of your Institute, this restructure and partnership delivers a stronger and more focused

AIM which will deliver real benefits to members. A snapshot of some you will see materialize in 2015 include:

> More offerings for Young Managers

> The ability to become a ‘Chartered Manager (CMgr)’ for the first time in Australia under an agreement with the

Chartered Management Institute in the United Kingdom.

> The national launch of our online MBA

> Our new magazine that has been re-launched and modernized in partnership with Bauer Media

> Continued access to membership discounts and benefits on training courses

> Better advocacy around our members’ professional and career interests

> The delivery of ethics programs as part of your membership

> Networking events, national and regional awards, conferences and workshops

> Increased regional reach and activity

All these initiatives will be supported and enhanced by a renewed member focus within the membership Company without the

competition for resources that we have faced while running the training business alongside the membership organisation. This

is essential as we seek to drive membership growth in key areas of Young/Emerging Leaders, Women in Business and Small

& Micro Businesses. This in itself remains a significant challenge. The Board is excited about the future of AIM and can assure

members that the focus of AIM will be on ensuring our members are better serviced in delivering on our mission of creating

better managers and better leaders for a better society.

On behalf of the Board I thank you for your continued support and invite you to be part of AIM’s very bright future.

AIM High!

Yours Faithfully

Ann Messenger FAIM

Chair AIM Group

ANNUAL REPORT 2014


AIM rebrandAIM Group relaunched the AIM Brand with a national

marketing campaign. The AIM Brand relaunch is the natural

progression for AIM Group after members overwhelmingly

supported the historic merger of the state-based divisions.

The reinvigoration of the AIM Brand was borne out of an

inside out brand review where both members and staff

worked together on getting to the heart of what the AIM

Brand stands for and what the ideal AIM brand would look

like.

It is thanks to members’ feedback and insights into the AIM

brand that the new brand will centre on the idea of ‘Realise

your Power’.

AIM has a rich history of helping people become managers

and managers become leaders for almost 75 years. Great

managers and leaders make decisions every day that affect

people’s lives. With the right training, network and focus,

these decisions can have a positive impact. Put simply, the

better the leader, the better the decision. The better the

decision, the wider the effect.

As a brand, AIM hasn’t been overt about telling its story

publically, however over the past six months a series of

campaigns has meant for the first time in many years

members and the public have seen AIM across mainstream

media channels. With 11 offices in major cities across the

country, AIM Group is now established as a market-leading

membership, educational and training organisation.

Chartered ManagerAIM partnered with the Chartered Management Institute

(CMI) UK to offer managers in Australia the opportunity to

gain the designation and standing their position deserves

through the internationally recognised and Australian’s first

Chartered Manager status.

The ability to access this designation and the personal and

professional development framework that sits underneath

will allow managers to further promote their standing in

the management and leadership community, accelerate

career advancement and stand out amongst their peers and

professionals in the industry. A manager who can demonstrate

current professional experience and qualifications, as well

as a commitment to continuing professional development

and adherence to the CMI Code of Practice for Professional

Managers, can qualify for Chartered Manager status. Further

details can be obtained from the AIM website.

HIGHLIGHTS OF 2014


AIM30 AIM30 is an amazing opportunity for young professionals to

make their mark in the business. It is a program that identifies

and provides recognition for managers under the age of 30.

Established in 2012, the AIM30 initiative was the brainchild of

AIM’s Young Manager Advisory Board (YMAB).

Tasked with developing initiatives to celebrate the

achievements of young managers, the YMAB developed

the concept for the AIM30 and the results have exceeded

expectations. The AIM30 2014 alumni featured some of

Australia’s most successful young business leaders such as

Jordan Grives, Managing Director of the Fonebox Group.

Online MBAEducation Minister Christopher Pyne officially launched AIM’s

Online MBA at AIM’s Adelaide offices in October 2014. As the

flagship qualification for AIM, the Online MBA merges online

and face-to-face learning and is structured so students can

mix both types of learning depending on their preference. The

AIM MBA puts real value into the business by assessing the

practical application of students learning in their workplace,

rather than assessing learning via exams. While effectively

consolidating students’ learning, this will also help to improve

their own work practice and the benefit to their business or

organisation.

The traditional face-to-face MBA will remain on offer and

students will be able to complete an MBA by progressing from

a graduate certificate in business and a graduate diploma.


The new AIM MagazineAIM launched its new look and branded member magazine.

AIM partnered with Bauer Media as the new publisher

of Australia’s premier management magazine, AIM: For

Management Excellence. Bauer is an internationally-renowned

publisher that currently produces 600 magazines annually in

37 countries. Bauer has developed the new magazine into a

fully integrated multi-platform member communication that

is designed to amplify AIM’s new-found national voice.

Within the new magazine, the editorial contents will be

designed to meld the achievements and aspirations of the full

extent of AIM membership, from up and coming managers

seeking access to guidance on professional development to

middle and senior management who are keen to stay one step

ahead of the game. The first edition of new AIM magazine was

published in February 2015.

International Women’s DayThe International Women’s Day Debate returned for its 18th

year with sold-out crowds attending simultaneous debates in

Sydney and Melbourne and the Brisbane Convention Centre

packed to capacity two days later for AIM’s flagship event.

Melbourne’s Maia Docklands was the glittering venue for the

Victorian leg of the debate and a packed house of over 350

people listened to well-known personalities such as author

Jane Caro and NBC correspondent, Sara James argue the

2015 topic of “Do women need to make hard choices to get

ahead?” Meanwhile in Sydney, at the beautiful surrounds

of Doltone House on Hyde Park, more than 300 audience

members packed the aisles to hear the arguments of high

profile debaters such as Daily Telegraph opinion editor Sarrah

Le Marquand and Mamamia Editor, Jamila Rizvi.

By the time the debaters took to the stage in Brisbane two

days later, the city’s largest corporate venue was buzzing with

1600 people vying for their seat at the once again sold out

event. The IWD Debate raises awareness for the important

issue of gender equality while raising money for charity and

continues to be a popular event on the business calendar.

07 JULIA GILLARD ON RESILIENCE 26 GEN YS ARE INDIVIDUALS TOO 30 MEET THE SYDNEY ROOSTERS’ BOSS 34 MACRO VS MICRO MANAGERS

39 WHY TRIATHLONS ARE A MARKETER’S DREAM 42 THE PRODUCTIVE DIETPLUS GADGETS BOOKS CAREER ADVICE

aim

aim.com.au

FOR MANAGEMENT & LEADERSHIP EXCELLENCEF E B R UA RY 2 01 5

22 WHAT DOESIT TAKE?

ON HOW TO GO FROM GOOD TO GREAT

JIM COLLINS

HIGHLIGHTS FOR 2014


Excellence Awards For the first time in its 22-year-history, the Excellence Awards

were held nationally in 2014 and were taken out by four

managers from outside of Queensland and the Northern

Territory. Encompassing four categories; Manager of the Year,

Owner Manager of the Year, Young Manager of the Year and

Not for Profit Manager of the Year, the awards acknowledge

the importance of effective management and signify AIM’s

ongoing commitment to developing the profession of

management across Australia.

South Australia’s Peter George took out the title of Manager

of the Year for his work as the Group Manager for Employers

Mutual Limited. Elaine Bensted of Zoos South Australia was

named as the Not for Profit Manager of the Year after leading

a major cultural change and improving the financial viability

of Zoos SA. Point Project Management Manager and Founder,

Michael Snare of Canberra was named the Owner Manager

of the Year and Victorian entrepreneur Finn Kelly, 29 was

declared the Young Manager of the Year for his role as the

Cofounder and Chief Executive Officer of Wealth Enhancers,

a Gen Y financial advisory business.

Outstanding Women’s Series – Julia GillardJulia Gillard, the 27th Australian Prime Minister and former

leader of the Australian Labor Party was the 100th speaker

at AIM’s Outstanding Women’s Series at the Docklands

Melbourne in November 2014. For more than 20 years the

Outstanding Women Series has featured some of Australia’s

most prominent women since former Victorian Premier Joan

Kirner spoke at its inception in 1995.

This was Ms Gillard’s second series appearance since

her debut in 2006 when she was Deputy Leader of The

Opposition. Ms Gillard has been a shining example to young

ladies and women across Australia and this event further

demonstrated AIM’s commitment to the development of

women at every stage of their careers. Other leading ladies

to have presented at the Outstanding Women Series event

include journalist turned politician Maxine McKew, former

Victorian Police Commissioner Christine Nixon, Olympian

turned commentator Nicole Livingstone and humanitarian

worker Moira Kelly.


The Directors have pleasure in presenting their report

together with the consolidated financial statements of the

Australian Institute of Management (Group) Limited (the

Company) and the entities it controlled at the end of, or

during, the year ended 31 December 2014, and the Auditors’

report thereon. Throughout the report, the consolidated

entity is referred to as the Group.

Corporate informationThe Australian Institute of Management (Group) Limited is

a company limited by guarantee, incorporated in Australia

under the Corporations Act 2001 and domiciled in Brisbane.

Operating and financial reviewPrincipal activitiesThe principal activities of the Company and its subsidiaries

entities (the Group) are to provide a professional association

for managers and to conduct management development

activities and consulting. There was no significant change

during the year in the principal activities of the Group.

The Company’s controlled entity Australian Institute of

Management Education and Training (AIMET), formerly

known as AIM Qld/NT, offers a range of accredited and non-

accredited courses under a Registered Training Organisation

license from the Australian Skills Quality Authority (ASQA).

AIMET also holds a Higher Education accreditation from

Technical Education Quality Standards Agency (TEQSA)

to provide Graduate Certificate Professional Management

and Graduate Diploma Management qualifications. It has

applied for registration of additional scope to deliver MBA

and Graduate Diploma qualification. Once approved, it will

become the sole Higher Education Provider.

During the year AIMET also received approval to offer

Diploma qualifications under the VET Fee Help funding

scheme.

In November 2014, AIM also launched the Online MBA

qualification. This program will be offered both under Fee for

Service and Fee Help schemes.

Review of operationsAs the peak professional association for managers, the Group

offers services to its members to meet their needs for career

development, resource access, professional recognition and

networking opportunities.

The Group provides a broad range of management

development programs and consulting services to enhance

the professional development of managers and organisations.

These include Vocational Education and Training sector

qualifications, non-accredited programs, core induction

training in the resources sector, project management and

postgraduate qualifications in the higher education sector.

The Group support the development of management and

leadership capability in the broader community through the

provision of career development advice, the AIM Excellence

Awards and through the awarding of scholarships for

professional development from the AIM Business School and

Graduate School.

Merger of Qld/NT, NSW/ACT, Vic/Tas and SA divisions of AIMAt the respective Annual General Meetings held on 30

May 2013, the members of AIM NSW/ACT and AIM Qld/

NT approved the merger of the two divisions (first merger)

to effect from 1 June 2013. This merger was the first step

in a process of the AIM divisions across Australia working

more closely together in the interests of members and the

profession of management. A new entity AIM Group Limited

(then known as AIM Qld NSW ACT & NT) was formed

of which both AIM NSW/ACT and AIM Qld/NT became

subsidiaries.

The Constitutions of AIM NSW/ACT and AIM Qld/NT were

amended to affect the transfer of voting rights of their

respective members to AIM Group Limited. Four Directors

each from AIM NSW/ACT and AIM Qld/NT formed the AIM

Group Limited Board of eight Directors.

DIRECTORS’ REPORT


Subsequently, at the respective General Meetings held on

29 November 2013, the members of AIM Group Limited, AIM

Vic/Tas and AIM SA approved the merger of AIM NSW/ACT,

AIM Qld/NT, AIM Vic/Tas and AIM SA (second merger) that

combined four of the five original divisions effective from

1 January 2014. Four Directors from AIM Vic/Tas and two

Directors from AIM SA joined AIM Group Limited Board to

form a Board of 14 initial Directors.

The Board of AIM WA decided to remain as a separate entity

and expressed a desire to engage and collaborate with the

merged entity.

Consolidation of Training BusinessesOn 1 October 2014, the divisional Registered Training

Organisation (RTO) licenses were withdrawn and training

businesses were consolidated into AIM Qld/NT. The name of

AIM Qld/NT was changed to AIMET. AIMET also became the

only RTO. As part of this consolidation, assets from AIM

Vic/Tas, AIM NSW/ACT and their respective subsidiaries -

The Octant Foundation, Centre for Public Management, AIM

Vic/Tas College of Education & Training and AIM NSW/ACT

Training Centre Limited were transferred into AIMET. The

training assets of AIM SA are yet to be transferred.

The consolidation of divisional training businesses into AIMET

allowed the Group to separate the two mainstream activities:

Training business and Membership business. AIMET is now

operating as the Training entity of the Group. AIM SA will

continue to operate as the Higher Education Provider until its

assets are transferred into AIMET.

The ultimate parent entity AIM Group Limited operates as the

Membership entity.

Merger of Australian Institute of Management (AIM National) with AIM Group Limited

At its General Meeting on 28 October 2014, AIM National

federal members voted unanimously to approve the merger

of AIM National with AIM Group Limited (third merger)

effective from 1 November 2014. As a result of this merger

AIM National became a subsidiary of AIM Group Limited.

A new Constitution of AIM National was also adopted

that effected dissolution of the 75 year old federated

structure. AIM National owns the AIM Brand Intellectual

Property (IP). Upon its merger with AIM Group Limited,

dissolution of the federated structure and adopting a new

Constitution, AIM National issued non-exclusive IP Licenses

to all former AIM divisions including AIM Western Australia.

The IP license issued to AIM Western Australia requires AIM

Western Australia to use the AIM Logo with its geographical

identification.

DIRECTORS’ REPORT


Corporate Governance StatementThe Directors review and approve strategies and action

plans for the continuing development of the Company and

its controlled entities. Management and the Board monitor

the Group’s overall performance, from implementation of

the strategic plan through to the performance of the Group

against operating plans and financial budgets.

Short and long term objectives and strategies to achieve the objectives

Through a cluster of interrelated business units and

subsidiaries, the Group provides learning, publishing and

information services to the leadership and management

markets. In doing so the Group will:

a. Develop, support, promote and practise the

profession of management at all levels by being the

preeminent voice of management and leadership in

Australia

b. Provide opportunities for Australian managers to

AIM and achieve an outstanding career through

training and education, networking and interventions

c. Undertake commercially viable endeavours in the

management and leadership space to support

its not-for-profit mission and objects and for the

benefits of members

d. Ensure benefits derived from all activities of all

entities are directed to the benefit of members and

the objects described in the Constitution of AIM

Group and its subsidiary entities

e. Manage the reputation and growth of AIM through

continuous improvement across systems, processes

and culture across the AIM Group

f. Further develop a share of the voice in the

management space through targeted and

measurable research, advocacy and public relations

built on the AIM Group’s purpose “To develop

exceptional managers and leaders who enrich the

world”

g. Deploy continuous improvement programs and

projects across curriculum, technologies and social

media to position accredited and non-accredited

corporate, public and online training, events and

learning experiences

h. Continue to manage and develop the digital

competencies and IT infrastructure of AIM to

become faster and more agile in the digital

marketplace through better coordination of its IT as

a strategic asset.

Results for the yearThe consolidated loss for the Group before providing for

income tax was $26,452,389 (2013: loss $863,870). This

includes loss of $25,798,145 from discontinued operations

(2013: $nil) and loss of $654,244 from continued operations

(2013: loss of $863,870)

DividendsUnder the Company’s Constitution no dividends may be paid.

Performance measuresThe Group measures its performance against the Board

approved strategies, objectives and key performance

indicators. Each of the objectives and KPIs has its own

financial and operational charter that is monitored and

reviewed regularly to ensure it is aligned with the Group’s

objectives.

Significant post balance date eventsSince 31 December 2014, AIMET (the Training business)

has issued Exchangeable Notes to Castle Harlan Australian

Mezzanine Partners (CHAMP Ventures) and entered into an

Exchangeable Notes Subscription Deed that allows CHAMP

Ventures to effectively manage the Training business of the

Group from 1 March 2015. The Notes are exchangeable with

ordinary shares upon AIMET changing its status in future from

a Limited by Guarantee Company to a Company Limited by

Shares.

DIRECTORS’ REPORT


The effect of this is that, by agreement dated 10 February

2015, the Group has agreed to dispose of the Training

business (the disposal group). The disposal group is reported

in these financial statements in the current period as a

discontinued operation. The disposal group is recorded in

the balance sheet at 31 December 2014 at the fair value of

the consideration to be received which is $ nil. As a result,

the net assets of the disposal group have been classified as

held for sale in the balance sheet. An impairment charge of

$14,683,167 has been recorded to reduce the net assets to the

sale consideration of $nil, leaving gross assets and liabilities

each recorded at $12,694,219.

In addition to the Exchangeable Notes Subscription Deed,

on the same date the Group and CHAMP Ventures entered

into Transitional Services Agreement and an Investment

Deed which will govern the ongoing relationship between the

Company and AIMET.

The Directors believe that the group’s ongoing service

relationship with CHAMP Ventures will provide a platform for

capital investment and growth in the highly competitive VET

sector. In addition this venture will create revenue streams

for the Group in the form of commercial rents for AIM Group

buildings, royalty fees for the use of AIM brand and growth

in membership numbers/subscriptions. The agreement with

CHAMP Ventures will avoid the need and associated risk of

investing members’ equity and cash in the Training business,

instead preserving the Group balance sheet for executing the

Institute’s mission for the benefit of all members.

A new Board of AIMET has been established on 1 March 2015

initially with three Directors each from CHAMP Ventures and

AIM Group Limited for a period of 12 months and then three

Directors from Champ Ventures and one Director from AIM

Group Limited thereafter. The Chairman of the new AIMET

Board is from CHAMP Ventures. There will always be a

representation of AIM Group Board on the AIMET Board.

Other than the matter noted above there has been no

matter or circumstance that has significantly affected or may

significantly affect:

a. The operations;

b. The results of those operations; or

c. The state of affairs of the Company.

State of affairsOther than the merger of NSW/ACT, Qld/NT, Vic/Tas and SA

divisions of AIM effective 1 January 2014 and subsequent

merger of AIM Group Limited with AIM National effective

1 November 2014, there has been no significant change in

the state of affairs of the Group during the financial year

under review not otherwise disclosed in this report or in the

consolidated financial report.

Environmental regulationsThe Group is not subject to any significant environmental

regulations under Australian Commonwealth or State law.

Review of financial conditionsThe financial position of the continuing Group is relatively

strong with excellent liquidity and a large asset base.

DIRECTORS’ REPORT


Ann Messenger FAIM

(Chair from 23 March 2015)

Company Director

Grant Dearlove FAIM

(Chair to 23 March 2015)

National Legal Partner and General Manager SPA,

Shine Lawyers

Andrew McFarlane FAIM

(Deputy Chairman from 4 February 2014)

Principal Consultant,

MOMENTUM Business Advisors Pty Ltd

Prof Emeritus Roger Collins FAIM

(Deputy Chairman to 3 February 2014, resigned on 1

September 2014)

Company Director

Chris Westworth FAIM

Company Director

Mike Zissler FAIM

Chief Executive Officer,

The Australian Property Institute

Julie Boyd FAIM

Company Director

David Conry FAIM

Managing Director,

Damarcon

John Cotter FAIM

Chairman,

Initiative Capital

Prof Danny Samson FAIM

Professor,

University of Melbourne

Chris Burns FAIM

Company Director

Selina Lightfoot FAIM

(resigned on 28 August 2014)

Company Director

Geoffrey Fary FAIM

Chairman,

Federal Government’s Asbestos Safety & Eradication Council

John Withers FAIM

Company Director

Company Secretary

Faisal Mukhtar FAIM, FGIA

CA, Grad Dip AppCorpGov

Composition of the BoardThe Constitution of the Company provides 14 positions on the Board, 12 of which are currently filled by four Directors from

former Qld/NT, three from NSW/ACT, three from Vic/Tas divisions and two from SA division of AIM. These 12 Directors are also

Directors of the Company’s controlled entities and their subsidiaries.

As per the Company’s Constitution, the number of the Company Directors will reduce to seven from the 2015 AGM. All current

Directors of AIM Group Limited will retire at the 2015 AGM. The Members of the Company will elect two Directors each from

former Qld/NT, NSW/ACT and Vic/Tas and one from SA division of AIM. The Initial Directors may put forward their nomination

for election.

The Directors who held office during the year ended 31 December 2014 and up to the date of this report are:

DIRECTORS


DIRECTORSDirectors’ Meetings

BOARD MEETINGS

HELD ATTENDED

J Boyd 12 10

C Burns 12 10

D Conry 12 10

J Cotter 12 12

G Dearlove 12 12

G Fary 12 11

A McFarlane 12 11

A Messenger 12 11

D Samson 12 11

C Westworth 12 10

J Withers 12 12

M Zissler 12 11

S Lightfoot (resigned 28 August 2014) 8 7

R Collins (resigned 1 September 2014) 8 4

F Mukhtar (Company Secretary) 12 12


DIRECTORS’ PROFILES

Julie Boyd FAIMJulie Boyd was elected as the first female Mayor of the City of Mackay and retained

that role for 11 years from 1997 to 2008. Julie was involved in Local Government for 16

years during which time Mackay was one of the fastest growing cities in Australia. Julie

oversaw a number of large infrastructure and lifestyle projects that were instrumental

in improving the quality of life for the city’s residents.

Julie originally trained as a Registered Nurse having completed her studies in Brisbane

at the Mater Hospital and undertook Midwifery studies in Scotland. She studied

Politics, South East Asian Religions and History at the University of Queensland.

From 2008 to 2010 Julie represented the Queensland Government as the Special

Trade Representative to Japan, Republic of Korea and the Philippines and was then

appointed as the Trade Representative for Queensland to Africa until 2012.

Julie sits on a number of Boards both in Brisbane and Mackay and undertakes

consultancy work in the area of Corporate Governance. Julie is a Fellow of the

Australian Institute of Management and a Graduate of the Australian Institute of

Company Directors.

Chris Burns FAIMChris Burns enlisted in the Australian Army as an apprentice electrician in 1975. On

completion of his trade training, he undertook officer training and graduated into

Armour as a Tank Commander. Chris’ early career saw him serving in a number of

operational armoured units as an instructor of recruits and officer cadets.

In 1988 Chris was seconded to the United Nations as a military observer where he saw

service on the Golan Heights in Syria, in Iran for the establishment of the ceasefire

between Iran and Iraq and in the Gaza Strip during the first Palestinian uprising. In

subsequent postings, Chris served with the US Army in Hawaii, as the Commanding

Officer of the 2nd/14th Light Horse Regiment and in the Defence Science and

Technology Organisation. On promotion to Colonel, Chris was appointed as the

Director of Operations in Army Headquarters where he oversaw the Army’s global

operations including Afghanistan, East Timor and Iraq. Following this, Chris was

appointed as the Australian Defence Attaché in the Philippines and the Micronesian

Nations based out of the Australian Embassy in Manila.

After returning to Australia, Chris transferred to the Army Reserve and established his

own consultancy company. Chris served as the Director of Land in Defence SA from

July 2008 until May 2010. He assumed the appointment of Chief Executive Officer

of the Defence Teaming Centre in May 2010. Chris was awarded the Conspicuous

Service Cross in 2003 Australia Day Honours List. Chris is also the recipient of the US

Meritorious Service Medal and the Philippine Legion of Honour.

Chris is a Fellow of the Australian Institute of Management.


Directors’ Profiles

Julie Boyd FAIM, DirectorJulie Boyd was elected as the first female Mayor of the City of Mackay and retained that role for 11 years from 1997 to 2008. Julie was involved in Local Government for 16 years during which time Mackay was one of the fastest growing cities in Australia. Julie oversaw a number of large infrastructure and lifestyle projects that were instrumental in improving the quality of life for the city’s residents.

Julie originally trained as a Registered Nurse having completed her studies in Brisbane at the Mater Hospital and undertook Midwifery studies in Scotland. She studied Politics, South East Asian Religions and History at the University of Queensland. From 2008 to 2010 Julie represented the Queensland Government as the Special Trade Representative to Japan, Republic of Korea and the Philippines and was then appointed as the Trade Representative for Queensland to Africa until 2012.

Julie sits on a number of Boards both in Brisbane and Mackay and undertakes consultancy work in the area of Corporate Governance. Julie is a Fellow of the Australian Institute of Management and a Graduate of the Australian Institute of Company Directors.

Chris Burns FAIM, DirectorChris Burns enlisted in the Australian Army as an apprentice electrician in 1975. On completion of his trade training, he undertook officer training and graduated into Armour as a tank commander. Chris’ early career saw him serving in a number of operational armoured units and as an instructor of recruits and officer cadets.In 1988 Chris was seconded to the United Nations as a military observer where he saw service on the Golan Heights in Syria, in Iran for the establishment of the ceasefire between Iran and Iraq and in the Gaza Strip during the first Palestinian uprising. In subsequent postings, Chris served with the US Army in Hawaii as the Commanding Officer of the 2nd/14th Light Horse Regiment and in the Defence Science and Technology Organisation.

On promotion to Colonel, Chris was appointed as the Director of Operations in Army Headquarters where he oversaw Army’s global operations including Afghanistan, East Timor and Iraq. Following this, Chris was appointed as the Australian Defence Attaché in the Philippines and the Micronesian nations based out of the Australian Embassy in Manila.

On returning to Australia, Chris transferred to the Army Reserve and established his own consultancy company. Chris served as the Director – Land in Defence, South Australia from July 2008 until May 2010. He assumed the appointment of Chief Executive Officer of the Defence Teaming Centre in May 2010. Chris was awarded the Conspicuous Service Cross in 2003 Australia Day Honours List. Chris is also the recipient of the US Meritorious Service Medal and the Philippine Legion of Honour.



Julie Boyd FAIM, DirectorJulie Boyd was elected as the first female Mayor of the City of Mackay and retained that role for 11 years from 1997 to 2008. Julie was involved in Local Government for 16 years during which time Mackay was one of the fastest growing cities in Australia. Julie oversaw a number of large infrastructure and lifestyle projects that were instrumental in improving the quality of life for the city’s residents.

Julie originally trained as a Registered Nurse having completed her studies in Brisbane at the Mater Hospital and undertook Midwifery studies in Scotland. She studied Politics, South East Asian Religions and History at the University of Queensland. From 2008 to 2010 Julie represented the Queensland Government as the Special Trade Representative to Japan, Republic of Korea and the Philippines and was then appointed as the Trade Representative for Queensland to Africa until 2012.

Julie sits on a number of Boards both in Brisbane and Mackay and undertakes consultancy work in the area of Corporate Governance. Julie is a Fellow of the Australian Institute of Management and a Graduate of the Australian Institute of Company Directors.

Chris Burns FAIM, DirectorChris Burns enlisted in the Australian Army as an apprentice electrician in 1975. On completion of his trade training, he undertook officer training and graduated into Armour as a tank commander. Chris’ early career saw him serving in a number of operational armoured units and as an instructor of recruits and officer cadets.In 1988 Chris was seconded to the United Nations as a military observer where he saw service on the Golan Heights in Syria, in Iran for the establishment of the ceasefire between Iran and Iraq and in the Gaza Strip during the first Palestinian uprising. In subsequent postings, Chris served with the US Army in Hawaii as the Commanding Officer of the 2nd/14th Light Horse Regiment and in the Defence Science and Technology Organisation.

On promotion to Colonel, Chris was appointed as the Director of Operations in Army Headquarters where he oversaw Army’s global operations including Afghanistan, East Timor and Iraq. Following this, Chris was appointed as the Australian Defence Attaché in the Philippines and the Micronesian nations based out of the Australian Embassy in Manila.

On returning to Australia, Chris transferred to the Army Reserve and established his own consultancy company. Chris served as the Director – Land in Defence, South Australia from July 2008 until May 2010. He assumed the appointment of Chief Executive Officer of the Defence Teaming Centre in May 2010. Chris was awarded the Conspicuous Service Cross in 2003 Australia Day Honours List. Chris is also the recipient of the US Meritorious Service Medal and the Philippine Legion of Honour.



David Conry FAIMDavid is the Managing Director of Damarcon specialising in advisory services in

B2B strategies, new market development and government. David also holds several

directorships and board roles that includes Chair of The Queensland Museum, Deputy

Chair of the Brisbane Powerhouse, Director of Sunshine Coast Medicare Local, The

Cyber Institute, Australian Institute of Health and Welfare and O’Neill Architecture.

David Conry was honoured in 2007 as Queensland’s Australian of the Year,

Queensland’s Social Entrepreneur of the Year, as well as several other community and

business awards and has been recognised as one of Queensland’s most influential

people for his founding of the national group Youngcare. David continues to remain

passionate within the area of human rights and disability and is an in demand public

speaker, mentor and disability advocate.

David is a Fellow of the Australian Institute of Management.

John Cotter FAIMJohn is a leading Australian entrepreneur and is the Managing Director of Initiative

Capital providing venture capital for public and private partnerships across Australasia.

John has received many awards in business including the E&Y Entrepreneur of the Year

(Finalist), AIM Young Manager of Year (Finalist), Brisbane Business News Entrepreneur

and The Lord Mayor of Brisbane Business Awards.

John holds qualifications from the University of Queensland (Bachelor of Regional &

Town Planning), Certified Practicing Planner and a Graduate of the Australian Institute

of Company Directors. He serves as a director of Phosphate International, Australian

Quarter Horse Racing, Holistic Justice Services, Non-Executive Director of Queensland

Urban Utilities, Centre for Public Management, The Lady Bowen Trust and Chair of the

Fortitude Valley Economic Development Board.

John is a Fellow of the Australian Institute of Management.

AUSTRALIAN INSTITUTE OF MANAGEMENT ANNUAL REPORT 2013 17

Prof Emeritus Roger Collins FAIM, DirectorRoger Collins is a Professor Emeritus at the University of New South Wales, Deputy Chairman of Inenco Pty Ltd and the Australian Institute of Management QLD NSW ACT NT. Roger is the Board Director that provides special support for the Octant Foundation, an AIM QNAN business committed to innovative and high impact leadership development initiatives. Roger also served as Foundation Chairman of the Board of Grant Thornton Australia and oversaw the integration of GTAL as a national firm and then the integration of partners and staff of BDO NSW and Victoria. Roger’s academic career is complemented by earlier experience in the private sector, the armed services, the public sector and in tertiary education.

Roger has degrees from the University of New South Wales (in Applied Psychology), and from Macquarie University (in Management). Roger is a regular contributor to national and international management conferences and is a faculty member on a number of Australian and Asian executive development programs. He has twice received the Alumni prize for Outstanding Contribution to Teaching at AGSM and was awarded the Vice Chancellor’s Award for Teaching Excellence.

In January 2004, Roger was appointed as a Member in the General Division of the Order of Australia for his services to teaching and was awarded the Australian Human Resources Award for Career Long Achievement in HR in 2005.

David Conry FAIM, DirectorDavid Conry was Queensland’s Australian of the Year in 2007, Queensland’s Social Entrepreneur of the Year, honoured with QUT’s Golden Key and MS Society’s John Study Award, and named as one of Brisbane’s most 50 influential people for his work in founding the national disability group Youngcare.

David is the Managing Director of Damarcon, with business interests in Communications and International Students Services and provides advisory services in the area of B2B strategies, new market development and government. David also holds several directorships and board positions within the private sector, Queensland and Commonwealth Governments.


John Cotter FAIM, DirectorJohn is a qualified town and regional planner and has 15 years’ experience in major property and infrastructure projects. He has led major project teams across Australia through concept, business case and delivery phases.

In 2008 John founded the Flinders Group, a project services company following roles in government, private and a publicly companies. John holds qualifications from the University of Queensland (Bachelor of Regional & Town Planning), Certified Practicing Planner and a Graduate of the Australian Institute of Company Directors. He is a Non-executive Director of Queensland Urban Utilities, Chairman of Phosphate International and the Flinders Group, and Chair of the Fortitude Valley Economic Development Board.

Geoff Fary FAIM, DirectorGeoff Fary is Chair of the Federal Government’s Asbestos Safety & Eradication Council and is a former assistant secretary of the ACTU, ex-chief of staff to a Federal Government cabinet minister and was a senior executive at George Weston Foods Ltd and Nestle Australia.

Geoff’s working life has been devoted to Human Resource Management and Industrial Relations and his career moves have given him the unusual perspective of corporate, government and union experiences.














Grant Dearlove FAIMGrant Dearlove is a Lawyer and Company Director. Across his career Grant has

owned, worked for, and consulted to Professional Service firms in the practice areas

of property, franchising, risk, insurance, merger & acquisitions, funds management,

and legal. Grant has held the positions of Managing Director of Colliers International

Residential for Australia, Managing Director of PRDnationwide, and CEO of Verifact.

Grant is currently a National Partner with Shine Lawyers. Grant is also a Non-executive

Director of Sunshine Coast Medicare Local Limited, Oliver Hume Corporation

(Australia’s leading residential property agency), Chairman of Oliver Hume SEQ,

Chairman of Oliver Hume Apartments Victoria and Deputy Chairman of Invest Logan

(the economic development arm of the Logan City Council). Grant is a Director of the

Centre for Public Management and a trustee of the John Storey Memorial Trust and

serves as a National Executive of Shine Corporation Limited.

Grant was formerly a Non-executive Director of Sunshine Coast Destination Limited

(Sunshine Coast Tourism), Sunshine Cooperative Housing Society Limited, Countrywide

Cooperative Housing Society Limited, National Director of Colliers International and

related companies, a Director of Arete Executive and Partner with McInnes Wilson

Lawyers.

Grant has a Bachelor of Laws, a Master of Laws, a Master of Business Administration,

and a Graduate Diploma in Applied Corporate Governance. Grant is a Fellow of the

Australian Institute of Management and has spent his life in the professional services

arena and studied leadership of professional service organisations at Harvard

University.

Geoff Fary FAIMGeoff Fary is Chair of the Federal Government’s Asbestos Safety & Eradication

Council and is a former Assistant Secretary of the ACTU, Ex-Chief of Staff to a Federal

Government cabinet minister and was a senior executive at George Weston Foods Ltd

and Nestle Australia.

Geoff’s working life has been devoted to Human Resource Management and Industrial

Relations and his career moves have given him the unusual perspective of corporate,

government and union experiences.

Geoff is a Fellow of the Australian Institute of Management.



Grant Dearlove FAIM, DirectorGrant Dearlove is a Lawyer and Company Director. Across his career Grant has owned, worked for, and consulted to Professional Service firms in disciplines spanning property, franchising, risk, insurance, M&A, funds management, and legal.

Grant has held the positions of Managing Director of Colliers International Residential for Australia, Managing Director of PRDnationwide, and CEO of Verifact. Grant is currently a National Partner with Shine Lawyers. Grant is also a Non-executive Director of Oliver Hume Australia (Australia’s leading residential property agency), Chairman of Oliver Hume SEQ, Chairman of Oliver Hume Apartments Victoria and Deputy Chairman of Invest Logan (the economic development arm of the Logan City Council).

Grant is a Director of the Centre for Public Management and a trustee of the John Story Memorial Trust. Grant was formerly a Non-executive Director of Sunshine Coast Destination Limited (Sunshine Coast Tourism), Sunshine Cooperative Housing Society Limited, Countrywide Cooperative Housing Society Limited, National Director of Colliers International and related companies, a Director of Arete Executive and Partner with McInnes Wilson Lawyers.

Grant has a Bachelor of Laws, a Master of Laws, a Master of Business Administration, and a Graduate Diploma in Applied Corporate Governance. Grant is a Fellow of the Australian Institute of Management and has spent his life in the Professional Services arena and studied leadership of professional service organisations at Harvard University.

Andrew McFarlane FAIM, DirectorAfter gaining invaluable consulting experience in organisations such as Hungerfords, and KPMG, Andrew established his own consulting company MOMENTUM Business Advisors Pty Ltd in 1988 where he is principal consultant. Andrew is a director of multiple companies in the Momentum Property Group, Member of the Women’s and Children’s Health Network – Audit and Risk Committee, the CEO of the Italian Benevolent Foundation SA Inc (Aged Care Provider with over 550 staff) and was previously a director of Nepenthe Wine Group.

MOMENTUM Business Advisors Pty Ltd provides a range of professional consulting services including accounting advice, taxation, financial management information systems, business advisory, executive outsourcing, business re-engineering and systems solutions.

Andrew has an extensive history in the provision of professional management and business consulting services to a diverse range of not for profit, commercial and private clients. Andrew specialises in the SME, finance, wine industry, aged care and welfare service industries. His particular field of expertise includes strategic planning, business planning, management consulting, systems reviews, and financial management information systems.

Andrew has a Bachelor of Economics and is a member of the Certified Practicing Accountants, a Registered Tax Agent, Certified Professional Manager and a Fellow of the Australian Institute of Management.













Andrew McFarlane FAIMAfter gaining invaluable consulting experience in organisations such as Hungerfords,

and KPMG, Andrew established his own consulting company MOMENTUM Business

Advisors Pty Ltd in 1988 where he is Principal Consultant. Andrew is a Director of

multiple companies in the Momentum Property Group, Member of the Women’s

and Children’s Health Network – Audit and Risk Committee, the CEO of the Italian

Benevolent Foundation SA Inc (Aged Care Provider with over 550 staff) and was

previously a Director of Nepenthe Wine Group.

MOMENTUM Business Advisors Pty Ltd provides a range of professional consulting

services including accounting advice, taxation, financial management information

systems, business advisory, executive outsourcing, business re-engineering and

systems solutions.

Andrew has an extensive history in the provision of professional management and

business consulting services to a diverse range of not for profit, commercial and

private clients. Andrew specialises in the SME, finance, wine industry, aged care

and welfare service industries. His particular field of expertise includes strategic

planning, business planning, management consulting, systems reviews, and financial

management information systems.

Andrew has a Bachelor of Economics and is a member of the Certified Practicing

Accountants, a Registered Tax Agent, Certified Professional Manager and a Life

Member of the Australian Institute of Management.

Ann Messenger FAIMAnn Messenger is a Chartered Accountant who studied marketing and operations

management before specialising in accounting and finance. Ann began her career

in banking and has had a range of commercial experiences both in Australia and

overseas, including six years in Latin America where, as an equities analyst, she

covered emerging markets during the mid-1990s.

In Australia, Ann has worked in corporate finance and middle market advisory roles

with accounting firms KPMG and HLB Mann Judd in the early 2000s before moving

into Chief Financial Officer and Chief Operating Officer roles with organisations

including the Sydney Chamber of Commerce. In recent years Ann has developed a

strong interest in the not-for-profit and education sectors. Ann worked as General

Manager of St John’s College (within the University of Sydney) from 2009-10 with

responsibility for the financial and commercial management of the College. In 2011,

Ann was appointed to the Mosman Council’s Development Assessment Panel.

Ann is a Fellow of the Australian Institute of Management.



Grant Dearlove FAIM, DirectorGrant Dearlove is a Lawyer and Company Director. Across his career Grant has owned, worked for, and consulted to Professional Service firms in disciplines spanning property, franchising, risk, insurance, M&A, funds management, and legal.

Grant has held the positions of Managing Director of Colliers International Residential for Australia, Managing Director of PRDnationwide, and CEO of Verifact. Grant is currently a National Partner with Shine Lawyers. Grant is also a Non-executive Director of Oliver Hume Australia (Australia’s leading residential property agency), Chairman of Oliver Hume SEQ, Chairman of Oliver Hume Apartments Victoria and Deputy Chairman of Invest Logan (the economic development arm of the Logan City Council).

Grant is a Director of the Centre for Public Management and a trustee of the John Story Memorial Trust. Grant was formerly a Non-executive Director of Sunshine Coast Destination Limited (Sunshine Coast Tourism), Sunshine Cooperative Housing Society Limited, Countrywide Cooperative Housing Society Limited, National Director of Colliers International and related companies, a Director of Arete Executive and Partner with McInnes Wilson Lawyers.

Grant has a Bachelor of Laws, a Master of Laws, a Master of Business Administration, and a Graduate Diploma in Applied Corporate Governance. Grant is a Fellow of the Australian Institute of Management and has spent his life in the Professional Services arena and studied leadership of professional service organisations at Harvard University.

Andrew McFarlane FAIM, DirectorAfter gaining invaluable consulting experience in organisations such as Hungerfords, and KPMG, Andrew established his own consulting company MOMENTUM Business Advisors Pty Ltd in 1988 where he is principal consultant. Andrew is a director of multiple companies in the Momentum Property Group, Member of the Women’s and Children’s Health Network – Audit and Risk Committee, the CEO of the Italian Benevolent Foundation SA Inc (Aged Care Provider with over 550 staff) and was previously a director of Nepenthe Wine Group.

MOMENTUM Business Advisors Pty Ltd provides a range of professional consulting services including accounting advice, taxation, financial management information systems, business advisory, executive outsourcing, business re-engineering and systems solutions.

Andrew has an extensive history in the provision of professional management and business consulting services to a diverse range of not for profit, commercial and private clients. Andrew specialises in the SME, finance, wine industry, aged care and welfare service industries. His particular field of expertise includes strategic planning, business planning, management consulting, systems reviews, and financial management information systems.

Andrew has a Bachelor of Economics and is a member of the Certified Practicing Accountants, a Registered Tax Agent, Certified Professional Manager and a Fellow of the Australian Institute of Management.



Ann Messenger FAIM, DirectorAnn Messenger is a Chartered Accountant who studied marketing and operations management before specialising in accounting and finance. Ann began her career in banking and has had a range of commercial experience both in Australia and overseas, including 6 years in Latin America where, as an equities analyst, she covered emerging markets during the mid-1990s.

In Australia, Ann has worked in corporate finance and middle market advisory roles with accounting firms KPMG and HLB Mann Judd in the early 2000s before moving into Chief Financial and Chief Operating Officer roles with organisations including the Sydney Chamber of Commerce. In recent years Ann has developed a strong interest in the not-for-profit and education sectors. Ann worked as General Manager of St John’s College (within the University of Sydney) from 2009-10 with responsibility for the financial and commercial management of the College. In 2011, Ann was appointed to the Mosman Council’s Development Assessment Panel.

Prof Danny Samson FAIM, DirectorDanny Samson is a Professor of Management at The University of Melbourne in the Faculty of Business and Economics, Department of Management and Marketing – a professorship he has held since 1988. Danny’s early career was as an engineer in industry, before taking lecturer roles at University of New South Wales and The University of Illinois.

Danny is a leader in management education in Australia and internationally. Danny continues to lead in all aspects of management education as a consultant, researcher, teacher and author. Danny continues to hold a number of highly relevant Directorships and is a Fellow of AIM.

Selina Lightfoot FAIM, DirectorSelina Lightfoot has had a commercial legal career spanning over 19 years, including 10 years as a Partner at Freehills as part of its Corporate Group.

Selina’s areas of expertise include mergers and acquisitions, business separation and integration, outsourcing, corporate law, contracting and governance. Within her legal roles, Selina has been exposed to a broad range of industries, including technology, financial services, resources and retail. The clients she has worked with range from ASX100 companies and global corporates, to start ups and private businesses.

Selina is currently a Consultant to Freehills as part of its Telco, Media and Technology Group, as well as a member of the Freehills Foundation Board which oversees its pro bono and community programs. Selina is also a member of an Advisory Board to TLC Aged Care, a private aged care provider in Victoria.

In addition to her legal qualifications, Selina holds a Graduate Diploma in Applied Finance and Investment and is a Graduate of the Australian Institute of Company Directors.




Prof Danny Samson FAIMDanny Samson is a Professor of Management at The University of Melbourne in the

Faculty of Business and Economics, Department of Management and Marketing –

a professorship he has held since 1988. Danny’s early career was as an engineer

in industry, before taking lecturer roles at University of New South Wales and The

University of Illinois.

Danny is a leader in management education in Australia and internationally. He has

written several books and over a hundred articles on many aspects of management. He

consults to various organisations on matters of strategy and operations, and teaches

courses ranging from undergraduates through professional Masters degrees and PhD.

He conducts executive programs in both the public arena and in-house, on a variety of

subjects. His current research is focussed around innovation capability and operational

excellence.

Danny is a Fellow of the Australian Institute of Management.

Chris Westworth FAIMChris Westworth was a senior audit partner with Ernst & Young until June 2010 with

responsibilities for clients and risk management in the audit division. As a senior

audit partner with over 30 years of experience, his work with Ernst & Young’s clients

in the UK, Europe and Australia covered a wide range of industries including the

property industry, financial services, media and healthcare. Major clients included News

Corporation, Westfield Holdings Limited and Sydney Airports Corporation.

Chris is a Director of the Water New South Wales, and Viscopy Ltd and is a member

of the Audit and Risk Committee of UTS and also a principal in the accounting and

governance practice Westworth Kemp Pty Ltd.

Chris is a qualified Chartered Accountant and holds a Bachelor of Laws. He is a Fellow

of the Australian Institute of Company Directors and Fellow of the Australian Institute

of Management.



Ann Messenger FAIM, DirectorAnn Messenger is a Chartered Accountant who studied marketing and operations management before specialising in accounting and finance. Ann began her career in banking and has had a range of commercial experience both in Australia and overseas, including 6 years in Latin America where, as an equities analyst, she covered emerging markets during the mid-1990s.

In Australia, Ann has worked in corporate finance and middle market advisory roles with accounting firms KPMG and HLB Mann Judd in the early 2000s before moving into Chief Financial and Chief Operating Officer roles with organisations including the Sydney Chamber of Commerce. In recent years Ann has developed a strong interest in the not-for-profit and education sectors. Ann worked as General Manager of St John’s College (within the University of Sydney) from 2009-10 with responsibility for the financial and commercial management of the College. In 2011, Ann was appointed to the Mosman Council’s Development Assessment Panel.

Prof Danny Samson FAIM, DirectorDanny Samson is a Professor of Management at The University of Melbourne in the Faculty of Business and Economics, Department of Management and Marketing – a professorship he has held since 1988. Danny’s early career was as an engineer in industry, before taking lecturer roles at University of New South Wales and The University of Illinois.

Danny is a leader in management education in Australia and internationally. Danny continues to lead in all aspects of management education as a consultant, researcher, teacher and author. Danny continues to hold a number of highly relevant Directorships and is a Fellow of AIM.

Selina Lightfoot FAIM, DirectorSelina Lightfoot has had a commercial legal career spanning over 19 years, including 10 years as a Partner at Freehills as part of its Corporate Group.

Selina’s areas of expertise include mergers and acquisitions, business separation and integration, outsourcing, corporate law, contracting and governance. Within her legal roles, Selina has been exposed to a broad range of industries, including technology, financial services, resources and retail. The clients she has worked with range from ASX100 companies and global corporates, to start ups and private businesses.

Selina is currently a Consultant to Freehills as part of its Telco, Media and Technology Group, as well as a member of the Freehills Foundation Board which oversees its pro bono and community programs. Selina is also a member of an Advisory Board to TLC Aged Care, a private aged care provider in Victoria.

In addition to her legal qualifications, Selina holds a Graduate Diploma in Applied Finance and Investment and is a Graduate of the Australian Institute of Company Directors.



Chris Westworth FAIM, DirectorChris Westworth was a senior audit partner with Ernst & Young until June 2010 with responsibilities for clients and risk management in the audit division. As a senior audit partner with over 30 years of experience, his work with Ernst & Young’s clients in the UK, Europe and Australia covered a wide range of industries including the property industry, financial services, media and healthcare. Major clients included News Corporation, Westfield Holdings Limited and Sydney Airports Corporation.

Chris is a qualified Chartered Accountant and holds a Bachelor’s of Laws. Chris is a fellow of the Australian Institute of Company Directors and Fellow of the Australian Institute of Management.

Chris is a principal of Westworth Kemp Consultants which provides accounting and governance advice and expert witness services. Christopher is a director of the Bulk Water NSW and Viscopy Ltd. Chris is also on the Audit and Risk Committee of University of Technology Sydney and an advisor to the Audit and Risk Management Committee of NRMA.

John Withers FAIM, DirectorJohn Withers has extensive experience as a leader and manager in Defence, and more recently in the private and public sectors.

After completing schooling in Melbourne, John entered the Royal Military College and served as an officer in the Australian Regular Army for 25 years in the infantry and the Special Air Service Regiment. After leaving the Regular Army in 1998, John moved to Hobart where he has worked in the private and public sectors.

John is currently a HR specialist with the Tasmanian State Government holding a number of positions in the Department of Education and more recently the Department of Justice.

For the past 12 years has been an active member of AIM in Tasmania serving as a member of the local committee of management, implementing and facilitating on the Aspiring Manager Program, and the AIM Business Leadership Awards.

Mike Zissler FAIM, DirectorMike Zissler is the Chief Executive of Lifeline Canberra having been in that role since January 2010. Prior to this appointment Mike was the Commander of the Northern Territory Emergency Intervention and the Chief Executive Officer of a large ACT Government Department. He has extensive public sector experience having been in senior roles with a number of State and Territory Government agencies.

Mike trained as a Registered Nurse and specialised in Paediatrics before undertaking a Bachelor degree in Health Administration and a Masters of Business Administration. Mike is a Fellow of the Australian Institute of Management, a Fellow of the Australasian College of Health Service Management, a Member of the Institute of Company Directors and is currently the Deputy Chair of the ACT & Region Chamber of Commerce and Industry.


John Withers FAIMJohn Withers has extensive experience as a leader and manager in Defence, and more

recently in the private and public sectors. After completing his schooling in Melbourne,

John entered the Royal Military College and served as an officer in the Australian

Regular Army for 25 years in the Infantry and the Special Air Service Regiment. After

leaving the Regular Army in 1998, John moved to Hobart where he has worked in the

private and public sectors.

John is currently a HR specialist with the Tasmanian State Government holding

a number of positions in the Department of Education and more recently the

Department of Justice.

For the past 12 years, he has been an active member of AIM in Tasmania serving as a

member of the local committee of management, implementing and facilitating on the

Aspiring Manager Program, and the AIM Business Leadership Awards.

John is a Fellow member of the Australian Institute of Management.

Mike Zissler FAIMMike Zissler is the Chief Executive of The Australian Property Institute having been in

that role since October 2014. Prior appointments include the Chief Executive Officer of

Lifeline Canberra, the Commander of the Northern Territory Emergency Intervention

and the Chief Executive Officer of a large ACT Government Department. He has

extensive public sector experience having been in senior roles with a number of State

and Territory Government agencies.

Mike trained as a Registered Nurse and specialised in Paediatrics before undertaking a

Bachelor’s degree in Health Administration and a Masters of Business Administration.

Mike is a Fellow of the Australian Institute of Management, a Fellow of the Australasian

College of Health Service Management, a Member of the Institute of Company

Directors and is currently the Chair of the ACT & Region Chamber of Commerce and

Industry.



Chris Westworth FAIM, DirectorChris Westworth was a senior audit partner with Ernst & Young until June 2010 with responsibilities for clients and risk management in the audit division. As a senior audit partner with over 30 years of experience, his work with Ernst & Young’s clients in the UK, Europe and Australia covered a wide range of industries including the property industry, financial services, media and healthcare. Major clients included News Corporation, Westfield Holdings Limited and Sydney Airports Corporation.

Chris is a qualified Chartered Accountant and holds a Bachelor’s of Laws. Chris is a fellow of the Australian Institute of Company Directors and Fellow of the Australian Institute of Management.

Chris is a principal of Westworth Kemp Consultants which provides accounting and governance advice and expert witness services. Christopher is a director of the Bulk Water NSW and Viscopy Ltd. Chris is also on the Audit and Risk Committee of University of Technology Sydney and an advisor to the Audit and Risk Management Committee of NRMA.

John Withers FAIM, DirectorJohn Withers has extensive experience as a leader and manager in Defence, and more recently in the private and public sectors.

After completing schooling in Melbourne, John entered the Royal Military College and served as an officer in the Australian Regular Army for 25 years in the infantry and the Special Air Service Regiment. After leaving the Regular Army in 1998, John moved to Hobart where he has worked in the private and public sectors.

John is currently a HR specialist with the Tasmanian State Government holding a number of positions in the Department of Education and more recently the Department of Justice.

For the past 12 years has been an active member of AIM in Tasmania serving as a member of the local committee of management, implementing and facilitating on the Aspiring Manager Program, and the AIM Business Leadership Awards.

Mike Zissler FAIM, DirectorMike Zissler is the Chief Executive of Lifeline Canberra having been in that role since January 2010. Prior to this appointment Mike was the Commander of the Northern Territory Emergency Intervention and the Chief Executive Officer of a large ACT Government Department. He has extensive public sector experience having been in senior roles with a number of State and Territory Government agencies.

Mike trained as a Registered Nurse and specialised in Paediatrics before undertaking a Bachelor degree in Health Administration and a Masters of Business Administration. Mike is a Fellow of the Australian Institute of Management, a Fellow of the Australasian College of Health Service Management, a Member of the Institute of Company Directors and is currently the Deputy Chair of the ACT & Region Chamber of Commerce and Industry.



Directors’ remuneration The Company pays $25,000 annual fees to its Directors,

$27,500 annual fees to Directors who chair a Board Sub-

committee and $50,000 annual fees to the Chairman.

Indemnity and insurance of officersThe Company has indemnified the Directors and Executives

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 of the Company

and Executives of the Group against a liability to the extent

permitted by the Corporations Act 2001. The contract of

insurance prohibits disclosure of the nature of liability and the

amount of the premium.

Members’ liabilityThe Australian Institute of Management (Group) Limited is a

company limited by guarantee and the liability of its Members

is limited.

Effective from the merger, the voting rights of Members

of Qld/NT, NSW/ACT, Vic/Tas and SA divisions of AIM

were transferred to AIM Group Limited. They have since

been offered membership of AIM Group Limited. The only

remaining Members of the four former divisions are the

Director Member.

Member of AIM Group Limited undertakes to contribute to

the assets of the Company if it is wound up while the Member

is a Member, or within one year after the Member ceases to

be a Member, for:

> the payment of the debts and liabilities of the

Company, contracted before the Member ceases

to be a Member;

> the expenses of winding up the Company; and

> the adjustment of the rights of the contributories

among themselves.

The amount of the contribution must not exceed $2.00 in any

circumstances.

DIRECTORS


Ann Messenger FAIM Director Sydney 23 March 2015

Andrew McFarlane FAIM Director Sydney 23 March 2015

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set out on

page 26.

Non-audit servicesPricewaterhouseCoopers (PwC) is the auditor of the Company, its controlled entities and subsidiaries.

During the period PwC provided the following non-audit services to the Company and its controlled entities. Directors are

satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors

imposed by the Corporations Act 2001. The nature and scope of non-audit services provided means that auditors’

independence was not compromised.

PwC received or is due to receive the following amounts for the provision of non-audit services:

31 December 2014 $

31 December 2013 $

Accounting and tax services 7,854 11,390

Legal and corporate advisory services (non-recurring) 263,725 -

Total non-audit services 271,579 11,390

This report is made and signed in accordance with a resolution of Directors.

AUDITOR INDEPENDENCE AND NON-AUDIT SERVICES


PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation.

9

Auditor’s Independence Declaration

As lead auditor for the audit of Australian Institute of Management (Group) Limited for the year ended 31 December 2014, I declare that to the best of my knowledge and belief, there have been:

a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b) no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of Australian Institute of Management (Group) Limited and the entities it controlled during the period.

Susan Horlin Sydney Partner PricewaterhouseCoopers

23 March 2015


NoteConsolidated

2014 $

Consolidated 2013

$

CURRENT ASSETS

Cash and cash equivalents 7 1,991,722 8,839,023

Other deposits 8 - 2,003,430

Assets classified as held for sale - continued operations 9 690,000 774,614

Assets classified as held for sale - discontinued operations 10 12,694,219 -

Receivables 11 126,372 3,257,543

Inventories 12 - 110,420

Prepayments & other current assets 13 34,281 760,366

Total current assets 15,536,594 15,745,396

NON-CURRENT ASSETS

Property, plant and equipment 14 14,462,600 15,722,772

Investment in an associate 15 - 186,035

Intangible assets 16 241,296 5,072,825

Available for sale financial assets 17 18,059,844 -

Other deposits 8 16,706 4,567,904

Goodwill 18 - 2,778,413

Total non-current assets 32,780,446 28,327,949

Total assets 48,317,040 44,073,345

CURRENT LIABILITIES

Payables 19 1,350,789 5,957,775

Other current liabilities 20 1,377,708 4,559,175

Provisions 21 54,303 643,930

Liabilities directly associated with assets classified as held for sale

10 12,694,219 -

Total current liabilities 15,477,019 11,160,880

NON-CURRENT LIABILITIES

Provisions 21 3,579 93,246

Total non-current liabilities 3,579 93,246

Total liabilities 15,480,598 11,254,126

Net assets 32,836,442 32,819,219

EQUITY

Reserves 22 48,011,628 21,542,016

Retained earnings 23 (15,175,186) 11,277,203

Total equity 32,836,442 32,819,219

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

The financial information of the parent entity is summarised under note 30.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 December 2014


NoteConsolidated

2014 $

Consolidated 2013

$

CONTINUED OPERATIONS

Revenue 4 5,433,874 32,516,070

Expenses 5 (6,088,118) (33,379,940)

Loss before income tax from continued operations (654,244) (863,870)

Income tax expense 6 - -

Loss for the year from continued operations (654,244) (863,870)

DISCONTINUED OPERATIONS

Revenue 42,967,805 -

Expenses (54,082,783) -

Operating loss from discontinued operations (11,114,978) -

Provision for impairment of assets (14,683,167) -

Loss for the year from discontinued operations 10 (25,798,145) -

Net loss for the year (26,452,389) (863,870)

OTHER COMPREHENSIVE INCOME (LOSS)

Gain on revaluation of available for sale financial assets 17 175,550 -

Gain/(loss) on revaluation of property, plant & equipment (193,583) 81,201

(18,033) (863,870)

Total comprehensive income for the year (26,470,422) (782,669)

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME As at 31 December 2014


NoteRetained earnings

$Reserves

$Total

$

Balance at 1 January 2013 12,141,073 1,697,502 13,838,575

Total comprehensive income for the year (863,870) - (863,870)

Business combination reserve - 19,763,313 19,763,313

Fair value revaluation of land and buildings - 81,201 81,201

Balance at 31 December 2013 22 & 23 11,277,203 21,542,016 32,819,219

Total comprehensive income for the year (26,452,389) - (26,452,389)

Business combination reserve 22 - 26,487,645 26,487,645

Available for sale reserve - 175,550 175,550

Fair value revaluation of land and buildings - (193,583) (193,583)

Balance at 31 December 2014 22 & 23 (15,175,186) 48,011,628 32,836,442

The above consolidated statement of changes in Members’ equity should be read in conjunction with the attached notes.

CONSOLIDATED STATEMENT OF CHANGES IN MEMBERS’ EQUITY For the year ended 31 December 2014


NoteConsolidated

2014 $

Consolidated 2013

$

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from members and customers (inclusive of GST) 49,427,743 38,491,602

Payments to suppliers and employees (inclusive of GST) (58,520,893) (34,092,667)

Interest received 877,694 425,791

Net cash (outflows)/inflows from operating activities (8,215,456) 4,824,726

CASH FLOWS FROM INVESTING ACTIVITIES

Net proceeds from disposal of property, plant and equipment 17,150,000 450,000

Net cash received from merger of AIM entities 7,200,541 10,915,408

Payments for intangible assets 16 (2,213,373) (1,104,248)

Payments for property, plant and equipment 14 (1,536,557) (4,857,441)

Proceeds from short-term and other deposits 6,554,628 -

Investment in available for sale financial assets (17,884,294) (6,271,334)

Net cash inflows/(outflows) from investing activities 9,270,945 (867,615)

CASH FLOWS USED IN FINANCING ACTIVITIES

Repayment of borrowings (acquired from AIM SA) (2,418,964) -

Net cash outflows for financing activities (2,418,964) -

Net (decrease) in cash and cash equivalents (1,363,475) (867,615)

Net cash of discontinued operations 10 (5,483,826) -

Net decrease in cash and cash equivalents (6,847,301) (867,615)

Cash and cash equivalents at the beginning of the financial year 8,839,023 4,881,912

Cash and cash equivalents at the end of the financial year 7 1,991,722 8,839,023

The cash flow of discontinued operations is disclosed in note 10.

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 December 2014


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 December 2014

Note 1: Corporate informationThe Australian Institute of Management (Group) Limited is

a company limited by guarantee, incorporated in Australia

under the Corporations Act 2001 and domiciled in Brisbane.

The Company’s registered office and principal place of

business is at 369 Boundary Street Spring Hill Qld 4000.

The consolidated financial report of the Australian Institute

of Management (Group) Limited for the year ended 31

December 2014 was authorised for issue in accordance with a

resolution of the Directors dated 23 March 2015. The nature of

the operations and principal activities of the Company and its

controlled entities are described in the Directors’ report.

Note 2: Summary of significant accounting policiesThe principal accounting policies adopted in the preparation

of these consolidated financial statements are set out below.

These policies have been consistently applied to all the years

presented, unless otherwise stated. The financial statements

are for the consolidated entity consisting of Australian

Institute of Management (Group) Limited and its controlled

entities (the Group).

(a) Basis of preparation

These general purpose financial statements have been

prepared in accordance with Australian Accounting

Standards – Reduced Disclosure Requirements, other

authoritative pronouncements of the Australian Accounting

Standards Board, Urgent Issues Group Interpretations

and the Corporations Act 2001. The Australian Institute of

Management (Group) Limited is a not-for-profit entity for the

purpose of preparing the financial statements.

Business combination

At the Annual General Meetings of AIM NSW/ACT and AIM

Qld/NT held on 30 May 2013, members of the respective

divisions voted in favour of a merger between the two

divisions effective 1 June 2013 (first merger). As a result

a new entity Australian Institute of Management (Group)

Limited was formed. Subsequently, at the General Meetings

of AIM Group Limited, AIM Vic/Tas and AIM SA held on 29

November 2013, members of the respective divisions voted in

favour a merger of AIM NSW/ACT, AIM Qld/NT, AIM Vic/Tas

and AIM SA effective 1 January 2014 (second merger).

As a result of the two mergers, the members of AIM NSW/

ACT, AIM Qld/NT, AIM Vic/Tas and AIM SA became members

of AIM Group Limited by virtue of transfer of their voting

rights to AIM Group Limited. The Constitutions of AIM NSW/

ACT, AIM Qld/NT, AIM Vic/Tas and AIM SA were amended and

approved to affect the transfer of voting rights to AIM Group

Limited and granting rights to AIM Group Limited Directors

to appoint Directors of AIM NSW/ACT, AIM Qld/NT, AIM Vic/

Tas and AIM SA. The two mergers satisfied the definition of

a business combination in accordance with the Accounting

Standard AASB 3 Business Combinations.

AASB 3 Business Combinations requires identification of

the legal and accounting acquirer and recognition and

measurement of the identifiable assets acquired and

goodwill created where applicable. The amendments to the

Constitutions of AIM NSW/ACT and AIM Qld/NT to affect the

first merger, transfer of voting rights and grant powers to

the AIM Group Limited Directors to appoint Directors of AIM

NSW/ACT and AIM Qld/NT made AIM Group Limited the legal

acquirer of AIM NSW/ACT and AIM Qld/NT.

AIM Qld/NT was identified as the accounting acquirer in the

first merger and AIM Group Limited was identified as the

accounting acquirer in the second merger.

A third merger was effective 1 November 2014 when AIM

Group Limited became legal and accounting acquirer of AIM

National and therefore the consolidated financial statements

for the year ended 31 December 2014 include two months’

results (November – December 2014) of AIM National.

These mergers were all accounted for by recognising the fair

value of the acquirees’ identifiable net assets at acquisition

date as a direct addition to equity through a business

combination reserve.


Note 2: Summary of significant accounting policies (continued)

Fair value of the acquired identifiable assets and liabilities

The net book value of identifiable assets and liabilities of AIM

Vic/Tas and AIM SA were reviewed against their fair value as

at the date of acquisition i.e. 1 January 2014.

The building asset of AIM Vic/Tas held for sale as at 31

December 2013 was recorded at its net book value. AIM

Vic/Tas had entered into a sale agreement for the building

which settled on 31 March 2014. The fair value of the building

was therefore adjusted to the sale price as at the date of

acquisition on 1 January 2014.

The difference between the net book value and fair value of

all other identifiable assets and liabilities of AIM Vic/Tas and

AIMSA was insignificant. Directors of the Company, therefore,

resolved to record identifiable assets and liabilities other than

the AIM Vic/Tas building at book value as at 1 January 2014.

A summary of acquisition is set out in note 22.

i) Compliance with Australian Accounting Standards –

Reduced Requirements

The consolidated financial statements of Australian Institute

of Management (Group) Limited and its controlled entities

comply with Australian Accounting Standards – Reduced

Disclosure Requirements as issued by the Australian

Accounting Standards Board (AASB).

ii) New and amended standards adopted by the Group

The Group 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.

Any new, revised or amending Accounting Standards or

Interpretations that are not yet mandatory have not been

early adopted. New and amended standards that are

applicable for the first time for the December 2014 annual

year report include:

> AASB 1031 ‘Materiality’ (2013)

> AASB 2012-3 ‘Amendments to Australian Accounting

Standards - Offsetting Financial Assets and Financial

Liabilities’

> AASB 2013-3 ‘Amendments to AASB 136 -

Recoverable Amount Disclosures for Non-Financial

Assets’


Standards - Investment Entities’


Standards’ - Part B: ‘Materiality’


Standards’

> Part A: ‘Annual Improvements 2010-2012 and 2011-

2013 Cycles’

> Part B: ‘Defined Benefit Plans: Employee

Contributions (Amendments to AASB 119)’

> Part C: ‘Materiality’

The adoption of these Accounting Standards and

Interpretations did not affect the Group’s accounting policies

or any of the amounts recognised in the financial statements.

iii) Early adoption of standards

The Company has not elected to adopt any pronouncements

early.

iv) Historical Cost convention

These financial statements have been prepared under the

historical cost convention as modified by the revaluation

of available-for-sale financial assets, financial assets and

liabilities (including derivative instruments) at fair value

through profit or loss, certain classes of property, plant and

equipment and investment property.

The consolidated entity has a policy of independently

revaluing its freehold land and buildings, based on periodic,

but at least triennial valuations by external independent

valuers.

The consolidated financial statements are presented in

Australian dollars, which is the Australian Institute of

Management (Group) Limited’s functional and presentation

currency.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) For the year ended 31 December 2014



(b) Principles of consolidation

The consolidated financial statements of the consolidated

entity incorporate the assets and liabilities of the Company

and its controlled entities at the end of the financial year, and

the results of the Company and its controlled entities during

the financial year. This control is by virtue of the fact that

all Directors of the controlled entities are appointed by the

Company. The Company and its controlled entities together

are referred to in this financial report as the AIM Group.

The effect of all transactions between entities in the

consolidated entity and inter-entity balances are eliminated in

full in preparing the consolidated financial statements.

(c) Income tax

The consolidated entity adopts the liability method of tax-

effect accounting. Under present legislation income derived

by the Group from Members is not assessable for income

tax. Income tax liabilities arise in respect of income derived

from non-Members and investments less certain allowable

deductions.

The controlled entities of the Company have been advised

by the Australian Taxation Office that they are exempt from

Income Tax pursuant to the Income Tax Assessment Act 1997

except the Australian Institute of Management NSW/ACT

Limited which is a taxable entity.

Centre for Public Management Pty Ltd (CPM), a wholly owned

subsidiary of the Company’s controlled entity AIM NSW/ACT,

is a taxable entity.

TheCyberInstitute Pty Ltd, an associate of the Company’s

controlled entity AIMET, is also a taxable entity.

(d) Foreign currency

Transactions denominated in a foreign currency are

recorded at the exchange rates prevailing at the date of the

transactions. Foreign currency payables at balance date

are translated at exchange rates current at the balance

date. Exchange gains and losses are brought to account in

determining the profit or loss for the financial year.

(e) Revenue

Revenue of the Group includes personal membership and

corporate partner subscriptions to the Group, the provision

of related services and research service income (net of

discounts). Subscription revenue is recognised progressively

over the subscription period and research service income is

recognised when the service is provided.

Revenue from the controlled entities is earned from the

provision of management training courses, the sale of

management educational material and the hiring of facilities.

Course and other training related revenue is recognised when

the service is provided.

Convention revenue and expenses are recognised in

accordance with the percentage of completion method unless

the outcome of the convention cannot be reliably estimated.

Where it is probable that a loss will arise from a convention,

the excess of total cost over revenue is recognised as an

expense.

Other revenue including property lease rental and interest

income is recognised on an accruals basis.

(f) Receivables

All trade debtors are recognised at the amounts receivable as

they are due for settlement at no more than 30 days.

Collectability of trade debtors is reviewed on an ongoing

basis. Bad debts which are known to be uncollectible are

written off during the year in which they are identified. A

provision for doubtful debts is established where there is

objective evidence that the consolidated entity will not be

able to collect all amounts due according to the original terms

of receivables. The movement in provision is recognised in

the income statement.

(g) Inventories

Finished goods for resale are stated at the lower of cost and

net realisable value. Costs have been assigned to individual

inventory quantities on hand at the balance date on a first-in-

first-out basis using actual costs.




(h) Investment in Financial Instruments

Investments in financial instruments are designated as

available for sale financial assets if they do not have fixed

maturities and fixed or determinable payments, and

management intends to hold them for medium to long term.

The financial assets are presented as non-current assets

unless they mature, or management intends to dispose of

them within 12 months of the end of reporting period.

Changes in the fair value and exchange differences arising on

translation of investments that are classified as available for

sale financial assets (for example equities), are recognised

in other comprehensive income accumulated in a separate

reserve with equity. Amounts are reclassified to profit and

loss when the associated assets are sold or impaired.

(i) Property, plant and equipment

Land and buildings are shown at fair value, based on periodic,

but at least triennial valuations by external independent

valuers, less subsequent depreciation for buildings. Any

accumulated depreciation at the date of revaluation is

eliminated against the gross carrying amount of the asset

and the net amount is restated to the revalued amount of

the asset. All other property, plant and equipment are stated

at historical cost less depreciation. Historical cost includes

expenditure that is directly attributable to the acquisition of

the items.

Increases in the carrying amounts arising on revaluation

of land and buildings are credited to the asset revaluation

reserve in equity.

Property, plant and equipment, other than freehold land, are

depreciated over their expected useful lives using the straight

line method. The expected useful lives are as follows:

Buildings 40 years

Leasehold improvements 5-15 years

Plant and equipment 3-10 years

The assets’ residual values and useful lives are reviewed and

adjusted if appropriate at each balance sheet date.

Gains and losses on disposal of property, plant and

equipment are taken into account in determining the profit

for the financial year.

(j) Leased assets

Leases under which all the risks and benefits of ownership are

effectively retained by the lessor are classified as operating

leases. Operating lease payments are charged to expenses in

the financial periods in which they occur.

(k) Trade and other creditors

The amounts represent liabilities for goods and services

provided to the consolidated entity prior to the end of the

financial year and which are unpaid. The amounts are usually

paid within 30 days of recognition.

(l) Employee entitlements

i) Wages, salaries and annual leave

Liabilities for wages and salaries and annual leave expected

to be settled within 12 months of the reporting date are

recognised in respect of employees’ services up to the

reporting date and are measured at the amounts expected to

be paid when the liabilities are settled.

ii) Long service leave

The liability for long service leave expected to be settled

within 12 months of the reporting date is measured in

accordance with (i) above. The liability for long service

leave expected to be settled more than 12 months from the

reporting date is measured as the present value of expected

future payments to be made in respect of services provided

by the 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 to match as closely as

possible, the estimated future cash outflows.

iii) Superannuation

Contributions to external employee superannuation plans are

charged as an expense when the contributions are paid or

become payable.

iv) Employee benefits on-costs

Employee benefits on-costs, including payroll tax, are

recognised and included in employee benefits costs and in

liabilities when the employee benefits to which they relate are

recognised as liabilities.




(m) Cash and cash equivalents

For the purpose of the cash flow statement, cash includes

cash on hand and deposits held with banks, net of any bank

overdrafts.

Cash and cash equivalents include cash on hand, deposits

held at call with financial institutions, other short-term, highly

liquid investments that are readily convertible to known

amounts of cash.

(n) Assets classified as held for sale

Assets are classified as held for sale and stated at the lower

of their carrying amount and fair value less costs to sell if

their carrying amount will be recovered principally through a

sale transaction rather than through continuing use.

An impairment loss is recognised for any initial or subsequent

write down of the asset to fair value less costs to sell. A gain

is recognised for any subsequent increases in fair value less

costs to sell of an asset, but not in excess of any cumulative

impairment loss previously recognised. A gain or loss not

previously recognised by the date of the sale of the non-

current asset is recognised at the date of de-recognition.

Assets classified as held for sale are presented separately

from the other assets in the statement of financial position,

and are not depreciated or amortised while they are classified

as held for sale.

(o) Intangible assets

Website and other IT development

Website and other IT development costs are recognised as

intangible assets only when it is probable that the expected

economic benefits that are attributable to them flow to the

Group and the costs can be measured reliably. Expenditure

relating to the planning stage of website and other IT

developments are expensed when incurred.

Capitalised web and other IT development expenditure is

stated at cost less accumulated amortisation. Website and

other IT development is amortised over five to seven years

using the straight line method.

Training course development

The Company’s controlled entities develop training course

curriculum to be used in a wide range of specific and tailored

training programmes for both members and non-members.

Capitalised development expenditure is stated at cost less

accumulated amortisation. Training course development

is amortised over three to five years using the straight line

method.

Work in progress

Website, other IT and training course development costs are

initially accounted for as work in progress before recognised

as intangible assets. Work in progress is stated at the lower of

cost and net realisable value.

(p) Provisions

Provisions are recognised when: the consolidated entity has

a present legal or constructive obligation as a result of past

events; it is more likely than not that an outflow of resources

will be required to settle the obligation; and the amount of

the obligation can be reliably estimated. Provisions are not

recognised for future operating losses.

(q) Critical estimates, judgments and errors

The preparation of financial statements requires the use of

accounting estimates, which, by definition, will seldom equal

the actual results. Management has exercised its judgements

in applying the group’s accounting policies.

(r) Parent entity financial information

The financial information for the parent entity, Australian

Institute of Management (Group) Limited disclosed in note

30 has been prepared on the same basis as the consolidated

financial statements.



Note 3: Financial risk management objectives and policiesThe Group’s principal financial instruments comprise

receivables, payables, cash and short-term deposits.

The Group manages its exposure to key financial risks in

accordance with the AIM Risk Management Framework. The

objective of the Framework is to support the delivery of the

Group’s financial targets while protecting future financial

security.

The main risks arising from the Group’s financial instruments

are credit risk and liquidity risk. The Group uses different

methods to measure and manage different types of risks to

which it is exposed.

These include aging analysis and monitoring of specific credit

allowances undertaken to manage credit risk. Liquidity risk

is monitored through the development of future rolling cash

flow forecasts. The Board reviews and agrees policies for

managing each of these risks.

(a) Credit risk

Credit risk arises from the financial assets of the Group,

which comprise cash and cash equivalents, trade and other

receivables. The Group’s exposure to credit risk arises from

potential default of the counter party, with a maximum

exposure equal to the carrying amount of these instruments.

Exposure at balance date is addressed in each applicable

note.

The Group trades only with recognised, creditworthy third

parties, and as such collateral is not requested nor is it the

Group’s policy to securitise its trade and other receivables.

It is the Group’s policy that all customers who wish to trade

on credit terms are subject to credit verification procedures

including an assessment of their independent credit rating,

financial position, past experience and industry reputation.

In addition, receivable balances are monitored on an ongoing

basis with the result that the Group’s exposure to bad debts

is not significant. There are no significant concentrations of

credit risk within the Group.

(b) Liquidity risk

Liquidity risk arises from the timing differences between

cash inflows and cash outflows. The Group’s objective is

to maintain a balance between continuity of funding and

flexibility. The Board has in place working capital and

reinvestment targets and regularly monitors forward cash

flow forecasts.

(c) Fair value

Due to short term nature of these financial assets and

liabilities, their carrying amounts are assumed to approximate

their fair values.

Note 4: Revenue from continuing operations

Consolidated 2014

$

Consolidated 2013

$

Revenue from continuing operations

Training revenue - 21,669,835

Events, sponsorship and other revenue 351,769 7,282,808

Book revenue - 563,913

Membership revenue 3,196,822 1,967,690

Research revenue 1,001,028 222,056

Rent 6,561 153,419

Gain on loss of control of subsidiary - 230,558

Interest revenue 877,694 425,791

5,433,874 32,516,070

The training and book revenue for 2014 is included in the revenue from discontinued operations disclosed in note 10.



Note 5: Operating expenses

Consolidated 2014

$

Consolidated 2013

$

Expenses

Employee costs 1,496,859 12,565,579

Consultants 94,506 1,335,004

Cost of sales 981,761 9,405,899

Depreciation and amortisation 47,564 3,259,603

Marketing and promotion 672,506 356,922

Rent and venue hire - 2,790,158

Maintenance costs 1,005 327,940

Electricity - 282,485

Provision for settlement adjustment of the disposal group 762,651 -

Impairment of assets classified as held for sale - continued operations 84,614 -

Travel and accommodation 143,695 559,086

Other expenses of operating activities 1,802,957 2,497,264

6,088,118 33,379,940

Included within other expenses are:

Doubtful debts (16,974) 35,694

Employee entitlements – superannuation 100,613 859,708

All expenses related to the Training business for 2014 are included in the expenses of discontinued operations disclosed in

note 10.

Note 6: TaxationThe amount of income tax attributable to the financial year differs from the amount prima facie payable on the profit before

income tax. The differences are reconciled as follows:

Consolidated 2014

$

Consolidated 2013

$

Loss from continuing operations before income tax expense (654,244) (863,870)

Loss from discontinuing operation before income tax expense (25,798,145) -

(26,452,389) (863,870)

Prima facie income tax on profit before income tax at 30% (2013: 30%) (7,935,717) (259,162)

Tax effect of permanent differences which reduce tax payable

Non-assessable profits and losses 8,001,018 164,441

Prima facie tax adjusted for permanent differences 65,301 (94,721)

Tax effect of temporary differences (61,876) (43,571)

Tax losses not (recouped)/booked (3,425) 138,292

Income tax attributable to profit before income tax - -



Note 7: Cash and cash equivalents

Consolidated 2014

$

Consolidated 2013

$

Cash at bank and in hand 1,991,722 2,408,829

Short-term deposits - 6,430,194

1,991,722 8,839,023

Short term deposits from 2013 were invested upon maturity in high yield low-medium risk financial instruments through JBWere in 2014.

Note 8: Other deposits

Consolidated 2014

$

Consolidated 2013

$

Short-term deposits (restricted) – current - 2,003,430

Short-term deposits (restricted) – non current 16,706 4,567,904

16,706 6,571,334

Other deposits in 2013 included $5,551,334 invested in short-term deposits secured against bank guarantees issued to secure all

obligations of the Group as tenants under its leases of the Sydney and Canberra premises and $1,020,000 invested in short-term

deposit secured against bank guarantees issued to fulfil the requirements under Registered Training Organisation (RTO) Essential

Standards for Continuing Registration - NVR Registered Training Organisations 2011. These Standards require RTOs to provide

assurance against prepayments from students (or future students) for tuition to be provided by the RTOs to those students. In

2014, these bank guarantees were secured against a registered mortgage bond on one of the Group buildings located at 369

Boundary Street Spring Hill Qld as security over banking facilities of $4,925,000. All short term deposits, upon maturity, were

invested in high yield low-medium risk financial instruments through JBWere in 2014.

Note 9: Assets classified as held for sale – continued operations

Consolidated 2014

$

Consolidated 2013

$

Freehold land and buildings 774,614 774,614

Less: Provision for impairment (84,614) -

690,000 774,614

The asset held for sale at 31 December 2014 is comprised of Unit 14 of the Barton property in Canberra ACT owned by the

Company’s subsidiary entity Australian Institute of Management NSW & ACT Training Centre Limited, which is currently being

marketed for sale. The amount represents the lower of carrying amount and fair value less costs to sell.



Liabilities directly associated with assets classified as held for sale

Payables 8,367,284 -

Other current liabilities 3,024,052 -

Provisions 1,302,883 -

Total liabilities directly associated with assets classified as held for sale 12,694,219 -

Note 10: Discontinued operationsDuring the year the Group made the decision to enter into negotiations to dispose of the Training business (the disposal

group). By agreement dated 10 February 2015, the Group agreed to dispose of the Training business, through the Group

entering into an Exchangeable Note Subscription Deed which transferred control of the disposal group to CHAMP Ventures.

The disposal group is reported in the current period as discontinued operation.

The effect of this presentation is as follows:

> The assets and liabilities of the disposal group are classified as held for sale in the current period balance sheet.

> The loss on discontinued operations is separately classified in the current period statement of comprehensive income.

The current and prior period cash flow statement includes both continuing and discontinued operations.

Consolidated 2014

$

Consolidated 2013

$

Financial performance

Revenue 42,967,805 -

Expenses:

Operating expenses (54,082,783) -

Provision for impairment of assets* (14,683,167) -

Loss from discontinued operations (25,798,145) -

* Provision for impairment of assets is to record the disposal group at fair value less cost to sell.

Cash flow information

Net cash outflows used in operating activities (9,286,172) -

Net cash inflows from investing activities 8,554,610 -

Net cash outflows from financing activity (2,418,964) -

Net decrease in cash and cash equivalents (3,150,526) -

Assets classified as held for sale – discontinued operations

Cash and cash equivalents 5,483,826 -

Receivables 4,293,117 -

Inventories 126,821 -

Prepayments and other current assets 1,209,648 -

Property, plant and equipment 8,240,844 -

Investment in an associate 186,035 -

Intangible assets 4,818,819 -

Other deposits 239,863 -

Goodwill 2,778,413 -

Less: provision for impairment of assets** (14,683,167) -

Total assets classified as held for sale 12,694,219 -

** The provision of impairment of assets is firstly applied against goodwill and then pro rata based on carrying value to the other non-financial assets of the disposal group.



Note 11: Receivables

Consolidated 2014

$

Consolidated 2013

$

Enrolment debtors - 1,362,997

Trade debtors 74,868 1,562,141

Other debtors 63,992 594,853

138,860 3,519,991

Less: Provision for doubtful debts (12,488) (262,448)

126,372 3,257,543

Trade receivables

Trade receivables of the Training business are classified as training assets held for sale under discontinued operations.

Trade receivables are non-interest bearing and are generally on 30 day terms. A provision for impairment loss is recognised

when there is objective evidence that an individual trade receivable is impaired. Collectability of trade receivables is reviewed on

an ongoing basis at an operating unit level. Individual debts that are known to be uncollectible are written off when identified.

An impairment provision is recognised when there is objective evidence that the Group will not be able to collect the receivable.

Financial difficulties of the debtor and default payments are considered objective evidence of impairment. The amount of the

impairment loss is the receivable carrying amount compared to the present value of estimated future cash flows, discounted at

the original effective interest rate.

Trade receivables of continued operations past due and considered impaired for the financial year ended 31 December 2014 are

$12,488 (2013: $262,448).

Movements in the provision for impairment of receivables are as follows:Consolidated

2014 $

Consolidated 2013

$

At 1 January 262,448 -

Provision acquired on acquisition - 154,754

Provision for impairment recognised during the year (249,960) 107,694

At 31 December 12,488 262,448

The creation and release of the provision for impaired receivables has been included in ‘other expenses’ in the income statement.

Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash.

Fair value and credit risk

Due to the short term nature of these receivables, their carrying value is assumed to approximate their fair value. The maximum

exposure to credit risk is the fair value of receivables. Collateral is not held as security, nor is it the Group’s policy to transfer (on-

sell) receivables to special purpose entities.



Note 12: Inventories

Consolidated 2014

$

Consolidated 2013

$

Finished goods - 122,016

Less: Provision for slow moving stock - (11,596)

- 110,420

The closing balance of training inventory as at 31 December 2014 is classified as training assets held for sale under

discontinued operations disclosed in note 10. The fair value of this inventory as at 31 December 2014 is $nil.

Note 13: Prepayments and other current assets

Consolidated 2014

$

Consolidated 2013

$

Prepayments and other current assets 34,281 760,366

Included within prepayments and other current assets at 31 December 2013 was January 2014 rent in advance for

Rockhampton, Dysart and Brisbane Induction Training Centres and prepaid Sales Force and NetSuite license fees. Any

prepayments and other current assets related to the training business as at 31 December 2014 have been reclassified as assets

held for sale disclosed in note 10.



Note 14: Property, plant and equipment

Freehold land & buildings

$

Leasehold improvements

$

Plant & equipment

$Total

$

Year ended 31 December 2013

Opening net book amount 7,060,000 1,116,787 2,086,336 10,263,123

Additions 558,624 3,938,258 360,559 4,857,441

Additions from the merger between QLD & NSW - 2,382,422 850,435 3,232,857

Revaluation 81,201 - - 81,201

Disposals - - 35,441 35,441

Depreciation charge (124,825) (1,004,699) (1,335,507) (2,465,031)

Closing net book amount 7,575,000 6,432,768 1,997,264 16,005,032

At 31 December 2013

Cost - 8,232,658 4,366,001 12,598,659

Valuation 7,699,825 - - 7,699,825

Accumulated depreciation (124,825) (1,799,890) (2,650,997) (4,575,712)

Net book amount 7,575,000 6,432,768 1,715,004 15,722,772


Opening net book amount 7,575,000 6,432,768 1,715,004 15,722,772

Additions 133,805 706,331 696,421 1,536,557

Transfers from work in progress - - 66,449 66,449

Effect of merger between AIM Group, AIM VT &

SA24,384,536 800,717 226,108 25,411,361

Revaluation Adjustment - Cost (614,110) - - (614,110)

Revaluation Adjustment - Accumulated

Depreciation420,527 - - 420,527

Transfer to assets classified as held for sale - (6,356,151) (1,884,693) (8,240,844)

Disposals (17,149,056) - (57,140) (17,206,196)

Depreciation charge (295,702) (1,583,665) (754,549) (2,633,916)

Closing net book amount 14,455,000 - 7,600 14,462,600

At 31 December 2014

Cost - 3,383,555 3,413,146 6,796,701

Valuation 14,455,000 - - 14,455,000

Accumulated depreciation - (3,383,555) (3,405,546) (6,789,101)

Net book amount 14,455,000 - 7,600 14,462,600



Note 14: Property, plant and equipment (continued)

(a) Assets pledged as security

One of the freehold land and buildings located at 369

Boundary Street Spring Hill Qld valued at $6,100,000 (2013:

$6,800,000), is subject to a registered mortgage bond

as security over banking facilities of $4,925,000 (2013:

$700,000). This facility is to secure bank guarantees issued

to landlords of the Sydney, Canberra, Melbourne, Mackay,

Emerald and Moranbah leased premises. The unused amount

of the facility as at 31 December 2014 was $1,231,647 (2013:

$700,000).

The terms of the first mortgage precludes the assets being

sold or being used as security for further mortgages without

the permission of the first mortgage holder.

As part of the transitional arrangements with the acquirer

of the Training business, this security will remain in place in

return for market compensation from the Training business.

(b) Valuations

The fair values of all freehold land and buildings at 31

December 2014 have been determined by reference to a

Directors’ valuation, based upon an independent valuation as

at 9 October 2014. Such valuations are performed on an open

market basis, being the amounts for which the assets could

be exchanged between a knowledgeable willing buyer and a

knowledgeable willing seller in an arm’s length transaction at

the valuation date.

The current year’s independent valuation of land and

buildings was performed by LandMark White Pty Limited

(2013: LandMark White Pty Limited).

The net fair value of land and buildings decreased by

$193,583 (2013: increased by $81,201). This includes no

change in the value of land (2013: No change).

Note 15: Investment in associateThe Company’s controlled entity AIMET owns 30% equity

interests in TheCyberInstitute Pty Ltd (a company limited by

shares). This investment in TheCyberInstitute was recorded

at $186,035 in the 2013 consolidated statement of financial

position being the fair value of the remaining interest. This

investment is classified as training assets held for sale as at 31

December 2014 disclosed in note 10.



Note 16: Intangibles

Website & IT development

$

Training course development

$

Work in-Progress

$Total

$


Opening net book amount 54,124 325,531 - 379,655

Additions 194,553 517,546 392,149 1,104,248

Effect of merger between QLD and NSW 3,035,615 1,366,430 - 4,402,045

Disposals - (18,551) - (18,551)

Amortisation charge (243,134) (551,438) - (794,572)

Closing net book amount 3,041,158 1,639,518 392,149 5,072,825

At 31 December 2013

Cost 3,290,442 3,111,645 392,149 6,794,236

Accumulated amortisation (249,284) (1,472,127) - (1,721,411)

Net book amount 3,041,158 1,639,518 392,149 5,072,825


Opening net book amount 3,041,158 1,639,518 392,149 5,072,825

Additions 239,453 157,684 1,816,236 2,213,373

Effect of merger between AIM Group, AIM VT

& SA552,843 84,900 617,666 1,255,409

Transfer to assets classified as held for sale (2,821,048) (1,015,881) (981,891) (4,818,820)

Transfers in from WIP 976,556 516,719 - 1,493,275

Transfers out from WIP - - (1,559,723) (1,559,723)

Disposals (899,304) (749,440) (263,847) (1,912,591)

Amortisation charge (868,952) (633,500) - (1,502,452)

Closing net book amount 220,706 - 20,590 241,296

At 31 December 2014

Cost 1,338,942 2,105,627 20,590 3,465,159

Accumulated amortisation (1,118,236) (2,105,627) - (3,223,863)

Net book amount 220,706 - 20,590 241,296



Note 17: Available for sale financial assets

Available for sale financial assets include the following classes of financial assets:

Consolidated 2014

$

Consolidated 2013

$

Non-current assets:

Cash 2,473,925 -

Listed securities:

Fixed interest 4,068,317 -

Equities 11,517,602 -

15,585,919 -

Total available for sale financial assets 18,059,844 -

Gain on revaluation of available for sale financial assets:

Changes in the fair value and exchange differences arising on translation of investments that are classified as available for sale

financial assets (for example equities), are recognised in other comprehensive income accumulated in a separate reserve with

equity. Amounts are reclassified to profit and loss when the associated assets are sold or impaired.

The gain on revaluation of available for sale assets for the year is $175,550 (2013: nil).

Note 18: Goodwill

Consolidated 2014

$

Consolidated 2013

$

Opening goodwill 2,778,413 -

Goodwill acquired on merger of AIM Qld/NT with AIM NSW/ACT - 2,778,413

Goodwill transferred to assets classified as held for sale (2,778,413) -

Closing goodwill - 2,778,413

In 2013, the goodwill related to the Centre for Public Management (CPM) acquisition by the Company’s controlled entity AIM

NSW/ACT. During 2014 this goodwill was transferred to discontinued operations as it forms part of the disposal group disclosed

in note 10



Note 20: Other current liabilities

Note Consolidated

2014 $

Consolidated 2013

$

Subscriptions in advance 1,377,708 1,105,105

Deferred consideration - 560,074

Course fees in advance 20(a) - 2,893,996

1,377,708 4,559,175

20 (a) Course fees in advance includes

Training paid in advance - 1,330,222

Other revenue in advance - 533,698

Qualifications deferred revenue - 1,004,884

Government funded program deferred revenue - 25,192

- 2,893,996

The course fee in advance as at 31 December 2014 has been transferred to discontinued operations as it forms part of the

disposal group disclosed in note 10.


Note 19: Payables

Consolidated 2014

$

Consolidated 2013

$

Trade creditors 219,470 1,068,604

Rent accrual - 3,776,177

Other creditors and accruals 1,131,319 1,112,994

1,350,789 5,957,775

Rent accrual as at 31 December 2013 related to the deferred lease incentive for 7 Macquarie Place Sydney NSW and 14 Childers

Street Canberra ACT premises. This accrual has been transferred to discontinued operations in 2014 as it forms part of the


Fair value

Due to the short term nature of these payables, their carrying value is assumed to approximate their fair value.


Note 21: Provisions

Consolidated 2014

$

Consolidated 2013

$

Employee benefits and related on-cost liabilities

Current 54,303 643,930

Non-current 3,579 93,246

Aggregate employee benefits and related on-cost liabilities 57,882 737,176

The provision for employee benefits as at 31 December 2014 relates to staff engaged with the continued operations.

The provision for employee benefits related to staff engaged with discontinued operations has been included in the liabilities

of discontinued operations held for sale disclosed in note 10.

Note 22: Reserves

Note Consolidated

2014 $

Consolidated 2013

$

Asset revaluation reserve

Balance 1 January 1,778,703 1,697,502

Fair value revaluation of land and building (193,583) 81,201

Balance 31 December 1,585,120 1,778,703

Available for sale reserve

Balance 1 January - -

Net gain on available for sale financial assets 175,550 -

Balance 31 December 175,550 -

Business combination reserve

Balance 1 January 19,763,313 -

Effect of merger of AIM Group Limited, AIM Vic/Tas, AIM SA and AIM National

22(a) 26,487,645 -

Effect of merger of AIM Qld/NT and AIM NSW/ACT 22(a) - 19,763,313

Balance 31 December 46,250,958 19,763,313

Total reserves 48,011,628 21,542,016

The course fee in advance as at 31 December 2014 has been transferred to discontinued operations as it forms part of the




Note 22: Reserves (continued)

22 (a) Business combination reserve

As described in note 2 to the financial statements, the company, AIM Qld/NT and AIM NSW/ACT merged effective 1 June 2013.

The merger was effected by changes in the constitution of AIM Qld/NT and AIM NSW/ACT, and there was no issuance of shares

or payment of consideration. The merger was accounted for as a reverse acquisition of Australian Institute of Management

(Group) Limited and AIM NSW/ACT by AIM Qld/NT.

The fair value of the net assets acquired by AIM Qld/NT in Australian Institute of Management (Group) Limited and AIM NSW/

ACT by AIM Qld/NT approximated book value and no fair value uplifts or identified intangible assets were recorded in 2013.

Subsequently the company merged with AIM Vic/Tas and AIMSA effective 1 January 2014 and AIM National effective 1 November

2014. These mergers were also effected by changes in the constitution of AIM Vic/Tas, AIM SA and AIM National, and there was

no issuance of shares or payment of consideration.

Fair value of assets acquired at the respective date of the business combinations was as follows:

2014 $

2013$

AIM NSW/ACT - 19,763,313

AIM Vic/Tas 20,823,000 -

AIM SA 5,057,320 -

AIM National 607,325 -

Total fair value of net assets acquired 26,487,645 19,763,313

The fair value of net assets acquired has been consolidated as a direct addition to equity in the business combination reserve.

Business combination reserve – opening balance 19,763,313 -

Business combination during the period 26,487,645 19,763,313

Closing balance 46,250,958 19,763,313

Note 23: Retained Earnings

Consolidated 2014

$

Consolidated 2013

$

Retained surplus at the beginning of the financial year 19,763,313 -

Deficit attributable to members of Australian Institute of Management (Group) Limited 26,487,645 19,763,313

Retained surplus at the end of the financial year 46,250,958 19,763,313

Note 24: Expenditure commitment

Operating Leases

Consolidated 2014

$

Consolidated 2013

$

Not later than one year 3,488,831 3,034,955

Later than one year but not later than five years 11,618,863 10,075,481

Later than five years but not later than ten years 24,004,293 10,765,582

39,111,987 23,876,018




Note 25: Controlled entitiesThe following entities are controlled entities and their subsidiaries as at 31 December 2014 by virtue of the fact that all Directors

are appointed by the Company.

Controlled entities Subsidiaries of controlled entities

Australian Institute of Management NSW/ACT Limited Australian Institute of Management NSW/ACT Training Centre Limited

Australian Institute of Management Canberra Limited

The Octant Foundation

Centre for Public Management Pty Ltd

Australian Institute of Management Education & Training (formerly AIM Qld/NT)

LeaderSpace Limited

Australian Institute of Management Vic/Tas Limited Australian Institute of Management Vic/Tas College of Education and Training Nominee Limited

Australian Institute of Management Vic/Tas Training College Limited

Idria Pty Ltd

Australian Institute of Management South Australian

Division Incorporation

Australian Institute of Management (AIM National)

The Company has no investment in the above noted controlled entities and the Constitutions of the controlled entities preclude

payment of any dividends to the Company.

Note 26: Deed of Cross GuaranteeThe following entities are controlled entities and their

subsidiaries as at 31 December 2014 by virtue of the fact that

all Directors are appointed by the Company.

> Australian Institute of Management (Group) Limited

(holding entity)

> Australian Institute of Management NSW/ACT Limited

> Australian Institute of Management NSW/ACT Training

Centre Limited

> Australian Institute of Management Canberra Limited

> Australian Institute of Management Education &

Training

> Australian Institute of Management Vic/Tas Limited

> Australian Institute of Management Vic/Tas College of

Education & Training Nominee Limited

> Australian Institute of Management (AIM National)

> The Octant Foundation

> LeaderSpace Limited

This Deed of Cross Guarantee was signed in November

2014. By entering into this deed, Australian Institute of

Management NSW/ACT Limited, Australian Institute of

Management NSW/ACT Training Centre Limited, Australian

Institute of Management Canberra Limited, Australian

Institute of Management Education & Training, Australian

Institute of Management Vic/Tas Limited, Australian Institute

of Management Vic/Tas College of Education & Training

Nominee Limited, Australian Institute of Management (AIM

National), The Octant Foundation and LeaderSpace Limited

have been relieved from the requirement to prepare a financial

report and Directors’ report under Class Order 98/1v418 (as

amended) issued by the Australian Securities and Investment

Commission (ASIC).



Note 26: Deed of Cross Guarantee (continued)

The above companies represent a “Closed Group” for the purpose of the Class Order and as there are no other parties to the

Deed of Cross Guarantee that are controlled by the Company, they also represent the “Extended Closed Group”.

Set out below is a consolidated statement of comprehensive income and statement of financial position of the “Closed Group”.

Consolidated statement of financial position (Closed Group)

As at 31 December 2014

Closed Group 2014

$

Current assets

Cash and cash equivalents 1,697,621

Assets classified as held for sale - continued operations 690,000

Assets classified as held for sale - discontinued operations 12,190,096

Receivables 1,706,643

Prepayments & other current assets 34,281

Total current assets 16,318,641

Non-current assets

Property, plant and equipment 6,827,600

Investment in an associate 186,035

Intangible assets 241,296

Available for sale financial assets 18,059,844

Other deposits 16,706

Total non-current assets 25,331,481

Total assets 41,650,122

Current liabilities

Payables 1,350,789

Other current liabilities 1,377,708

Provisions 54,303

Liabilities directly associated with assets classified as held for sale 12,190,096

Total current liabilities 14,972,896

Non-current liabilities

Provisions 3,579

Total non-current liabilities 3,579

Total liabilities 14,976,475

Net assets 26,673,647

Equity

Reserves 42,322,965

Retained earnings (15,649,318)

Total equity 26,673,647



Note 26: Deed of Cross Guarantee (continued)

Consolidated statement of financial position (Closed Group)

As at 31 December 2014

Closed Group 2014

$

Continued Operations

Revenue 5,409,642

Expenses (6,015,200)

Profit before income tax from continued operations (605,558)

Income tax expense -

Total profit for the year (605,558)

Discontinued operations

Loss for the year from discontinued operations (26,320,963)

Net loss for the year (26,926,521)

Other comprehensive income/(loss):

Gain on revaluation of available for sale financial assets 175,550

Loss on revaluation of property, plant and equipment (749,926)

(574,376)

Total comprehensive income for the year (24,169,806)

Note 27: Directors and key management personnel disclosure

Compensation

The aggregate compensation made to Directors and other members of key management personnel of the Group is set out

below:

Consolidated 2014

$

Consolidated 2013

$

Aggregate compensation 2,449,336 2,984,043

Note 28: Related party disclosures

Controlling entities

Australian Institute of Management (Group) Limited is the ultimate parent entity.

Directors and specified key management personnel

Disclosures relating to Directors and specified key management personnel are set out in note 27.

Loans to directors and director-related entities

There are no loans in existence at balance date that have been made, guaranteed or secured by the consolidated entity or any

related entity to directors of the consolidated entity, their spouses, their relatives or entities under their control or significant

influence.

Amounts receivable from and payable to entities in the controlled group and related parties

There are no such balances as at 31 December 2014 (31 December 2013: $nil).



Note 29: Subsequent eventsAIMET (the Training business) has issued Exchangeable Notes to Castle Harlan Australian Mezzanine Partners (CHAMP Ventures)

and entered into an Exchangeable Notes Subscription Deed that allows CHAMP Ventures to effectively manage the Training

business of the Group from 1 March 2015. The Notes are exchangeable with ordinary shares upon AIMET changing its status in

future from a Limited by Guarantee Company to a Company Limited by Shares.

The effect of this is that, by agreement dated 10 February 2015, the Group has agreed to dispose of the Training business (the

disposal group). The disposal group is reported in these financial statements in the current period as a discontinued operation.

The disposal group is recorded in the balance sheet at 31 December 2014 at the fair value of the consideration to be received

which is $ nil. As a result, the net assets of the disposal group have been classified as held for sale in the balance sheet. An

impairment charge of $14,683,167 has been recorded to reduce the net assets to the sale consideration of $nil, leaving gross

assets and liabilities each recorded at $12,694,219.

In addition to the Exchangeable Notes Subscription Deed, on the same date the Group and CHAMP Ventures entered into

Transitional Services Agreement and an Investment Deed which will govern the ongoing relationship between the Company and

AIMET.

The Directors believe that the group’s ongoing service relationship with CHAMP Ventures will provide a platform for capital

investment and growth in the highly competitive VET sector. In addition this venture will create revenue streams for the Group in

the form of commercial rents for AIM Group buildings, royalty fees for the use of AIM brand and growth in membership numbers/

subscriptions. The agreement with CHAMP Ventures will avoid the need and associated risk of investing members’ equity and

cash in the Training business, instead preserving the Group balance sheet for executing the Institute’s mission for the benefit of

all members.

A new Board of AIMET has been established on 1 March 2015 initially with three Directors each from CHAMP Ventures and AIM

Group Limited for a period of 12 months and then three Directors from Champ Ventures and one Director from AIM Group

Limited thereafter. The Chairman of the new AIMET Board is from CHAMP Ventures. There will always be a representation of AIM

Group Board on the AIMET Board.

Other than the matter noted above there has been no matter or circumstance that has significantly affected or may significantly

affect:

a. The operations;

b. The results of those operations; or

c. The state of affairs of the Company.



Note 30: Parent entity financial information

(a) Summary financial information2014

$2013

$

Statement of financial position

Current assets 71,330 503,242

Non-current assets 215,704 700,855

Total assets 287,034 1,204,097

Liabilities (3,136,696) (1,664,375)

Net assets (2,849,662) (460,278)

Members’ equity:

Retained earnings (2,849,662) (460,278)

Loss for the year (2,389,386) (460,278)

Total comprehensive income (2,389,386) (460,278)

(b) Contingent liabilities of the parent entity

The parent entity did not have any contingent liabilities as at 31 December 2014.


In accordance with a resolution of the Directors of Australian Institute of Management (Group) Limited we state that:

In the opinion of the Directors:

(a) the consolidated financial statements and notes of the Company are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the Company’s financial position as at 31 December 2014 and of the Company’s

performance for the year ended on that date; and

(ii) complying with Accounting Standards for Reduced Disclosure Requirements and Corporations Regulations 2001.

(b) there are reasonable grounds to believe that the Company and the consolidated entities will be able to pay their debts as and

when they become due and payable.

On behalf of the Board

DIRECTORS’ DECLARATION

Ann Messenger FAIM Director Sydney 23 March 2015

Andrew McFarlane FAIM Director Sydney 23 March 2015


PricewaterhouseCoopers, ABN 52 780 433 757 Darling Park Tower 2, 201 Sussex Street, GPO BOX 2650, SYDNEY NSW 1171 T: +61 2 8266 0000, F: +61 2 8266 9999, www.pwc.com.au Liability limited by a scheme approved under Professional Standards Legislation.

36

Independent auditor’s report to the members of Australian Institute of Management (Group) Limited

Report on the financial report We have audited the accompanying financial report of Australian Institute of Management (Group) Limited (the company), which comprises the consolidated statement of financial position as at 31 December 2014, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, a summary of significant accounting policies, other explanatory notes and the directors’ declaration for Australian Institute of Management (Group) Limited (the consolidated entity). The consolidated entity comprises the company and the entities it controlled at 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 – Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations 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 is free from material misstatement, whether due to fraud or error.

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 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 consolidated entity’s preparation and fair presentation of the financial report 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 entity’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.

Independence In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.


37

Auditor’s opinion In our opinion, the financial report of Australian Institute of Management (Group) Limited is in accordance with the Corporations Act 2001, including:

1. giving a true and fair view of the consolidated entity's financial position as at 31 December 2014 and of its performance for the year ended on that date; and

2. complying with Australian Accounting Standards – Reduced Disclosure Requirements, other authoritative pronouncements of the Australian Accounting Standards Board, Urgent Issues Group Interpretations and the Corporations Act 2001.

PricewaterhouseCoopers

Susan Horlin Sydney Partner 23 March 2015

Telephone: 1300 658 337www.aim.com.au

http://www.aim.com.au

australian institute of management | 2014 annual...

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