INTERNET SOCIETY OF AUSTRALIA
ACN 076 406 801
(A Company Limited by Guarantee)
NOTES TO THE FINANCIAL STATEMENTS AS AT 30 JUNE 2002
1. STATEMENT OF ACCOUNTING POLICIES
The significant accounting policies used in the preparation of these
financial statements are as follows:
(a) Basis of preparation
The accounts of the company have been drawn up in accordance with
applicable accounting standards and the requirements of law. They have
been prepared on the basis of historical cost and do not take into
account changes in the purchasing power of money, or, except where
specifically stated, current valuations of non-current assets.
(b) Taxation
As a not-for-profit member of the Information and Communications
Technology industry the company is exempt from income tax.
(c) Cash
For the purposes of the statement of cash flows, cash includes cash on
hand and at bank and money market investments readily convertible to
cash within 2 working days, net of outstanding bank overdrafts.
(d) Revenue recognition
Revenue from membership fees is brought to account when cash and
applications are received. Sponsorship income is allocated over the
relevant years as set out in the sponsorship agreements.
(e) Segment information
The company operates within Australia solely as a representative body
for its members on the Internet.
2. OPERATING PROFIT 2002 2001
Operating profit before income tax includes
the following items of operating revenue:
Members fees 22,803.88 18,371.82
Consulting income 64.06 0.00
Donations/sponsorship 97,255.87 191,172.61
Miscellaneous income 635.00 212.84
Profit on sale of assets 1,507.00 0.00
Interest received - bank 5.04 820.14
122,270.85 210,577.41
2. OPERATING PROFIT (cont.) 2002 2001
Operating profit before income tax is
arrived at after charging the following
items of operating items:
Auditor's remuneration for
auditing the accounts 1,500.00 1,500.00
Bank fees & charges 1,254.07 1,347.94
Computer expenses 0.00 1,629.54
Consulting services 3,599.00 0.00
Depreciation 1,693.00 1,000.00
Events 150.00 0.00
Financial services 1,204.54 0.00
ICANN expenses 740.00 62,227.01
ISOC International fees 8,301.52 9,060.34
Motor vehicle expenses 1,105.57 1,524.56
Provision for employee benefits (2,681.06) 4,873.39
Salaries & wages 79,944.68 104,345.74
Superannuation 5,847.82 8,369.71
Supplies 4,129.89 0.00
Secretariat expenses 1,489.55 9,277.32
Telephone 1,430.96 0.00
Travel and entertainment 2,048.35 12,182.40
Workcover 1,209.52 1,050.00
Miscellaneous expenses 2,010.68 462.26
3. MEMBERS EQUITY
The company is a company limited by guarantee. In the event of the
company winding up its operations, the members have guaranteed to
contribute a maximum amount of $1 per member.
4. RELATED PARTIES
The names of each person holding the position of director of the
Internet Society of Australia during the financial year are Messrs G.
Fong, S. Hackett, K. Lance, L. Mayo, G. Michaelson, G. Watson, A.
McRae, E. Roberts, D. Thompson, A. Greiner, G Astbrink, A Hill, R
Kelso, C Langdon-Orr, J. Malcolm, G. Townson, G. White and N. Clark
No director has entered into a material contract with the company or
received any other benefit or remuneration.
5. STATEMENT OF CASH FLOWS 2002 2001
Reconciliation of the operating
profit/(loss) after tax to the net
cash flows from operations
Operating profit/(loss) after tax 7,292.76 (8,272.83)
Add: Depreciation 1,693.00 1,000.00
Less: Profit on sale of assets (1,507.00) 0.00
Add: Provision for employee benefits (2,681.06) 4,873.39
Changes in assets and liabilities
(Increase)/decrease in debtors (23,385.49) 67,166.68
Increase/(decrease) in sponsorship prepayments 6,999.99 (41,999.99)
Increase/(decrease) in sundry creditors (7,239.94) (3,743.81)
Net Cash flows from operating activities (18,827.74) 19,023.44