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Internet Society of Australia
A Chapter of the Internet Society


Annual Report 1997



Below is the 1997 Annual Report of the Society, which comprises the
profit and loss account, the balance sheet, the report of the directors
and of the auditors and the directors' statement.  


      INTERNET SOCIETY OF AUSTRALIA

      ACN 076 406 801

      FINANCIAL  STATEMENTS

      30  JUNE  1997


        Contents                        Page
       
        Directors' Report                2
        Profit and Loss Statement        3
        Balance Sheet                    4
        Statement of Cash Flows          5
        Notes to the Accounts            6
        Statement by Directors           9
        Independent Audit Report        10



INTERNET SOCIETY OF AUSTRALIA

DIRECTORS' REPORT

Your Directors submit the following report for the period ended 30 June 1997.

DIRECTORS

The names of the directors of the company at the date of this report are:

Ms Donna Ashelford
Mr Karl Auer
Mr Tony Barry
Mr Peter Elford
Mr Simon Hackett
Mr Geoffrey Huston
Mr Hugh Irvine
Mr Robert Kummerfeld
Ms Kate Lance
Mr George Michaelson
Mr David Purdue
Ms Pauline van Winsen


PRINCIPAL ACTIVITIES

The principal activity of the company was to act as a representative 
body for its members on Internet issues.


OPERATING RESULTS

The operating profit of the company for the period amounted to $6,015. 
No income tax is payable as the company is exempt under section 23(h) of 
the Income Tax Assessment Act 1936.


SIGNIFICANT EVENTS AFTER BALANCE DATE

There are no events which have occurred subsequent to balance date that 
require disclosure.


DIRECTORS' BENEFITS

During or since the financial year no director of the company has 
received or become entitled to receive a benefit,  other than a benefit 
included in the aggregate amount of emoluments received or due and 
receivable by the directors shown in the accounts, by reason of a 
contract entered into by the company or an entity that the company 
controlled or a body corporate that was related to the company when the 
contract was made or when the director received, or became entitled to 
receive, the benefit with:

* a director, or
* a firm of which a director is a member, or
  an entity in which a director has a substantial financial interest.

Signed in accordance with the resolution of the directors.


Hugh Irvine             Kate Lance
Director                Director

Melbourne,        November 1997



INTERNET SOCIETY OF AUSTRALIA
PROFIT AND LOSS STATEMENT
For the Period Ended 30 June 1997

                                                       Notes        1997
                                                                      $

OPERATING REVENUE                                        2        22,785


OPERATING PROFIT BEFORE INCOME TAX                                 6,015

INCOME TAX ATTRIBUTABLE TO
OPERATING PROFIT                                        1(e)           -

OPERATING PROFIT AFTER INCOME TAX                                  6,015

RETAINED PROFITS at the beginning of the financial period              -

RETAINED PROFITS at the end of the financial period                6,015



INTERNET SOCIETY OF AUSTRALIA
BALANCE SHEET
AT 30 JUNE 1997
                                                       Notes        1997
                                                                      $
CURRENT ASSETS
Cash on hand                                                       7,340

TOTAL CURRENT ASSETS                                               7,340

TOTAL ASSETS                                                       7,340

CURRENT LIABILITIES
Accounts payable                                         3         1,325

TOTAL CURRENT LIABILITIES                                          1,325

TOTAL LIABILITIES                                                  1,325

NET ASSETS                                                         6,015

SHAREHOLDERS' EQUITY
- Issued Capital                                         4           -
- Retained profits                                                 6,015

TOTAL SHAREHOLDERS' EQUITY                                         6,015



INTERNET SOCIETY OF AUSTRALIA
STATEMENT OF CASH FLOWS
For the Period Ended 30 June 1997
                                                       Notes        1997
                                                                      $
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from members                                             22,785
Payments to suppliers                                            (15,950)

NET CASH FLOWS FROM OPERATING ACTIVITIES                9(a)       6,835


CASH FLOWS FROM FINANCING ACTIVITIES        
Advance received                                                     505

NET CASH FLOWS FROM FINANCING ACTIVITIES                             505

NET INCREASE IN CASH HELD                                          7,340

CLOSING CASH CARRIED FORWARD                                       7,340



INTERNET SOCIETY OF AUSTRALIA
NOTES TO AND FORMING PART OF THE ACCOUNTS


1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of Accounting

The financial report is a general purpose financial report which has 
been prepared in accordance with the requirements of the Corporations 
Law which includes applicable Accounting Standards. Other mandatory 
professional reporting requirements (Urgent Issues Group Consensus 
Views) have also been complied with.

(b) Reporting Period

The company was incorporated on 15 November 1996 and has prepared this 
first set of statutory accounts for the period from that date to 30 June 
1997.  Thus no comparatives exist. 

Any reference to the "reporting period" within these financial 
statements refers to the period from incorporation to 30 June 1997.

(c)  Cash

For the purposes of the statement of cash flows, cash includes cash on 
hand and in banks, and money market investments readily convertible to 
cash within 2 working days, net of outstanding bank overdrafts.

(d)  Revenue Recognition

Revenue from membership fees are bought to account when cash and 
applications are received.

(e)  Income Tax

The company is not liable for payment of income tax under section 23(h) 
of the Income Tax Assessment Act 1936 as amended.


                                                                1997
                                                                  $
2.        OPERATING PROFIT

The operating profit before income tax is arrived
 at after charging/(crediting) the following items:

Banking fees and charges                                         688
ISOC International fees                                       13,152

Included in the operating profit are the following
items of operating revenue:

Member fees revenue                                           22,785


INTERNET SOCIETY OF AUSTRALIA
NOTES TO AND FORMING PART OF THE ACCOUNTS

3.        ACCOUNTS PAYABLE

Trade creditors                                                  820
Advance payable                                                  505        
                                                               1,325

4.        SHARE CAPITAL

The company is a public company limited by guarantee and
not having a share capital.


5.        REMUNERATION OF DIRECTORS

(a) Directors' remuneration

Income paid or payable, or otherwise made
available, in respect of the period, to all
directors of Internet Society of Australia, directly or
indirectly, from the entity or any related party:                nil

The number of directors of Internet Society of Australia
whose income (including superannuation
contributions) falls within the following bands is:

         $0  -  $9,999             12


6.        AUDITORS' REMUNERATION

No amounts are receivable or due and receivable by the auditors
from the entity for auditing accounts or other services.



INTERNET SOCIETY OF AUSTRALIA
NOTES TO AND FORMING PART OF THE ACCOUNTS

                                                                1997
                                                                  $
7.        RELATED PARTY DISCLOSURES

(a)     The directors of the Internet Society of Australia 
        during the financial year were:

        Ms Donna Ashelford
        Mr Karl Auer
        Mr Tony Barry
        Mr Peter Elford
        Mr Simon Hackett
        Mr Geoffrey Huston
        Mr Hugh Irvine
        Mr Robert Kummerfeld
        Ms Kate Lance
        Mr George Michaelson
        Mr David Purdue
        Ms Pauline van Winsen


8.        STATEMENT OF CASH FLOWS

a)      Reconciliation of the operating profit after tax to 
        the net cash flows from operations

Operating profit after tax                                      6,015

Changes in assets and liabilities
Trade creditors                                                   820

Net cash flow from operating activities                         6,835



INTERNET SOCIETY OF AUSTRALIA

STATEMENT BY DIRECTORS

In accordance with a resolution of the directors of the Internet Society 
of Australia we state that:


1. In the opinion of the directors:

a) the profit and loss account is drawn up so as to give a true and fair 
view of the profit of the company for the period to 30 June 1997;

b) the balance sheet is drawn up so as to give a true and fair view of 
the state of affairs of the company as at 30 June 1997; and

c) at the date of this statement there are reasonable grounds to believe 
that the company will be able to pay its debts as and when they fall 
due.


On behalf of the Board


Kate Lance
Director


Hugh Irvine
Director


Melbourne,       November 1997



INDEPENDENT AUDIT REPORT

To the members of the Internet Society of Australia

Scope

We have audited the financial statements of Internet Society of
Australia for the period ended 30 June 1997, as set out on pages 3 to
9, including the Statement by Directors.  The company's directors are
responsible for the preparation and presentation of the financial
statements and the information they contain.  We have conducted an
independent audit of these financial statements in order to express an
opinion on them to the members of the company.

Our audit has been conducted in accordance with Australian Auditing 
Standards to provide reasonable assurance whether the financial 
statements are free of material misstatement.  Our procedures included 
examination on a test basis, of evidence supporting the amounts and 
other disclosures in the financial statements, and the evaluation of 
accounting policies and significant accounting estimates.  These 
procedures have been undertaken to form an opinion whether, in all 
material respects, the financial statements are presented fairly in 
accordance with Accounting Standards, other mandatory professional 
reporting requirements, and statutory requirements so as to present a 
view which is consistent with our understanding of the company's 
financial position, the results of its operations and its cash flows.

The audit opinion expressed in this report has been formed on the above 
basis.


Audit Opinion

In our opinion, the financial statements of the Internet Society of 
Australia are properly drawn up:

a)    so as to give a true and fair view of:

  (i)   the state of affairs as at 30 June 1997 and the profit and cash 
        flows for the period ended on that date of the company; and

 (ii)   the other matters required by Divisions 4, 4A and 4B of Part 3.6 of 
        the Corporations Law to be dealt with in the financial statements;

(b)  in accordance with the provisions of the Corporations Law; and

(c)  in accordance with applicable Accounting Standards and other 
     mandatory professional reporting requirements.



Ernst & Young        RJ Walsh
                     Partner

Melbourne
Date: