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Screenrights—Report for 2013-14


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ANNUAL REPORT 2013 - 2014

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OUR VALUES

Image Credits The Moodys, Jungleboys, image courtesy of Jason burrows Once Upon a Time in Punchbowl, SbS, Northern Pictures The Surgery Ship, Media Stockade Enigma Man, A Stone Age Mystery, Electric Pictures, © Vince Valitutti / Electric Pictures The War That Changed Us, Electric Pictures, Megan Lewis, © Electric Pictures

LEADERSHIP We are forward-thinking and proactive.

We seek partnerships that build for tomorrow.

CREATIVITY We embrace creative solutions to problem solving.

We strive for continuous improvement.

EXCELLENCE We enjoy challenges and strive for excellence.

We are passionate, resourceful and efficient.

We celebrate our success.

RESPONSIVENESS We are flexible and collaborative.

We foster productive dialogue with stakeholders.

We embrace change as part of growth.

INTEGRITY We are respectful, honest and transparent.

We seek fair outcomes.

We aim to deliver on all our promises.

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 1

HIGHLIGHTS OF 2013 - 2014 DURING 2013-2014, SCREENRIGHTS HAS:

• Collected $42.0 million in licence revenue and other income for the film and television industries, with expenses at 14.91% of collections

• Made more than 2,260 individual payments to members with a total distribution of more than $34.92 million

• Delivered an upgraded version of EnhanceTV Direct, our streaming service for educators across the country

• Worked closely with stakeholders in responding to the Australian Law Reform Commission Review into copyright

• Upgraded our online portal for members, MyScreenrights, and our royalty distribution database

• Established a new disbursement service for members

• Reached agreement with Foxtel on the terms of a new five year deal for Foxtel retransmission of free to air broadcasts

Credit: Screenshot of MyScreenrights.

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OUR GOALS

ACCESS - greater access to content for licensees

SERVICES - increased distribution efficiency and diversified range of services for members

RELATIONSHIPS - strategic relationships, bringing educators and filmmakers together, positioning and partnering with stakeholders

CAPABILITY - ensured capability to meet the current and future needs of the organisation

GOVERNANCE - stronger and transparent governance and risk management

We are leveraging our current reputation to achieve:

Image Credits Family Confidential, Southern Pictures, R.M Williams and family, courtesy © Diane Williams Persons of Interest, Smart St Films, photo by Haydn Keenan Our Little Secret, Matthewswood Pty Ltd, image courtesy of Sarah Walker The Redfern Story, Samson Productions I am a Girl , Testify Media

The Moodys, Jungle boys, image courtesy of Jason burrows

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 3

OUR VISION Screenrights is a leader in the audiovisual industries, forging dynamic connections with audiences that deliver access to film and television and value to creators.

Macarthur Girls High School, image by Philippe Penel Acid Ocean, 360 Degree Films

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The role and importance of copyright in encouraging innovation and ensuring a vibrant digital economy continues to be hotly debated, both nationally and internationally.

Policy makers are grappling with the same fundamental questions around the globe: how can we ensure that copyright keeps abreast of rapid technological change while providing fair payment to creators and fair access to consumers?

It is a difficult balance and one that Screenrights is very much aware of in a real and practical sense. Since we were established in 1990, Screenrights has worked closely with rightsholders and the people who use their work to ensure that this balance is maintained. Our licences for education, government and retransmission give teachers and students, government departments, and households across the country simple, easy access to the wealth of content our talented filmmakers produce.

Importantly, they also provide payment to filmmakers - this year a total of $42.0 million was collected for distribution to our members. This is the money that production companies use to continue to make the programs we all appreciate and enjoy. Interestingly, recent research by Screen Producers Australia found that Australian production companies, large and small, saw copyright as vital to the ongoing success of their business - yet for them, copyright was not an academic concept. It was very much linked to the nuts and bolts of licensing and returns.

When the Australian Law Reform Commission released its long-awaited report, Copyright and the Digital Economy, in early 2014, Screenrights and many others in the film industry were pleased that the Commission recommended retaining the statutory licences we administer. However, we strongly opposed the proposed introduction of a

CHAIRMAN’S REPORT

Jill Bryant Chairman

broad fair use regime - one that went much further than reviews in other countries. If enacted such a proposal would significantly erode the capacity of our creators to license their work, and create an environment of commercial uncertainty.

Since this report was released, Screenrights has reiterated its commitment to working closely with our members, the people who use their work and the government, to ensure that we have a fair and balanced copyright regime.

We have long enjoyed a productive relationship with all our stakeholders and continue to do so. In particular, we pride ourselves on providing services that meet the real needs of creators and consumers. Our online streaming service to educators, EnhanceTV Direct, has been upgraded and continues to be taken up by schools and tertiary institutions across the country, giving teachers unparalleled access to a rich archive of teaching material. Our new disbursement service for filmmakers will help ease the administrative burden for many companies. We are also keen to work closely with the government in simplifying our Copyright Act in a way that continues to strike a fair balance between both sides of the copyright coin.

Screenrights’ experience in administering flexible, technology neutral licences for the use of copyright material has shown us that copyright can provide simple and easy access for consumers, and fair payment to creators. We look forward to continuing to ensure that our laws encourage a vibrant digital economy for the benefit of all.

Jill Bryant, Chairman 24 September 2014

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 5

“The Geography Teachers Association of Victoria uses its Screenrights licence to allow us to show footage from a wide range of documentaries and website images, to our members in classes and conferences that greatly enhance their learning by visually and audibly demonstrating concepts and happening in geography.”

Kate Vaux, Geography Teachers’ Association of Victoria

Operation Hero Season 3, Gibson Group

88, Pursekey Productions, image courtesy of Peter Solness

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CHIEF EXECUTIVE’S REPORT

Screenrights has once again delivered strong results across all areas of our business during the 2013-2014 financial year.

In what has been an exceptionally busy period, our collections reached a healthy $42.0 million, with our overall expenses 14.91 per cent of this figure. Although our income is lower than the previous year’s figure of $46.5 million, this decrease can largely be attributed to the fact that the 2012-2013 collections included back-payment of $4.4 million for government copying and retransmission back payments of $2.4 million.

Our expenses to collections have seen a slight increase. This has occurred in a period of delivering considerable improvements to our services, including upgrading MyScreenrights and releasing a new version of EnhanceTV Direct, our streaming service for educators. In addition, we have taken our first steps in establishing a new disbursement service for our members, and we also have been actively involved in responding to the long-awaited Australian Law Reform Commission (ALRC) report on copyright.

This has been the final year of our three-year strategic plan and I address our achievements under each of these goals below. I am confident Screenrights is well poised to continue delivering excellent services to all our stakeholders as we set our goals for the future.

ACCESS Screenrights’ goal is to provide simple, technology neutral access to audiovisual content for audiences across the country and in New Zealand.

Our educational licences reach more than 5.8 million students in Australia and New Zealand. They enable teachers, academics and students to use broadcast material in lecture theatres, on smart whiteboards, on their own

computers and on mobile devices, whether they are at work or at home.

We want to ensure that our licences work in the digital classroom and we work closely with a range of innovative resource centres that provide archives of content to educators. We also offer EnhanceTV Direct, our own streaming service giving teachers and students unparalleled access to educational broadcasts, streamed directly to them. An upgraded version of this service continues to be rolled out across the country and is proving increasingly popular with our schools, clearly demonstrating just how effective our licence is in today’s teaching environment.

Screenrights also licenses the retransmission of members’ works into the homes of pay television subscribers, and via mobile phones and IPTV.

In the last twelve months, we have reached an agreement with Foxtel on the terms of a new five-year deal, ensuring pay television consumers continue to enjoy the benefits of free to air television through their Foxtel service and providing payment to rightsholders.

In addition, our government copying agreements cover the copying of television and radio across federal and state departments.

SERVICES Screenrights’ goal is increased distribution efficiency and a diversified range of services for members.

In 2013-2014, we made more than 2,260 payments covering almost 3 million royalties to members in 62 countries across the world. Our total of $34.92 million paid for the year included a record-breaking $26.0 million paid out to members in December alone.

The volume of data we process continues to increase - in 2013-2014 we processed 136,817 new rights registrations. In order to ensure distribution efficiency, we continue to make improvements to MyScreenrights, our online portal for members. We have also made changes to our conflicts resolution process and continue to work closely with all our members in ensuring their programs are registered.

In 2013-2014, Screenrights has also commenced offering a disbursement service for members, filling a need in the market now that Screen Australia and the South Australian Film Corporation no longer offer this service to the industry. As a trusted independent organisation, with considerable experience in managing rights and royalties, we are ideally poised to offer this service and ease the administrative burden on producers.

Simon Lake Chief Executive

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 7

RELATIONSHIPS Screenrights develops strategic relationships, bringing educators and filmmakers together and positioning and partnering with stakeholders.

During 2013-2014, the ALRC released its long-awaited report on copyright. Pleasingly the report did not propose the abolition of the educational and other statutory licences as canvassed in its earlier discussion paper. However, it did propose the introduction of a very broad and uncertain fair use exception. Screenrights has worked closely with the industry in opposing this proposal. We are also working with our licensing stakeholders to ensure that our licences continue to provide the access that consumers want, without eroding filmmakers’ rights in their work.

Since the report was released, the government has indicated its intention to simplify the Copyright Act. We look forward to being part of this process and the achievement of sensible reforms that continue to encourage our creators and provide effective access to their work.

Through its board and committee roles, Screenrights also has been actively involved in the activities of the Australian Copyright Council, the Copyright Society of Australia and the international retransmission collecting society, AGICOA.

In addition, we have provided support to the film industry and the education sector through our sponsorship program. During 2013-2014, this included sponsorship of the Screen Producers’ Association of Australia (SPAA) Annual Conference and Ones to Watch, the Australian International Documentary Conference, the Australian Directors’ Guild conference, Screen Edge Forum, and the BigScreen Symposium. In the education sector we sponsored the NSW Secondary Principals Conference and OZTL_NET (Australian teacher librarians network). We have also worked closely with NZ On Air and eTV to create pilot digital study guide resources for the landmark series, Making New Zealand.

I am also pleased to report that production companies in Sydney have been regularly using our new offices for meetings, script workshops and forums, further fostering our strong relationship with the industry.

CAPAbILITIES Screenrights’ goals are to ensure that our information systems, staffing and workplace environment support our growth and strategic priorities. We have upgraded our royalty distribution system, RightTrack, improving staff capacity to manage the ever-increasing volumes of data from members. We have also launched an intranet to encourage

and capture conversations, and ensure continued improvement to documentation of work processes.

GOVERNANCE Screenrights complies with a voluntary Code of Conduct for copyright collecting societies. An independent Code Reviewer assesses the compliance of all societies on an annual basis. Screenrights has once again complied with all its obligations under the Code.

VALE ALLISON ROWE

Lastly, and on a very sad note, Screenrights’ founding director and first chairman, Allison Rowe, passed away on 4 June.

Allison was a director from 1990-2012 and was the first female chairman of an Australian copyright collection society. She used her position at the ABC to advocate for the creation of Screenrights and much of our success is grounded in the creative vision that Allison had for our future.

Allison was always quick with a laugh and generous with her knowledge and insights. She made a lasting contribution to Screenrights and always cared passionately about our members and the education sector.

Allison was also an accomplished visual artist and she loved to sculpt, to weld, to paint and to make amazing prints. Allison’s commitment to her art was only matched by her encouragement of other artists.

In Allison’s funeral notice, Allen Clark, Allison’s life partner, wrote:

A remarkable woman, loved by all, who never gave up the struggle.

Her legacy lives on at Screenrights.

Allison Rowe Founding Chairman

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FIGURE 1 

Territories in which Screenrights has agreements in place to collect income.

Territories

Under negotiation

FIGURE 2 

Shows the changes to Screenrights’ licensing and other revenue over the last three years.

AN OVERVIEW OF KEY REVENUE AND EXPENDITURE FIGURES The following overview summarises revenue and expenditure figures for 2013-2014.

REVENUE FROM LICENCES

Total collections (including interest) for the 2013-2014 financial year were $41.9 million. This total figure comprises:

• $29.49 million from the Australian Educational Service (AES), an increase of 3.6 per cent on the previous year’s figure of $28.46 million

• $1.99 million from the New Zealand Educational Service (NZES), an increase of 4.7 per cent on the previous year’s figure of $1.90 million

• $7.66 million from the Australian Retransmission Service (ARS), a decrease of 16.7 per cent on the $9.20 million collected for retransmission in 2012-2013

• $0.94 million from the International Collections Service (ICS), a decrease of 5.1 per cent on the previous year’s figure of $0.99 million

• $1.81 million from the Australian Government Service (AGS), a decrease of 69.5 per cent on the $5.93 million collected in 2012-2013

$41,900,000

$40,730,000

$46,500,000

2013/14

2011/12

2012/13

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 9

FIGURE 3 

Shows the breakdown in licensing revenue from each of the five income-generating licences.

FIGURE 4 

Compares the total licensing revenue (including interest) from each of Screenrights income-generating licences over the last three years.

Australian Educational Service (AES)

Australian Retransmission Service (ARS)

NZ Educational Service (NZES)

Australian Government Service (AGS)

International Collections Service (ICS)

The decrease in total revenue can largely be attributed to the fact that the 2012-2013 collections included back-payment of $4.4 million for government copying and retransmission back payments of $2.4 million.

AES $28,030,000

ARS $5,960,000

NZES $1,750,000

ICS $1,720,000

AGS $3,250,000

AES $29,490,000 AES $28,460,000

ARS $7,660,000 ARS $9,200,000

NZES $1,990,000 NZES $1,900,000

ICS $940,000 ICS $990,000

AGS $1,810,000 AGS $5,930,000

2011/12 2012/13 2013/14

ICS $940,000

ARS $7,660,000

NZES $1,990,000

AGS $1,810,000

AES $29,490,000

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EXPENDITURE

Screenrights’ total expenditure for 2013-2014 was $6.26 million, compared to the previous year’s figure of $6.69 million.

FIGURE 5 

Shows the breakdown of expenditure for 2013-2014.

EXPENDITURE IN RELATION TO COLLECTIONS

Screenrights total expenditure amounted to 14.9% of total collections. In 2012-2013, this figure was 14.2%.

Expenses to collections for the AES was 15.1%, compared to 14.7% in the previous 12 months. For the NZES, expenses amounted to 17.4% of total collections, whereas in 2012-2013 it was 18.3% of total collections. For ARS it was14.0%, compared to 12.9% for the previous year, and for AGS the ratio was 14.0%, compared to 12.9%

The ICS has an administration fee equivalent to the costs of administering the service. This is capped at 11%, enabling Screenrights to offer the service at a competitive rate.

Promotions/Marketing $192,786

Travel $76,375

Operating Expenses $1,167,343

Licensing $380,945

Other $81,026

NZ $72,369

Legal $47,048

Employee Related $4,231,760

$7,925

International Standard AV Numbering (ISAN)

FIGURE 6 

Shows Screenrights’ net income (total income including interest less total expenses) over the last three years.

$35,700,000

$34,500,000

$39,600,000

2013/14

2011/12

2012/13

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 11

FIGURE 7 

Shows the expenditure to collections ratio over the last three years.

FIGURE 8 

Shows the expenses to collections ratio for each of the income-generating licences over the last three years.

Australian Educational Service (AES)

Australian Retransmission Service (ARS)

International Collections Service (ICS)

NZ Educational Service (NZES)

Australian Government Service (AGS)

15.3%

14.9%

14.2%

2013/14

2011/12

2012/13

13.8% 15.1% 14.7% 14.0% 12.9% 11.0% 11.0% 17.4% 18.3% 14.0% 12.9% 11.0% 19.4% 15.6%

2012/13

2011/12

2012/13

2011/12

2012/13

2011/12

2012/13

2011/12

2011/12

2012/13

2013/14

2013/14

2013/14

2013/14

2013/14

13.8%

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DISTRIbUTIONS TO MEMbERS

The total distributable amount for 2013-2014 was $36.23 million, a decrease of 10.6 per cent on the $40.54 million declared for distribution in 2012-2013.

FIGURE 9 

Shows the total distributable amount over the last 10 years.

FIGURE 10 

Shows the total distributable amount declared under each of the income generating licences in 2013-2014.

Australian Educational Service (AES)

Australian Retransmission Service (ARS)

NZ Educational Service (NZES)

Australian Government Service (AGS)

International Collections Service (ICS)

$21,100,000

$24,000,000

$34,000,000

$26,000,000

$29,450,000

$30,900,000

$30,930,000

$34,550,000

$40,540,000

$36,230,000

2013

2014

2005

2006

2007

2008

2009

2010

2011

2012

$25,210,000

$1,740,000

$6,840,000

$840,000

$1,600,000

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 13

FIGURE 11 

Shows the total distributable amount declared under each of the income-generating licences over the last three years.

FIGURE 12 

Shows Screenrights’ 3,693 members from 62 countries.

Members

The total amount actually distributed to members was $34.9 million, which was the same as the amount distributed in 2012-2013.

OUR MEMbERSHIP

Screenrights membership has continued to grow; from 3,560 members to 3,693 members in 62 countries. These countries are shown at Figure 12.

Australian Educational Service (AES)

Australian Retransmission Service (ARS)

International Collections Service (ICS)

NZ Educational Service (NZES)

Australian Government Service (AGS)

2011/12 2012/13 2013/14

AES $24,490,000 AES $23,680,000

ARS $8,460,000

ARS $5,140,000

NZES $1,610,000

NZES $1,420,000

ICS $820,000

ICS $1,510,000

AGS $5,160,000 AGS $2,800,000

AES $25,210,000

ARS $6,840,000

NZES $1,740,000

ICS $840,000

AGS $1,600,000

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FIGURE 13 

Shows the growth in membership over the last 10 years.

FIGURE 14 

Shows the breakdown in allocation between Australian and overseas rightsholders for the total amount distributed in 2013-2014.

International Members $12.1 million

Australian Collecting Societies $3.7 million

Other Australian Members $19.1 million

3,560

3,693

2,258

2,505

2,653

2,815

3,007

3,145

3,321

3,464

2013

2014

2005

2006

2007

2008

2009

2010

2011

2012

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 15

FIGURE 15 

Shows the breakdown in types of audiovisual material copied by Australian and New Zealand educational institutions.

Simon Lake Chief Executive

24 September 2014

Sport 4%

Documentary 25%

Radio 28%

Infotainment/Light Entertainment 5%

Dedicated Educational 3%

Film - feature 2%

TV / Drama 2%

Music & Variety 1%

News & Current Affairs 30%

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“Screenrights does the work that no independent producer could do alone to collect broadcast and other royalties due to the film and program makers, providing cashflow to help cover overheads and mount future projects. It is a huge benefit.”

Graeme Isaac, Mayfan Pty Ltd

Mary Meets Mohammed, Waratah Films

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 17

DIRECTORS & OFFICERS

Jill Bryant Chairman

Chris Oliver-Taylor Deputy Chairman

DIRECTORS

David Anderson

Maureen Barron

Fiona Crago

John Ford

Ben Grant

Sally McCausland

Dean Ormston

Cathy Service

Victoria Spackman

Sue Taylor

AUDITORS

KPMG

bANKERS

National Australia Bank

Westpac

Bank of New Zealand

SOLICITORS

Banki Haddock Fiora

Harmers Workplace Lawyers

OFFICE OF THE CHIEF EXECUTIVE

Chief Executive: Simon Lake

ACCESS

Head, Licensing & New Business: James Dickinson

EnhanceTV Manager: Jamie LeHuray

Licensing Manager: Georgia Blain*

Business Development Manager: Catherine Stephenson

ENHANCETV TEAM

Web Editor: Anna Yates

Customer Relations Manager: Deana Kasnioski (to April 2014)

Customer Relations & Communications Coordinator: Sean Phelps (from April 2014)

SERVICES

Head of Member Services: Emma Rogers

Member Relations Manager: Annabel Holt

Distribution Manager: Ben Gibb

MEMbER RELATIONS TEAM Portfolio Coordinator: Cristina Khashadorian

Portfolio Coordinator: Luke Asprey

Portfolio Coordinator: Gaelle Clark

Portfolio Coordinator: John Alexander

DISTRIbUTION TEAM

Senior Distribution Officer: Kate Bowley

Distribution Officer: Kate Enright

Distribution Officer: Ian Laird

Senior Research Officer: Clare Macken*

RELATIONSHIPS

Public Affairs Advisor: Virginia Gordon*

Marketing Manager: Kerry Franta*

Marketing & Communications Coordinator: Max Becker

Audio-Visual Copyright Society Limited trading as Screenrights AbN 76 003 912 310 Registered office: Level 1, 140 Myrtle Street Chippendale NSW 2008 Phone: +61 2 9904 0133 Fax: +61 2 9904 0498 www.screenrights.org

COMPANY PROFILE

CAPAbILITIES

Head, Information Services: Mike Lynch

Lead Developer Applications Development: Brian Chambers

Business Development Manager, ISAN: Daryl Robinson*

DEVELOPMENT & SUPPORT TEAM

Network & Infrastructure Manager: Ben Stephenson

User & Systems Support: Justin Franks

Application Developer: Marty Robson

Application Developer: Yvan Trejbal

DATA & SYSTEMS TEAM

Data & Systems Manager: Nick Grodzicki

Data Entry Officer (Member Services & Licensing): Janet Keane*

Data Entry Officer (Licensing): Mary Luque*

PEOPLE & CULTURE

Chief Financial Officer/Company Secretary: Robert Barlow

Executive Assistant/Office Manager: Kylie Toombs

ADMINISTRATION TEAM

Office Administrator: Marci Vargas

Administrative Assistant: Wendy Lee-Lusher*

GOVERNANCE

Chief Financial Officer/Company Secretary: Robert Barlow

Accountant & Internal Auditor: Angela Cheung

* Indicates part-time employee/consultant Total full time equivalent employees = 32

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MAUREEN bARRON

Chief Executive, Screen NSW. More than 30-years screen industry experience, including as a board member of arts and film industry organisations. Director since 2007.

FIONA CRAGO

Independent producer with over 20 years screen industry experience. Former General Manager, Beyond Distribution and General Counsel to the Beyond group of companies. Director since 2011.

DAVID ANDERSON

Director, Corporate Strategy & Planning at Australian Broadcasting Corporation. Over 20 years experience in the media industry. Director since 2012.

bEN GRANT

Managing Director, Goalpost Pictures. SPA Councillor. Director since 2013.

JILL bRYANT

Independent producer. Originating Producer, Walking with Dinosaurs - The Live Experience. Former Marketing Director, Asia-Pacific, BBC Worldwide Ltd. Director since 2003. Elected Chairman 2006.

JOHN FORD bA, LLb

Media Consultant, Lawyer and Company Director. Clients have included: Telstra Corporation, TVI/Sci-Fi and TVN Channel. Director, Sydney Children’s Hospital Network. Director since 1997.

DIRECTORS’ REPORT

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 19

VICTORIA SPACKMAN

Chief Executive and Co-Owner of the Gibson Group. Director since 2011.

ALISON WESTON Director from 1995 to October 2013

RObERT bARLOW b.FinAdmin, Grad Dip ACG, CPA, AGIA, ACIS

Financial Controller and Company Secretary. Appointed Company Secretary February 2006

CATHY SERVICE

Over 20 years experience in the media industry. Chief Operating Officer at a communications company, former Head of Finance & Administration with BBC Worldwide Australasia. Director since 2011.

DEAN ORMSTON

Head of Member Services APRA/AMCOS. Deputy Chair of both the Music Council of Australia and the Australian Copyright Council. Director since 2007..

CHRIS OLIVER-TAYLOR

Managing Director, Matchbox Pictures. Director since 2010. Elected Deputy Chairman 2012.

SUE TAYLOR

Independent producer with over 25 years’ experience in film and television production. Director since 2005.

SALLY MCCAUSLAND

Corporate Counsel at the Special Broadcasting Service (SBS). Director since 2006.

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DIRECTORS’ MEETINGS

The number of Directors’ meetings (including meetings of Committees of Directors) and number of meetings attended by each of the Directors of the Company during the financial year are:

DIRECTOR DIRECTORS’ AUDIT COMMITTEE REMUNERATION

MEETINGS MEETINGS COMMITTEE MEETINGS

A B A B A B

D Anderson 3 6 - - - -

M Barron 5 6 2 2 - -

J Bryant 6 6 2 2 1 1

F Crago 5 6 2 2 - -

J Ford 5 6 - - - -

B Grant 4 4 - - - -

S McCausland 5 6 - - 1 1

C Oliver-Taylor 6 6 - - 1 1

D Ormston 5 6 - - - -

C Service 6 6 2 2 - -

V Spackman 5 6 - - - -

S Taylor 5 6 - - - -

A Weston 2 2 - - - -

A Number of meetings attended

B Number of meetings held during the time the Director held office during the year

DIRECTORS’ REPORT [CONTINUED]

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 21

LEAD AUDITOR’S INDEPENDENCE DECLARATION

A copy of the Lead Auditor’s Independence Declaration, as required under Section 307C of the Corporations Act 2001, is included at page 24 of the Annual Report.

PRINCIPAL ACTIVITIES

The principal activity of the Company during the course of the financial year was utilisation of its right as a declared collecting society under Part VA, Part VC and, insofar as it relates to audiovisual items, Part VB of the Copyright Act, to collect monies from educational institutions for distribution to relevant copyright owners.

REVIEW AND RESULTS OF OPERATIONS

The amount of $36,229,211 (2013: $40,539,749) was determined to form the Distributable Amount available for distribution to relevant copyright owners from monies collected for the accounting year ended 30 June 2014.

The net operating profit/(loss) after income tax for the year was $Nil (2013:$927,712).

STATE OF AFFAIRS

In the opinion of the Directors there were no significant changes in the state of affairs of the Company or consolidated entity that occurred during the financial year under review.

ENVIRONMENTAL REGULATION

The Company’s operations are not subject to any significant environmental regulations under either Commonwealth or State legislation. The Board believes that the Company has adequate systems in place for the management of its environmental requirements and is not aware of any breach of those environmental requirements as they apply to the Company.

EVENTS SUbSEQUENT TO bALANCE DATE

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature that is likely, in the opinion of the Directors, to affect significantly the operations of the consolidated entity, the results of those operations or the state of affairs of the consolidated entity in future financial years.

LIKELY DEVELOPMENTS

The Company will continue its current activities. Potential new revenue streams in development include copying by additional State and Territory governments.

INDEMNIFICATION AND INSURANCE OF OFFICERS

During the year, the Company paid a premium of $7,425 in respect of a contract of insurance indemnifying those persons who are or have been officers of the Company against liabilities that may arise from their position as officers, except where the liability arises out of conduct involving a lack of good faith. That insurance policy does not contain details of the premiums paid in respect of individual officers of the Company.

GOALS

We are leveraging our current reputation to achieve: Access - greater access to content for licensees Services - increased distribution efficiency and diversified range of services for members Relationships - strategic relationships, bringing educators and filmmakers together, positioning and partnering with stakeholders Capability - ensured capability to serve the current and future needs of the organisation Governance - stronger and transparent governance and risk management.

MEMbERS’ LIAbILITY

The Company is a company limited by guarantee. The guarantee in the event of the winding up of the Company is $10 for each member. At 30 June 2014 membership of the Company comprised 3,693 full members (2013: 3,560), resulting in a total liability of $36,930 (2013: $35,600).

Dated at Chippendale this 24 September 2014 and signed in accordance with a resolution of the Directors:

Jill Bryant Chairman

DIRECTORS’ REPORT [CONTINUED]

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DIRECTORS’ DECLARATION

In the opinion of the Directors of Audio-Visual Copyright Society Limited:

(a) The consolidated financial statements and notes, set out on pages 26 to 51, are in accordance with the Corporations Act 2001, including:

(i) giving a true and fair view of the financial position of the consolidated entity as at 30 June 2014 and of its performance for the financial year ended on that date, and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

(b) The financial report also complies with International Financial Reporting Standards as disclosed in note 1.

(c) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

Dated at Chippendale this 24 September 2014 and signed in accordance with a resolution of the Directors:

Jill Bryant Chairman

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 23

INDEPENDENT AUDITOR’S REPORT TO MEMbERS OF AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED REPORT ON THE FINANCIAL REPORT

We have audited the accompanying financial report of Audio-Visual Copyright Society Limited (the Company), which comprises the consolidated balance sheet as at 30 June 2014, and consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year ended on that date, notes 1 to 22 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the consolidated entity comprising the Company and the entity it controlled at the year’s end or from time to time during the financial year.

DIRECTORS’ RESPONSIbILITY FOR THE FINANCIAL REPORT

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement whether due to fraud or error. In note 1(b), the directors also state, in accordance with Australian Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements of the consolidated entity comply with International Financial Reporting Standards.

AUDITOR’S RESPONSIbILITY

Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards.

These Auditing 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 entity’s preparation

of the financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 performed the procedures to assess whether in all material respects the financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standards, a true and fair view which is consistent with our understanding of the consolidated entity’s financial position and of its performance.

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 .

AUDITOR’S OPINION

In our opinion:

(a) the financial report of the consolidated entity is in accordance with the Corporations Act 2001 including:

(i) giving a true and fair view of the consolidated entity’s financial position as at 30 June 2014 and of its performance for the year ended on that date; and

(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001.

(b) the financial report also complies with International Financial Reporting Standards as disclosed in note 1(b).

KPMG

Cameron Slapp, Partner Sydney, 24 September 2014

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG international”), a Swiss entity. Liability limited by a scheme approved under profesional

Standards Legislation.

24

To: The Directors of Audio-Visual Copyright Society Limited

I declare that, to the best of my knowledge and belief, in relation to the audit for the financial year ended 30 June 2014, there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

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

KPMG

Cameron Slapp, Partner Sydney, 24 September 2014

LEAD AUDITOR’S INDEPENDENCE DECLARATION UNDER SECTION 307C OF THE CORPORATIONS ACT 2001

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG international”), a Swiss entity. Liability limited by a scheme approved under profesional

Standards Legislation.

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 25

ANNOTATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2014

Includes interest and the proceeds from sale of fixed assets.

Royalty collections for the year from Australian schools, TAFE colleges, universities, retransmission income, New Zealand educational institutions and overseas.

The cost of running Screenrights, including employee expenses, depreciation and other ordinary expenses.

Screenrights can hold allocations in trust for a maximum of six years while trying to locate relevant copyright owners. Under the Attorney-General’s Guidelines, these funds are then ‘recycled’ by adding them to the Distributable Amount in the current year. For 2008, expired trust funds by scheme were Pt VA $177,000, NZ $19,000, Pt VC $257,000 and AGS $36,000.

We know that not everyone wants to analyse financial statements, so below is our annual summary of the most important information in these accounts. The notes show the calculations which determine how much money is available to distribute to members from the royalties collected and interest received, and after the deduction of tax and expenses.

NON-IFRS FINANCIAL MEASURES

The annotated statement of financial position includes certain non-IFRS financial measures. The directors believe the presentation of non-IFRS financial measures is useful for the users of this document as they reflect the amounts available for distribution to members after the addition of expired trust funds and the transfer of surplus reserves. The below non-IFRS financial measures have not been subject to review or audit.

Consolidated

2014 2013

$000s $000s

Revenue from Ordinary Activities:

Gross Royalties 39,482 43,630

Other Revenues 2,785 3,883

Expenses (6,527) (7,006)

35,740 40,507

Transfer (to)/from retained earnings and reserves - (928)

Amount available for Distribution 35,740 39,579

Add Expired Trust Funds (2007) - 961

Add Expired Trust Funds (2008) 489 -

Total amount available for Distribution 36,229 40,540

Amount transferred to Statutory Distributable Pools: Part VA Education (25,214) (24,485)

Part VC Retransmission (6,842) (8,466)

s183 Government Copying (1,597) (5,163)

Amount transferred to Non-Statutory Distributable Pools: New Zealand (1,738) (1,607)

International Collections Service (838) (819)

Total amount transferred to distribution pools (36,229) (40,540)

26 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

The Statement of Profit or Loss and Other Comprehensive Income is to be read in conjunction with the notes to the Consolidated Financial Statements set out on pages 30 to 51.

For the year ended 30 June 2014

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

Note 2014 2013

$000s $000s

Revenue from rendering of services 2 39,482 43,630

Other income 3 2,785 3,883

Total revenue and other income 42,267 47,513

Employee expenses 4 (4,244) (4,299)

Depreciation and amortisation expense (273) (271)

Operating expense (1,148) (1,326)

Licensing expense (382) (508)

Travel expense (76) (102)

Marketing expense (193) (215)

Legal expense (47) (80)

Other expenses 5 (164) (205)

Royalties paid and payable to members and affiliated societies 2 (35,740) (39,579)

Net profit/(loss) before income tax - 928

Income tax expense 7 - -

Net operating profit/(loss) after income tax - 928

Other comprehensive income - -

Total comprehensive profit/(loss) - 928

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 27

As at 30 June 2014

CONSOLIDATED bALANCE SHEET

Note 2014 2013

$000s $000s

Current assets

Cash and cash equivalents 8 7,014 8,384

Cash on deposit 8 58,147 59,779

Trade and other receivables 9 3,745 2,393

Total current assets 68,906 70,556

Non-current assets

Property, plant and equipment 10 659 720

Intangibles 11 100 181

Total non-current assets 759 901

Total assets 69,665 71,457

Current liabilities

Trade and other payables 12 5,754 8,360

Employee benefits 13 526 586

Other 14 61,686 60,871

Total current liabilities 67,966 69,817

Non-current liabilities

Employee benefits 13 146 103

Provisions 16 -

Total non-current liabilities 162 103

Total liabilities 68,128 69,920

Net assets 1,537 1,537

Equity

Retained earnings 1,337 1,337

Reserves 200 200

Total equity 1,537 1,537

The balance Sheet is to be read in conjunction with the notes to the Consolidated Financial Statements set out on pages 30 to 51.

28 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

STATEMENT OF CASH FLOWS

The Statement of Cash Flows is to be read in conjunction with the notes to the Consolidated Financial Statements set out on pages 30 to 51.

Note 2014 2013

$000s $000s

Cash flows from operating activities

Cash receipts in the course of operations 39,945 46,566

Cash payments in the course of operations (44,979) (40,825)

Net cash from operating activities 17(b) (5,034) 5,741

Cash flows from investing activities

Interest received 2,163 3,885

Proceeds from sale of fixed assets - 1,571

Payments for property, plant and equipment (62) (659)

Payments for intangibles (69) (44)

Decrease / (increase) in cash on deposit 8 1,632 (8,266)

Net cash from investing activities 3,664 (3,513)

Net increase/(decrease) in cash held (1,370) 2,228

Cash at the beginning of the financial year 8,384 6,156

Cash at the end of the financial year 17(a) 7,014 8,384

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 29

For the year ended 30 June 2014

STATEMENT OF CHANGES IN EQUITY

The Statement of Changes in Equity is to be read in conjunction with the notes to the Consolidated Financial Statements set out on pages 30 to 51.

Society Retained Total

Reserve Fund Earnings Equity

$000s $000s $000s

Balance at 1 July 2012 - 609 609

Total comprehensive profit - 928 928

Transfer between retained earnings and reserves 200 (200) -

Balance at 30 June 2013 200 1,337 1,537

Balance at 1 July 2013 200 1,337 1,537

Total comprehensive profit - - -

Transfer between retained earnings and reserves

- - -

Balance at 30 June 2014 200 1,337 1,537

30 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

1. SIGNIFICANT ACCOUNTING POLICIES

Audio-Visual Copyright Society Ltd trading as Screenrights (the ‘Company’) is a company domiciled in Australia. The consolidated financial report of the Company for the financial year ended 30 June 2014 comprises the Company and its subsidiary (together referred to as the ‘consolidated entity’). The financial report was authorised for issue by the Directors on 24 September 2014.

(a) Principal Activities

The principal activities of the Company during the course of the financial year were utilisation of its right as a declared collecting society under Part VA, S183, Part VC and insofar as it relates to audiovisual items, Part VB of the Copyright Act, to collect money from educational institutions for distribution to relevant copyright owners.

(b) Statement of compliance and basis of preparation

The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001. The financial report of the consolidated entity also complies with International Financial Reporting Standards (IFRSs) adopted by the International Accounting Standards Board.

The financial report is presented in Australian dollars.

The financial report is prepared on the historical cost basis.

The preparation of a financial report in conformity with Australian Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

These accounting policies have been consistently applied by each entity in the consolidated entity.

(c) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Company. Control exists when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

(ii) Transactions eliminated on consolidation

Intra-group balances and any unrealised gains and losses or income and expenses arising from transactions within the consolidated entity are eliminated in preparing the consolidated financial statements.

(d) Foreign currency transactions

Transactions in foreign currencies are translated at the foreign exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance date are translated to Australian dollars at the foreign exchange rate ruling at that date. Foreign exchange differences arising on translation are recognised in profit or loss. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 31

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED

(e) Derivatives

The consolidated entity is exposed to changes in interest rates and foreign exchange balances. The consolidated entity does not use derivative financial instruments to hedge these risks.

(f) Property, plant and equipment

(i) Owned assets

Items of property, plant and equipment are stated at cost or deemed cost less accumulated depreciation (see f(ii)) and impairment losses (see accounting policy j).

(ii) Depreciation

With the exception of freehold land, depreciation is charged to profit or loss on a straight-line basis over the estimated useful life of each part of an item of property, plant or equipment. Land is not depreciated. The estimated useful lives in the current and comparative periods are as follows:

• Plant and equipment - 10-20 years;

• Computer hardware / Laptops - 3 years;

The residual value, the useful life and the depreciation method applied to an asset are reassessed at least annually.

(iii) Leased assets

Leases in terms of which the consolidated entity assumes substantially all the risks and rewards of ownership are classified as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is accounted for in accordance with the accounting policy applicable to that asset.

Other leases are operating leases and the leased assets are not recognised on the consolidated balance sheet.

(g) Intangible assets

(i) Intangible assets

Intangible assets that are acquired by the consolidated entity are stated at cost less accumulated amortisation (see g(ii)) and impairment losses (see accounting policy j).

(ii) Amortisation

Amortisation is charged to profit or loss on a straight-line basis over the estimated useful lives of intangible assets from the date they are available for use. The estimated useful lives in the current and comparative periods are as follows:

• Capitalised software costs - 3 years

(h) Trade and other receivables

Trade and other receivables are stated initially at fair value and then amortised cost less impairment losses (see accounting policy j).

(i) Cash and cash equivalent

Cash and cash equivalents comprise cash balances, short-term bills and call deposits.

(j) Impairment

The carrying amounts of the consolidated entity’s assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated (see accounting policy j(i)). An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the profit or loss. Impairment losses recognised in respect of cash-generating units are allocated to reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.

32 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED

(i) Calculation of recoverable amount continued

The recoverable amount of the consolidated entity’s receivables carried at amortised cost is calculated as the present value of estimated future cash flows, discounted at the original effective interest rate (i.e. the effective interest rate computed at initial recognition of these financial assets). Receivables with a short duration are not discounted. Impairment of receivables is not recognised until objective evidence is available that a loss event has occurred. Significant receivables are individually assessed for impairment. Impairment testing of significant receivables that are not assessed as impaired individually is performed by placing them into portfolios of significant receivables with similar risk profiles and undertaking a collective assessment of impairment.

Non-significant receivables are not individually assessed. Instead, impairment testing is performed by placing non-significant receivables in portfolios of similar risk profiles, based on objective evidence from historical experience adjusted for any effects of conditions existing at each balance sheet date.

The recoverable amount of other assets is the greater of their fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

(ii) Reversals of impairment

Impairment losses are reversed when there is an indication that the impairment loss may no longer exist and there has been a change in the estimate used to determine the recoverable amount. An impairment loss in respect of a receivable carried at amortised cost is reversed if the subsequent increase in the recoverable amount can be related objectively to an event occurring after the impairment loss was recognised. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

(k) Employee benefits

(i) Defined contribution superannuation funds

Obligations for contributions to defined contribution superannuation funds are recognised as an expense in profit or loss as incurred.

(ii) Long-term service benefits

The consolidated entity’s net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wage and salary rates, including related on-costs and expected settlement dates, and is discounted using the rates attached to the Commonwealth Government bonds at the balance sheet date which have maturity dates approximating to the terms of the consolidated entity’s obligations.

(iii) Wages, salaries and annual leave

Liabilities for employee benefits for wages, salaries and annual leave that are expected to be settled within 12 months of the reporting date and represent present obligations resulting from employees’ services provided to reporting date are calculated at undiscounted amounts based on remuneration wage and salary rates that the consolidated entity expects to pay as at reporting date, including related on-costs such as workers compensation insurance and payroll tax.

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 33

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED

(l) Provisions

A provision is recognised in the balance sheet when the consolidated entity has a present legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

(m) Trade and other payables

Trade and other payables are stated initially at fair value and then amortised cost. Trade payables are non-interest-bearing and are normally settled on 60-day terms.

(n) Distributions

The consolidated entity holds the net distributable amount for each year in trust for rightsholders of the copyright in film and television programs. These rightsholders are eligible to receive the royalties held on their behalf upon completing necessary documentation, including a membership agreement and warranty. With respect to the Statutory Service (Part VA, Part VB, S183 and Part VC, Copyright Act 1968), the distributable pool is allocated to all copied programs, and actual distributions are made as and when the required documentation is completed. Until this stage is reached for a given title, all funds are held in trust for the rightsholders of the copied program up to a period of four years. The Board of Directors may decide that special circumstances exist and continue to hold the pool in trust for a maximum of two further years. The Board has exercised this discretion for all relevant distribution periods to date. After that period, the remaining allocations that have not been distributed are forfeited and placed into general revenue for inclusion in the current distribution period in accordance with Guidelines issued by the Attorney-General. In administering the Statutory Service, the consolidated entity collects and distributes remuneration payable by educational institutions. The Distributable Amount is the total amount received from record-keeping and sampling institutions for the distribution period (financial year)

together with bank interest after deducting operating expenses, providing for taxation if applicable and allocating the relevant portion to the Reserve Fund. Results of record-keeping and sampling procedures are collated so that the total number of minutes for each program title and episode is ascertained. Allocations are made to each program according to the number of minutes copied and the type of program. Once an allocation per program by title has been established, a further allocation is made to the various forms of copyright subsisting in the programs (e.g. cinematograph films, literary/dramatic works, artistic works, sound recordings). Claimants warrant that they own or control the relevant copyright in one or more of these components and at the close of the distribution period are paid accordingly. This same process has been instituted for the allocation and distribution of royalties for the copying of programs by educational institutions in New Zealand. This is so even though the mechanism of conducting the service is different, with rightsholders appointing Audio-Visual Copyright Society Limited trading as Screenrights as their agent to license this recording right in New Zealand. With respect to the international registration and collection process, Screenrights simply distributes the royalties it receives from other audiovisual societies for titles it has registered on behalf of the rightsholders. Screenrights follows the allocations set by the relevant society and only makes an adjustment for interest and the expenses incurred in providing the service for its members.

(o) Revenue and other income

Revenues are recognised at fair value of the consideration received net of the amount of goods and services tax (GST) payable to the taxation authority.

(i) Revenue from rendering services

Royalty receipts are based partly on information provided by copyright users. Where receipts are determined under sampling systems estimating copying levels, the samples are conducted by an independent statistical and research organisation, Nielsen, which uses a variety of methods to ensure that the estimation is reliable within accepted tolerances. Revenue is recognised over the period for which the copying licence has been granted.

34 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED

(ii) Interest income

Interest is generally recognised as it accrues, taking into account the effective yield on the financial asset.

(iii) Net gain/loss on disposal of property, plant and equipment

The net gains of non-current asset sales are included as other income at the date control of the asset passes to the buyer, usually when an unconditional contract of sale is signed.

The net losses on non-current asset sales are included in other expenses. The gain or loss on disposal is calculated as the difference between the carrying amount of the asset at the time of disposal and the gross proceeds on disposal.

(p) Income tax

The Income Tax Assessment Act 1997, as amended by the Tax Laws Amendment (2004 Measures No 6) Act 2005, provides the following for collecting societies:

• Collecting societies will not be taxed on any copyright income that they collect and hold on behalf of members, pending allocation to them;

• Non-copyright income derived by collecting societies will not be taxed (provided that the amount of non-copyright income derived is within certain limits); and

• Any copyright and non-copyright income collected or derived by the collecting society that is exempt from income tax is included in the assessable income of the members upon distribution.

The amending Act contains definitions of:

(a) Declared collecting society;

(b) Collecting society;

(c) Copyright income, which includes licence fees and interest received or derived from the copyright income.

Non-copyright income is subject to a de minimis rule. Non-copyright income of collecting societies will be exempt from income tax to the extent that this non-copyright income does not exceed the lesser of:

• 5% of the total amount of copyright income and non-copyright income of the collecting societies for the income year; and

• $5 million or such other amount as is prescribed by the regulations.

The Society will not be taxed on any copyright income (defined as ordinary or statutory royalties/licence fees and interest received or derived by the Society) it collects and holds on behalf of members, pending allocation to them. Additionally, the Society will not be taxed on non-copyright income to the extent that this non-copyright income does not exceed the above specified limitations.

(q) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the Australian Tax Office (ATO) is included as a current asset or liability in the balance sheet. Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

(r) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2013, and have not been applied in preparing these financial statements. None of these is expected to have a significant effect on the financial statements of the Company, except for AASB 9 Financial Instruments, which becomes mandatory for the Company’s 2019 financial statements and could change the classification and measurement of financial assets. The Company does not plan to adopt this standard early and the extent of the impact has not been determined.

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 35

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

2. RECONCILIATION OF INCOME STATEMENT

Note 2014 2013

$000s $000s

Revenue from rendering of services:

- Statutory Royalty Receipts (Part VA) 27,732 26,432

- Statutory Royalty Receipts (Part VC) 7,115 8,577

- International Collection Service 810 834

- Government Copying 1,643 5,655

- NZ Educational Service 1,890 1,787

- EnhanceTV Resource Centre 292 345

Total revenue 39,482 43,630

Other income 3 2,785 3,883

Total revenue and other income 42,267 47,513

Employee expenses 4 (4,244) (4,299)

Depreciation and amortisation expense (273) (271)

Operating expense (1,148) (1,326)

Licensing expense (382) (508)

Travel expense (76) (102)

Marketing expense (193) (215)

Legal expense (47) (80)

Other expenses 5 (164) (205)

Net royalties collected and interest received thereon before income tax 35,740 40,507

Income tax benefit - -

Net royalties collected and interest received thereon after income tax

35,740 40,507

36 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

2. RECONCILIATION OF INCOME STATEMENT CONTINUED

Note 2014 2013

$000s $000s

Royalties paid and payable:

Add expired statutory trust funds 489 961

Less amount transferred to statutory VA distributable pool 2013 14 -

(24,485)

Less amount transferred to statutory VA distributable pool 2014

(25,214)

-

Less amount transferred to statutory VC distributable pool 2013

14 - (8,466)

Less amount transferred to statutory VC distributable pool 2014 14

(6,842) -

Less amount transferred to statutory s183 distributable pool 2013 14 -

(5,163)

Less amount transferred to statutory s183 distributable pool 2014 14

(1,597)

-

Less amount transferred to New Zealand distributable pool 2013

14 - (1,607)

Less amount transferred to New Zealand distributable pool 2014

14 (1,738)

International Collection Service (838) (819)

Net royalties paid and payable (35,740) (39,579)

Net operating profit (loss) - 928

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 37

3. OTHER INCOME

2014 2013

$000s $000s

Interest income

- Part VA interest income 1,754 1,984

- Part VC interest income 538 626

- Bank interest for International Collections Service (non-statutory) 132 154

- Government Copying interest income 171 276

- Bank interest for NZ Educational Service (non-statutory) 104 110

- Bank interest for ISAN 2 2

- Non trust interest income 4 3

2,705 3,155

Gain on sale of noncurrent assets - 728

Exchange Gain Other 80 -

2,785 3,883

4. EMPLOYEE EXPENSES

Wages and salaries (including director fees) 3,627 3,684

Contributions to defined contribution superannuation funds 338 349

(Decrease)/Increase in liabilities for annual and long service leave (17) (63)

Other employee expenses 296 329

4,244 4,299

5. OTHER EXPENSES

NZ educational service expenses 73 102

Other 91 103

164 205

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

38 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

6. AUDITOR’S REMUNERATION

2014 2013

$000s $000s

Audit services 51 65

Non-audit services 4 3

55 68

7. TAXATION

Audio-Visual Copyright Society Limited was granted tax exempt status effective 1 July 2002. EnhanceTV Pty Ltd (the Company’s controlled entity) was incorporated on 15 May 2006 and is not tax exempt. In the current financial year, EnhanceTV Pty Ltd did not make a profit. As a consequence there is no tax expense for the consolidated entity (2013: $Nil). As at 30 June 2014, EnhanceTV has carried forward losses of $32,426 (2013:$32,426).No tax losses have been recognised as a deferred tax asset.

8. CASH ASSETS

2014 2013

$000s $000s

Cash at bank 7,014 8,384

Cash on deposit 58,147 59,779

65,161 68,163

The interest rate at 30 June 2014 on cash accounts is 2.00% (2013: 2.25%) which is the prevailing interest rate on cash at bank. The cash on deposit with banks mature within 270 days. The weighted average interest rate at 30 June 2014 on cash on deposit is 3.81% (2013: 4.32%).

9. TRADE AND OTHER RECEIVAbLES

2014 2013

$000s $000s

Trade receivables 2,308 1,333

Sundry receivables 1,437 1,060

3,745 2,393

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 39

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

10. PROPERTY, PLANT & EQUIPMENT

Land and Plant and equipment Total

buildings

$000s $000s $000s

Cost

Balance at 1 July 2012 1,278 1,262 2,540

Acquisitions - 659 659

Disposals (1,278) (501) (1,779)

Balance at 30 June 2013 - 1,420 1,420

Balance at 1 July 2013 - 1,420 1,420

Acquisitions - 62 62

Balance at 30 June 2014 - 1,482 1,482

Accumulated depreciation

Balance at 1 July 2012 413 1,098 1,511

Depreciation charge for the year 24 101 125

Disposals (437) (499) (936)

Balance at 30 June 2013 - 700 700

Balance at 1 July 2013 - 700 700

Depreciation charge for the year - 123 123

Balance at 30 June 2014 - 823 823

Carrying amounts

At 1 July 2013 - 720 720

At 30 June 2014 - 659 659

40 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

11. INTANGIbLES

Computer Total

software

Cost $000s $000s

Balance at 1 July 2012 546 546

Acquisitions 44 44

Balance at 30 June 2013 590 590

Balance at 1 July 2013 590 590

Acquisitions 69 69

Balance at 30 June 2014 659 659

Accumulated amortisation

Balance at 1 July 2012 263 263

Amortisation charge for the year 146 146

Balance at 30 June 2013 409 409

Balance at 1 July 2013 409 409

Amortisation charge for the year 150 150

Balance at 30 June 2014 559 559

Carrying amounts

At 1 July 2013 181 181

At 30 June 2014 100 100

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 41

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

12. TRADE AND OTHER PAYAbLES

2014 2013

$000s $000s

Trade creditors and accruals 777 3,709

Royalties in advance 4,977 4,651

5,754 8,360

13. EMPLOYEE bENEFITS

2014 2013

$000s $000s

Current

Liability for annual leave 224 268

Liability for long service leave 302 318

526 586

Non-current

Liability for long service leave 146 103

146 103

14. OTHER CURRENT LIAbILITIES

2014 2013

$000s $000s

Trust - IBNR Fund 827 859

Trust - Artistic Works 1,479 1,304

2,306 2,163

42 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14. OTHER CURRENT LIAbILITIES CONTINUED

2014 2013

$000s $000s

Trust - Statutory

2008 VA Distributable amount payable to copyright owners - 762

2009 VA Distributable amount payable to copyright owners 699 1,081

2010 VA Distributable amount payable to copyright owners 921 1,344

2011 VA Distributable amount payable to copyright owners 1,357 2,103

2012 VA Distributable amount payable to copyright owners 2,678 4,219

2013 VA Distributable amount payable to copyright owners 4,852 24,485

2014 VA Distributable amount payable to copyright owners 25,214 -

2008 VC Distributable amount payable to copyright owners - 379

2009 VC Distributable amount payable to copyright owners 414 523

2010 VC Distributable amount payable to copyright owners 760 693

2011 VC Distributable amount payable to copyright owners 1,342 1,291

2012 VC Distributable amount payable to copyright owners 1,574 1,648

2013 VC Distributable amount payable to copyright owners 2,373 8,466

2014 VC Distributable amount payable to copyright owners 6,842 -

2008 S183 Distributable amount payable to copyright owners - 80

2009 S183 Distributable amount payable to copyright owners 28 29

2010 S183 Distributable amount payable to copyright owners 47 52

2011 S183 Distributable amount payable to copyright owners 84 92

2012 S183 Distributable amount payable to copyright owners 266 283

2013 S183 Distributable amount payable to copyright owners 1,619 5,163

2014 S183 Distributable amount payable to copyright owners 1,597 -

Sound Recordings Distributable amount 108 108

52,775 52,801

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 43

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

14. OTHER CURRENT LIAbILITIES CONTINUED

2014 2013

$000s $000s

Trust - Non-statutory

NZ Educational Services:

2008 Distributable amount payable to copyright owners - 56

2009 Distributable amount payable to copyright owners 82 98

2010 Distributable amount payable to copyright owners 66 138

2011 Distributable amount payable to copyright owners 165 226

2012 Distributable amount payable to copyright owners 467 616

2013 Distributable amount payable to copyright owners 884 1,607

2014 Distributable amount payable to copyright owners 1,738 -

International Collection Service 3,203 3,166

6,605 5,907

61,686 60,871

15. EQUITY

Retained earnings

Funds held as part of the Society’s retained earnings will be used for the benefit of all members at the discretion of the Board.

Society Reserve Fund

In accordance with 15.4(c) of the Articles of Association, Screenrights is required to establish a reserve fund. From time to time, the Board will authorise funds to be released from the reserve fund to meet the costs of abnormal or exceptional expenditure.

16. FINANCIAL RISK MANAGEMENT

(a) Overview

The consolidated entity has exposure to the following risks from the use of financial instruments:

• Credit risk; • Liquidity risk; and • Market risk.

44 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. FINANCIAL RISK MANAGEMENT CONTINUED

(a) Overview continued

This note presents information about the consolidated entity’s exposure to each of the above risks, their objectives, and the policies and processes for measuring and managing risk. Further quantitative disclosures are included in this note.

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board has established the Audit Committee, which is responsible for developing and monitoring risk management policies. The Committee reports regularly to the Board on its activities.

Risk management policies are established to identify and analyse the risks faced by the consolidated entity, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the consolidated activities. The Company and its subsidiary, through their training and management standards and procedures, aim to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Audit Committee oversees how management monitors compliance with the consolidated entity’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the consolidated entity.

Credit risk

Credit risk represents the loss that would be recognised if a customer or counterparty failed to perform their contractual obligations and arises principally from the consolidated entity’s receivables from licensees and investments in short-term deposits.

Trade receivables

The consolidated entity’s exposure to credit risk is influenced mainly by the individual characteristics of each licensee. Concentrations of credit risk are minimised by undertaking transactions with a large number of licensees and counterparties with no geographical concentration of credit risk.

Approximately 76.1% of the consolidated entity’s revenue base is attributable to general licensing in Australia, where licensee fees are paid at the beginning of the licence period, normally 12 months. The Audit Committee has established a credit policy under which defaulting licensees are pursued rigorously with the assistance of a collection agency.

The consolidated entity has established, where necessary, an allowance for impairment that represents its estimate of incurred losses in respect of trade and other receivables. The main component of this allowance is for trade debtor balances assessed on an individual account basis and provided for when recovery is considered doubtful.

Investments in short-term deposits

The consolidated entity minimises credit risks in relation to its investments in short-term deposits by only dealing with Australian banks maintaining an acceptable credit rating.

Liquidity risk

Liquidity risk is the risk that the consolidated entity will not be able to meet its obligations as they fall due. The consolidated entity’s approach to managing liquidity is to ensure that it will always have sufficient liquidity to meet its liabilities when due, under both normal and unusual conditions, without incurring unacceptable losses or risking damage to the consolidated entity’s reputation.

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 45

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. FINANCIAL RISK MANAGEMENT CONTINUED

Liquidity risk continued

Typically the consolidated entity ensures that it has sufficient cash on demand to meet expected member distributions and operational expenses for a period of 60 days; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The consolidated entity has additional deposits invested for short terms varying from 30 to 180 days.

Market risk

Market risk is the risk that changes in market prices such as foreign exchange rates and interest rates will affect the consolidated entity’s income or the value of its holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

The consolidated entity is exposed to interest rate risk in relation to its cash and cash on deposit balances. The weighted average interest rate on cash and cash on deposit of $65,160,638 at 30 June 2014 is 3.62% (2013: $68,162,722- 4.07%). It is the Company’s policy not to hedge this exposure to interest rate risk.

Currency risk

The consolidated entity receives royalties from overseas affiliates in foreign currencies. It is group policy not to hedge this exposure to foreign exchange risk.

Fair values

The carrying value of financial assets and liabilities in the balance sheet approximates their fair values.

(b) Financial transactions

Credit risk

Exposure to credit risk

The carrying amount of the consolidated entity’s financial assets represents the maximum credit exposure. The consolidated entity’s maximum exposure to credit risk at the reporting date was:

2014 2013

$000s $000s

Trade and other receivables 3,745 2,393

Cash and cash equivalents 7,014 8,384

Cash on deposit 58,147 59,779

68,906 70,556

46 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. FINANCIAL RISK MANAGEMENT CONTINUED

(b) Financial transactions continued

Impairment losses

The ageing of the consolidated entity and the Company’s trade receivables at the reporting date was:

2014 2013

$000s $000s

Not past due 2,038 865

Past due 0-30 days 87 286

Past due 31-120 days 27 61

Past due 121 days to one year 156 121

2,308 1,333

As at 30 June 2014, the Consolidated Entity did not recognise a provision for impairment due to the Directors being of the opinion that the amounts receivable are recoverable (2013: $Nil).

Liquidity risk

The contractual maturities of financial liabilities, as represented by trade and other payables (note 12) and other current liabilities (note 14), are all within one year. The carrying amount of these liabilities also represents the contractual cash flows.

Currency risk

Exposure to currency risk

The exposure to foreign currency risk at balance date was as follows, based on notional amounts:

2014 2013

AUD equivalent of NZD exposure $000s $000s

Trade receivables 43 191

Total balance sheet exposure 43 191

The following significant exchange rates applied during the year:

Average rate Average rate Spot rate Spot rate

2014 2013 2014 2013

New Zealand dollar 1.1022 1.2454 1.0722 1.1803

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 47

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

16. FINANCIAL RISK MANAGEMENT CONTINUED

(b) Financial transactions continued

Sensitivity

A 10% strengthening/weakening of the Australian dollar against the New Zealand dollar at 30 June would have increased/(decreased) the consolidated entity’s profit/(loss) by $ 4,717 at 30 June 2014 (2013: $19,116). This analysis assumes that all other variables, in particular interest rates, remain constant.

Interest rate risk

Profile

At the reporting date the interest rate profile of the consolidated entity’s interest-bearing financial instruments was:

Carrying Amount

2014 2013

$000s $000s

Fixed rate instruments

Cash on deposits 58,147 59,779

Variable rate instruments

Cash at bank 7,014 8,384

Sensitivity analysis

If interest rates had changed by plus (or minus) 100 basis points per annum from the year end interest rate, with all other variables held constant, the consolidated entity profit for the year would have been $70,136 (2013: $83,833 higher (lower)).

48 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

17. NOTES TO THE STATEMENT OF CASH FLOWS

(a) Reconciliation of cash

For the purposes of the Statement of Cash Flows, cash includes cash on hand and at bank and short term deposits at call. Cash as at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the balance sheet as follows:

2014 2013

$000s $000s

Cash 7,014 8,384

7,014 8,384

(b) Reconciliation of cash flows from operating activities

Operating profit (loss) - 928

Add/(less) items classified as investing activities: Interest received (2,163) (3,885)

Add/(less) non-cash items: Gain on sale of non-current assets - (728)

Depreciation and amortisation 273 271

Net cash utilised by operating activities before change in assets and liabilities (1,890) (3,414)

Change in assets and liabilities: (Increase)/decrease in trade and other receivables (1,352) 2,083

Increase/(decrease) in trade creditors and accruals (2,932) 2,976

Increase/(decrease) in royalties in advance 326 (140)

Increase/(decrease) in provision for employee entitlements (17) (63)

Increase/(decrease) in provisions 16 -

Increase in other current liabilities 815 4,299

Net cash (used in)/provided by operating activities (5,034) 5,741

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 49

18. RELATED PARTY DISCLOSURES

Key management personnel compensation

The key management personnel compensation included in ‘employee expenses’ (see note 4) is as follows:

2014 2013

$000s $000s

Short-term employee benefits 1,650 1,625

Post-employment benefits 176 138

Other long-term benefits 36 31

1,862 1,794

Statement of management remuneration

Screenrights Executives Screenrights Executives

Salary range* in range 2013/14 in range 2012/13

$0-99k 1 1

$100-149k 1 -

$150-199k 1 3

$200-249k 2 2

$250-299k 1 -

$300-350k 1 1

* Includes superannuation and incentive payments

Other key management personnel transactions with the Company or its controlled entities

A number of key management persons of the Company, or their related parties, hold positions in other entities that result in them having control or significant influence over the financial or operating policies of these entities. A number of these entities transacted with the Group in the reporting period. The terms and conditions of the transactions with key management personnel and their related parties were no more favourable than those available, or which might reasonably be expected to be available, on similar transactions to non-key management personnel related entities or on an arm’s length basis. Related entities of Maureen Barron, David Anderson, Chris Oliver-Taylor, Dean Ormston, Victoria Spackman and Sue Taylor, or entities in which they hold a management position, are entitled to distributions calculated in accordance with note 1(n).

Apart from the details disclosed in this note, no key management personnel have entered into a material contract with the Company or consolidated entity since the end of the previous financial year and there were no material contracts involving key management personnel interests subsisting at year end.

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

50 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

18. RELATED PARTY DISCLOSURES CONTINUED

Loans to key management personnel

There were no loans to key personnel at any time during the year ended 30 June 2014.

Controlled entity

On 15 May 2006, Audio-Visual Copyright Society Limited (the Company) established a wholly owned subsidiary company called Enhance TV Pty Ltd. The objectives of the Company are to operate as an educational resource centre and to operate as a distribution outlet for the Australian educational market. At 30 June 2014, the subsidiary owed the company $147,036 (2013: $121,496) in respect of management fees.

19. MEMbERS’ LIAbILITY

The Company is a company limited by guarantee. The guarantee of members in the event of the winding up of the Company is $10 for each member. At 30 June 2014, membership of the Company comprised 3,693 full members (2013: 3,560), resulting in a total guarantee of $36,930 (2013: $35,600).

20. COMMITMENTS FOR EXPENDITURE

Operating leases - leases as lessee

Non-cancellable operating leases rentals are payable as follows:

2014 2013

$000s $000s

Less than one year 235 253

Between one and five years 687 949

Later than five years - -

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SCREENRIGHTS ANNUAL REPORT 2013-2014 | 51

21. PARENT ENTITY DISCLOSURES

As at, and throughout, the financial year ending 30 June 2014, the parent entity of the consolidated entity was Audio-Visual Copyright Society Limited.

2014 2013

$000s $000s

Result of parent entity

Profit/(loss) for the period - 928

Other comprehensive income - -

Total comprehensive profit/(loss) - 928

Financial position of parent entity at year end

Current assets 68,933 70,583

Total assets 69,691 71,485

Current liabilities 67,691 69,813

Total liabilities 68,122 69,916

1,569 1,569

Total equity of the parent entity comprising of: Retained earnings 1,369 1,369

Reserves 200 200

Total equity 1,569 1,569

The parent entity does not have any contingent liabilities as at 30 June 2014 (2013:$Nil))

22. SUbSEQUENT EVENTS

There have been no events subsequent to balance date which would have a material effect on the consolidated entity’s financial statements at 30 June 2014.

For the year ended 30 June 2014

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

52 AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED

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NOTES

Artwork and print production:

LOUD Pty Ltd

Printed in Australia 2014

Screenrights ABN: 76 003 912 310

Level 1, 140 Myrtle Street Chippendale NSW Australia 2008

Australia Phone +61 2 9904 0133 Fax +61 2 9904 0498

New Zealand Freephone 0800 44 2348 Freefax 0800 44 7006

Email info@screenrights.org

screenrights.org