here - API Victoria - The Australian Property Institute

AUSTRALIAN PROPERTY INSTITUTEFinance ReportAnnual Report 2012The Victorian Division produced a surplus of $34,509. This wasespecially significant in a year where many activities, primarily the CPDand Events Programme, were modified to accommodate the PanPacific Congress, held in Melbourne in October. Knowing that revenuewould be at a minimum it was crucial to closely monitor expenses.Total expenses decreased from $1,413,527 to $1,367,138 in 2012 andincluded the initial funding of a Strategic and Governance Review ofthe Victorian Division, currently underway.The National Council resolved to allocate the 2011 National Officedeficit to the Divisions and $257,972 was apportioned to Victoria. Thisin particular has seen a reduction in equity reflected by the Division’sBalance Sheet position which now sits at a total of $2,957,884.Revenue decreased overall and details are included below:• CPD income decreased by $26,609 from 2011 due mainly toa substantial reduction to the Programme, such as the AnnualConference not running, to accommodate the Pan PacificCongress.• Income from Non-CPD decreased by $39,397 due primarily tothe discounted sponsorship income received for the Excellence inProperty Awards because it was held as a cocktail function, againto accommodate the Pan Pacific Congress.• Membership subscription income reached $950,502 in 2012,effectively maintaining it at 2011 levels. Subscription feesremained unchanged.• $59,675 in fees generated from Presidential Appointmentswas achieved compared to $65,725 in 2011. Although 124appointments were made, more than 50% of appointmentswere lodged via the Small Business Commissioner, where noadministration fee is charged.• Publications & Products income reached $57,017, a $34,400reduction on 2011 because only two rather than three professionalcertificates were held in 2012.• 2012 interest income was $16,151 due to a fund reduction of$360,000 in conjunction with decreasing interest rates over thecourse of the year.• The prestige of the Victorian Division’s Professional CertificateProgrammes, including in 2012 the Specialist Retail ValuerProfessional Certificate and Professional Certificate in Giving ExpertEvidence, was reflected by the $35,186.39 revenue attained.Expenditure in 2012 decreased by $46,389. Fees for membershipand CPD remained the same as in previous years and investment wasmade in marketing and public relations expenses and the funding of aStrategic and Governance Review for the Victorian Division.• CPD costs decreased by $76,501 in line with the reducedprogramme.• Non-CPD expenditure decreased to $84,911 as a result of thereturn to the cocktail format for the Excellence in Property Awards.• Professional Products expenditure reduced to just $16,840, againbecause of the Specialist Water Valuer Professional Certificatebeing held over to 2013.• Employment expenses increase by $57,250 to $421,542 withtemporary staff and recruitment expenses being incurred.• Property expenses reduced slightly to $26,720 which primarilycovers the building upgrade programme, now in its fourth year.• Marketing & PR expenses rose by $22,916 from the previousyear due to the continuous effort of the Division to take on thenumerous opportunities for consultation, government liaison,media exposure as well as the continued partnership with theProperty Industry Foundation. In addition, APIVIC continuedthe partnership with Property Review formed in 2011 and everyMember is now subscribed to this online news provider.• The Victorian Divisional Council determined to invest into aGovernance and Strategy Review which commenced late in 2012,the benefits of which are already being realised.The Australian Property Institute (Inc.) (Victorian Division) commencedoperating out of combined cheque account and cash managementbank account with the other state divisions during 2010.Not all of the amounts which are shown above as Cash at Bank in2012 are available to be drawn on by this Division, as the allocationof National Project expenditure has not yet been determined andthere is a receivable from Australian Property Institute Values Limitedamounting to $260,000 which is expected to be repaid in full, in futureperiods. Furthermore, the allocation of the 2012 National Office deficithas yet to be determined and agreed upon.I would like to congratulate the Divisional Council, Executive, staff andBoards for their joint effort in achieving a very positive financial result forthe Victorian Division in 2012.David Corrigan FAPITreasurerAPI 6

AUSTRALIAN PROPERTY INSTITUTERental Determination/Presidential Appointments ReportsAnnual Report 2012Expert Determinations/Presidential AppointmentsFor many years, the API has provided services to the general public and the property market by nominating valuers to conduct formal expertdeterminations for dispute resolution purposes. Selections are made from the President’s Panel of Determining Valuers, with preference for memberswho are Accredited Specialist Retail Valuers.API members are encouraged to achieve accreditation as a Specialist Retail Valuer which is becoming a prime pre-requisite for inclusion on thePresident’s Panel. The current Panel comprises 75 valuers, and this is considered slightly larger than needed for the total volume of work.During 2012 there were 124 Presidential appointments, which is in line with long-term activity level. Approximately half the workload comprisesnominations to the Small Business Commissioner for appointments under the Retail Leases Act 2003.Expert Determinations 2012 2011 2010Direct Presidential64 59 49Appointments by APIRecommendations to Small 60 63 40Business CommissionerTOTAL 124 122 89Number of Valuers appointed 42 55 54The tables below provide an indication of the location and broad property types:Location 2012 2011 2010Melbourne CBD 20 12 12Melbourne Suburbs 87 90 61Regional Victoria 17 20 16TOTAL 124 122 89Property Type 2012 2011 2010Commercial 22 41 18Retail 79 68 48Industrial 16 10 15Rural & Residential 7 3 8TOTAL 124 122 89During 2012 a total of 42 Panel Valuers were appointed to conduct determinations. The remaining 33panel valuers who did not receive anappointment are mainly located in regional Victoria where there is little demand for this service. Allocation of work is summarized:Allocation of work is summarised:12 Valuers received 1 appointment7 Valuers received 2 appointments9 Valuers received 3 appointments2 Valuers received 4 appointments9 Valuers received 5 appointments3 Valuer received 6 appointments33 Valuers received no appointmentsKen JonesPresident’s Panel OfficerAPI 10

Council Meetings & Membership Annual Report 2012Council MeetingsThe following is a record of attendance by Councillors at the eleven Council meetings scheduled and held during 2012.NameMeetings TotalMeetingsattendedAbsent onInstitute BusinessApologiesCommentS Andrew 9 8 0 1 Joined April 2012M Ashby 11 11 0 0G Balfour 11 10 0 1G Brewer 9 6 1 2 Joined April 2012M Cations 8 8 0 0D Corrigan 11 10 0 1B Doupe 1 0 0 1 Term completed February 2012I Flynn 2 2 0 0 Term completed March 2012J Forsyth 3 3 0 0 Term completed April 2012A Galante 11 11 0 0J Jacono 11 10 0 1T Kelly 11 9 0 2D McKenzie 11 10 0 1N Moore 11 6 0 5R Reed 11 7 0 4B Sheales 2 1 0 1 Term completed March 2012B Shortal 10 7 0 3 Joined March 2012S Simpson 11 10 0 1T Gray 7 5 0 2 Term completed August 2012MembershipVoting member numbers increased by 76 and member numbers overall increased by 38.Members: 2007 2008 2009 2010 2011 2012Life Fellow 8 7 7 8 8 8Fellow 182 183 195 190 192 199Associate 986 1019 1047 1086 1085 1181Graduate 107 67 39 28 2 0Provisional Member - 61 91 102 161 138Provisional Associate 8 5 4 4 2 0Total 1291 1342 1383 1418 1450 1526Affiliates:Honorary 6 4 4 4 4 4Retired 59 66 58 51 49 51Student 382 387 312 265 258 219Non-Practising 37 43 44 44 50 49484 500 418 364 361 323Total Membership 1775 1842 1801 1782 1811 184911API

AUSTRALIAN PROPERTY INSTITUTEFinancial Report For The Year Ended 31 December 2012Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866COUNCILLOR’S REPORTYour council members submit the financial report of the Australian Property Institute (Inc.) (Victoria Division) forthe year ended 31 December 2012.COUNCIL MEMBERSThe names of council members throughout the year and at the date of this report are:- Justine Jacono - President- Aldo Galante - Senior Vice President- David McKenzie - Junior Vice President- David Corrigan - Treasurer- Stephen Simpson - Immediate Past President- Malcolm Ashby - Councillor- Graeme Balfour - Councillor- Nick Moore - Councillor- Richard Reed - Councillor- Ben Shortal - Councillor (appointed 15 March 2012)- Stephen Andrew - Councillor (appointed 19 April 2012)- Graham Brewer - Councillor (appointed 19 April 2012)- Milton Cations - Councillor (appointed 17 May 2012)- Brigitte Doupe - Councillor (resigned 18 February 2012)- Ian Flynn - Councillor (resigned 15 March 2012)- Brendan Sheales - Councillor (resigned 15 March 2012)- John Forsyth - Councillor (resigned 19 April 2012)- Tammy Gray (nee Suhan) - Councillor (resigned 23 August 2012)PRINCIPAL ACTIVITIESThe principal activities of the Institute during the financial year were:- To represent the interests of its members in Victoria;- The provision of professional education and training/development services; and- To provide social/networking facilities to members of the Institute.SIGNIFICANT CHANGESNo significant change in the nature of these activities occurred during the year.OPERATING RESULTThe profit from operations after providing for income tax amounted to $34,509 (2011: profit of $114,304).Signed in accordance with a resolution of the Members of the Council.JUSTINE JACONOPresidentDated this 4th day of March 2013.ALDO GALANTESenior Vice President2API 12

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866STATEMENT BY DIVISIONAL COUNCILLORSThe council has determined that the Australian Property Institute (Inc.) – Victorian Division is not a reporting entityand that this special purpose financial report should be prepared in accordance with the accounting policiesoutlined in note 1 to the financial statements.In the opinion of the council the financial report:1. Presents a true and fair view of the financial position of the Australian Property Institute (Inc.) – VictoriaDivision as at 31 December 2012 and its performance for the year ended on that date.2. At the date of this statement, there are reasonable grounds to believe the Australian Property Institute (Inc.)– Victorian Division will be able to pay its debts as and when they fall due.This statement is made in accordance with a resolution of the Council and is signed for and on behalf of thecouncil by:JUSTINE JACONOPresidentDated this 4th day of March 2013.ALDO GALANTESenior Vice President313API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866AUSTRALIAN PROPERTY INSTITUTE (INC.)STATEMENT(VICTORIANOF COMPREHENSIVEDIVISION)INCOMEFOR THE YEARABNENDED49 00731505DECEMBER8662012STATEMENT OF COMPREHENSIVE INCOME 20122011NOTEFOR THE YEAR ENDED 31 DECEMBER 2012 $$Revenue 2 1,401,647 1,527,831Education and training costs (185,482) 2012(296,758) 2011NOTE$$Member services costs (370,660) (371,872)Revenue 2 1,401,647 1,527,831Publication and products costsEducation and training costs(19,707)(185,482)(52,611)(296,758)Administrative expensesMember services costs(113,999)(370,660)(140,199)(371,872)Employee related expensesPublication and products costs(421,542)(19,707)(364,272)(52,611)Bank and merchant feesAdministrative expenses(14,269)(113,999)(19,695)(140,199)Meeting and travel expensesEmployee related expenses(27,632)(421,542)(39,400)(364,272)Depreciation and amortisation expenseBank and merchant fees(14,543)(14,269)(10,129)(19,695)Professional expensesMeeting and travel expenses(14,180)(27,632)(6,074)(39,400)Public relations expensesDepreciation and amortisation expense(136,566)(14,543)(112,286)(10,129)Other costsProfessional expenses(638)(14,180)(231)(6,074)Project expensesPublic relations expenses20 (47,920)(136,566)-(112,286)Profit before income tax expenseOther costs3 34,509(638)114,304(231)Income tax expenseProject expenses 20-(47,920) -Profit after income tax expenseProfit before income tax expense 334,50934,509114,304114,304OTHER COMPREHENSIVE INCOMEIncome tax expense - -Devaluation of land and buildingsProfit after income tax expense(50,000)34,509-114,304Total comprehensive income attributable to the membersOTHER COMPREHENSIVE INCOME(15,491)-114,304-Devaluation of land and buildings (50,000) -Total comprehensive income attributable to the members (15,491) 114,304The accompanying notes form part of these financial statements.4The accompanying notes form part of these financial statements.4API 14

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIANBALANCEDIVISION)SHEETASABNAT 3149DECEMBER007 505 8662012STATEMENT OF COMPREHENSIVE INCOME 2012 2011NOTEFOR THE YEAR ENDED 31 DECEMBER 2012 $ $ASSETSCurrent assets20122011NOTE$$Cash and cash equivalents 4 629,962 999,995Revenue 2 1,401,647 1,527,831Trade and other receivablesEducation and training costs5 46,774(185,482)8,547(296,758)Other current assetsMember services costs6 57,431(370,660)58,937(371,872)InventoriesPublication and products costs7 -(19,707)-(52,611)Total current assetsAdministrative expenses734,167(113,999)1,067,479(140,199)Employee related expenses (421,542) (364,272)Non-current assetsBank and merchant fees (14,269) (19,695)Loan receivableMeeting and travel expenses8 -(27,632)-(39,400)Property, plant and equipmentDepreciation and amortisation expense9 2,559,035(14,543)2,540,862(10,129)Intangible assetsProfessional expenses10 -(14,180)-(6,074)Total non-current assetsPublic relations expenses2,559,035(136,566)2,540,862(112,286)Total assetsOther costs3,293,202(638)3,608,341(231)Project expenses 20 (47,920) -ProfitLIABILITIESbefore income tax expense 3 34,509 114,304Current liabilitiesIncome tax expense - -Trade and other payablesProfit after income tax expense11 316,03434,509352,804114,304ProvisionsOTHER COMPREHENSIVE INCOME12 10,878-13,036-Total current liabilitiesDevaluation of land and buildings326,912(50,000)365,840-Non-current liabilitiesTotal comprehensive income attributable to the members (15,491) 114,304Provisions 12 8,406 11,154Total non-current liabilities 8,406 11,154Total liabilities 335,318 376,994NET ASSETS 2,957,884 3,231,347MEMBER FUNDSReserves 1,693,719 1,743,719Retained earnings 1,264,165 1,487,628Total member funds 2,957,884 3,231,347The accompanying notes form part of these financial statements.5The accompanying notes form part of these financial statements.415API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866AUSTRALIAN PROPERTY INSTITUTE (INC.)STATEMENT(VICTORIANOF CHANGESDIVISION)IN EQUITYFOR THE YEARABNENDED49 00731505DECEMBER8662012STATEMENT OF COMPREHENSIVE INCOME AssetRetainedFOR THE YEAR ENDED NOTE 31 DECEMBER revaluationearnings 2012reserveBalance at 31 December 2009 1,373,324 1,743,719 3,117,04320122011NOTEProfit attributable to members 114,304 $ - 114,304 $RevenueBalance at 31 December 2011 1,487,6282 1,401,6471,743,7191,527,8313,231,347ProfitEducationattributableand trainingto memberscosts34,509(185,482)-(296,758)34,509MemberDevaluationservicesof property,costsplant and equipment(370,660)(50,000)(371,872)(50,000)Publication and products costsApportionment of National Office deficit 19 (257,972)(19,707)-(52,611)(257,972)Administrative expensesBalance at 31 December 2012 1,264,165(113,999)1,693,719(140,199)2,957,884Employee related expenses (421,542) (364,272)Bank and merchant fees (14,269) (19,695)Meeting and travel expenses (27,632) (39,400)Depreciation and amortisation expense (14,543) (10,129)Professional expenses (14,180) (6,074)Public relations expenses (136,566) (112,286)Other costs (638) (231)Project expenses 20 (47,920) -Profit before income tax expense 3 34,509 114,304Income tax expense - -Profit after income tax expense 34,509 114,304OTHER COMPREHENSIVE INCOME - -Devaluation of land and buildings (50,000) -Total comprehensive income attributable to the members (15,491) 114,304TotalThe accompanying notes form part of these financial statements.6The accompanying notes form part of these financial statements.4API 16

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866AUSTRALIAN PROPERTY INSTITUTE (INC.)STATEMENT(VICTORIANOFDIVISION)CASH FLOWSFOR THE YEARABNENDED49 00731505DECEMBER8662012STATEMENT OF COMPREHENSIVE INCOME 2012 2011NOTEFOR THE YEAR ENDED 31 DECEMBER 2012 $ $CASH FLOWS FROM OPERATING ACTIVITIESReceipts from members and customers 1,465,447 20121,718,916 2011NOTE$$Payments to suppliers and employees (1,510,943) (1,567,549)Revenue 2 1,401,647 1,527,831Interest receivedEducation and training costs16,151(185,482)29,382(296,758)Net cash (used in) / provided by operating activitiesMember services costs17(b) (29,345)(370,660)180,749(371,872)Publication and products costs (19,707) (52,611)CASH FLOWS FROM INVESTING ACTIVITIESAdministrative expenses (113,999) (140,199)Payment for property, plant and equipmentEmployee related expenses(82,716)(421,542)(12,973)(364,272)Net cash used in investing activitiesBank and merchant fees(82,716)(14,269)(12,973)(19,695)Meeting and travel expenses (27,632) (39,400)CASH FLOWS FROM FINANCING ACTIVITIESDepreciation and amortisation expense (14,543) (10,129)Apportionment of National Office deficitProfessional expenses(257,972)(14,180)-(6,074)Net cash used in financing activitiesPublic relations expenses(257,972)(136,566)-(112,286)OtherNet increase/(decrease)costsin cash held (370,033)(638)167,776(231)ProjectCash atexpensesthe beginning of the financial year 17(a)20 (47,920)999,995 832,219-ProfitCashbeforeat the endincomeof thetaxfinancialexpenseyear 17(a)3629,96234,509 114,304999,995Income tax expense - -Profit after income tax expense 34,509 114,304OTHER COMPREHENSIVE INCOME - -Devaluation of land and buildings (50,000) -Total comprehensive income attributable to the members (15,491) 114,304The accompanying notes form part of these financial statements.7The accompanying notes form part of these financial statements.417API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20121: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIESThe councillors have prepared the financial statements on the basis that the company is a non-reportingentity because there are no users dependent on general purpose financial statements. The financialstatements are therefore special purpose financial statements that have been prepared in order to meet theneeds of members.The Australian Property Institute (Inc.) has been assessed as a not-for-profit entity as its principal objectiveis not the generation of profit.The following is a summary of the material accounting policies adopted by the Institute in the preparation ofthe financial report. The accounting policies have been consistently applied, unless otherwise stated.The financial statements have been prepared on an accruals basis and are based on historical costs unlessotherwise stated in the notes. The accounting policies that have been adopted in the preparation of thestatements are as follows:(a)Property, plant and equipmentEach class of property, plant and equipment are carried at cost or fair value less, where applicable,any accumulated depreciation and impairment losses.Freehold land and buildings are brought to account at cost or at independent valuation. The Institutehas a policy of revaluing all land and buildings on a regular basis.The valuation has taken into account the requirements of AASB 116 which defines ‘fair value’ and theconcepts of ‘market value’.The date of valuation is 31 December 2012. The property was inspected on 15 January 2013.Increases in the carrying amount arising on revaluation of land and buildings are credited to arevaluation reserve in shareholder’ equity. Decreases that offset previous increases of the sameasset are charged against the fair value reserves in equity; all other decreases are charged to theincome statement.Plant and equipment are measured on the cost basis less any accumulated depreciation andimpairment losses.The carrying amount of property, plant and equipment is reviewed annually by the Institute wheneverthere is evidence of an impairment indicator.The recoverable amount is calculated as the higher of net fair value and value in use. For thoseassets which have been held for cash-generating purposes and which would be replaced if theInstitute was deprived of them, the value in use is depreciated replacement cost. Value in use for allother assets is based on a discounted cash flow.DepreciationThe depreciable amount of all fixed assets are depreciated on a straight line basis over the usefullives of the assets to the Institute commencing from the time the asset is held and ready for use.The depreciable rates used for each class of depreciable assets are:Class of assetFurniture and equipmentUseful life1 – 10 years8API 18

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20121. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(b) Impairment of assetsAt the end of each reporting period property, plant and equipment, intangible assets and investmentsare reviewed to determine whether there is any indication that those assets have suffered animpairment loss. If there is an indication of possible impairment, the recoverable amount of anyaffected asset (or group of related assets) is estimated and compared with its carrying amount. Therecoverable amount is the higher of the asset’s fair value less costs to sell and the present value ofthe asset’s future cash flows discounted at the expected rate of return. If the estimated recoverableamount and an impairment loss is recognised immediately in profit or loss(c)(d)(e)(f)Employee benefitsProvision is made for the Institute’s liability for employee benefits arising from services rendered byemployees to the end of the reporting period. Employee benefits have been measured at the amountsexpected to be paid when the liability is settled, plus any related on-costs.ProvisionsProvisions are recognised when the Institute has a legal or constructive obligation, as a result of pastevents, for which it is probable that an outflow of economic benefits will result and that outflow can bereliably measured. Provisions are measured at the best estimate of the amounts required to be settlethe obligations at the end of the reporting period.Trade payablesTrade payables represent the liabilities for goods and services received by the company that remainunpaid at the end of the reporting period. Trade payables are recognised at their transaction price.They are subject to normal credit terms (30-120 days) and are not subject to interest.Income taxThe income tax expense for the year comprises current income tax expense. The company does notrecognise deferred tax assets or liabilities. Current income tax expense charged to profit or loss is thetax payable on taxable income and is measured at the amounts expected to be paid to the relevanttaxation authority.From 1 January 1993 the Australian Property Institute (Inc.) became liable to pay income tax. TheVictorian Division of API is not a legal tax entity in its own right and therefore the division is notdirectly liable to pay income tax. The liability to pay income tax rests with the API and at the time ofthis report the Victorian Division had not been advised of any tax contribution required to be remitted.Accordingly income tax has not been provided for in these accounts.(g)(h)LeasesLeases of fixed assets where substantially all risks and benefits incidental to the ownership of theasset, but not the legal ownership, are transferred to the Institute are classified as finance leases.Finance leases are capitalised, recording an asset and a liability equal to the present value of theminimum lease payments, including any guaranteed residential values. Leased assets aredepreciated on a straight line basis over their estimated useful lives where it is likely that the Institutewill obtain ownership of the asset or over the term of the lease. Lease payments are allocatedbetween the reduction of the lease liability and the lease interest expense for the period.Cash and cash equivalentsCash and cash equivalents include cash on hand, deposits held at call with banks, other short-termhighly liquid investments with original maturities of three months or less and bank overdrafts. Bankoverdrafts are shown within borrowings in current liabilities on the balance sheet.919API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20121. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(i) RevenueRevenue from the sale of goods is recognised upon the delivery of goods to customers.Interest revenue is recognised on a proportional basis taking into account the interest rates applicableto the financial assets.Revenue from the rendering of a service is recognised upon the delivery of the service to thecustomers.Dividend revenue is recognised when the Institute has established that it has a right to receive adividend.Other revenue is recognised when the right to receive the revenue has been established.(j)(k)(l)Goods and services taxRevenues, expenses and assets are recognised net of the amount of GST, except where the amountof GST incurred is not recoverable from the Australian Tax Office (ATO), in which case the GST isrecognised as part of the cost of acquisition of the asset or as part of an item of the expense.Receivables and payables in the Balance Sheet are stated inclusive of the amount of the amount ofGST receivable or payable. The net amount of GST recoverable from, or payable to, the ATO isincluded with other receivables or payables in the balance sheet.Comparative figuresWhen required by Accounting Standards, comparative figures have been adjusted to conform tochanges in presentation for the current financial year.Critical accounting estimates and judgementsThe councillors evaluate estimates and judgements incorporated into the financial report based onhistorical knowledge and best available current information. Estimates assume a reasonableexpectation of future events and are based on current trends and economic data, obtained bothexternally and within the Institute.Key estimates – impairmentThe Institute assesses impairment at each reporting date by evaluating conditions specific to theInstitute that may lead to impairment of assets. Where an impairment trigger exists, the recoverableamount of the asset is determined. Value-in-use calculations performed in assessing recoverableamounts incorporate further estimates.(m)Financial instrumentsRecognition and Initial MeasurementFinancial instruments, incorporating financial assets and financial liabilities, are recognised when theentity becomes a party to the contractual provisions of the instrument.Trade date accounting is adopted for financial assets that are delivered within timeframes establishedby marketplace convention.Financial instruments are initially at fair value plus transactions costs where the instrument is notclassified at fair value through profit or loss. Transaction costs related to instruments classified as atfair value through profit or loss are expensed to profit or loss immediately. Financial instruments areclassified and measured as set out below.DerecognitionFinancial assets are derecognised where the contractual rights to receipt of cash flows expires or theasset is transferred to another party whereby the entity no longer has any significant continuinginvolvement in the risks and benefits associated with the asset. Financial liabilities are derecognisedwhere the related obligations are either discharged, cancelled or expire. The difference betweencarrying value of the financial liability extinguished or transferred to another party and the fair value ofconsideration paid, including the transfer of non-cash assets or liabilities assumed is recognised inprofit or loss.10API 20

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20121. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)(m) Financial Instruments (continued)Classification and Subsequent Measurement(i) Financial assets at fair value through profit or lossFinancial assets are classified at fair value through profit or loss when they are held for tradingpurpose of short term profit taking, where they are derivatives not held for hedging purposes, ordesignated as such to avoid an accounting mismatch or to enable performance evaluationwhere a group of financial assets is managed by key management personnel on a fair valuebasis in accordance with a documented risk management or investment strategy. Realised andunrealised gains and losses arising from the changes in fair value are included in profit or lossin the period in which they arise.(ii)(iii)(iv)(v)Loans and ReceivablesLoans and receivables are non-derivative financial assets with fixed or determinable paymentsthat are not quoted in an active market and are subsequently measured at amortised cost usingthe effective interest rate method.Held-to-maturity investmentsHeld-to-maturity investments are non-derivative financial assets that have fixed maturities andfixed or determinable payments, and it is the entity’s intention to hold these investments tomaturity. They are subsequently measured at amortised cost using the effective interest ratemethod.Available-for-sale financial assetsAvailable-for-sale financial assets are non-derivative assets that are either designated as suchor that are not classified in any of the other categories. They comprise investments in the equityof other entities where there is neither a fixed maturity nor fixed or determinable payments.Financial LiabilitiesNon-derivative financial liabilities (excluding financial guarantees) are subsequently measuredat amortised cost using the effective interest rate method.Fair valueFair value is determined based on current bid prices for all quoted investments. Valuationtechniques are applied to determine the fair value for all unlisted securities, including recentarm’s length transactions, reference to similar instruments and option pricing models.ImpairmentAt each reporting date, the entity assesses whether there is any objective evidence that afinancial instrument has been impaired. In the case of available-for-sale financial instruments aprolonged decline in the value of the instrument is considered to determine whether impairmenthas arisen. Impairment losses are recognised in the Income Statement.1121API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20122012 2011$ $2. REVENUEOperating activitiesEducation and training income 295,630 361,635Member services income 966,283 966,680Presidential appointment income 59,675 65,725Publications and products income 57,017 91,424Interest income 16,151 29,382Other income 6,891 12,985Total revenue 1,401,647 1,527,8313. PROFIT BEFORE INCOME TAXProfit before income tax has been determined after:EXPENSESEducation and training costs 185,482 296,758Member services costs 370,660 371,872Publications and products costs 19,707 52,610Leasing expenses 9,219 8,036Remuneration of auditor 6,317 6,074Depreciation of property, plant and equipment 14,543 10,129Amortisation of intangible assets - -4. CASH ASSETSCash on hand 17(a) 2 404Cash at bank 17(a) 629,960 999,591629,962 999,995The Australian Property Institute (Inc.) (Victoria Division) commenced operating out of combined cheque accountand cash management bank account with the other state divisions during 2010. Not all of the amounts which areshown above as Cash at Bank in 2012 are available to be drawn on, as the allocation of National Projectexpenditure has not yet been determined and a receivable from Australian Property Institute Valuers Limitedamounting to $260,000 which is expected to be repaid in full, in future periods.2012 2011$ $5. TRADE AND OTHER RECEIVABLESTrade receivables 55,412 17,185Provision for doubtful debts (8,638) (8,638)Other receivables and accrued income - -46,774 8,5476. OTHER CURRENT ASSETSPrepayments 57,431 58,93757,431 58.9377. INVENTORIESStock of publications and merchandise - -- -8. LOAN RECEIVABLELoan owing to API Limited - -- -12API 22

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20122012 2011$ $9. PROPERTY, PLANT AND EQUIPMENTLand and building at valuation 2,450,000 2,500,0002,450,000 2,500,000Furniture and equipment – at cost 277,638 194,921Less: Accumulated depreciation (168,603) (154,059)109,035 40,862Total property, plant and equipment 2,559,035 2,540,862(a)Movements in carrying amountsMovements in the carrying amounts for each class of property, plant and equipment between thebeginning and the end of the current financial year.Land andbuilding(valuation)Furnitureandequipment$ $ $Balance at the beginning of the year 2,500,000 40,862 2,540,862Additions - 82,716 82,716Revaluation (50,000) - (50,000)Depreciation expense - (14,543) (14,543)Carrying amount at the end of the year 2,450,000 109,035 2,559,035Total(b)The land and building, being located at 10 Beach Street, Port Melbourne, was inspected by TrentWeir AAPI of CBRE Valuations Pty Limited on 15 January 2013. The valuation of the property as at31 December 2012 has been determined on a ‘market value’ basis. This is equivalent to fair valueand in accordance with AASB 116.2012 2011$ $10. INTANGIBLE ASSETSCoresoft - -Software development costs – Property Pro,Website, AMPL, FPP/RMM online- -- -11. TRADE AND OTHER PAYABLESTrade payables 26,726 35,279GST payable 7,873 15,521Other payables and accrued expenses 58,187 40,388Income received in advance 223,248 261,616316,034 352,80412. PROVISIONSCurrent:Provision for annual leave 10,878 13,03610,878 13,036Non-current:Provision long service leave 8,406 11,1548,406 11,15419,284 24,1901323API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20122012 2011$ $13. LEASING COMMITMENTSOperating lease commitmentsNon-cancellable operating leases contracted for but not capitalised in thefinancial statementsPayable- Not later than 1 year 8,042 8,676- Later than 1 year but not later than 5 years. 17,850 25,93225,892 34,608Capital expenditure commitmentsCapital expenditure contracted for but not capitalised in the financialstatementsPayable- Not later than 1 year 38,000 -38,000 -Operating lease commitments consists of rental of photocopier whilst capital expenditure commitments consistsof the strategic review14. EVENTS SUBSEQUENT TO BALANCE DATENo matters or circumstances have arisen since the end of the financial year which significantly affected theoperations of the Institute, the results of these operations, or state of affairs of the Institute in the subsequentfinancial years.15. SEGMENT REPORTINGThe Institute operated in the property sector providing training and resource facilities to members of the Institutewithin Victoria. The National office is located in Canberra.16. RELATED PARTY TRANSACTIONSTransactions between related parties are on normal commercial terms and conditions no more favourable thanthose to other parties. Transactions with related parties:(a)National Office:During the year ended 31 December 2011, Australian Property Institute (Inc.) (Victorian Division)made payments to the Australian Property Institute (Inc.) (National Office) in relation to the Nationalcouncil levy and received expense reimbursement.2012 2011$ $National council levy 369,895 371,327(b)(c)Councillors’ related entitiesCouncillors and/or their related entities are required to pay membership fees, professionaldevelopment, functions and events on the same terms and conditions as all other members.President’s allowanceDuring the year, the President(s) received and ex-gratia allowance as a means of non-executivedirector’s compensation.2012 2011$ $President’s allowance 6,000 6,00014API 24

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 201216. RELATED PARTY TRANSACTIONS(CONT)(d) Governance and strategic reviewOne of the key management personnel has a family relationship with the service providerundertaking the Victorian Division’s governance and strategy review. The appointment wascompetitively tendered, the family member was not involved in the submission and is not involved inthe review and the key management personnel receives no financial benefit from the agreement.(e)Risk management moduleDuring the year ended 31 December 2012, Australian Property Institute (Inc.) Victoria Divisionsmade payments to the Australian Property Institute (Inc.) (National Secretariat).2012 2011$ $Risk management module fees 26,820 6,70017(a) CASH FLOW INFORMATIONFor the purposes of the statement of cash flows, cash included cash on hand and in banks and short termdeposits. Cash at the end of the financial year is shown in the balance sheet as:2012 2011$ $Cash on hand 2 404Cash at bank 628,760 999,591628,762 999,995(b) RECONCILIATION OF NET CASH PROVIDED BY OPERATINGACTIVITIES TO OPERATING PROFITOperating profit for the year 34,509 114,304Non – cash flowsDepreciation expense 14,543 10,129Change in operating assets and liabilities(Increase)/decrease in trade receivables (38,228) (3,289)(Increase)/decrease in other current assets 1,506 (34,190)Increase/(decrease) in trade payables and accruals (16,400) 19,319Increase/(decrease) in income in advance (20,370) 73,913Increase/(decrease) in provisions (4,905) 563Net cash provided by operating activities (29,345) 180,7491525API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 201218. FINANCIAL INSTRUMENTS(a) Financial risk management policiesFinancial instruments consist mainly of deposits with banks, accounts receivable and payable.The entity does not have any derivative instruments at 31 December 2012.(i)(ii)Treasury risk managementCouncil members meet on a regular basis to analyse financial risk exposure and to evaluatetreasury management strategies in the context of the most recent economic conditions andforecasts.Financial risk exposures and managementThe main risks the entity is exposed to through its financial instruments are interest rate risk,liquidity risk and credit risk.Interest rate riskInterest rate risk is managed with a mixture of fixed and floating cash investments.Foreign currency riskThe entity is not exposed to fluctuations in foreign currencies.Liquidity riskThe entity manages liquidity risk by monitoring forecast cash flows and ensuring that adequatecash reserves are maintained.Credit riskThe maximum exposure to credit risk, excluding the value of any collateral or other security, atbalance date to recognised financial assets, is the carrying amount, net of any provisions forimpairment of those assets, as disclosed in the balance sheet and notes to the financialstatements. The entity does not have any material credit risk exposure to any single receivableor group of receivables under financial instruments entered into.Credit risk is managed by the entity and reviewed regularly by the council. It arises fromexposures to customers as well as through deposits with financial institutions.(b)Financial instruments composition and maturity analysisThe table below reflects the undiscounted contractual settlement terms for financial instruments of afixed period of maturity, as well as management’s expectations of the settlement period for all otherfinancial instruments. As such, the amounts may not reconcile to the balance sheet.Weighted averageeffective interestrateFloating interestrateFixed interest ratematuringNon-interestbearingTotal2012 2011 2012 2011 2012 2011 2012 2011 2012 2011% % $ $ $ $ $ $ $ $Financial assetsCash at bank 1.60% 3.77% 629,960 999,591 - - - 629,960 999,591Cash on hand - - - - 2 404 2 404Receivables - - - - 46,774 8,547 46,774 8,547Total 629,960 999,591 -- - 46,776 8,951 676,7361,008,542Financial liabilitiesTrade and sundrypayables- - - - 92,786 91,188 92,786 91,188Total - - - - 92,786 91,188 92,786 91,18816API 26

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 201218. FINANCIAL INSTRUMENTS (CONT)b. Financial instruments composition and maturity analysis (continued)Trade and sundry payables are expected to be paid as follows:Account payablesLess than 12 months 92,786 91,188Total trade and sundry payables 92,786 91,188c. Net fair valuesThe aggregate net fair values and carrying amounts of financial assets and financial liabilities are disclosedin the balance sheet and in the notes to the financial statements.Sensitivity analysis:Interest rate riskThe entity has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date.This sensitivity analysis demonstrates the effect on current year results and equity which could result from achange in this risk.As at 31 December 2012, the effect on profit and equity as a result of changes in the interest rate, with allother variables remaining constant, would be as follows:2012$2012$2011$Change in profit— Increase in interest rate by 1% 6,300 10,000— Decrease in interest rate by 1% (6,300) (10,000)Change in equity— Increase in interest rate by 1% 6,300 10,000— Decrease in interest rate by 1% (6,300) (10,000)2011$This sensitivity analysis has been performed on the assumption that all other variables remain unchanged.19. APPORTIONMENT OF NATIONAL OFFICE DEFICITDuring the year the National Council agreed that the allocation of the National Office deficit, relating to 31December 2011, was to be apportioned to the state divisions on a pro-rata basis according to final membernumbers as at 31 December 2011 excluding students. In relation to 31 December 2012, the allocation of theNational Office deficit has yet to be determined.20. PROJECT EXPENSESIncluded in the amount shown in project expenses is the Divisional contribution to the 2012 Pan PacificCongress for Real Estate Appraisers, Valuers and Councillors21. INSTITUTE DETAILSThe principal place of business of the Victorian Division of the Institute is:Australian Property Institute (Inc.)10 Beach StreetPORT MELBOURNE VIC 32071727API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 201222. NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVEAt the date of this financial report the following standards and interpretations, which may impact the entity inthe period of initial application, have been issued but are not yet effective:Reference Title SummaryAASB 9FinancialInstruments2009-11 Amendments toAustralianAccountingStandards arisingfrom AASB 92010-7 Amendments toAustralianAccountingStandards arisingfrom AASB 9(December 2010)AASB 13 Fair ValueMeasurement2011-8 Amendments toAustralianAccountingStandards arisingfrom AASB 13Replaces the requirements of AASB 139 forthe classification and measurement offinancial assets. This is the result of the firstpart of Phase 1 of the IASB’s project toreplace IAS 39.Amends AASB 1, 3, 4, 5, 7, 101, 102, 108,112, 118, 121, 127, 128, 131, 132, 136, 139,1023 and 1038 and Interpretations 10 and 12as a result of the issuance of AASB 9.Amends AASB 1, 3, 4, 5, 7, 101, 102, 108,112, 118, 120, 121, 127, 128, 131, 132, 136,137, 139, 1023 & 1038 and Interpretations 2,5, 10, 12, 19 & 127 for amendments to AASB9 in December 2010Provides a clear definition of fair value, aframework for measuring fair value andrequires enhanced disclosures about fairvalue measurement.Amends AASB 1, 2, 3, 4, 5, 7, 9, 101, 102,108, 110, 116, 117, 118, 119, 120, 121, 132,133, 134, 136, 138, 139, 140, 141, 1004,1023 & 1038 and Interpretations 2, 4, 12, 13,14, 17, 19, 131 & 132 as a result of issuanceof AASB 13 Fair Value Measurement.AASB 119 Employee Benefits Prescribes the accounting and disclosure foremployee benefits. This Standard prescribesthe recognition criteria when in exchange foremployee benefits.2011-10 Amendments toAustralianAccountingStandards arisingfrom AASB 1192011-11 Amendments toAASB 119 arisingfrom ReducedDisclosureRequirements2011-11 Amendments toAASB 119 arisingfrom ReducedDisclosureRequirementsAASB 1053Application of Tiersof AustralianAccountingStandardsAmends AASB 1, 8, 101, 124, 134, 1049,2011-8 & Interpretation 14 as a result of theissuance of AASB 119 Employee Benefits.This Standard makes amendments to AASB119 Employee Benefits, to incorporatereduced disclosure requirements into theStandard for entities applying Tier 2requirements in preparing general purposefinancial statements.This Standard makes amendments to AASB119 Employee Benefits, to incorporatereduced disclosure requirements into theStandard for entities applying Tier 2requirements in preparing general purposefinancial statements.This standard establishes a differentialfinancial reporting framework consisting oftwo Tiers of reporting requirements forpreparing general purpose financialstatements.Applicationdate (financialyearsbeginning)ExpectedImpact1 January 2013 Not expected tohave a materialimpact on theentity.1 January 2013 Not expected tohave a materialimpact on theentity.1 January 2013 Not expected tohave a materialimpact on theentity.1 January 2013 Not expected tohave a materialimpact on theentity.1 January 2013 Not expected tohave a materialimpact on theentity.1 January 2013 Not expected tohave a materialimpact on theentity.1 January 2013 Not expected tohave a materialimpact on theentity.1 July 2013 Not expected tohave a materialimpact on theentity.1 July 2013 Not expected tohave a materialimpact on theentity.1 July 2013 Not expected tohave a materialimpact on theentity.18API 28

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 201222. NEW STANDARDS AND INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE (CONTINUED)Reference Title Summary2010-2 Amendments toAustralianAccountingStandards arisingfrom ReducedDisclosureRequirements2011-4 Amendments toAustralianAccountingStandards toRemove IndividualKey ManagementPersonnelDisclosureRequirementsThis Standard gives effect to AustralianAccounting Standards – ReducedDisclosure Requirements and amends AASB1, 2, 3, 5, 7, 8, 101, 102, 107, 108, 110, 111,112, 116, 117, 119, 121, 123, 124, 127, 128,131, 133, 134, 136, 137, 138, 140, 141, 1050& 1052 and Interpretations 2, 4, 5, 15, 17,127, 129 & 1052.This Standard makes amendments toAustralian Accounting Standard AASB 124Related Party Disclosures.Applicationdate (financialyearsbeginning)ExpectedImpact1 July 2013 Not expected tohave a materialimpact on theentity.1 July 2013 Not expected tohave a materialimpact on theentity.1929API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012INCOMEAUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIAN DIVISION)ABN 49 007 505 866DETAILED PROFIT AND LOSSFOR THE YEAR ENDED 31 DECEMBER 2012Education and training income 295,630 361,635Member services income 966,283 966,680Presidential appointment income 59,675 65,725Publications and products income 57,017 91,424Interest income 16,151 29,382Other income 6,891 12,985TOTAL INCOME 1,401,647 1,527,8312012$2011$EXPENSESEducation and training costs 185,482 296,758Member services costs 370,660 371,872Publications and products costs 19,707 52,611Administration expenses 113,999 140,199Employee related expenses 421,542 364,272Bank and merchant fees 14,269 19,695Meeting and travel expenses 27,632 39,400Depreciation and amortisation expenses 14,543 10,129Professional expenses 14,180 6,074Public relations expenses 136,566 112,286Other costs 638 231Project expenses 47,920 -TOTAL EXPENSES 1,367,138 1,413,527PROFIT FOR THE YEAR 34,509 114,30420API 30

Annual Report 2012INDEPENDENT AUDITOR’S REPORTTO THE MEMBERS OFAUSTRALIAN PROPERTY INSTITUTE (INC.) VICTORIA DIVISIONRSM Bird CameronLevel 1, 103-105 Northbourne Avenue Canberra ACT 2601GPO Box 200 Canberra ACT 2601T +61 2 6247 5988 F +61 2 6247 3703www.rsmi.com.auWe have audited the accompanying financial report, being a special purpose financial report, of AustralianProperty Institute (Inc.) (Victoria Division) which comprises the balance sheet as at 31 December 2012, thestatement of comprehensive income, statement of changes in equity and cash flow statement for the year thenended, notes comprising a summary of significant accounting policies and other explanatory information, and thecouncillors’ declaration.Councillors’ Responsibility for the Financial ReportThe councillors are responsible for the preparation of the financial report, and have determined that the basis ofpreparation described in Note 1, is appropriate to meet the needs of the members. The Councillors' responsibilityalso includes such internal control as the Councillors determine is necessary to enable the preparation of afinancial report that is free from material misstatement, whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on the financial report based on our audit. We conducted our audit inaccordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevantethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financialreport is free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial report. The procedures selected depend on the auditor's judgement, including the assessment of therisks of material misstatement of the financial report, whether due to fraud or error. In making those riskassessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of thefinancial report in order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating the appropriateness of accounting policies used and the reasonableness of accounting estimatesmade by the councillors as well as evaluating the overall presentation of the financial report.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our auditopinion.IndependenceIn conducting our audit, we have complied with the independence requirements of the Australian professionalaccounting bodies.Liability limited bya scheme approvedunder ProfessionalStandards LegislationBirdanco Nominees Pty LtdABN 33 009 321 377Practising asRSM Bird CameronABN 65 319 382 479Major Offices in:Perth, Sydney,Melbourne, Adelaideand CanberraRSM Bird Cameron is a member of the RSM network. Eachmember of the RSM network is an independent accounting andadvisory firm which practises in its own right. The RSMnetwork is not itself a separate legal entity in any jurisdiction.31API

AUSTRALIAN PROPERTY INSTITUTEAnnual Report 2012OpinionIn our opinion, the financial report presents fairly, in all material respects, the financial position of the AustralianProperty Institute (Inc.) (Victoria Division) as of 31 December 2012 and its financial performance and its cash flowsfor the year then ended in accordance with accounting policies described in Note 1 to the financial statements.Basis of accountingWithout modifying our opinion, we draw attention to Note 1 to the financial report, which describes the basis ofaccounting. The financial report has been prepared to meet the needs of its members. As a result, the financialreport may not be suitable for another purpose.RSM Bird CameronCanberra, Australian CapitalTerritory Dated: 5 March 2013RODNEY MILLERDirectorAPI 32

Annual Report 2012AUSTRALIAN PROPERTY INSTITUTE (INC.)(VICTORIA DIVISION)AUDITOR’S DISCLAIMERRSM Bird CameronLevel 1, 103-105 Northbourne Avenue Canberra ACT 2601GPO Box 200 Canberra ACT 2601T +61 2 6247 5988 F +61 2 6247 3703www.rsmi.com.auThe additional financial data presented in the following pages is in accordance with the books and records ofAustralian Property Institute (Inc.) (Victoria Division) which have been subjected to the auditing proceduresapplied in our statutory audit of the association for the year ended 31 December 2012. It will be appreciated thatour statutory audit did not cover all details of the additional financial data. Accordingly, we do not express anopinion on such financial data and no warranty of accuracy or reliability is given. Neither the firm nor anymember or employee of the firm undertakes responsibility in any way whatsoever to any person other thanAustralian Property Institute (Inc.) (Victoria Division) in respect of such data, including any errors or omissionstherein however caused.RSM Bird CameronCanberra, Australian CapitalTerritory Dated: 5 March 2013RODNEY MILLERDirectorLiability limited bya scheme approvedunder ProfessionalStandards LegislationBirdanco Nominees Pty LtdABN 33 009 321 377Practising asRSM Bird CameronABN 65 319 382 479Major Offices in:Perth, Sydney,Melbourne, Adelaideand CanberraRSM Bird Cameron is a member of the RSM network. Eachmember of the RSM network is an independent accounting andadvisory firm which practises in its own right. The RSMnetwork is not itself a separate legal entity in any jurisdiction.33API

AUSTRALIAN PROPERTY INSTITUTEVICTORIAN DIVISIONANNUAL REPORT 2012www.vic.api.org.au