Governance Statement .................................................... 1
Company Profile.............................................................. 2
Directors’ Report ............................................................. 3
Directors’ Declaration ..................................................... 5
Independent Auditor’s Report ......................................... 6
Lead Auditor’s Independence
Declaration ..................................................................... 9
Annotated Statement of Financial
Performance ................................................................. 10
Consolidated Statement of Profit
and Loss ........................................................................ 11
Consolidated Balance Sheet .......................................... 12
Statement of Cash Flows ............................................... 13
Statement of Changes in Equity ..................................... 14
Notes to the Consolidated Financial
Statements ................................................................... 15
Appendix ....................................................................... 40
Front cover:
HardBall S2 -
Northern Pictures
Rams -
We Are Wasted, Photo Ben King
Eden -
Every Cloud Production, Photo Lisa Tomasetti
Project Planet -
Emerald Films & Metamorflix
Luke Nguyen’s Food Trail -
Red Creative Media
I Am Woman -
Goalpost Pictures, Photo Tony Mott
Sequin in a Blue Room
- Sequin in a Blue Room
Unsound -
WiseGoat Productions
Rams -
We Are Wasted, Photo Court McAllister
CONTENTS
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 1
1. GENERAL STATEMENT
1.1 Screenrights is dedicated to maximising the
incentive provided by the copyright system for
the production of audiovisual works. Specifically
Screenrights aims to:
• maximise returns to audiovisual rightsholders
through collective management of rights; and
• encourage access to our members’ content in
return for fair fees.
1.2 In furtherance of these goals, Screenrights seeks
to maintain and foster principles of corporate
governance that accord with best practice and
are appropriate for a declared collecting society,
requiring the highest standards of behaviour and
accountability.
1.3 It is recognised that it is neither possible nor
desirable to lay down prescriptive rules to
dictate actions in the varied circumstances
that may confront an organisation in its future.
Nonetheless the Board of Directors of Screenrights
acknowledges the general statements concerning
governance, ethics and the obligations of
Directors in this paper and adopts this policy, and
will review it as necessary.
1.4 The aim of the Screenrights Board of Directors is
stewardship that is effective, accountable and fair.
2. GOVERNANCE FOR WHOM?
2.1 The Board comprises individuals elected by the
members of Screenrights. It has collective
legal responsibility for directing the affairs of
Screenrights for the benefit of the members
[present and future], recognising the interests
of other stakeholders, notably the public
[directly and through the office of the Minister for
Communications, Urban Infrastructure, Cities and
the Arts], the statutory and voluntary licensees,
employees and other parties with whom
Screenrights interacts.
2.2 In a more general sense, Directors of all
companies have a role in economic and social
development through effective management
of resources in the national and global interest.
Screenrights Directors recognise a direct
responsibility to rightsholders but also a
partnership with copyright users and with the
Federal Government.
2.3 The Board [and Screenrights] stand in a fiduciary
relationship to relevant rightsholders who are
members. Although the interests of members are
paramount, the interests of groups other than the
membership are important and the Board seek
solutions that benefit all parties, where possible.
2.4 There are no nominees or Directors
representing a constituency within the
membership. Some Directors are associated
with member organisations and/or have
knowledge of the views of member groups.
It is desirable and proper for Directors to present
the views of individual members or member
groups to the Board. It is neither desirable nor
proper for Directors to act in the interests of
individual members, member groups or groups
that may have supported their election to the
Board. Directors acknowledge their legal duty to
act in the best interests of Screenrights.
GOVERNANCE STATEMENT
Extract from Screenrights' Corporate Governance Statement which was last reviewed by
Screenrights’ Board of Directors and published on 28 July 2021.
Full Statement available at: https://www.screenrights.org/wp-content/uploads/2019/08/
July-2021-Corporate-Governance-Statement.pdf
2
OFFICE OF THE CHIEF EXECUTIVE
Chief Executive: James Dickinson
NEW BUSINESS & TECHNOLOGY
Head of New Business & Technology:
Emma Madison
Lead, Application Development:
Brian Chambers
Business Analyst/Programmer:
Daniel McCosker*
Senior Analyst Programmer:
Sandyha [Sandra] Bhalla
Acting Development Project Manager:
Hayley Colley
Disbursement Service Manager:
Jasmina Matic*/ Madeleine Donovan*
International Service Manager:
Gaëlle Clark
MEMBER SERVICES
Head of Member Services: Maha Ismail*
Customer Experience Manager:
Luke Asprey
Distribution Manager: Sean Price
Senior Portfolio Coordinator:
John Alexander
Senior Distribution Officer: Kate Bowley*
Portfolio Coordinator: Tova Borwein
Portfolio Coordinator: Mariana Corbellini
Portfolio Coordinator: Kaaran Watene
Data Engineer: Ryan Kang
Junior Data Engineer:
Yogesh Babu Krishnakumar
MARKETING
Marketing Manager: Sarah Steel*
BUSINESS OPERATIONS
Chief Operating Officer/Company
Secretary: Susan Casali
Accountant & Internal Auditor:
Finsiana [Dewi] Basuki
Angela Cheung * on extended leave
Bookkeeper: Ethel Wong
Network & Infrastructure Manager:
Amelia Franks
User & Systems Support: Daniel Read
Executive Assistant/Office Manager:
Kylie Cooke
LICENSING
Head of Licensing: Scott James
Data & Systems Manager: Nick Grodzicki
Licensing/Registrations Officer:
Mary Luque*
LEGAL
General Counsel: Marie Foyle*
Associate Counsel: Kaitie Andrews
* Indicates part-time employee/consultant
Full time equivalent = 29.7
DIRECTORS & OFFICERS
Kim Dalton OAM
Chair
Georgina Waite
Deputy Chair
DIRECTORS
Rachel Antony
Geoffrey Atherden AM
Jonathan Carter
Anne Chesher
Jub Clerc
Sandra Davey
John Ford
Christopher Gardoll
Ben Grant
Kelly Lefever
AUDITORS
KPMG
BANKERS
National Australia Bank
Westpac
Bank of New Zealand
SOLICITORS
Banki Haddock Fiora
Cole Media &
Entertainment Law
Gilbert & Tobin
Harmers Workplace
Lawyers
McCabe Curwood
Rebecca White
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 8038 1300 www.screenrights.org
COMPANY PROFILE
As at 30 June 2021
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 3
CATHY SERVICE - Director from 2011 to November 2020
VICTORA SPACKMAN ONZM- Director from 2011 to November 2020
SUSAN CASALI – Chief Operating Officer and Company Secretary from April 2019
DIRECTORS’ REPORT
RACHEL ANTONY –
NZ Board Director CEO of Greenstone TV, Rachel has produced hundreds of hours of content in both NZ and Australia.
She was recently one of the group facilitating the creation of NZ’s 2030 Screen Sector Strategy ; is an active member of WIFT and
SPADA; a member of the NZ Institute of Directors; and on the Board of theatre company Nightsong. Director since 2020.
GEOFFREY ATHERDEN AM –
Writer and former president of both the Australian Writers’ Guild and Australian Writers’ Foundation. Geoffrey is
well known for his multi award winning television programs includingMother and Son,BabaKiueriaandGrass Roots. Geoffrey has also served two
terms on the board of Screen NSW, and in 2009 received an Order of Australia.Director since 2016.
JONATHAN CARTER –
Head of the Legal & Corporate Services Division, APRA AMCOS; Director, Australian Copyright Council; Director,
The Dallas May Foundation; Global Policy Committee, International Confederation of Societies of Authors and Composers. Director since 2017.
ANNE CHESHER –
Education consultant with PhD thesis “Television Content in the 21st Century Classroom”. Over 20 years’ experience
producing online education creative media for the television industry [clients include ABC, SBS, Foxtel, National Geographic Channel]. Humanities
teacher, Creative Media lecturer, and Education Resources Producer. Director since 2014.
JUB CLERC–
Authorial [Screen Director] Board Director. A Nyul Nyul/ Yawuru woman of the Kimberley regions of W.A, Jub’s film credits
include The Circuit 1 & 2, Mad Bastards, Satellite Boy, Jandamarra’s War and Mystery Road Season 1. Jub has written/directed short films including
Abbreviation from feature anthology The Turning, has directed two episodes of The Heights, and is on the Board of CinefestOZ. Director since 2020.
KIM DALTON OAM –
Producer, distributor and broadcaster with over 40 years’ experience as a senior executive in the screen industry.
Former CEO, Australian Film Commission; former Director, ABC Television; former Chair, Freeview Australia; Chair, Asian Animation Summit and
recipient of Order of Australia medal for service to the Australian film and television industry. Director since 2015. Elected Chair 2019.
SANDRA DAVEY–
Product coach and digital product leader with Organa practicing across telco/broadband, IoT, cross-platform content,
interactive TV, sport, libraries and consumer advocacy. Former Chair of CHOICE, and current Board member of .au Domain Administration and
Editorial Board member of the Business Agility Institute. Director since 2020.
JOHN [JACK] FORD BA, LLB GAICD –
Media consultant, company director and lawyer practising in the media industry for over 30 years.
Clients have included Telstra Corporation, TVI/Sci-Fi and TVN Channel. Director, Sydney Children’s Hospital Network, as well as Chair of the
Network’s Capital Works Committee. Director since 1997.
CHRISTOPHER GARDOLL –
Over 45 years’ experience in professional accounting and business as a senior executive. Formerly an audit
partner with KPMG specialising in consumer products, distribution and copyright. Previous roles included CFO and Company Secretary with publicly
listed company API, CFO with APRA|AMCOS and COO with Screenrights. Director since 2020.
BEN GRANT –
Managing Director of Goalpost Pictures, with credits spanning three decades of award-winning feature films and television.
Member of the Film Certification Advisory Board. Member of the Australian Institute of Company Directors. Ambassador for the Sydney Swans.
Director since 2013.
KELLY LEFEVER –
Kelly is co-creator of the critically acclaimed series
The Circuit
and her credits include
The Doctor Blake Mysteries,
The Code, Miss Fisher’s Murder Mysteries, The Black Balloon
and
The Merger
. She currently sits on the Film Victoria Board. Director since 2018.
GEORGINA WAITE –
Head of Content Business at the ABC, with over 24 years at the national broadcaster in her current role and within the
ABC Legal department. Starting out as an Intellectual Property lawyer with Corrs Chambers Westgarth, Georgina is a former lecturer in Media Law
at UTS, lawyer at the Arts Law Centre of Australia, and board member of Metro TV. Director since 2018. Elected Deputy Chair 2019.
4
DIRECTORS’ REPORT [CONTINUED]
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 9 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 s119, s183 and Part VC of the
Copyright Act, to collect monies from copyright users, for
distribution to copyright owners.
REVIEW AND RESULTS OF OPERATIONS
The amount of $47.6 million [2020: $45.8 million] was
determined to form the Distributable Amount available for
distribution to relevant rightsholders from monies collected
for the accounting year ended 30 June 2021.
The net operating profit/[loss] after income tax for the year
was $Nil [2020: $Nil].
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 other 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
new forms of retransmission and educational copying by
training providers.
INDEMNIFICATION AND INSURANCE OF OFFICERS
During the year, the Company paid a premium of $12,922 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.
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 2021, membership of the
Company comprised 4,897 full members [2020: 4,709],
resulting in a total liability of $48,970 [2020: $47,090].
Dated at Sydney this 22 September 2021 and signed in
accordance with a resolution of the Directors:
Kim Dalton OAM
Chair
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 5
DIRECTORS’ REPORT [CONTINUED]
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’ MEETINGS
AUDIT & RISK
COMMITTEE MEETINGS
REMUNERATION
COMMITTEE MEETINGS
A B A B A B
R Antony 4 4 2 2 0 0
G Atherden 6 6 0 0 0 0
J Carter 4 6 2 2 2 2
A Chesher 6 6 0 0 0 0
J Clerc 4 4 0 0 0 0
K Dalton 6 6 3 3 2 2
S Davey 3 4 0 0 0 0
J Ford 6 6 0 0 0 0
C Gardoll 6 6 3 3 1 1
B Grant 6 6 1 1 0 0
K Lefever 4 6 0 0 0 0
C Service 1 2 1 1 1 1
V Spackman 2 2 0 0 0 0
G Waite 6 6 0 0 2 2
A Number of meetings attended
B Number of meetings held during the time the Director held office during the year
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 11 to 39, 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 2021
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 Sydney this 22 September 2021 and signed in accordance with a resolution of the Directors:
Kim Dalton OAM
Chair
6
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 7
8
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 9
10
Consolidated
2021 2020
$000s $000s
Revenue from Ordinary Actitivies
Gross Revenue
52,490
52,472
Other Revenues 491 1,293
Expenses
[8,858]
[8,822]
44,123 44,943
Transfer [to]/from retained
earnings and reserves
— —
Amount available for Distribution 44,123
44,943
Add Allocation from Fund for the Benefit of Members
481
—
Add Expired Trust Funds [2014]
—
873
Add Expired Trust Funds [2015]
645
—
Add Expired Trust Funds [2016] 957 —
Add Expired Trust Funds [2017]
1,290
—
Add Expired Trust Funds [CCF] 148
—
Total amount available for Distribution
47,644
45,816
Amount transferred to Statutory
Distributable Pools:
Australian Education Service [AES] [30,113] [28,490]
Australian Retransmission Service [ARS] [6,306] [6,920]
Australian Government Copying Service [AGS] [1,078] [1,003]
Amount transferred to Non-Statutory
Distributable Pools:
NZ Education Service [NZES] [2,296] [2,080]
Disbursements by Screenrights [DASA] [5,800] [5,401]
International Service [INT] [2,047] [1,922]
Residual Service [RSD]
[4] —
Total amount transferred to distribution pools [47,644] [45,816]
ANNOTATED STATEMENT OF FINANCIAL
PERFORMANCE FOR THE YEAR ENDED
30 JUNE 2021
Royalty collections for the year from
Australian schools, TAFE colleges,
universities, retransmission income,
New Zealand educational institutions,
overseas, and revenue from services
including Enhance TV and DASA.
Includes interest.
The cost of running Screenrights,
including employee expenses,
depreciation and other ordinary
expenses.
Utilisation of the Fund for the Benefit of
Members to ensure the FY21
distribution pool is not negatively
impacted by additional legal costs.
Screenrights can hold allocations in
trust for a maximum of four years
[2020: six years] while trying to locate
relevant rightsholders. With respect
to CCF, an additional one year applies
to any disputed royalties to give the
rightsholders a further opportunity to
resolve disputes.
Expired trust funds were by
amount and percentage of
Distributable Amount,
AES $1,638,000 [4.12%],
ARS $939,000 [2.36%],
AGS $153,000 [0.39%]
and NZES $310,000 [0.78%].
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 rightsholders 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 rightsholders 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.
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 11
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 15 to 39.
For the year ended 30 June 2021
CONSOLIDATED STATEMENT OF PROFIT OR
LOSS AND OTHER COMPREHENSIVE INCOME
Note 2021 2020
$000s $000s
Revenue from rendering of services 2 52,490 52,472
Other income 3 491 1,293
Total revenue and other income 52,981 53,765
Employee expenses
4 [5,359] [5,566]
Depreciation and amortisation expense
[903] [908]
Operating expense
[1,417] [1,682]
Licensing expense
[112] [60]
Travel expense
[7] [64]
Marketing expense
[149] [245]
Legal expense
[550] [114]
Other expenses
5 [333] [143]
Total operating expenses
[8,830] [8,782]
Interest expense 2 [28] [40]
Total interest expense
[28] [40]
Royalties paid and payable to members and
affiliated societies
2 [44,123] [44,943]
Net profit before income tax — —
Income tax expense 7 — —
Net operating profit after income tax — —
Other comprehensive income — —
Total comprehensive profit — —
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
12
For the year ended 30 June 2021
CONSOLIDATED BALANCE SHEET
Note
2021 2020
$000s $000s
Current assets
Cash and cash equivalents
8 5,555 3,213
Cash on deposit
8 65,672 64,809
Trade and other receivables
9
2,370 4,703
Total current assets 73,597 72,725
Non-current assets
Property, plant and equipment
10 222 308
Intangibles
11 945 1,258
Right-of-use assets
14
595 928
Total non-current assets
1,762 2,494
Total assets
75,359 75,219
Current liabilities
Trade and other payables
12 636 698
Royalties in advance
15,877 15,125
Employee benefits
13 507 575
Loans and borrowings
14 347 324
Other
15
55,031 54,674
Total current liabilities
72,398 71,396
Non-current liabilities
Employee benefits
13 116 163
Loans and borrowings
14 288 636
Other
15 913 1,394
Provisions
16
107 93
Total non-current liabilities
1,424 2,286
Total liabilities
73,822 73,682
Net assets 1,537 1,537
Equity
Retained earnings
17 1,337 1,337
Reserves
17
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 15 to 39.
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 13
For the year ended 30 June 2021
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 15 to 39.
Note
2021 2020
$000s $000s
Cash flows from operating activities
Cash receipts in the course of operations 55,851 57,556
Cash payments in the course of operations
[52,505] [54,542]
Net cash from operating activities 19[b]
3,346 3,014
Cash flows from investing activities
Interest received/receivable 381 1,427
Payments for property, plant and equipment
[37] [87]
Payments for intangibles [134] —
Decrease in cash on deposit
[863] [4,122]
Net cash used in investing activities [653] [2,782]
Cash flows from financing activities
Payments for lease liabilities
[351] [340]
Net cash used in financing activities
[351] [340]
Net increase/[decrease] in cash held 2,342 [108]
Cash at the beginning of the financial year
3,213 3,321
Cash at the end of the financial year 19[a]
5,555 3,213
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
14
For the year ended 30 June 2021
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 15 to 39.
Reconciliation of movements in capital and reserves attributable to members
Society
Reserve Fund
Retained
Earnings
Total
Equity
$000s $000s $000s
Balance at 1 July 2019 200 1,337 1,537
Impact of change in accounting policy — — —
Adjusted Balance at 1 July 2019 200 1,337 1,537
Total comprehensive profit — — —
Transfer between retained earnings and reserves — — —
Balance at 30 June 2020 200 1,337 1,537
Balance at 1 July 2020 200 1,337 1,537
Total comprehensive profit
— — —
Transfer between retained earnings and reserves
— — —
Balance at 30 June 2021 200 1,337 1,537
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 15
1. SIGNIFICANT ACCOUNTING POLICIES
Audio-Visual Copyright Society Ltd trading as Screenrights
[the ‘Company’] is a not for profit company domiciled in Australia.
The consolidated financial report of the Company for the
financial year ended 30 June 2021 comprises the Company and
its subsidiary [together referred to as the ‘consolidated entity’].
The financial report was authorised for issue by the Directors on
22 September 2021.
[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 s119, s183 and Part VC of the Copyright Act,
to collect money from educational institutions, government
departments and agencies and retransmitters 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 prepared in Australian dollars, which
is the Company’s functional currency. The Company is of a
kind referred to in ASIC Corporations [Rounding in Financial /
Directors’ Report] Instrument 2016/191 dated 24 March 2016
and in accordance with that Instrument amounts in the financial
report and Directors’ report have been rounded off to the nearest
one thousand dollars, unless otherwise stated.
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.
[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:
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED FINANCIAL
STATEMENTS
16
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
[ii] Depreciation continued
• Plant and equipment – 3-10 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
AASB 16 introduces a single, on-balance sheet accounting
model for lessees. A lessee recognises a right-of-use asset
representing its right to use the underlying asset and a lease
liability representing its obligation to make lease payments.
There are optional exemptions for short-term leases and leases
of low value items. Lessor accounting remains similar to the
current standard - i.e lessors continue to classify leases as
finance or operating leases.
The consolidated entity adopted AASB 16 in 2020 using the
modified retrospective approach. The details of the changes in
accounting policies are disclosed below.
Policy applicable from 1 July 2019
At inception of a contract, the consolidated entity assesses
whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the
use of an identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the right
to control the use of an identified asset, the consolidated entity
assesses whether:
• the contract involves the use of an identified asset – this may
be specified explicitly or implicitly, and should be physically
distinct or represent substantially all of the capacity of a
physically distinct asset. If the supplier has a substantive
substitution right, then the asset is not identified;
• the consolidated entity has the right to obtain substantially all
of the economic benefits from use of the asset throughout the
period of use; and
• the consolidated entity has the right to direct the use of the
asset. The consolidated entity has this right when it has the
decision-making rights that are most relevant to changing how
and for what purpose the asset is used. In rare cases where the
decision about how and for what purpose the asset is used is
predetermined, the consolidated entity has the right to direct
the use of the asset if either:
• the consolidated entity has the right to operate the asset; or
• the consolidated entity designed the asset in a way that
predetermines how and for what purpose it will be used.
This policy is applied to contracts entered into, or changed, on or
after 1 July 2019.
As a lessee
At inception or on reassessment of a contract that contains
a lease component, the consolidated entity allocates the
consideration in the contract to each lease component on the
basis of their relative stand-alone prices. However, for the leases
of land and buildings in which it is a lessee, the consolidated
entity has elected not to separate non-lease components and
account for the lease and non-lease components as a single
lease component.
The consolidated entity recognises a right-of-use asset and a
lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial
amount of the lease liability adjusted for any lease payments
made at or before the commencement date, plus any initial direct
costs incurred and an estimate of costs to dismantle and remove
the underlying asset or to restore the underlying asset or the site
on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the
straight-line method from the commencement date to the earlier
of the end of the useful life of the right-of-use asset or
the end of the lease term. The estimated useful lives of right-
of-use assets are determined on the same basis as those of
property and equipment.
In addition, the right-of-use asset is periodically reduced
by impairment losses, if any, and adjusted for certain
remeasurements of the lease liability.
The lease liability is initially measured at the present value of the
lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that
rate cannot be readily determined, the consolidated entity’s
incremental borrowing rate. Generally, the consolidated entity
uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease
liability comprise the following:
• fixed payments, including in-substance fixed payments;
• variable lease payments that depend on an index or a
rate, initially measured using the index or rate as at the
commencement date;
• amounts expected to be payable under a residual value
guarantee; and
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 17
1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
[iii] Leased assets continued
• the exercise price under a purchase option that the
consolidated entity is reasonably certain to exercise, lease
payments in an optional renewal period if the consolidated
entity is reasonably certain to exercise an extension option,
and penalties for early termination of a lease unless the
consolidated entity is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the
effective interest method. It is remeasured when there is a
change in future lease payments arising from a change in an
index or rate, if there is a change in the consolidated entity’s
estimate of the amount expected to be payable under a residual
value guarantee, or if the consolidated entity changes its
assessment of whether it will exercise a purchase, extension or
termination option.
When the lease liability is remeasured in this way, a
corresponding adjustment is made to the carrying amount of the
right-of-use asset, or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.
The consolidated entity presents right-of-use assets that do not
meet the definition of investment property in ‘property, plant and
equipment’ and lease liabilities in ‘loans and borrowings’ in the
statement of financial position.
Short-term leases and leases of low-value assets
The consolidated entity has elected not to recognise right-of-use
assets and lease liabilities for short-term leases of plant and
equipment that have a lease term of 12 months or less and leases
of low-value assets, including IT equipment. The consolidated
entity recognises the lease payments associated with these
leases as an expense on a straight-line basis over the lease term.
[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].
Software-as-a-Service [SaaS] arrangements
SaaS arrangements are service contracts providing the
Consolidated entity with the right to access the cloud provider’s
application software over the contract period. As such, the
Consolidated entity does not receive a software intangible asset
at the contract commencement date.
The following outlines the accounting treatment of costs
incurred in relation to SaaS arrangements:
Recognise as an operating
expense over the term of the
service contract
• Fee for use of
application software
• Customisation costs
Recognise as an operating
expense as the service is
received
• Configuration costs
• Data conversion and
migration costs
• Testing costs
• Training costs
Costs incurred for the development of software code that
enhances or modifies, or creates additional capability to, existing
on-premise systems and meets the definition of and recognition
criteria for an intangible asset are recognised as intangible
software assets.
In applying the entity’s accounting policy, the directors made the
following key judgements that may have the most significant
effect on the amounts recognised in the financial statements.
Determination whether configuration and customisation
services are distinct from the SaaS access
Implementation costs including costs to configure or customise
the cloud provider’s application software are recognised as
operating expenses when the services are received.
Where the SaaS arrangement supplier provides both
configuration and customisation services, judgement has been
applied to determine whether each of these services are distinct
or not from the underlying use of the SaaS application software.
Distinct configuration and customisation costs are expensed
as incurred as the software is configured or customised [i.e.
upfront]. Non-distinct configuration and customisation costs are
expensed over the SaaS contract term.
Non-distinct customisation activities significantly enhance or
modify a SaaS cloud-based application. Judgement has been
applied in determining whether the degree of customisation and
modification of the SaaS cloud-based application is significant
or not.
Capitalisation of configuration and customisation costs
in SaaS arrangements
In implementing SaaS arrangements, the Consolidated entity
has developed software code that either enhances, modifies or
creates additional capability to the existing owned software.
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
18
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
[g] Intangible assets continued
[i] Intangible assets continued
Capitalisation of configuration and customisation costs
in SaaS arrangements continued
This software is used to connect with the SaaS arrangement
cloud-based application.
Judgement has been applied in determining whether the
changes to the owned software meets the definition of and
recognition criteria for an intangible asset in accordance with
AASB 138 Intangible Assets.
During the financial year, the Consolidated entity recognised
$53,530 [2020: $Nil] as intangible assets in respect of
customisation and configuration costs incurred in implementing
SaaS arrangements.
[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 – 3-5 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 equivalents
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 income
statement, unless an asset has previously been revalued, in
which case the impairment loss is recognised as a reversal to the
extent of that previous revaluation with any excess recognised
through profit or loss.
The Company recognises loss allowance for expected credit
losses [ECL] on financial assets measured at amortised cost.
Loss allowances for trade receivables and contract assets are
always measured at an amount equal to lifetime ECLs. Lifetime
ECLs are the ECLs that result from all possible default events
over the expected life of a financial instrument.
[i] Calculation of recoverable amount
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.
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 19
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
[j] Impairment continued
[ii] Reversals of impairment continued
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.
[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 Services, the distributable pool is allocated to all
used 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 licensees.
The Distributable Amount is the total amount received from
licensees 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. Records of usage 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 used and other factors. 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 the Company licensing this recording right in
New Zealand on behalf of the rightsholders.
20
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
[n] Distributions continued
With respect to the international registration and collection
process, the Company simply distributes the royalties it receives
from other audiovisual societies for titles it has registered on
behalf of the rightsholders. The Company 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. Receipts are generally determined either based
on agreed rates per user, or agreed rates overall. Revenue is
recognised over the period for which the copying licence has
been granted.
[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.
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 21
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES CONTINUED
[r] Changes in significant accounting policies
Software-as-a-Service [SaaS] arrangements
The International Financial Reporting Standards Interpretations
Committee [IFRIC] has issued two final agenda decisions which
impact SaaS arrangements:
• Customer’s right to receive access to the supplier’s
software hosted on the cloud [March 2019] – this decision
considers whether a customer receives a software asset
at the contract commencement date or a service over the
contract term.
• Configuration or customisation costs in a cloud computing
arrangement [April 2021] – this decision discusses whether
configuration or customisation expenditure relating to
SaaS arrangements can be recognised as an intangible
asset and if not, over what time period the expenditure
is expensed.
The Consolidated entity’s accounting policy has historically been
to capitalise all costs related to cloud computing arrangements
as intangible assets in the Statement of Financial Position.
The adoption of the above agenda decisions did not result in a
material impact to the Consolidated entity’s financial statements.
The new accounting policy is presented in Note 1[g].
[s] New accounting standards and interpretations not
yet adopted
There are currently no new standards and amendments to
standards which are effective for annual periods beginning after
30 June 2021 that the consolidated entity believes are applicable
in preparing these financial statements.
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
22
2. RECONCILIATION OF INCOME STATEMENT
Note
2021 2020
$000s $000s
Revenue from rendering of services:
– Australian Education Service 33,916 33,151
– Australian Retransmission Service 6,356 7,784
– International Service 2,258 2,110
– Australian Government Copying Service 1,098 1,148
– NZ Education Service 2,524 2,531
– Disbursements by Screenrights 5,800 5,401
– Residual Service 4 —
– EnhanceTV Resource Centre 534 347
Total revenue 52,490 52,472
Other income 3 491 1,293
Total revenue and other income 52,981 53,765
Employee expenses 4 [5,359] [5,566]
Depreciation and amortisation expense [903] [908]
Operating expense [1,417] [1,682]
Licensing expense [112] [60]
Travel expense [7] [64]
Marketing expense [149] [245]
Legal expense [550] [114]
Other expenses 5 [333] [143]
Total operating expenses [8,830] [8,782]
Interest expense 14 [28] [40]
Total interest expense [28] [40]
Net royalties collected and interest received
thereon before income tax
44,123 44,943
Income tax benefit — —
Net royalties collected and interest received
thereon after income tax
44,123 44,943
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 23
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
2. RECONCILIATION OF INCOME STATEMENT CONTINUED
Note 2021 2020
$000s $000s
Royalties paid and payable:
Add allocation from the Fund for the Benefit
of Members
481 —
Add expired statutory trust funds 3,040 873
Less amount transferred to AES
distributable pool 2021
15 [30,113] —
Less amount transferred to AES
distributable pool 2020
— [28,490]
Less amount transferred to ARS
distributable pool 2021
15 [6,306] —
Less amount transferred to ARS
distributable pool 2020
— [6,920]
Less amount transferred to AGS
distributable pool 2021
15 [1,078] —
Less amount transferred to AGS
distributable pool 2020
— [1,003]
Less amount transferred to NZES
distributable pool 2021
15 [2,296] —
Less amount transferred to NZES
distributable pool 2020
— [2,080]
Disbursements by Screenrights [5,800] [5,401]
International Service [2,047] [1,922]
Residual Service [4] —
Net royalties paid and payable
[44,123] [44,943]
Net operating profit
— —
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
24
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
3. OTHER INCOME
2021 2020
$000s $000s
Interest and other income
– AES interest income 216 859
– ARS interest income 68 172
– INT interest income 5 17
– AGS interest income 7 30
– NZES interest income 9 38
– DASA interest income and admin fee 181 177
– RSD onboarding fee and calculation fee 5 —
Total other income 491 1,293
4. EMPLOYEE EXPENSES
Wages and salaries [including director fees] 4,602 4,728
Contributions to defined contribution superannuation funds 403 435
Increase in liabilities for annual and long service leave 29 93
Other employee expenses 325 310
Total employee expenses 5,359 5,566
5. OTHER EXPENSES
NZES expenses 130 122
ISAN — 4
Other 203 17
Total other expenses 333 143
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 25
6. AUDITOR’S REMUNERATION
2021 2020
$000s $000s
Audit services 66 62
Other Assurance Services 6 8
Total Auditor's renumeration 72 70
7. TAXATION
Audio-Visual Copyright Society Limited trading as Screenrights and its subsidiary entity, Enhance TV Pty Ltd, from
part of a tax consolidated group. Legislation which states copyright collection societies are not taxed on income, they
collect on behalf of copyright owners came into effect from 1 July 2002.
Audio-Visual Copyright Society Limited needs to assess each year whether non-copyright income exceeds the
relevant threshold [5% or $5m] which then determines whether a full income tax exemption will apply.
Income derived by Enhance TV Pty Ltd is not subject to the tax exemption for copyright collecting societies. In the
current financial year, Enhance TV Pty Ltd did not make a profit and as a consequence there is no tax expense for the
consolidated entity [2020: $Nil].
8. CASH ASSETS
2021 2020
$000s $000s
Cash at bank 5,555 3,213
Cash on deposit 65,672 64,809
Total cash assets 71,227 68,022
The interest rate at 30 June 2021 on cash accounts is 0.10% [2020: 0.25%] which is the prevailing interest rate
on cash at bank. The cash on deposit with banks mature within 238 days. The weighted average interest rate at 30
June 2021 on cash on deposit is 0.28% [2020: 1.03%].
9. TRADE AND OTHER RECEIVABLES
2021 2020
$000s $000s
Trade receivables 2,306 4,579
Sundry receivables
64 124
Total trade and other receivables 2,370 4,703
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
26
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
10. PROPERTY, PLANT & EQUIPMENT
Plant &
equipment Total
$000s $000s
Cost
Balance at 1 July 2019 899 899
Acquisitions 87 87
Disposals [1] [1]
Balance at 30 June 2020 985 985
Balance at 1 July 2020 985 985
Acquisitions 37 37
Disposals — —
Balance at 30 June 2021 1,022 1,022
Accumulated depreciation
Balance at 1 July 2019 555 555
Depreciation charge for the year 122 122
Disposals — —
Balance at 30 June 2020 677 677
Balance at 1 July 2020 677 677
Depreciation charge for the year 123 123
Disposals — —
Balance at 30 June 2021 800 800
Carrying amounts
At 30 June 2020 308 308
At 30 June 2021 222 222
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 27
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
11. INTANGIBLES
Computer
software WIP Total
$000s $000s $000s
Cost
Balance at 1 July 2019 2,279 194 2,473
Acquisitions — — —
Disposals — — —
Balance at 30 June 2020 2,279 194 2,473
Balance at 1 July 2020 2,279 194 2,473
Acquisitions — 134 134
Disposals — — —
Transfer from/[to] 248 [248] —
Balance at 30 June 2021 2,527 80 2,607
Accumulated amortisation
Balance at 1 July 2019 762 — 762
Amortisation charge for the year 453 — 453
Disposals — — —
Balance at 30 June 2020 1,215 — 1,215
Balance at 1 July 2020 1,215 — 1,215
Amortisation charge for the year
447 — 447
Disposals — — —
Balance at 30 June 2021
1,662 — 1,662
Carrying amounts
At 30 June 2020 1,064 194 1,258
At 30 June 2021 865 80 945
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
28
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
12. TRADE AND OTHER PAYABLES
2021 2020
$000s $000s
Trade and other creditors 629 233
Accrued expenses 7 465
Total trade and other payables 636 698
13. EMPLOYEE BENEFITS
2021 2020
$000s $000s
Current
Liability for annual leave 253 268
Liability for long service leave 254 307
Total current employee benefits 507 575
Non-current
Liability for long service leave 116 163
Total non-current employee benefits 116 163
14. LEASES
Office Car Park Printer Total
$000s $000s $000s $000s
[i] Right-of-use assets
Cost
Balance at 1 July 2019 — — — —
Impact of change in accounting policy 1,185 15 61 1,261
Adjusted Balance at 1 July 2019 1,185 15 61 1,261
Acquisitions
— — — —
Disposals — — — —
Balance at 30 June 2020 1,185 15 61 1,261
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 29
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
14. LEASES CONTINUED
Office Car Park Printer Total
$000s $000s $000s $000s
[i] Right-of-use assets continued
Cost
Balance at 1 July 2020 1,185 15 61 1,261
Acquisitions — — — —
Disposals — — — —
Balance at 30 June 2021 1,185 15 61 1,261
Accumulated depreciation
Balance at 1 July 2019 — — — —
Depreciation charge for the year 316 4 13 333
Disposals — — — —
Balance at 30 June 2020 316 4 13 333
Balance at 1 July 2020 316 4 13 333
Depreciation charge for the year 316 4 13 333
Disposals — — — —
Balance at 30 June 2021 632 8 26 666
Carrying amounts
At 1 July 2020 869 11 48 928
At 30 June 2021 553 7 35 595
[ii] Loans and borrowings
Lease liabilities in Balance Sheet as at
30 June 2021
Current 330 4 13 347
Non-current 263 3 22 288
Total lease liabilities 593 7 35 635
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
30
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
14. LEASES CONTINUED
Office Car Park Printer Total
$000s $000s $000s $000s
[ii] Loans and borrowings continued
Maturity analysis as at 30 June 2021
Less than one year
345 4 14 363
One to five years 266 3 23 292
More than five years — — — —
Total undiscounted lease liabilities as
at 30 June 2021
611 7 37 655
[iii] Amounts recognised in Profit/[loss]
Interest on lease liabilities 26 — 2 28
Depreciation expense 316 4 13 333
342 4 15 361
[iv] Total cash outflow for leases
[including interest]
333 4 14 351
333 4 14 351
15. OTHER LIABILITIES
2021 2020
$000s $000s
Current
Cultural Fund
380 484
Trust – IBNR Fund
860 989
Trust – Artistic Works
576 748
Competing Claims Fund
— 120
Unearned revenue
1,617 —
3,433 2,341
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 31
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
15. OTHER LIABILITIES CONTINUED
2021 2020
$000s $000s
Trust – Statutory
Australian Education Service
2015 Distributable amount payable to copyright owners
16 440
2016 Distributable amount payable to copyright owners 39 823
2017 Distributable amount payable to copyright owners 136 1,375
2018 Distributable amount payable to copyright owners 1,423 2,052
2019 Distributable amount payable to copyright owners
1,980 3,570
2020 Distributable amount payable to copyright owners 3,003 28,490
2021 Distributable amount payable to copyright owners 30,113 —
Australian Retransmission Service
2015 Distributable amount payable to copyright owners 41 258
2016 Distributable amount payable to copyright owners 34 375
2017 Distributable amount payable to copyright owners 42 550
2018 Distributable amount payable to copyright owners 551 802
2019 Distributable amount payable to copyright owners 733 1,139
2020 Distributable amount payable to copyright owners 1,680 6,920
2021 Distributable amount payable to copyright owners 6,306 —
Australian Government Copying Service
2015 Distributable amount payable to copyright owners 2 12
2016 Distributable amount payable to copyright owners 3 13
2017 Distributable amount payable to copyright owners 3 17
2018 Distributable amount payable to copyright owners 24 36
2019 Distributable amount payable to copyright owners 13 44
2020 Distributable amount payable to copyright owners
32 1,003
2021 Distributable amount payable to copyright owners 1,078 —
Sound Recordings Distributable amount 30 30
Total Trust - Statutory 47,282 47,949
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
32
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
15. OTHER LIABILITIES CONTINUED
Trust – Non-statutory
2021 2020
$000s $000s
NZ Education Service
2015 Distributable amount payable to copyright owners 9 99
2016 Distributable amount payable to copyright owners 9 118
2017 Distributable amount payable to copyright owners 13 193
2018 Distributable amount payable to copyright owners 206 277
2019 Distributable amount payable to copyright owners
283 448
2020 Distributable amount payable to copyright owners 430 2,080
2021 Distributable amount payable to copyright owners 2,296 —
Disbursements by Screenrights 734 917
International Service 336 252
Total Trust non-statutory 4,316 4,384
Total other liabilities - current 55,031 54,674
Non-current
Fund for the benefit of members 913 1,394
Total other liabilities - non-current 913 1,394
16. PROVISIONS
2021 2020
$000s $000s
Lease make good 107 93
Total provisions 107 93
17. EQUITY
Retained earnings
Funds held as part of the Company’s retained earnings will be used for the benefit of all members at the discretion
of the Board.
Reserve fund
In accordance with 15.4[c] of the Articles of Association, the Company 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.
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 33
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
18. 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.
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 & Risk 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 & Risk 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 70% 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 & Risk Committee has
established a credit policy under which defaulting licensees are pursued rigorously.
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.
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
34
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
18. FINANCIAL RISK MANAGEMENT CONTINUED
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.
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 90 to 365 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 $71,227,233 at 30 June 2021 is 0.28%
[2020: $68,022,586 - 1.03%]. 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:
2021 2020
$000s $000s
Cash and cash equivalents 5,555 3,213
Cash on deposit 65,672 64,809
Trade and other receivables 2,370 4,703
73,597 72,725
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 35
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
18. 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:
2021 2020
$000s $000s
Not past due 1,731 3,714
Past due 0-30 days 137 472
Past due 31-120 days 7 58
Past due 121 days 431 335
2,306 4,579
As at 30 June 2021, the Consolidated Entity did not recognise a provision for impairment due to the Directors being
of the opinion that the amounts receivable are recoverable [2020: $Nil].
Liquidity risk
The contractual maturities of financial liabilities, as represented by trade and other payables [Note 12] and other
current liabilities [Note 15], 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:
2021 2020
AUD equivalent of NZD exposure $000s $000s
Trade receivables 112 47
Total balance sheet exposure 112 47
The following significant exchange rates applied during the year:
Average rate
2021
Average rate
2020
Spot rate
2021
Spot rate
2020
New Zealand Dollar 1.0289 1.0548 1.0742 1.0199
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 $11,229 at 30 June 2021 [2020: $4,656].
This analysis assumes that all other variables, in particular interest rates, remain constant.
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
36
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
18. FINANCIAL RISK MANAGEMENT CONTINUED
[b] Financial transactions continued
Interest rate risk
Profile
At the reporting date the interest rate profile of the consolidated entity’s interest-bearing financial instruments was:
Carrying Amount
2021 2020
$000s $000s
Fixed rate instruments
Cash on deposits
65,672 64,809
Variable rate instruments
Cash at bank
5,555 3,213
Sensitivity analysis
If interest rates had changed by plus/[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 $55,550 [2020: $32,130]
higher/[lower].
19. 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:
2021 2020
$000s $000s
Cash 5,555 3,213
5,555 3,213
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 37
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
19. NOTES TO THE STATEMENT OF CASH FLOWS CONTINUED
2021 2020
$000s $000s
[b] Reconciliation of cash flows from operating activities
Operating profit/[loss] — —
Add/[less] items classified as investing activities:
Interest received [381] [1,427]
Add/[less] non-cash items:
Depreciation and amortisation 903 908
Finance expense 28 40
Net cash utilised by operating activities before change in
assets and liabilities
550 [479]
Change in assets and liabilities:
Decrease in trade and other receivables 2,333 4,777
[Decrease]/increase in trade creditors and accruals [62] 31
Increase in royalties in advance 752 154
Decrease in other liabilities [585] [173]
Increase/[decrease] in distributable amounts 358 [1,296]
Net cash provided by operating activities 3,346 3,014
20. RELATED PARTY DISCLOSURES
Key management personnel compensation
The key management personnel compensation included in ‘employee expenses’ [see Note 4] is as follows:
2021 2020
$000s $000s
Short-term employee benefits 1,875 2.038
Post-employment benefits 22 97
Other long-term benefits 26 38
1,923 2,173
AUDIO-VISUAL COPYRIGHT SOCIETY LIMITED
38
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
20. RELATED PARTY DISCLOSURES CONTINUED
Statement of management remuneration
Salary range*
Screenrights Executives
in range 2020/21
Screenrights Executives
in range 2019/20
$0-99k 2** 2**
$100-149k 1 1
$150-199k 3 2
$200-249k 1 4
$250-299k 1 —
$300-400k 1 1
* Includes superannuation, leave provisions and incentive payments
** Includes executives who held a key management position for part of the year
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 favorable 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 Rachel Antony, Jonathan Carter, Kim Dalton, Ben Grant,
Kelly LeFever, Victoria Spackman and Georgina Waite, 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.
Loans to key management personnel
There were no loans to key personnel at any time during the year ended 30 June 2021.
Controlled entity
On 15 May 2006, Audio-Visual Copyright Society Limited [the Company] established a wholly owned subsidiary
company called EnhanceTV 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 2021, in respect of
management fees, the company owed the subsidiary $1,547,534 [2020: $1,226,766].
21. 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 2021, membership of the Company comprised 4,897 full members
[2020: 4,709], resulting in a total guarantee of $48,970 [2020: $47,090].
SCREENRIGHTS ANNUAL REPORT 2020–2021 | 39
22. COMMITMENTS FOR EXPENDITURE
As at and for the year ended 30 June 2021, the consolidated entity has not entered into any contracts and there does
not exist any capital commitments for acquisition of property, plant and equipment.
23. CONTINGENT LIABILITY
The parent entity does not have any contingent liabilities at 30 June 2021 [2020: $ NIL].
24. PARENT ENTITY DISCLOSURES
As at, and throughout, the financial year ended 30 June 2021, the parent entity of the consolidated entity was
Audio-Visual Copyright Society Limited.
2021 2020
$000s $000s
Result of parent entity
Profit/[loss] for the period — —
Other comprehensive income — —
Total comprehensive profit/[loss] — —
Financial position of parent entity at year end
Current assets 73,565 72,586
Total assets 75,327 75,082
Current liabilities 72,337 71,226
Total liabilities 73,759 73,513
Total net assets
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
25. SUBSEQUENT EVENTS
There has not arisen in the interval between the end of the financial year and the date of this report, any other 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.
For the year ended 30 June 2021
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
40
SUPPLEMENTARY REPORTING FOR EACH AUSTRALIAN STATUTORY LICENSEE CLASS
Commonwealth
Government
$
State and
Territory
Governments
$
Schools
$
Universities
$
TAFE
$
Other
Australian
Educational
Institutions
$
TOTAL
$
Total licence
fees received
24,242 1,073,775 27,486,319 6,059,661 360,630 9,394 35,014,021
Income on
investments
of licence fees
164 7,284 175,310 38,649 2,300 60 223,767
Total amount
allocated to
members
20,129 891,595 22,775,381 5,021,083 2,698,821 7,784 31,414,793
Total amount
paid to
members
22,084 978,208 22,945,294 5,028,542 301,050 7,844 29,283,022
Total amount
of licence fees
held in trust
23,315 1,032,728 28,391,141 6,259,139 372,502 9,703 36,088,528
Total licence
fees for which
the trust period
expired*
3,397 150,488 1,325,270 292,170 17,388 453 1,789,166
* Licence fees for which the trust period expired during the year are recorded in separate distribution pools for Government
and Education. Any further breakdown by statutory licensee class is calculated pro rata, based on licence fees received.
APPENDIX
For the year ended 30 June 2021
