Company Reporting

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The newly appointed directors of buyMyplace.com.au, the online property services company for DIY sales, have reported a $5.5 million loss.
The loss was up on the prior $3.8 million loss with the increase attributed to additional legal and consulting fees to develop growth strategies, costs and interest associated with the debt financing facilities, impairment of goodwill in relation to the acquisition of My Place Conveyancing, and increased employment and share based payments costs.
Its total operating revenue was up 36% to $2.86 million, compared to $2.10 million in the prior corresponding period, primarily driven by DIY listings and revenue from My Place Conveyancing.
Its total costs increased 41%. 
At the end of 2018, the company held cash reserves of $268,000.
The Group’s current liabilities exceed its total assets by $672,357.
The ability of the company to continue as a going concern, according to the audit report, is principally dependent upon the ability of the company to secure funds by raising capital from equity markets and managing cash flow in line with available funds.
"These conditions indicate a material uncertainty that may cast significant doubt about the ability of the company to continue as a going concern," it noted.
Subsequent to year end, the operations of BuyMyHome Pty Ltd and its associated subsidiaries were disposed of and in addition, the company has procured a $200,000 loan with Misquitta Capital.
The company is also communicating with interested parties for external investment into the remaining operating subsidiary, which will further reduce the need for funding.
In November 2017, buyMyplace completed a $1 million working capital facility with KM Custodians Pty Ltd which provided it the capital to progress its growth strategy developed through strategic partnerships, the rollout of additional offerings, and technology and platform improvements to enhance user experience.
The facility was replaced by a $3 million debt financing facility from KM Custodians Pty Ltd which was used to repay the original $1 million facility, and fund working capital requirements.
The new facility had $1.5 million still available.
It issued 583,755 fully paid ordinary shares to the vendors of My Place Conveyancing Pty Ltd, pursuant to the share sale deed entered into to acquire all of the issued share capital in My Place Conveyancing Pty Ltd from the vendors.
The shares held by its 756 shareholders have been suspended for trading on the ASX since September last year.
The shareholders include Butterss Resources Pty Ltd, held by former director Pete Butterss; Karlusic Investments Pty Ltd; Paul Becca; Laurence Holyoake and Peter Ronec.
buyMyplace.com.au has recently lost its chief executive officer Colin Keating, who was appointed in November 2017.
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Online property services company buyMyplace reports $5.5 million loss

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By 2019, all Australian companies reporting under the International Financial Reporting Standards (IFRS) will be required to comply with new global rules on leasing following the release in January of a guide Lease Accounting Standard by the International Accounting Standards Board (IASB).
The Australian Accounting Standards Board (AASB) announced on March 1 it was adopting the new standard.
The new legislation will change the way leases are reported on company balance sheets and will be implemented in 2019. But listed companies will be required to start comparative reporting in 2017 which means decisions need to be taken about future assets and leases
A new paper by property services firm JLL says the impact would is potentially huge for Corporate Australia real estate occupiers. Leases will become a key feature on company balance sheets, effectively inflating assets and liabilities.
It is advising Australian corporates to start analysing the day one impact of their leased property portfolio on their financial statements.
“The new standard will meet the need for greater transparency of companies’ lease assets and liabilities, which are currently off balance sheet. However, it will be a significant administrative burden for companies to adhere to it. In particular retailers, leisure operators, banks and other companies that rely heavily on real estate leasing, will have dramatically increased financial reporting obligations,” says Sylvia Koh, head of Corporate Consulting, Asia Pacific at JLL.
Key considerations for businesses include:
* Review current real estate portfolios and lease arrangements
* Re-assess the merits of owning assets outright versus lease arrangements
* Re-evaluate lease tenure and structuring of lease (for example short-term versus long-term, rent review type and end of lease mechanisms)
“Given there will no longer be an off-balance sheet advantage of leasing, the question many companies will need to consider is – own or lease?” said Tony Wyllie, JLL’s Australian head of Corporate Solutions Integrated Portfolio Services.
“Items requiring inclusion on company balance sheets from 2019 onwards include rent payments and fixed rental uplifts.
“For companies that draw heavily on lease arrangements, we are encouraging them to start preparing now for the changes, because as early as 2017 they must start preparing comparative financial statements under the new standards to meet with annual reporting requirements.
“If the goal of companies is to minimize the impact of leases on balance sheets, then they will need to carefully assess the options of owning, future lease structures and the key commercial aspects of leases such as – lease terms, rent terms and options,” said Wyllie.
Added Koh, “Going forward we’re likely to see changes in terms of how real estate deals are structured; more companies will explore flexible options such as serviced offices and co-working spaces; and there may be increased interest in considering owning versus leasing real estate.”
She said while the changes would be gradual, companies need to act swiftly. 
“If you currently don’t have your lease data in a structured fashion that is of auditable quality, it will be important to get the right advice and resources to put it in order as the immediate first step towards complying with the new standard.”
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