Queensland Art Gallery Annual Report 1994-95

IIFlnanclal Statements II - QUEENSLAND ART GAUERY BOARD OF TRUSTEES NOfES TI> AND FORMING PART OF THE ACCOUNTS FOR YEAR ENDED 30 JUNE 1995 NOTE I SUMMARY OF SIGNIFICANTACCOUNTING POLICIES (a) Basis of Accounts The accounts have been prepared on an accrual basis in accordance with the historical cost convention and in conformity with the Australian Accounting Standards. (b) Plant and Equipment Plant and Equipment have been valued at historical cost. Plant and Equipment items costing less than $200 are expensed in the year of acquisition. (c) Depreciation Depreciation is charged on Plant and Equipment using the straight line method at rates based on the estimated useful life of the assets. (d) Inventories Inventories represent stock on hand for sale through the Gallery Shop operations and are valued at cost. (e) Provision for Employee Entitlements Provision has been made for the liability for various employee entitlements and related costs in accordance with the ne.v Australian Accounting Standard, AAS30: Accounting for Employee Entitlements. (Refer Note 11). Sick Leave and Recreation Leave are accrued and shown as current liabilities. Long Service Leave is calculated for all employees of the Gallery, after allowing for weightings of the probabilities and future cash flows for employees having less than ten years of service and is shown as a non-current liability. (f) Leasing Arrangements The Board of Trustees has a signed lease agreement with the Queensland Cultural Centre Trust for the main Art Gallery building located in the Queensland Cultural Centre Complex. The Trust does not charge rent on the premises occupied by the Art Gallery. The provision of the building and items of fitout, including Plant and Equipment, forms part of this agreement. (g) Services ProYided by the Queensland Cultural Centre Trust The Queensland Cultural Centre Trust provides a number of services to the Queensland Art Gallery at the Queensland Cultural Centre. These services included building maintenance and repairs, electricity, deaning. security, airconditioning and telephone rental. The cost of these services to the Queensland Art Gallery for the 1994/95 year was $2,069,000. (h) Rental of Premises The Board of Trustees has a signed rental agreement with the Queensland Museum for two floors of a building located at 75 Grey St South Brisbane. The Queensland Museum charges rent on these premises. (I) Investments Investments are recorded at cost and income is brought to account on an accrual basis. 0) Receivables Receivables are reported net of any estimated doubtful debts. The collectability of debts is assessed at year end and a specific estimate is made for any doubtful amounts. (k) Art Works In accordance with the Public Finance Standards, the Gallery's Art Works assets were brought to account during 1994/95 in order to comply with the Queensland Public Sector Policy "Recording and Valuation of Non-Current Pt-r,sical Assets" which requires application of the policy no later than 30 June 1996. These assets including gifts are revalued by the Gallery's curatorial staff on an annual basis for insurance purposes. The effect of implementing this policy was to increase accumulated funds as at I July 1994 by $96,064,580. 80 81