Queensland Art Gallery Annual Report 1995-96

APPENDIX F I NANC I AL STATEMENTS NOTES TO A N D FORMING PART (g) Provision for Employee Entitlements OF T HE ACCOUNTS Provision has been made for the liability for various employee FOR YEAR ENDED 30 JUNE 1996 entitlements and related costs in accordance with the Australian NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Standard, AAS30: Accounting for Employee Entitlements. Recreation Leave is accrued and shown as a current liability. (a) Basis of Accounts Accumulated Sick Leave does not normally exceed the Sick Leave taken in The accounts have been prepared on an accrual basis in accordance any year. Consequently no liability has been brought to account and the with the historical cost convention, except where otherwise stated, balance of the provision existing at 30 June 1995 has been written back as and in conformity with the Australian Accounting Standards, an abnormal item in the Operating Statement. (b) Inventories Long Service Leave is calculated for al employees of the Gallery, after Inventories represent stock on hand for sale through the Gallery Shop allowing for weightings of the probabilities and future cash flows for employees having less than ten years of service. operations and are valued at cost. (h) Services Provided by the Queensland Cultural Centre Trust (c) Investments The Queensland Cultural Centre Trust provides a number of services to Investments are recorded at cost and income is brought to account the Queensland Art Gallery at the Queensland Cultural Centre. These on an accrual basis. services include building maintenance and repairs, electricity, security, (d) Leasing Arrangements cleaning, air-conditioning and telephone rental. The cost of these services The Board of Trustees has a signed lease agreement with the Queensland to the Queensland Art Gallery for the 1995/96 year was $2,110,000. 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 offitout, including plant and equipment, forms part of this agreement. The Board of Trustees has a signed lease agreement with the Queensland Museum for two floors of a building located at 73 Grey St South Brisbane. The Queensland Museum charges rent on these premises. (Refer Note 18) (e) Non-Current Assets The Gallery's asset recording threshold is set at $2,000 and the asset revaluation threshold is set at $1,000,000. The Gallery's Art Works assets including gifts are recorded in accordance with the Treasurer's policy "Recording and Valuation of Non-Current Physical Assets in the Queensland Public Sector" and are revalued by the Gallery's curatorial staff on an annual basis for insurance purposes. Amounts incidental to their acquisition e.g. freight etc are not considered to be part of the asset cost and are treated as an expense. The Gallery's Plant and Equipment are recorded in accordance with the Treasurer's policy "Recording and Valuation of Non-Current Physical Assets in the Queensland Public Sector". All Plant and Equipment over five years old is recorded at deprival value and al Plant and Equipment under five years old is recorded at historical cost less accumulated depreciation in accordance with Accounting Policy Note No. 10 "Valuation, Revaluation Threshold and Indexation" issued by Queensland Treasury. The effect of adopting this policy has been an adjustment to the carrying value of Plant and Equipment of $96,444 which has been shown in the Operating Statement as an abnormal item. The Gallery's Library collection has not been brought to account for the 1995/96 year but the Gallery is in the process of arranging a valuation for the purpose of inclusion in the 1996/97 year. (f) Depreciation Depreciation is charged on plant and equipment less than five years old using the straight line method at rates based on the estimated useful life of the assets.