Queensland Art Gallery Annual Report 1996-97

NOTES T O A N D FORMI NG PART OF T HE ACCOUNT S The Gallery's Plant and Equipment are recorded in accordance with FOR YEAR ENDED 30 JUNE 1997 the Treasurers policy Recording and Valuation of Non-Current Physical Assets in the Queensland Public Sector. NOTE I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All Plant and Equipment over five years old is recorded at deprival (a) Basis of Accounts value and al Plant and Equipment under five years old is recorded at The accounts have been prepared in accordance with the Australian historical cost less accumulated depreciation in accordance with Accounting Standards issued by the Australian accounting bodies as Accounting Policy Note No. 10 'Valuation, Revaluation Threshold endorsed by the Public Finance Standards. Revenue and Expenses are and Indexation" issued by Queensland Treasury. brought to account on an accrual basis. The accounts are in accordance with conventional historical cost principles except for certain assets The Gallery's Research Library Materials have been brought to account at valuation, during 1996/97 with the effect of increasing accumulated funds as at 30 June 1997 by $8 14,400. (b) Comparative Figures Because of a major realignment of the Gallery's Program areas previous Valuation was based on the cost of replacing the core collection of year figures in relation to the Program Delivery Expenses in the monographs, serials and slides of the Gallery's Art Works. Operating Statement are unavailable. (g) Depreciation (c) Inventories Depreciation is charged on plant and equipment less than five years Inventories represent stock on hand for sale through the Gallery Shop old using the straight line method at rates based on the estimated operations and are valued at cost. useful life of the assets. (d) Investments (h) Provision for Employee Entitlements Investments are recorded at cost and income is brought to account Provision has been made for the liability for various employee on an accrual basis. entitlements and related costs in accordance with the Australian Accounting Standard, AAS30: Accounting for Employee Entitlements. (e) Leasing Arrangements The Board of Trustees has a signed lease agreement with the Queensland Recreation Leave is accrued and shown as a current liability. Cultural Centre Trust for the main Art Gallery building located in the Queensland Cultural Centre Complex. The Trust does not charge Accumulated sick leave does not normally exceed the sick leave taken rent on the premises occupied by the Art Gallery. The provision of in any year. Consequently no liability has been brought to account. the building and items of fitout, including plant and equipment, forms part of this agreement. Long Service Leave is calculated for al employees of the Gallery, after The Board of Trustees has a signed lease agreement with the Queensland allowing for weightings of the probabilities and future cash flows for Museum for two floors of a building located at 73 Grey St, South employees having less than ten years of service. Brisbane. The Queensland Museum charges rent on these premises. (Refer Note I 8) (i) Services Provided by the Queensland Cultural Centre Trust The Queensland Cultural Centre Trust provides a number of services (f) Non Current Assets to the Queensland Art Gallery at the Queensland Cultural Centre. The Gallery's non-current physical asset recording threshold is set at These services include building maintenance and repairs, electricity, $2,000 and the asset revaluation threshold is set at $ 1,000,000. security, cleaning, air-conditioning and telephone rental. The cost of these services to the Queensland Art Gallery for the 1996/97 year The Gallery's Art Works assets including gifts are recorded in accordance was $ 1,925,800. 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.