Queensland Art Gallery Annual Report 1997-98

Queensland Art Gallery Board of Trustees NOTE 19. Financial instruments (a) Terms, Conditions and Accounting Policies The Gallery's accounting policies, including the terms and conditions of each class of financial assets, financial liabilities and equity instruments, both recognised and unrecognised at the balance date are as follows: Recognised Financial Instruments Financial Assets Cash on hand and at bank Trade debtors and accrued income Financial Liabilities Creditors Borrowings (b) Interest Rate Risk Financial Instrument Financial Assets Cash on hand and at bank Deposits at call Short term securities Trade debtors and accrued income Financial Liabilities Creditors Borrowings (c) Credit Risk t Note 14 10 Floating Fixed Interest Interest Rate maturing within 1 yr $'000 10 2041 20 Accounting Policies Terms and Conditions Recognised at cost. Interest is recognised as it deposits at call and short term accrues. All funds are invested at banks and money market securities mature within 12 months. Recognised upon delivery of goods or services. Recorded at nominal amounts due less any provision for doubtful debts. Provision is made for doubtful debts when collection of the full amount is no longer probable. Credit sales are in accordance with normal commercial practices. Recognised upon receipt of goods or services irrespective of whether an invoice has been received. Measurement is based on the agreed purchase costs. The amounts are unsecured and are settled within 30 days. Measurement is based on the principal outstanding and accrued interest. The amount is unsecured. Non Carrying Effective interest interest amount on rates or weighted bearing Balance average effective Sheet interest rate $'000 $'000 $'000 t -682 -682 10 1.50% 2041 4.99% 409 409 362 362 20 5.90% The credit risk on financial assets of the Gallery which have been recognised on the Balance Sheet is generally the carrying amount net of any provision for doubtful debts. (d) Net Fair Value It is considered that the net fair value of the financial assets and financial liabilities of the Gallery closely approximate the book values due to their short term to maturity. 58