Queensland Art Gallery Annual Report 1998-99

Queensland Art Gallery 5 4 Appendix Financial Statements Queensland Art Gallery Board of Trustees Notes to and Formimg part of the Accounts for year ended 3 0 June 1999 Note 17 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 Note Accounting Policies Terms and Conditions Financial Assets Cash on hand and at bank, deposits at call and 13 Recognised at cost. Interest is recognised as it accrues. All funds are invested at banks and mature short term money market securities within 12 months. Trade debtors and accrued income 5 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. Financial Liabilities Creditors 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. (b) Interest Rate Risk Financial Instrument Floating Interest Fixed Interest Non interest Carrying amount Effective interest Rate maturing within bearing on Balance Sheet rates or weighted 1 yr average effective interest rate $,000 $000 $000 $000 $000 Financial Assets Cash on hand and at bank 406 406 Deposits at call 310 310 4.55°Io Short term securities 897 897 4.89% Trade debtors and accrued income 83 83 Financial Liabilities Creditors 60 60 (c) Credit Risk 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.