Queensland Art Gallery Annual Report 2001-02

72 NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS FOR YEAR ENDED 30 JUNE 2002 Plant and Equipment All items of plant and equipment with a cost or other value in excess of $2,000 are recognised in the financial statements in the year of acquisition. Items with a lesser value are expensed in the year of acquisition. Revaluation of Non-Current Physical Assets From 1 July 2001 cultural assets are measured at fair value in accordance with AASB 1041 Revaluation of Non-Current Assets and Queensland Treasury's Non-Current Asset Accounting Guidelines for the Queensland Public Sector. All other non-current assets, principally plant and equipment, are measured at cost. The Gallery·s Art Works, including gifts, are revalued by the Gallery·s curatorial staff on an annual basis for insurance purposes. Amounts incidental to their purchase e.g. freight etc are not considered to be part of the asset cost and are treated as an expense. The valuation of the Gallery·s Research Library Materials represents the cost of replacing the core collection of monographs, serials and slides of the Gallery's Art Works in the event of loss of the Library·s collection. These items are determined as being essential for replacement to support the Gallery·s research and exhibition development objectives. Non-current physical assets measured at fair value are comprehensively revalued on an annual basis. Only those assets, the total values of which are material, compared to the value of the class of assets to which they belong, are comprehensively revalued. (hi Amortisation and Depreciation Depreciation on plant and equipment is calculated on a straight-line basis at rates based on the estimated useful life of the assets to the Queensland Art Gallery. For each class of depreciable asset the following depreciation rates were used: Class Plant and Equipment Computers Motor Vehicles Printers Other Iii Leases Depreciation Rates 30% 25% 20% 10% A distinction is made in the financial statements between finance leases that effectively transfer from the lessor to the lessee substantially all risks and benefits incidental to ownership, and operating leases under which the lessor retains substantially all risks and benefits. Operating lease payments are representative of the pattern of benefits derived from the leased assets and are expensed in the periods in which they are incurred. Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated between rental expense and reduction of the liability. The Board of Trustees has a signed lease agreement with the Queensland Cultural Centre Trust for the main Art Gallery building located within the Queensland Cultural Centre Complex for which no rent is charged. The provision of the building and items of fit-out, including plant and equipment, form part of this agreement. The Gallery pays for services include building maintenance and repairs, electricity, security, cleaning, air-conditioning and telephone rental. (Note p) Iii Payables Trade Creditors are recognised upon receipt of the goods or services ordered and are measured at the agreed purchase/contract price gross of applicable trade and other discounts. Amounts owing are unsecured and are generally settled on 30 day terms. (kl Interest-Bearing Liabilities Loans payable are recognised at the face value of the principal outstanding, with interest being expensed as it accrues. Borrowings also are disclosed at their fair market value as indicated in Note 12. Ill Provision for Employee Entitlements Wages, Salaries and Annual Leave Wages, salaries and annual leave due but unpaid at reporting date recognised in the Statement of Financial Position include related on– costs such as payroll tax and employer superannuation contributions. Long Service Leave Under the State Government's scheme a levy is made on the Gallery to cover this expense. Amounts paid to employees for long service leave are claimed from the scheme as and when leave is taken. Superannuation Employer superannuation contributions are paid to QSuper, the superannuation plan Queensland Government employees at rates determined by the State Actuary. (ml Taxation The Gallery·s activities are exempt from Commonwealth taxation except for Fringe Benefits Tax and Goods and Services Tax I.. GSTl As such, input tax credits receivable and GST payable from/to the Australian Tax Office are recognised and accrued.