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QUEENSLAND ART GALLERY ANNUAL REPORT 2007–08
APPENDIXES
86
The provision of the building and items of fit-out, including plant and
equipment, form part of this agreement.
The Gallery pays for services including building maintenance and repairs,
electricity, security, cleaning, air-conditioning and telephone rental (Note
1(u)).
(o) Other Financial Assets
Current assets include investments with short periods to maturity that are
readily convertible to cash on hand at the Gallery's option and that are
subject to a low risk of changes in value.
Included in the non-current assets of the Queensland Art Gallery
Foundation are State Government Contributions and retained donations of
$7.8M. These funds are restricted as per an agreement with the State
Government which states that only the interest derived from these funds
can be used by the Foundation for acquisitions or the exhibition program
of the Gallery.
The Foundation's other non-current investments are carried at market value.
Changes in market value are recognised as a revenue or expense in
determining the net result for the period.
All other non-current investments are carried at the lower of cost and
recoverable amount.
Interest and dividend revenues are recognised on an accrual basis.
(p) 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.
(q) Financial Instruments
Recognition
Financial assets and financial liabilities are recognised in the Balance
Sheet when the Gallery becomes party to the contractual provisions of the
financial instrument.
Classification
Financial instruments are classified and measured as follows:
l
Cash and cash equivalents – held at fair value through profit and loss
l
Managed funds and shares – held at fair value through profit and loss
l
Receivables – held at amortised cost
l
Payables – held at amortised cost
The Gallery does not enter into derivative transactions for speculative
purposes.
All disclosures relating to the measurement basis and financial risk
management of other financial instruments held by the Gallery are included
in Note 22.
(r) Employee Benefits
Wages, Salaries, Recreation Leave and Sick Leave
Wages, salaries and recreation leave due but unpaid at reporting date are
recognised in the Balance Sheet at the remuneration rates expected to
apply at the time of settlement. Payroll tax and worker's compensation
insurance are a consequence of employing employees, but are not counted
in an employee's total remuneration package. They are not employee
benefits and are recognised separately as employee related expenses.
Employer superannuation contributions and long service leave levies are
regarded as employee benefits.
For unpaid entitlements expected to be paid within 12 months, the
liabilities are recognised at their undiscounted values. For those
entitlements not expected to be paid within 12 months, the liabilities are
recognised at their present value, calculated using yields on Fixed Rate
Commonwealth Government bonds of similar maturity.
Prior history indicates that on average, sick leave taken each reporting
period is less than the entitlement accrued. This is expected to recur in
future periods. Accordingly, it is unlikely that existing accumulated
entitlements will be used by employees and no liability for unused sick
leave entitlements is recognised.
As sick leave is non-vesting, an expense is recognised for this leave as it
is taken.
Long Service Leave
Under the Queensland Government's long service leave scheme a levy is
made on the Gallery to cover this cost. Levies are expensed in the period in
which they are paid or payable. Amounts paid to employees for long service
leave are claimed from the scheme as and when leave is taken.
No provision for long service leave is recognised in the financial
statements, the liability being held on a whole-of-Government basis and
reported in the financial report prepared pursuant to AAS 31
Financial
Reporting by Governments
.
Superannuation
Employer superannuation contributions are paid to QSuper, the
superannuation plan for Queensland Government employees, at rates
determined by the State Actuary. Contributions are expensed in the period
in which they are paid or payable. The Gallery's obligation is limited to its
contribution to QSuper.
Therefore, no liability is recognised for accruing superannuation benefits
in these financial statements, the liability being held on a whole-of-
Government basis and reported in the financial report prepared pursuant to
AAS 31
Financial Reporting by Governments
.
Executive Remuneration
The executive remuneration disclosures in the employee expenses note
(Note 4) in the financial statements include:
l
the aggregate remuneration of all senior executive officers (including the
Chief Executive Officer) whose remuneration for the financial year is
$100,000 or more; and
l
the number of senior executives whose total remuneration for the
financial year falls within each successive $20,000 band, commencing
at $100,000.
The remuneration disclosed is all remuneration received or receivable,
directly or indirectly, from the Gallery or any related party in connection
with the management of the affairs of the Gallery or any of its subsidiaries,
whether as an executive or otherwise. For this purpose, remuneration
includes:
l
wages and salaries;
l
accrued leave (that is, the increase/decrease in the amount of annual
and long service leave owed to an executive, inclusive of any increase in
the value of leave balances as a result of salary rate increases or the
like);
l
performance pay received or due and receivable in relation to the
financial year, provided that a liability exists (namely a determination
has been made prior to the financial statements being signed), and can
be reliably measured even though the payment may not have been
made during the financial year;
l
accrued superannuation (being the value of all employer superannuation
contributions during the financial year, both paid and payable as at 30
June);
l
car parking benefits and the cost of motor vehicles, such as lease
payments, fuel costs, registration/insurance, and repairs/maintenance
incurred by the Gallery during the financial year, both paid and payable
as at 30 June, net of any amounts subsequently reimbursed by the
executives;
l
allowances (which are included in remuneration agreements of
executives, such as airfares or other travel costs paid to/for executives
whose homes are situated in a location other than the location they
work in); and
l
fringe benefits tax included in remuneration agreements.