2013-14 Report

FINANCIAL STATEMENTS

Queensland Art Gallery Board of Trustees Annual Report 2013–14

PART B

Queensland Ar t Gallery Board of Trustees

Notes to and forming par t of the Financial Statements 2013–14

Grants and other contributions that are non-reciprocal in nature are generally recognised

as revenue in the year in which the Gallery obtains control over them. Control is generally

obtained at the time of receipt.

Where the payment of a non-reciprocal grant or contribution is set out in a contractual

agreement (e.g. sponsorship agreement), the Gallery recognises revenue when it is

receivable as per the contractual arrangement.

Where grants are received that are reciprocal in nature, revenue is accrued over the term

of the funding arrangement.

Contributed assets, such as donated art work, are recognised at their fair value at the

time of acceptance by the Gallery.

Contributions of services are recognised when a fair value can be determined reliably

and the services would be purchased if they had not been donated. The Gallery did not

recognise any contributed services in the 2013–14 or 2012–13 years.

(d) User Charges and Fees

User charges and fees controlled by the Gallery are recognised as revenue when the

revenue has been earned and can be measured reliably with a sufficient degree of

certainty. This involves either invoicing for related goods / services and or the recognition

of accrued revenue. User charges are controlled by the Gallery where they can be

deployed for the achievement of the Gallery's objectives.

(e) Special Payments

Special payments include ex gratia expenditure and other expenditure that the Gallery is not

contractually or legally obliged to make to other parties. In compliance with the

Financial and

Performance Management Standard 2009

, the Gallery maintains a register setting out details

of all special payments greater than $5,000. The total of all special payments (including

those of $5,000 or less) is disclosed separately in Note 11. However, descriptions of the

nature of special payments are only provided for special payments greater than $5,000.

(f) Cash and Cash Equivalents

For the purposes of the Statement of Financial Position and the Statement of Cash

Flows, cash assets include all cash and cheques receipted but not banked at 30 June,

deposits at call with financial institutions, and fixed-term investments of three months or

less that are held for cash management purposes, are readily convertible to cash on

hand at the Gallery’s or issuer’s option, and are subject to a low risk of changes in value.

The Queensland Art Gallery |Gallery of Modern Art Foundation Committee has

investments (in term deposits and cash deposits) that are required to be preserved under

the terms of their donations and bequests. As these invested funds are preserved, the

investments are classified as non-current financial assets, and not cash and cash

equivalents.

(g) Receivables

Trade debtors are recognised at the amounts due at the time of sale or service delivery.

Settlement of these amounts is required within 30 days from invoice date.

The collectability of receivables is assessed periodically with an allowance being made

for impairment. All known bad debts were written off as at 30 June.

(h) Inventories

Inventories are retail stock held for sale through the Gallery stores, and beverage stock

for sale in the Gallery cafes and restaurants. All food purchases are expensed on

purchase.