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Queensland Art Gallery Board of Trustees Annual Report 2013–14
FINANCIAL STATEMENTS
PART B
10
10
Queensland Ar t Gallery Board of Trustees
Notes to and forming par t of the Financial Statements 2013–14
(h) Inventories (cont.)
Inventories are valued at the lower of cost or net realisable value.
Cost is assigned on a weighted average basis and comprises the cost of acquiring the
inventories and bringing them to their existing condition. Immaterial expenditure incurred
in transporting inventory to the Galley is expensed as incurred.
Net realisable value is determined based on the Gallery’s normal selling pattern.
(i) Acquisitions of Assets
Actual cost is used for the initial recording of all non-current physical asset acquisitions.
Cost is determined as the value given as consideration plus costs incidental to the
acquisition, including all other costs incurred in getting the assets ready for use. However,
any training costs are expensed as incurred.
Assets acquired at no cost or for nominal consideration, other than from an involuntary
transfer from another Queensland Government entity, are recognised at their fair value at
date of acquisition in accordance with AASB 116
Property, Plant and Equipment
.
(j) Property, Plant and Equipment
Items of property, plant and equipment with a cost or other value equal to or in excess of
the following thresholds are recognised for financial reporting purposes in the year of
acquisition:
Art Collection
$1
Library Heritage Collection
$1
Other property, plant and equipment
$5,000
Items with a lesser value are expensed in the year of acquisition.
(k) Revaluation of Non-Current Physical Assets
The Gallery’s Art Collection and the Gallery’s Library Heritage Collection are measured at
fair value in accordance with AASB 116
Property, Plant and Equipment,
AASB 13
Fair
Value Measurement
and Queensland Treasury and Trade’s
Non-Current Asset Policies
for the Queensland Public Sector
. These assets are reported at their revalued amounts,
being the fair value at the date of valuation.
The Gallery’s Art Collection is revalued on a rolling basis over three years in accordance
with the Collection revaluation policy. The revaluation process is managed by the Deputy
Director, Collection and Exhibitions, and revaluations are approved by the Director.
Revaluations are conducted by either external valuers or by the Gallery’s own expert
curatorial staff (dependent on the current value of the work) and take into account prices
paid for comparable works, market conditions, and exchange rates where applicable. If
changes in fair value of more than 10% occur in a year, a full revaluation of the Collection is
conducted.
The Library Heritage Collection is revalued at the end of the year, generally using prices
available through booksellers or through independent valuations. The revaluation process
is conducted by the Gallery’s Research Library, managed by the Deputy Director,
Collection and Exhibitions, and approved by the Director.
The Gallery reviewed its fair value methodologies for these Collection assets in 2013–14
in the light of AASB 13. No change in valuation arose from AASB 13, given that these
Collection assets were already measured at fair value.
Any revaluation increment arising on the revaluation of these Collection assets is credited
to the asset revaluation surplus, except to the extent it reverses a revaluation decrement
previously recognised as an expense. A decrease in the carrying amount on revaluation
is charged as an expense, to the extent it exceeds the balance, if any, in the asset
revaluation surplus.