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

(k) Revaluation of Non-Current Physical Assets (cont.)

Plant and equipment, and leasehold improvements are measured at cost in accordance

with Queensland Treasury and Trade’s

Non-Current Asset Accounting Policies for the

Queensland Public Sector.

The carrying amounts for such plant and equipment at cost

should not materially differ from their fair value.

Materiality concepts under AASB 1031

Materiality

are considered in determining whether

the difference between the carrying amount and the fair value of an asset is material.

(l) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in

an orderly transaction between market participants at the measurement date under current

market conditions regardless of whether that price is directly derived from observable inputs

or estimated using another valuation technique.

Observable inputs are publicly available data that are relevant to the characteristics of the

assets/liabilities being valued.

Unobservable inputs are data, assumptions and judgements that are not available publicly,

but are relevant to the characteristics of the assets/liabilities being valued. Unobservable

inputs are used to the extent that sufficient relevant and reliable observable inputs are not

available for similar assets/liabilities. Significant unobservable inputs used by the Gallery

include, but are not limited to, auction prices paid for works that are deemed by the Gallery

to be comparable to its own works and valuations provided by expert valuers engaged by the

Gallery.

All fair value measurements are based on the highest and best use of the asset.

All assets and liabilities of the Gallery for which fair value is measured or disclosed in the

financial statements are categorised within the following hierarchy, based on the data and

assumptions used in the most recent specific appraisals:

Level 1:

Represents fair value measurements that reflect unadjusted quoted market

prices in active markets for identical assets and liabilities.

Level 2:

Represents fair value measurements that are substantially derived from

inputs (other than quoted prices that are included in Level 1) that are

observable, either directly or indirectly.

Level 3:

Represents fair value measurements that are substantially derived from

unobservable inputs.

The Gallery’s financial investments with QIC and QTC are categorised at Level 2 and the

Gallery’s Collection assets are categorised at Level 3.

As 2013–14 is the first year of application of AASB 13 by the Gallery, there were no transfers

between fair value categories during the period.

More specific fair value information about the Gallery’s Property, Plant and Equipment

valuations and the Gallery’s Financial Instrument valuations are included in Notes 16 and 28.

(m) Depreciation of Property, Plant and Equipment

Plant and equipment is depreciated on a straight-line basis so as to allocate the net cost

or revalued amount of each asset, less its estimated residual value, progressively over

the estimated useful life to the Gallery.