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

(q) Other Financial Assets

Other financial assets – current consists of 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.

Other financial assets – non-current consists of investments managed on behalf of the

Queensland Art Gallery |Gallery of Modern Art Foundation Committee by QIC and QTC, and

term deposits held with financial institutions. Many of these invested funds are required to be

preserved under the terms of their original donations and bequests (see Notes 20 and 21).

QIC and QTC investments are valued at the valuations provided by the respective bodies on

30 June each year. Changes in market value are recognised as income and expenditure in

determining the net result for the period.

Interest is recognised on an accrual basis.

(r) 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.

(s) Financial Instruments

Recognition

Financial assets and financial liabilities are recognised in the Statement of Financial Position

when the Gallery becomes party to the contractual provisions of the financial instrument.

Classification

Financial instruments are classified and measured as follows:

•

Cash and cash equivalents — held at fair value through profit and loss

•

Receivables — held at amortised cost

•

Financial investments with QIC and QTC — held at fair value through profit and loss

•

Held to maturity term deposits with financial institutions — held at amortised cost

•

Payables — held at amortised cost.

The Gallery does not enter into transactions for speculative purposes or for hedging.

All disclosures relating to the measurement basis and financial risk management of other

financial instruments held by the Gallery are included in Note 28.

(t) Employee Benefits

Salaries, Wages and Sick Leave

Salaries and wages due but unpaid at reporting date are recognised in the Statement of

Financial Position at the current salary rates. As the Gallery expects such liabilities to be

wholly settled within 12 months of the reporting date, the liabilities are recognised at

undiscounted amounts.

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.