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

(v) Insurance (cont.)

In addition, the Gallery pays premiums to Workcover Queensland in respect of its

obligations for employee compensation.

(w) Services Provided by Arts Queensland and the Corporate Administration

Agency

The Queensland Art Gallery and the Gallery of Modern Art buildings are owned by the

State of Queensland, and managed by Arts Queensland. Rent is not paid for the

occupation of these premises.

The Gallery pays Arts Queensland for services including building maintenance and

repairs, cleaning and external security. The cost of these services in the 2014 year was

$1,733,000 (2013: $1,676,000). In addition, the Gallery reimburses Arts Queensland for

the Gallery's share of electricity and gas $1,490,000 (2013: $1,470,000).

The Corporate Administration Agency (CAA) provides finance and human resource

management services to the Gallery at a cost of $929,000 (2013: $892,918).

(x) Services provided to the Queensland Art Gallery | Gallery of Modern Art

Foundation Committee

The Gallery provided corporate support including human resources, office

accommodation, computer equipment and other office requisites on an in-kind basis to

facilitate the operation of the Foundation. As the Foundation is now a committee of the

Queensland Art Gallery Board of Trustees, the Gallery no longer records these services

in the financial accounts. The cost of these services from 1 July 2012 to 16 April 2013

when the Queensland Art Gallery Foundation was wound up was $257,000.

(y) Taxation

The Gallery is a Statutory Body as defined under the

Income Tax Assessment Act 1936

and is exempt from Commonwealth taxation with the exception of Fringe Benefits Tax

and Goods and Services Tax (GST). As such, GST credits receivable from and GST

payable to the ATO are recognised and accrued. Refer to Note 13.

(z) Issuance of Financial Statements

The financial statements are authorised for issue by the Chair of the Queensland Art

Gallery Board of Trustees and the Director of the Queensland Art Gallery at the date of

signing the Management Certificate.

(aa) Accounting Estimates and Judgements

The preparation of financial statements necessarily requires the determination and use of

certain critical accounting estimates, assumptions and management judgements that

have the potential to cause a material adjustment to the carrying amounts of assets and

liabilities within the next financial year. Such estimates, judgements and underlying

assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are

recognised in the period in which the estimate is revised and in future periods as relevant.

Estimates and assumptions that have a potential significant effect are outlined in the

following financial statement notes:

Valuation of Property, Plant and Equipment — Note 1 (k)–(l) and Note 16

Contingencies — Note 27

The Australian Government passed its

Clean Energy Act

in November 2011, which

resulted in the introduction of a price on carbon emissions made by Australian

businesses from 1 July 2012. From 1 July 2014, the Government plans to abolish the

carbon tax.

The withdrawal of the carbon pricing mechanism is not expected to have a significant impact

of the Gallery’s critical accounting estimates, assumptions and management judgements.