2013-14 Report

Queensland Art Gallery Board of Trustees Annual Report 2013–14

FINANCIAL STATEMENTS

PART B

Queensland Ar t Gallery Board of Trustees

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

(ab) Rounding and Comparatives

Amounts included in the financial statements are in Australian dollars and have been

rounded to the nearest $1,000 or, where that amount is $500 or less, to zero unless

disclosure of the full amount is specifically required. Comparative information has been

restated where necessary to be consistent with disclosures in the current reporting period.

(ac) New and Revised Accounting Standards

The Gallery did not voluntarily change any of its accounting policies during 2013–14.

Australian Accounting Standard changes applicable for the first time for 2013–14 have

had minimal effect on the Gallery’s financial statements, as explained below.

AASB 13 Fair Value Measurement

became effective from reporting periods beginning on or

after 1 January 2013.

AASB 13

sets out a new definition of ‘fair value’ as well as new

principles to be applied when determining the fair value of assets and liabilities. The new

requirements will apply to all of the Gallery’s assets and liabilities (excluding leases) that are

measured and/or disclosed at fair value or another measurement based on fair value. The

impacts of AASB 13 relate to the fair value measurement methodologies used and financial

statement disclosures made in respect of such assets and liabilities.

The Gallery reviewed its fair value methodologies (including instructions to valuers, data

used and assumptions made) for all items of property, plant and equipment measured at

fair value to determine whether those methodologies complied with AASB 13. No change

in valuation arose from AASB 13 given that fair value methodologies were already

compliant.

AASB 13 has required an increased amount of information to be disclosed in relation to

fair value measurements for both assets and liabilities. For those fair value

measurements of assets or liabilities that are based substantially on data that is not

observable (i.e. accessible outside the Gallery), the amount of information disclosed has

significantly increased. Note 1 (k) explains some of the principles underpinning the

additional fair value information disclosed. Most of this additional information is set out in

Notes 16 and 28.

A revised version of AASB 119

Employee Benefits

became effective from reporting

periods beginning on or after 1 January 2013. The definition of ‘short-term employee

benefits’ has now been revised to include all employee benefits expected to be settled

wholly before 12 months. The change in the definition has meant that annual leave

liabilities that previously would have been regarded as ‘short-term employee benefits’ are

now measured and classified as ‘other long-term employee benefits’. Changes to the

definition and measurement of ‘termination benefits’ may also impact the Gallery in future

periods, but the impact is likely to be immaterial as traditionally the Gallery has rarely

offered such termination benefits.

The revised AASB 119 also includes changed requirements for the measurement of

employer liabilities/assets arising from defined benefit plans, and the measurement and

presentation of changes in such liabilities/assets. The Gallery makes employer

superannuation only to QSuper defined benefits plans, and the corresponding QSuper

employer benefit obligation is held by the State. Therefore those changes to AASB 119

will have no impact on the Gallery.

AASB 1053

Application of Tiers of Australian Accounting Standards

became effective

from reporting periods beginning on or after 1 July 2013. AASB 1053 establishes a

differential reporting framework for those entities that prepare general purpose financial

statements, consisting of two Tiers of reporting requirements — Australian Accounting

Standards (commonly referred to as ‘Tier 1’) and Australian Accounting Standards –

Reduced Disclosure Requirements (commonly referred to as ‘Tier 2’). Tier 1

requirements comprise the full range of AASB recognition, measurement, presentation

and disclosure requirements that are currently applicable to reporting entities in Australia.