AGNSW_AnnRep_00 full.pdf - Parliament of New South Wales ...

The superannuation expense for the financial year is
determined by using the formulae specified in the
Treasurer’s Directions. The expense for certain
superannuation schemes (ie. Basic Benefits and First
State Super) is calculated as a percentage of the
employees’ salary. For other superannuation schemes (ie.
State Superannuation Scheme and State Authorities
Superannuation Scheme), the expense is calculated as a
multiple of the employees’ superannuation contributions.
(f) Insurance
The Gallery’s insurance activities are conducted through the
NSW Treasury Managed Fund Scheme of self-insurance for
Government agencies. The expense (premium) is
determined by the Fund Manager based on past experience.
(g) Acquisitions of assets
The cost method of accounting is used for the initial
recording of all acquisitions of assets by the Gallery. Cost is
determined as the fair value of the assets given as
consideration plus the costs incidental to the acquisition.
Assets bequeathed or donated are brought to account and
are initially recognised as assets and revenues, at
valuations determined at the time of acquisition by either an
independent valuer or Gallery officer.
(i) Collections
All additions to the collection are capitalised. Costs
incurred in the restoration and conservation of collection
items have been included in Net Cost of Services.
(ii) Land, buildings, and plant and equipment
Additions to land, building and plant and equipment
items costing $5,000 and above are capitalised.
(h) Revaluation of physical non-current assets
Each class of physical non-current assets is included in a
five year revaluation plan. The recoverable amount test has
not been applied, as the Gallery is a non-profit entity whose
service potential is not related to the ability to generate net
cash inflows.
(i) Property, Plant and Equipment
Land was valued by the Dapartment of Public Works and
Services at 30 June 2000. The amount of the revaluation
has been brought to account in the books of the Gallery.
Land is valued on an existing use basis. Buildings,
including those classified by Treasury as Heritage Assets,
were originally valued by the Department of Public Works
& Services in 1992. In accordance with the Gallery’s policy
of revaluing major assets each five years, at 30 June
1997, the building was revalued at replacement cost by
B.H. Hazlewood, Executive Quantity Surveyor, State
Projects, Department of Public Works and Services. Plant
and equipment items are not revalued and are carried in
the books of account at depreciated original cost.
(ii) Collection
A collection revaluation policy has been developed with
“signpost” works identified for revaluation in the
1999/2000 financial year as per the programme of
revaluing all works over a five year period. The increase
in value of the collection was brought to account in the
books of the Gallery. All works will be revalued by class in
accordance with a predetermined programme over a
period of five years.
(iii) Library Collection
A stocktake of the library collection was undertaken in the
1999/2000 financial year. As a result the librarian was of
the opinion that many works had increased in value since
the initial recognition of the library collection. A
revaluation of the library was then undertaken and the
amount of the revaluation was brought to account in the
books of the Gallery.
(i) Depreciation of non-current physical assets
Depreciable assets include plant and equipment, permanent
exhibition fit out and motor vehicles. Depreciation is
calculated on a straight line basis so as to write off the
carrying cost of these assets over their expected useful life.
The useful life of all depreciable assets is re-assessed
annually. Individual assets with a cost of less than $5,000
are written off in the year of acquisition in accordance with
recommended Government policy. The Trustees believe that
the life of the Gallery building is indeterminate but
conservatively estimate that the useful life of the building as
a Gallery would be in excess of 200 years provided that the
building is subject to normal maintenance. Therefore the
annual depreciation expense to be applied to the building is
determined to be immaterial.
Depreciation rates are listed below. For Plant & Equipment
each asset’s effective life is assessed and a depreciation rate
of 7%, 14% or 20% is applied. Refer to note 6 for a
dissection of depreciation expenses.
Rate
Plant & Equipment 7-20%
Motor Vehicles 20%
Furniture & Fittings 20%
Office Equipment 33%
Computer Equipment 33%
Catering Equipment 20%
Other Equipment 20%
(j) Investments
Investment securities are intended to be held to maturity,
and are recorded at the lower of cost and recoverable
amount.
(k) Inventories
Inventories are valued at the lower of cost or net realisable
value. Cost is determined using the “average” method of
stock valuation.
(l) Doubtful debts
Allowance has been made in the accounts for doubtful
debts after investigation and determination of recoverability
of debts outstanding.
(m) Trust funds
This note is considered to cover conditions on contributions
and also covers restricted assets.
The Gallery receives monies and gifts in specie in a trustee
capacity for various trusts as set out in Note 22. As the
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