NGV Annual Report 2003-04-Part 2 - National Gallery of Victoria

138 Report NGV Annual Report 2003/041. Summary of significant accounting policies CONTINUEDi. Employee benefits(i) Wages, salaries and annual leaveLiabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled withintwelve months of the reporting date are recognised in respect of employees’ services up to the reporting date andare measured as the amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulatingsick leave are recognised when the leave is taken and measured at the rates paid or payable.(i) Long service leaveThe liability for long service leave expected to be settled within twelve months of the reporting date is recognised inthe provision for employee benefits and is measured in accordance with (i) above. The liability for long service leaveexpected to be settled more than twelve months from the reporting date is recognised in the provision for employeebenefits and measured as the present value of expected future payments to be made in respect of servicesprovided by employees up to the reporting date. Consideration is given to expected future wage and salary levels,experience of employee departures and periods of service. Expected future payments are discounted using interestrates on national government guaranteed securities with terms to maturity that match, as closely as possible, theestimated future cash outflows.(iii) SuperannuationThe amount charged to the Statement of Financial Performance in respect of superannuation represents thecontribution made by the National Gallery of Victoria to the superannuation funds of employees.(iv) Employee on–costsRelated employee on-costs have been included in the calculation of liabilities or employee benefits.j. Goods and services taxRevenues, expenses and assets are recognised net of GST except where the amount of the GST incurred isnot recoverable, in which case it is recognised as part of the cost of acquisition of an asset or part of an item ofexpense. The net amount of GST recoverable from, or payable to, the Australian Taxation Office (ATO) is includedas part of receivables or payables in the Statement of Financial Position. The GST component of a receipt orpayment is recognised on a gross basis in the Statement of Cash Flows in accordance with Accounting StandardAAS 28, Statement of Cash Flows.k. Contributed capitalConsistent with Urgent Issues Group Abstract 38, Contributions by Owners Made to Wholly-Owned Public SectorEntities, appropriations for additions to net assets have been designated as contributed capital. Other transfers thatare in the nature of contributions or distributions have also been designated as contributed capital.l. Contingent assets and contingent liabilitiesThe National Gallery of Victoria discloses both contingent assets and contingent liabilities when they arise. Allcontingencies are discounted to their present value using the pre-tax rate that reflects current market assessmentsof the time value of money and risks specific to the contingencies.m. Resources provided and received free of charge or for nominal considerationContributions of resources and resources provided free of charge or for nominal consideration are recognisedat their fair value. Contributions in the form of services are only recognised when a fair value can be reliablydetermined and the services would have been purchased if not donated.n. Rounding of amountsAmounts shown in the financial statements are rounded to the nearest thousand dollars except whereindicated otherwise.