Royal Ontario Museum Annual Report 2007/2008

Artifacts and specimens
The value of artifacts and specimens has been excluded from the balance
sheet. Gifted artifacts and specimens are recorded as revenue at values based
on appraisals by independent appraisers. The acquisition of both gifted and
purchased artifacts and specimens is expensed.
Use of estimates
The preparation of financial statements in conformity with Canadian generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual amounts could differ from those estimates.
Contributed materials and services
Because of the difficulty in determining their fair market value, contributed
materials and services are not recognized in the financial statements.
Future accounting policy changes
The CICA has issued two new standards, CICA Section 3862: Financial
Instruments – Disclosures and CICA Section 3863: Financial Instruments
– Presentation, which enhance the abilities of users of financial statements to
evaluate the significance of financial instruments to an entity, related exposures
and the management of these risks.
The CICA has also issued a new accounting standard, CICA Section 1535:
Capital Disclosures, which requires the disclosure of qualitative and quantitative
information that enables users of financial statements to evaluate the entity’s
objectives, policies and processes for managing net assets.
In addition, the CICA has issued a new accounting standard, CICA 3031:
Inventories, which requires additional disclosure and sets out new rules that may
affect the valuation of inventories.
These changes in accounting policies, which will be adopted effective April
1, 2008, will only require additional disclosures in the financial statements,
except for CICA 3031: Inventories. The impact of this section on the financial
statements has not yet been determined.
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5. Capital Assets
[a] Capital assets consist of the following:
2008 2007
Accumulated
Accumulated
Cost amortization Cost amortization
$ $ [000’s] $ $
Land 931 — 931 —
Building 54,912 41,132 54,912 40,092
Galleries 38,260 33,397 38,228 32,489
Building improvements
Renaissance ROM Project
[note 3]
17,872 12,219 17,359 11,549
Building 203,578 4,596 202,386 —
Galleries 44,977 2,358 11,322 1,092
Furniture and equipment 4,175 2,155 3,570 1,745
364,705 95,857 328,708 86,967
Less accumulated
amortization 95,857 86,967
Net book value 268,848 241,741
During the year ended March 31, 2008, interest of $2,568,000 [2007–
$2,663,000] was capitalized in the Renaissance ROM Project.
[b] The change in net book value of capital assets is due to the following:
2008
$
2007
[000’s] $
Balance, beginning of year 241,741 194,521
Purchase of capital assets funded by
restricted capital contributions [note 8]
Purchase of capital assets funded by bank
25,229 34,140
indebtedness, long-term debt, or accounts
payable and accrued liabilities 10,162 16,115
Purchase of capital assets funded internally 483 650
Amortization of capital assets (8,767) (3,685)
Balance, end of year 268,848 241,741
6. Artifacts and Specimens
As at March 31, 2008, the collection consisted of approximately 6,000,000
artifacts and specimens. During the year ended March 31, 2008, the Museum
accessioned approximately 800 [2007 – 2,000] objects to its collections through
the donation and purchase of artifacts.