Annual Report 2010-2011 - Western Australian Museum

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Western Australian Museum ANNUAL REPORT 2010/2011 f) property, plant and equipment capitalisation/expensing of assets Items of property, plant and equipment costing $5,000 or more are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment costing less than $5,000 are immediately expensed direct to the Statement of Comprehensive Income (other than where they form part of a group of similar items which are significant in total). initial recognition and measurement Property, plant and equipment are initially recognised at cost. For items of property, plant and equipment acquired at no cost or for nominal cost, the cost is the fair value at the date of acquisition. subsequent measurement Subsequent to initial recognition as an asset, the revaluation model is used for the measurement of land and buildings and historical cost for all other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation (buildings only) and accumulated impairment losses. All other items of property, plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transactions, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. In the absence of market-based evidence, fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefits embodied in the asset, ie. the depreciated replacement cost. Where the fair value of buildings is determined on the depreciated replacement cost basis, the gross carrying amount and the accumulated depreciation are restated proportionately. Land and buildings are independently valued annually by the Western Australian Land Information Authority (Valuation Services) and recognised annually to ensure that the carrying amount does not differ materially from the asset’s fair value at the end of the reporting period. The most significant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets and in determining estimated useful life. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. Derecognition Upon disposal or derecognition of an item of property, plant and equipment or Museum Collection, any revaluation surplus relating to that asset is retained in the asset revaluation surplus. Asset revaluation surplus The asset revaluation surplus is used to record increments and decrements on the revaluation of non-current assets as described in note 21 ‘Property, plant and equipment’ and note 22 ‘Museum collections’. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that reflects the consumption of their future economic benefits. 48 BACK CONTENTS FORWARD
Western Australian Museum ANNUAL REPORT 2010/2011 Depreciation is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Land is not depreciated. Buildings and monuments 40 years Plant, equipment and vehicles 5 to 20 years Office equipment 4 to 10 years Leasehold improvements Balance of the current terms of lease g) Museum collections capitalisation/expensing of assets No capitalisation threshold is applied to Museum collection items. These items are considered to form part of a collection and are disclosed separately in the Statement of Financial Position. initial recognition and measurement Collection items may be acquired through collection, purchase or donation. Acquisitions of collection items are recorded at cost when purchased and at fair value when donated. Items acquired via fieldwork/research are brought to account when the full Museum collection is revalued. subsequent measurement The collections of the Western Australian Museum are revalued every three years. The revaluation of the collections is conducted by independent valuers using a combination of both market values, where applicable, and recollection costs. The last revaluation was undertaken in 2009. Depreciation Collection items controlled by the Western Australian Museum are classified as heritage assets. They are anticipated to have very long and indeterminate useful lives. Their service potential has not, in any material sense, been consumed during the reporting period. As such, no amount for depreciation has been recognised in respect of these assets. h) intangible assets capitalisation/expensing of assets Acquisitions of intangible assets costing $5,000 or more and internally generated intangible assets costing $50,000 or more are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed directly to the Statement of Comprehensive Income. All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal cost, the cost is their fair value at the date of acquisition. The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation for intangible assets with finite useful lives is calculated for the period of the expected benefit (estimated useful life which is reviewed annually) on the straight line basis. All intangible assets controlled by the Western Australian Museum have a finite useful life and zero residual value. The expected useful lives for each class of intangible asset are: Software (a) 3 to 10 years (a) Software that is not integral to the operation of any related hardware. BACK CONTENTS FORWARD 49
Page 1 and 2: Western Australian Museum AnnuAl Re
Page 3 and 4: contents Western Australian Museum
Page 5 and 6: I am delighted to introduce this ye
Page 7 and 8: A major priority for the WA Museum
Page 9 and 10: HIGHLIGHTS OF 2010/11 COMMUNITy ENG
Page 11 and 12: AWARDS AND HONOURS BACK CONTENTS FO
Page 13 and 14: BOARD MEMBERS: • Mr Tim Ungar BEc
Page 15 and 16: ORGANISATIONAL CHART PRE-INTERIM ST
Page 17 and 18: Western Australian Museum ANNUAL RE
Page 19 and 20: ACHIEVEMENTS BACK CONTENTS FORWARD
Page 23 and 24: ACHIEVEMENTS AUDIENCE DEVELOPMENT W
Page 29 and 30: WA Museum - Albany Western Australi
Page 31 and 32: ACHIEVEMENTS finAnciAl AnD Asset MA
Page 33 and 34: café Developments Western Australi
Page 37 and 38: Issue 5 Western Australian Museum A
Page 41 and 42: finAnciAl stAteMents CERTIFICATION
Page 43 and 44: STATEMENT OF FINANCIAL POSITION AS
Page 45 and 46: STATEMENT OF CASH FLOWS FOR THE yEA
Page 47: d) contributed equity Western Austr
Page 51 and 52: • Financial Liabilities - Payable
Page 55 and 56: AASB 9 Financial Instruments Wester
Page 57 and 58: 8. DepReciAtion AnD AMoRtisAtion ex
Page 59 and 60: 15. otHeR Revenue Western Australia
Page 61 and 62: 21. pRopeRty, plAnt AnD eQuipMent l
Page 63 and 64: 22. MuseuM collections MuseuM colle
Page 65 and 66: 26 otHeR liABilities cuRRent Wester
Page 67 and 68: 29. coMMitMents The commitments bel
Page 69 and 70: other expenses Western Australian M
Page 71 and 72: other expenses The Museum’s worke
Page 73 and 74: c) financial instrument disclosures
Page 75 and 76: fair values Western Australian Muse
Page 79 and 80: KEy EFFECTIVENESS INDICATOR ONE —
Page 81 and 82: Measurement of indicator 2006/07 20
Page 83 and 84: comparative Attendance figures 2009
Page 85 and 86: KEy EFFICIENCy INDICATOR Western Au
Page 87 and 88: OTHER LEGAL REQUIREMENTS ADVERTISIN
Page 95 and 96: Mr Scudamore was appointed to the M
Page 97: 2010-11 TEMPORARy ExHIBITIONS The M

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