Annual Report - QPAC

QUEENSLAND PERFORMING ARTS TRUST
(d) Depreciation and amortisation of property, plant and equipment (continued)
Capital work-in-progress is not depreciated until it reaches service delivery capacity.
Where assets have separately identifiable components, these components are assigned useful lives distinct
from the asset to which they relate. Any expenditure that increases the originally assessed capacity or service
potential of an asset is capitalised and the new depreciable amount is depreciated over the remaining useful
life.
The depreciable amount of improvements to or on leasehold land is allocated progressively over the estimated
useful lives of the improvements to the Trust or the unexpired period of the lease, whichever is shorter.
Major depreciation rates used are listed below and are consistent with the prior year unless otherwise stated:
Buildings and leasehold improvements 4 to 20%
Motor vehicles 20%
Plant and equipment 1 to 33%
Concert Hall Grand Organ 2%
(e)
Intangibles
All intangible assets with a cost or other value greater than $100,000 are recognised in the financial statements,
with items of a lesser value being expensed. Each intangible asset is amortised on a straight line basis over its
estimated useful life to the Trust, less any anticipated residual value. Current amortisation rates are either 20%
or 33.3%.
(f)
Impairment of Non-Current Assets
All non-current physical and intangible assets are assessed for indicators of impairment on an annual basis.
If an indicator of possible impairment exists the assets recoverable amount is determined. The recoverable
amount is determined as the higher of the asset’s fair value (net of selling costs) and the depreciated
replacement cost.
An impairment loss is immediately recognised in the income statement. If the asset in question is carried at a
revalued amount then any impairment loss is first offset against the asset revaluation reserve of the relevant
asset class to the extent available.
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised
estimate of its recoverable amount, but only to the extent that the carrying amount does not exceed the carrying
amount that would have been determined had no previous impairment loss been recognised for the asset. A
reversal of an impairment loss is recognised as income, unless the asset is carried at a revalued amount, in
which case the reversal of the impairment loss is treated as a revaluation increase.
(g)
Cash and Cash Equivalents
For the purposes of the Balance Sheet and the Cash Flow Statement, cash assets include all cash and cheques
receipted but not banked at 30 June as well as deposits at call with financial institutions. It also includes liquid
investments with short periods to maturity that are convertible readily to cash on hand, at the investor’s option
and that are subject to a low risk of changes in value.
(h)
Receivables
Trade debtors are recognised at the nominal amounts due at the time of sale or service delivery, with settlement
being generally required within 30 days from the invoice date.
The collectability of receivables is assessed periodically with provision being made for doubtful debts.
Bad debts are written off in the period in which they are recognised.
(i)
Inventories
Inventories are valued at the lower of cost or net realisable value and are comprised of trading stock for the
Trust’s gift shop and stock for the Trust’s catering operations.
(j)
Other Financial Assets
Investments are measured at cost.
Interest is recognised on an accrual basis.
Notes to the Financial Report for the year ended 30 June 2009
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