Annual Report - QPAC

QUEENSLAND PERFORMING ARTS TRUST
(o) Reserves
Building Development Reserve
This reserve has been established as the Trust is mindful of the need to undertake major building upgrades in
future years for areas such as catering facilities, entertaining by corporate sponsors and office accommodation.
Equipment Replacement Reserve
The balance of this reserve represents funds held for future replacement of the Trust’s general equipment needs,
including information technology and theatre production equipment. The level of this reserve as at 30 June 2009
represents 25.2% of the total accumulated depreciation of the Trust’s property, plant and equipment.
General Reserve
The General Reserve provides for fluctuations in working capital due to the volatile nature of the performing arts
industry.
Commercial Development Reserve
The Commercial Development Reserve is to offset the financial risks associated with investments in copresentations
with commercial organisations or strategic productions undertaken by the Trust on a commercial
basis.
Creative Projects Reserve
The Creative Projects Reserve provides a funding mechanism for new creative initiatives that span financial years
(nil balance as at reporting date).
(p)
Services Provided by External Parties free of charge
The Trust was provided with the use of the Performing Arts Centre premises for which the State does not charge
rent (refer note 3).
(q)
Insurance
It is the Trust’s policy to insure against all potential liabilities or losses that would affect its normal operations.
(r)
Judgements and assumptions
The entity has made no judgements or assumptions which may cause a material adjustment to the carrying
amount of assets and liabilities in the next reporting period.
Note 3
Services and Assets Provided to the Trust
Arts Queensland, through the Department of Premier and Cabinet, owns and maintains the Performing Arts
Centre premises on behalf of the State of Queensland. The Trust is provided with the use of the building and
items of fitout, including certain items of plant and equipment that are not performance related, by way of a
service level agreement with the Corporate Administration Agency (CAA). While the State does not charge rent
on the premises occupied by the Trust, the Trust does make a contribution to the continued maintenance of the
building.
Note 4
Controlled Entity
No controlled entity was owned by the Trust for the reporting period, therefore consolidated accounts have not
been prepared.
Notes to the Financial Report for the year ended 30 June 2009
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