Full report - State Library of Victoria - Victoria Online

(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
General Reserve
In 2002 the Library Board created the General Reserve to provide for unavoidable
future expenditures that cannot be met from funding.
Revenue Recognition
Donations and bequests for specifi c purposes have been brought to account as
revenue upon receipt. The balance of unexpended donations is transferred to the
Donations and Bequests Reserve on an annual basis. Subsequent expenditure
is recorded as an expense in the Operating Statement and results in a transfer
from the reserve.
Revenue from the sale of goods and services is recognised upon delivery of the
goods and services to the customer. Internet Service Provider (ISP) fees invoiced
to customers by Vicnet are recognised as a prepayment as invoiced and brought
to account progressively over the period of each contract.
Grants from government and other sources are brought to account as revenue on
receipt or as and when invoiced.
Interest revenue is recognised when due and dividend revenue is recognised when
the entitlement to receive payment is established.
Bequests and donations revenue includes donations in kind. The in-kind
contributions are goods and services provided to the Library Board of Victoria at no
cost. An amount equivalent to the arms-length value of both the goods and services
received and the operational or capital expenses have been included in the fi nancial
statements. Where the donation is an item or items to be added to the Library
collections, the valuation has been performed by Library staff except where
the donation has been externally valued under the Cultural Gifts program.
Foundation memberships are recognised on receipt.
Revaluation of Non-current Assets
The revaluation process occurs every fi ve years. Both land and buildings and the
collection were valued in the 2006–07 year. Revaluation increments are credited
directly to the asset revaluation reserve, except that to the extent that an increment
reverses a revaluation decrement in respect of that class of asset previously
recognised as an expense in net result, the increment is recognised immediately
as revenue in the net result.
Revaluation decrements are recognised immediately as expenses in net result,
except that, to the extent that a credit balance exists in the asset revaluation
reserve in respect of the same class of assets, they are debited directly to the
asset revaluation reserve.
Revaluation increments and decrements are offset against one another within a
class of non-current assets.
New and Revised Accounting Standards and Interpretations
The Library Board of Victoria has adopted all of the new and revised Accounting
standards and Interpretations issued by the Australian Accounting Standards Board
(AASB) that are relevant to its operations and effective for annual reporting periods
beginning on 1 July 2007.
The Board members have given due consideration to new and revised standards
and interpretations issued by the AASB that are not yet effective and do not believe
they will have any material fi nancial impact on the fi nancial statements.
Cash Flow Statement
For the purposes of the cash fl ow statement, cash comprises cash on hand, cash
at bank and highly liquid investments with short periods to maturity that are readily
convertible to cash on hand and are subject to an insignifi cant risk of changes
in value.
Functional and Presentation Currency
The functional and presentation currency of the Library Board of Victoria
is the Australian Dollar.
Rounding of Amounts
Amounts in the fi nancial report have been rounded to the
nearest thousand dollars, unless otherwise stated.
Goods and Services Tax (GST)
Income, expenses and assets are recognised net of the amount of associated GST.
Receivables and payables are stated inclusive of the amount of GST receivable or
payable. The net amount of GST recoverable from, or payable to the ATO is included
with other receivables or payables in the balance sheet.
Cash fl ows are presented on a gross basis. The GST components of cash fl ows
arising from investing or fi nancing activities which are recoverable from, or payable
to the ATO, are presented as operating cash fl ow.
Financial Assets Valuation Reserve
In order to comply with AASB139 (Financial Instruments: Recognition and Measurement),
a fi nancial assets valuation reserve has been created to recognise realised and
unrealised capital gains / losses on assets classifi ed as available for sale, within
the State Library of Victoria Foundation.
In accordance with AASB108 (Accounting Policies, Changes in Accounting Estimates
and Errors) the comparative fi gures have been restated to refl ect the creation
of this reserve. The effect of this change in accounting policy has been to reduce
the net result for the year by $1,860,697, reduce the donations and bequest reserve
from $14,147,056 to $12,286,359 and to create a fi nancial assets valuation reserve
of $1,860,697 in 2007. Otherwise there has been no change in reported results
or total equity.
Consolidated State Library
of Victoria
2008 2007 2008 2007
2 CASH & CASH EQUIVALENTS Note $’000 $’000 $’000 $’000
Cash on hand 9 7 9 7
Cash at bank 595 1,308 383 1,108
604 1,315 392 1,115
3 RECEIVABLES
Debtors – external 2,187 1,540 2,187 1,540
State Library of Victoria Foundation – – 3 26
Less provision for doubtful debts 1(e) – (2) – (2)
2,187 1,538 2,190 1,564
4 OTHER FINANCIAL ASSETS
State Library of Victoria
Deposits (at amortised cost) 3,000 3,500 3,000 3,500
Bank Bills (at amortised cost) 10,000 10,000 10,000 10,000
State Library of Victoria Foundation
Dividends receivable
(at amortised cost) 15 – – –
Available for sale financial assets
Cash management (at fair value) 654 736 – –
Fixed-interest securities (at fair value) 4,558 4,590 – –
18,227 18,826 13,000 13,500
Shares in other entities (quoted) 8,026 9,714 0 –
Total other financial assets 26,253 28,540 13,000 13,500
5 OTHER CURRENT ASSETS
Inventory on hand 27 21 27 21
Prepayments 521 711 521 711
Accrued Interest 104 31 104 31
Total other current assets 652 763 652 763