foundation annual report 2009–10 - National Gallery of Australia

NATIONAL GALLERY OF AUSTRALIA FOUNDATION
FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2010
NOTES TO THE FINANCIAL STATEMENTS
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset
is transferred to another party whereby the entity no longer has any significant continuing involvement in the
risks and benefits associated with the asset. Financial liabilities are derecognised where the related
obligations are either discharged, cancelled or expired. The difference between the carrying value of the
financial liability, which is extinguished or transferred to another party and the fair value of consideration
paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit or loss.
(d) Cash and cash equivalents
Cash and cash equivalents includes notes and coins held and any deposits in bank accounts with an
original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to
insignificant risk of changes in value. Cash is recognised at its nominal amount.
(e) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of
GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is
recognised as part of the cost of acquisition of the asset or as part of an item of expense. Receivables and
payables in the statement of financial position are shown inclusive of GST.
Cash flows are presented in the statement of cash flows on a gross basis, except for the GST component of
any investing and financing activities, which are disclosed as operating cash flows.
(f) Receivables
Receivables include accrued interest income on term deposits where accrued interest represents interest
income to be received.
(g) Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and
services received by the company during the reporting period which remain unpaid. The balance is
recognised as a current liability with the amounts normally paid within 30 days of recognition of the liability.
(h) Impairment of Financial Instruments
Financial assets are assessed for impairment at each balance date to determine whether there is any
indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. For the
year ending 30 June 2010 there was no evidence of impairment.
(i) New Australian Accounting Standards
Adoption of New Australian Accounting Standard Requirements
During the current year the company adopted all of the new and revised Australian Accounting Standards
and Interpretations applicable to its operations which became mandatory.
No accounting standard has been adopted earlier than the application date as stated in the standard. The
new standards, revised or amended standards or interpretations issued prior to the signing of the statement
by the Chairman and Director, and were applicable to the current reporting period, do not have a material
financial impact on the Foundation.
Future Australian Accounting Standards Requirements
Other new standards, revised or amended standards or interpretations that were issued prior to the signing
of the statement by the Chairman and Director and are applicable to the current reporting period did not
have a financial impact, and are not expected to have a future financial impact on the Foundation.
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