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
16. FINANCIAL INSTRUMENTS (continued)
(b)
Net income and expense from financial assets
Loans and receivables
2010 2009
$ $
Interest revenue 86,321 55,013
Net gain loans and receivables 86,321 55,013
(c) Fair value of financial instruments
Financial Assets
The net fair value of cash, deposits on call and non-interest-bearing monetary assets approximate their
carrying amounts.
(d)
There were no net incomes or expenses from financial liabilities.
Financial Liabilities
The net fair value of creditors and accruals which are short-term in nature, are approximately their carrying
amounts.
Credit Risk
The Foundation is exposed to minimal credit risk as loans and receivables are cash and bank interest. The
Foundation has assessed the risk of the default on payment and has determined that there is no need to
allocate any amount to the doubtful debts account.
(e)
(f)
Liquidity Risk
The Foundation’s financial liabilities are payables. The exposure to liquidity risk is based on the notion that
the Foundation may encounter difficulty in meeting its obligations associated with financial liabilities. This is
highly unlikely due to internal mechanisms available to the Foundation (e.g. internal policies and procedures
put in place to ensure there are appropriate resources to meet its financial obligations). The only
outstanding payables at 30 June 2010 are for audit fees and GST which are payable within 1 year. The
Foundation has no past experience of default.
Market Risk
The Foundation holds basic financial instruments that do not expose the Foundation to any market risks.
The Foundation is not exposed to currency, interest rate risk or price risk.
FOUNDATION ANNUAL REPORT 2009–10 77