Foundation Annual Report 2008/09 - State Library of New South ...

notes to the financial statements
for the year ended 30 June 2009
1. Summary of significant accounting policies (continued)
(v)
Trade and other receivables
trade and other receivables are non derivative financial assets with fixed or determinable payments that are not
quoted in an active market. these assets are recognised initially at fair value, usually based on the transaction cost
or face value. Subsequent measurement is at amortised cost using the effective interest method, less an allowance
for any impairment of receivables. any changes are accounted for in the income Statement when impaired,
derecognised or through the amortisation process.
Short term receivables with no stated interest rate are measured at the original invoice value where the effect of
discounting is immaterial.
(vi) Inventories
the Foundation holds no inventories.
(vii) Investments
investments are initially recognised at fair value and, in the case of investments not at fair value through profit
or loss, plus transaction costs. the Foundation determines the classification of its financial assets after initial
recognition and, when allowed and appropriate, re-evaluates this at each financial year end.
the Foundation subsequently measures investments designated upon initial recognition “at fair value through profit
or loss” at fair value. the Hour-Glass investment Facilities are designated at fair value through profit or loss using
the second part of the fair value option i.e., these financial assets are managed and their performance is evaluated
on a fair value basis, in accordance with a documented risk management strategy, and information about these
assets is provided internally on that basis to the Foundation trustees and the Library’s key management personnel.
(viii) Investments in associates
investments in associates are accounted for using the equity method after initially being recognised at cost. under
this method, the Foundation’s share of its associate’s post acquisition profits or losses is recognised in the income
Statement. during the year, the 2007 audited value of the investment in Max dupain & associates Pty. Ltd., was
reduced by $32,000 to remove the GSt component from the valuation of the underlying asset (refer note 6).
(ix) Impairment of financial assets
all financial assets, except for those measured at fair value through profit or loss, are subject to an annual review
for impairment. the Foundation’s only financial assets are valued at fair value through profit or loss and, as a result,
do not require an annual review.
(h) Liabilities
(i) Trade and other payables
trade and other payables represent liabilities for goods and services provided to the Foundation. these liabilities
are recognised initially at fair value, usually based on the transaction cost or face value. Subsequent measurement
is at amortised cost using the effective interest method. Short term payables with no stated interest rate are
measured at original invoice amount where the effect of discounting is immaterial.
(ii)
(iii)
Borrowings
the Foundation has no borrowings nor the capacity to borrow.
Personnel services expense and other payables.
the Foundation does not employ staff nor does it have the capacity to employ staff. the Foundation utilises the
personnel services of the Library on an ongoing basis. the personnel services expense is charged by the Library
according to services performed. the Foundation has no employee obligations under this arrangement.
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State Library of New South Wales Foundation annual Report 2008/09