Annual Report 2008-2009 - National Gallery of Canada

3. Changes in Accounting Policies
(a) Adoption of New Accounting Standards
The Canadian Institute of Chartered Accountants (CICA) issued the following new standards effective for the Gallery on April 1,
2008:
Section 1535 Capital Disclosures, establishes standards for disclosing information about the entity’s capital and how it is
managed. It requires disclosures of the Gallery’s objectives, policies and processes for managing capital, quantitative information
about what the Gallery regards as capital and disclosures of any externally imposed capital requirements, as well as the
consequences for non-compliance. Refer to note 14 Capital Management.
Section 3862, Financial Instruments – Disclosures, and Section 3863, Financial Instruments – Presentation, replace
Section 3861, Financial Instruments – Disclosure and Presentation, revising and enhancing its disclosure requirements, and
carrying forward unchanged the former presentation requirements. The new standards increase the emphasis on disclosure on
the nature and risks arising from financial instruments to which the Gallery is exposed during the period and at the balance
sheet date, and how the Gallery manages those risks. Refer to note 18 Exposure to risk.
Section 3031 replaces 3030, Inventories. The new Standard gives specific guidance for measurement of inventories and
information to be disclosed. The new standard was effective April 1, 2008 and did not significantly impact the Gallery’s statements.
Refer to note 2 b) Inventories.
(b) Future Accounting Changes
International Financial Reporting Standards
In February 2008, the CICA announced that the generally accepted accounting principles (GAAP) for publicly accountable enterprises
will be replaced by International Financial Reporting Standards (IFRS) for fiscal years beginning on or after January 1, 2012.
The Gallery will be required to begin reporting under IFRS for the fiscal year ending March 31, 2012. The Gallery will continue to
monitor the current situation to determine the impact on its financial reporting.
4. Cash and Cash Equivalents
The Gallery makes short term, low risk investments in money market funds. The portfolio yielded an average return of 2.77%
(2008 – 4.30%).
(in thousands of dollars) 2009 2008
The balances at 31 March are:
Cash $ 4,770 $ 3,672
Money market investments 11,160 14,160
15,930 17,832
Less allocated for restricted purposes (9,565) (7,482)
Unrestricted cash and investments $ 6,365 $ 10,350
Restricted cash and cash equivalents relating to:
Unused appropriations for the purchase of objects for the collection
Cash and money market investments $ 1,784 $ 2,167
Unused appropriations for the purchase of property and equipment
Cash and money market investments 6,640 4,193
Deferred contributions and endowments
Cash and money market investments 1,141 1,122
$ 9,565 $ 7,482
82 Financial Statements