Annual Report 2011 - Sydney Opera House

91e. Fair ValueFair value versus carrying amountFinancial instruments are generally recognised at cost. Theamortised cost of financial instruments recognised in the balancesheet approximates the fair value, because of the short-termnature of many of the financial instruments. The fair valueof financial assets and liabilities, together with the carryingamounts shown in the balance sheet, are as follows:2011 2010Carrying Fair Carrying Fairamount Value Amount Value$’000 $’000 $’000 $’000Trade & other receivables 3,198 3,198 3,733 3,733Cash & cash equivalents 49,768 49,768 48,752 48,752Forward exchange contractsused for hedging:- Assets 1,373 1,373 2,073 2,073- Liabilities (1,439) (1,439) (2,405) (2,405)Trade & other payables (10,507) (10,507) (6,537) (6,537)42,393 42,393 45,616 45,616(f) Fair value recognised in the statement of financial positionThe Trust uses the following hierarchy for disclosing the fairvalue of financial instruments by valuation technique:- Level 1 - Derived from quoted prices in active markets foridentical assets or liabilities.- Level 2 - Derived from inputs other than quoted prices thatare observable directly or indirectly.- Level 3 - Derived from valuation techniques that includeinputs for the asset or liability not based on observablemarket data (unobservable inputs).2011lEvel 1 Level 2 Level 3 TOTal$’000 $’000 $’000 $’000Financial assets at fair valueCash assets 4,595 - - 4,595Short term deposits 43,000 - - 43,000TCorp Hour-Glass Invt.Facility - 2,173 - 2,173Trade & other receivables 3,198 - - 3,198Derivatives receivable 1,373 - - 1,37318. TRUST FUNDSa. Annual Giving Program (Fundraising Appeal)The Sydney Opera House Annual Giving Program was establishedto raise funds for the following activities:- Outstanding Live Performance – Bringing the world’s bestperformers to our stages,- Youth and Education Programs – Developing programs foryoung people and families,- Community and Access Projects – Ensuring accessibleprograms and price points for all our events,- Preservation of Utzon’s vision – Supporting the ongoingvitality of Sydney Opera House as the creative and culturalflagship of Australia.Restricted gifts are also accepted in certain circumstances -generally when the gift is substantial and is given to fund a newinitiative.The Trust launched its Annual Giving Fund in March 2007 andis a perpetual fund.Restricted Unrestricted TOTal2011 2010 2011 2010 2011 2010$’000 $’000 $’000 $’000 $’000 $’000Gross proceeds fromfundraising appeals 328 38 509 373 837 411Interest received on proceeds 9 11 11 11 20 22Costs of fundraising - - (227) (245) (227) (245)Net surplus fromfundraising 337 49 293 139 630 188Application of funds (34) (95) (139) (206) (173) (301)Balance (from)/toaccumulated funds 303 (46) 154 (67) 457 (113)The following ratios are provided in relation to the cost offundraising:2011 2010Cost of fundraising as a percentageof funds raised (excluding interest) 27% 60%Net surplus as a percentageof funds raised (excluding interest) 73% 40%The cost of fundraising as a percentage of funds raised (excludinginterest) over the life to date of the fund is 42.6% (2010: 49.0%).52,166 2,173 - 54,339Financial liabilities at fair valueTrade & other payables 10,507 - - 10,507Derivatives payables 1,439 - - 1,43911,946 - - 11,946There were no transfers between level 1 and 2 during the periodended 30 June 2011.