50 nat ust epor 11 - national museum of australia

National Museum of Australia Annual Report 16–1750

51Part four: Audited financial statements


fortheperiodended30June2017

2017 2016Original

Budget2017Notes $'000 $'000 $'000

NETCOSTOFSERVICESExpenses

EmployeeBenefits 1.1A 21,271 21,634 21,116Suppliers 1.1B 19,828 18,179 16,515Depreciationandamortisation 2.2A 8,783 8,446 8,510Write‐DownandImpairmentofAssets 33 16 ‐Losses(gains)fromassetsales 64 51 ‐Subsidies 92 44 ‐

Totalexpenses 50,071 48,370 46,141Own‐SourceIncome

Own‐sourcerevenueSaleofGoodsandRenderingofServices 1.2A 7,232 3,102 3,742Interest 1.2B 1,275 1,421 1,512OtherRevenue 1.2C 1,501 1,286 400

Totalown‐sourcerevenue 10,008 5,809 5,654Gains

DonatedAssets 1.2D 235 453 ‐Totalgains 235 453 ‐Totalown‐sourceincome 10,243 6,262 5,654Net(costof)/contributionbyservices (39,828) (42,108) (40,487)RevenuefromGovernment 1.2E 39,375 40,819 39,327Surplus/(Deficit)attributabletotheAustralianGovernment (453) (1,289) (1,160)

OTHERCOMPREHENSIVEINCOMEItemsnotsubjecttosubsequentreclassificationtonetcostofservices

Revaluationincrements 1,381 3,391 ‐Totalothercomprehensiveincome 1,381 3,391 ‐

Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.

StatementofComprehensiveIncome


BudgetVariancesCommentaryTheNationalMuseumofAustraliahasasingleOutcomethatisreportedintheOverview.

Suppliers

Saleofgoodsandrenderingofservices

Otherrevenue

Donatedassets

Changesinassetrevaluationsurplus

RelatestodonatedobjectsfortheNationalHistoricalCollection.Donatedassetsarenotincludedinthebudget.Actualresultsincludeimpactofnon‐financialassetrevaluationsconductedatyear‐end.Revaluationmovementsarenotincludedinthebudgetduetothevariablenatureoftheinputsintothevaluationprocess.

Theoriginalbudgetaspresentedinthe2016‐17PortfolioBudgetStatements(PBS)isprovidedforcomparisonofthefinalfinancialoutcomeinaccordancewiththeAustralianAccountingStandards.ThebudgetisnotauditedanddoesnotreflectchangestothebudgetannouncedbytheCommonwealthGovernmentintheMid‐YearEconomicandFiscalOutlook(MYEFO).Explanationofmajorvariancesareprovidedbelow.Variancesareconsideredmajorwherethevariancebetweenbudgetandactualisgreaterthan10%and$300,000.

Varianceisduetoincreasedcoststosupportthetemporaryexhibition,AHistoryoftheWorldin100ObjectsfromtheBritishMuseum ,asaresultofhigherthanestimatedvisitationnumbers.Inaddition,theMuseumconductedanIndigenousscholarshipprogramandranavirtualrealitypublicprogramthatwasnotincludedintheoriginalbudget.Varianceisduetohigherreturnsoncommercialactivitiesasaresultofvisitationtothetemporaryexhibitionbeinghigherthanestimated.TheMuseumwassuccessfulinreceivingmoregrantfundingfromCommonwealthandStateGovernmentstosupportthemajortemporaryexhibitionandtravellingexhibitionsthanestimated.Successfulgrantapplicationsarenotknownwhensettingthebudget.


asat30June2017

2017 2016Original

Budget2017Notes $’000 $’000 $’000

ASSETSFinancialassets

CashandCashEquivalents 2.1A 900 1,766 1,910TradeandOtherReceivables 2.1B 1,413 1,052 1,097Held‐to‐MaturityAssets:TermDeposits 2.1 40,000 41,000 35,300

Totalfinancialassets 42,313 43,818 38,307Non‐financialassets

Land 2.2A 7,570 6,306 6,306Buildings 2.2A 95,909 101,403 98,763Heritageandcultural 2.2A 276,809 270,488 270,532Plantandequipment 2.2A 56,014 53,398 59,198Computersoftware 2.2A 1,277 916 913Otherintangibles 2.2A 1,629 1,567 117Inventories 613 510 471Prepayments 496 442 621

Totalnon‐financialassets 440,317 435,030 436,921Totalassets 482,630 478,848 475,228LIABILITIESPayables

Suppliers 2.3A 2,239 1,509 1,368OtherPayables 2.3B 353 405 244

Totalpayables 2,592 1,914 1,612Provisions

EmployeeProvisions 4.1A 6,568 6,329 5,962Totalprovisions 6,568 6,329 5,962Totalliabilities 9,160 8,243 7,574Netassets 473,470 470,605 467,654EQUITY

Contributedequity 29,289 27,352 29,289Reserves 185,043 183,662 180,271Retainedsurplus/(Accumulateddeficit) 259,138 259,591 258,094

Totalequity 473,470 470,605 467,654


StatementofFinancialPosition


BudgetVariancesCommentary

Cashandcashequivalents

Held‐to‐maturityassets

Land

Otherintangibles

SuppliersEmployeeprovisions

Assetrevaluationreserve

Varianceisduetoincreaseddevelopmentofdigitalassetsandmultimedianotincludedintheoriginalbudget.

Thevarianceisduetogreaterthananticipatedstaffinglevels.Actualresultsincludeimpactofnon‐financialassetrevaluationsconductedatyear‐end.Revaluationmovementsarenotincludedinthebudgetduetothevariablenatureoftheinputsintothevaluationprocess.


VarianceisduetohigherthanestimatedpaymentsinJuneandmaintaininghigherlevelsofcashheldintermdepositsthanexpected.

Actualresultsincludeimpactofnon‐financialassetrevaluationsconductedatyear‐end.Revaluationmovementsarenotincludedinthebudgetduetothevariablenatureoftheinputsintothevaluationprocess.

Varianceisduetohigherthanestimatedrevenuefromoperationswhichmeanttheforecastneedtoutilisetermdepositsdidnotoccur.

Varianceisduetohigherthannormaldelaysinreceivinginvoicesfromsuppliers.


2017 2016Original

Budget2017$’000 $’000 $’000

CONTRIBUTEDEQUITYOpeningbalance 27,352 25,408 27,352ContributionsbyownersEquityinjection 1,937 1,944 1,937

Totaltransactionswithowners 1,937 1,944 1,937Closingbalanceasat30June 29,289 27,352 29,289

RETAINEDEARNINGSOpeningbalance 259,591 260,880 259,254ComprehensiveincomeDeficitfortheperiod (453) (1,289) (1,160)Totalcomprehensiveincome (453) (1,289) (1,160)Closingbalanceasat30June 259,138 259,591 258,094

ASSETREVALUATIONRESERVEOpeningbalance 183,662 180,271 180,271ComprehensiveincomeRevaluationincrements 1,381 3,391 ‐Totalcomprehensiveincome 1,381 3,391 ‐Closingbalanceasat30June 185,043 183,662 180,271

TOTALEQUITYgComprehensiveincomeDeficitfortheperiod (453) (1,289) (1,160)Othercomprehensiveincome 1,381 3,391 ‐Totalcomprehensiveincome 928 2,102 (1,160)TransactionswithownersContributionsbyownersEquityinjection 1,937 1,944 1,937

Totaltransactionswithowners 1,937 1,944 1,937Closingbalanceasat30June 473,470 470,605 467,654



RetainedEarnings‐deficitfortheperiod

AssetRevaluationReserve‐Revaluationincrements

Actualresultsincludeimpactofnon‐financialassetrevaluationsconductedatyear‐end.Revaluationmovementsarenotincludedinthebudgetduetothevariablenatureoftheinputsintothevaluationprocess.


StatementofChangesinEquity


Varianceisduetohigherthanestimatedrevenuefromoperations.

AccountingPolicyEquityInjectionsAmountsappropriatedwhicharedesignatedas‘equityinjections’forayeararerecogniseddirectlyincontributedequityinthatyear.


2017 2016Original

Budget2017Notes $’000 $’000 $’000

OPERATINGACTIVITIESCashreceived

ReceiptsfromGovernment 39,375 40,819 39,327Saleofgoodsandrenderingofservices 7,035 2,920 3,759Interest 1,085 1,479 1,424NetGSTreceived 2,494 2,591 2,864Donations,sponsorshipsandgrants 1,353 1,207 500

Totalcashreceived 51,342 49,016 47,874Cashused

Employees 20,911 21,668 20,794Suppliers 19,140 18,535 17,566NetGSTpaid 2,643 2,316 2,860Subsidies 92 44 ‐

Totalcashused 42,786 42,563 41,220Netcashfrom/(usedby)operatingactivities 8,556 6,453 6,654INVESTINGACTIVITIESCashreceived

Proceedsfromsalesofproperty,plantandequipment 4 4 ‐Termdepositredemptions 61,000 57,000 47,000

Totalcashreceived 61,004 57,004 47,000Cashused

Purchaseofproperty,plant,equipmentandintangibles 12,363 6,415 10,287Termdepositinvestments 60,000 58,000 45,300

Totalcashused 72,363 66,074 55,587Netcashfrom/(usedby)investingactivities (11,359) (9,070) (8,587)FINANCINGACTIVITIESCashreceived

Equityinjections 1,937 1,944 1,937Totalcashreceived 1,937 1,944 1,937Netincrease/(decrease)incashheld (866) (673) 4Cashandcashequivalentsatthebeginningofthereportingperiod 1,766 2,439 1,906Cashandcashequivalentsattheendofthereportingperiod 2.1A 900 1,766 1,910


CashFlowStatement




Saleofgoodsandrenderingofservices

Interest

NetGSTreceived

Donations,sponsorshipsandgrants

Suppliers

Termdepositredemptionsandinvestments

Purchaseofproperty,plant,equipmentandintangibles

Varianceisduetohighercoststosupportcommercialactivitiesandtemporaryexhibitions,asvisitationnumberswerehigherthanestimated.Varianceisduetohigherthanestimatedrevenuefromoperations,thereforerequiringlessaccesstofundsintermdeposits.Varianceisduetoanincreaseinmajorcapitalprojectsassociatedwithplantreplacement,galleryrefurbishment,infrastructureredevelopmentandthecreationofdigitalassetsandmultimedia.


Varianceisduetohigherthanestimatedreturnsoncommercialactivitiesasaresultofvisitationnumbersbeinghigherthanforecast.

CashdonationsandgrantsreceivedfromCommonwealthandStateGovernmentsfortemporaryandtouringexhibitionswerehigherthanbudgetexpectations.

Varianceisduetoinvestingindepositswithlongertermsandinterestbeingpaidonmaturity.Thisresultedinlesstermdepositsmaturingandreceivingthecashinterest.Varianceisduetohigherthanestimatedexpenditureonproperty,plantandequipmentitemsthatwerenotsubjecttoGST.Therefore,lessGSTisreimbursedfromtheAustralianTaxationOffice.


Therearenoeventsafterthereportingperiodthatwillmateriallyaffectthefinancialstatements.EventsAftertheReportingPeriod

TheBasisofPreparation

a)PublicGovernance,PerformanceandAccountability(FinancialReporting)Rule2015 (FRR)forreportingperiodsendingonorafter1July2015;and

Thefinancialstatementshavebeenpreparedinaccordancewith:

ThefinancialstatementsoftheNationalMuseumofAustralia(theMuseum)aregeneralpurposefinancialstatementsandarerequiredbysection42ofthePublicGovernanceandAccountabilityAct2013.

TheentityisexemptfromallformsoftaxationexceptFringeBenefitsTax(FBT)andtheGoodsandServicesTax(GST).

Allnew,revisedoramendingstandardsorinterpretationsthatwereissuedpriortothesign‐offdateandareapplicabletofuturereportingperiodsarenotexpectedtohaveafuturematerialimpactontheMuseum'sfinancialstatements.

Taxation

b)AustralianAccountingStandardsandInterpretations–ReducedDisclosureRequirementsissuedbytheAustralianAccountingStandardsBoard(AASB)thatapplyforthereportingperiod.

Allnew,revisedoramendingstandardsorinterpretationsthatwereissuedpriortothesign‐offdateandareapplicabletothecurrentreportingperiodwereadoptedanddidnothaveamaterialeffectontheentity’sfinancialstatements.

AdoptionoftherevisedAASB124RelatedPartyDisclosures hasledtoadditionaldisclosureswithinthesefinancialstatementsaspernote4.3.

NewAccountingStandards

Thefinancialstatementshavebeenpreparedonanaccrualbasisandinaccordancewiththehistoricalcostconvention,exceptforcertainassetsandliabilitiesatfairvalue.Exceptwherestated,noallowanceismadefortheeffectofchangingpricesontheresultsorthefinancialposition.ThefinancialstatementsarepresentedinAustraliandollars.

Overview


ThissectionanalysesthefinancialperformanceoftheNationalMuseumofAustraliafortheyearended30June2017.

1.1Expenses

2017 2016$’000 $’000

1.1A:EmployeeBenefitsWagesandsalaries 15,825 16,021SuperannuationDefinedcontributionplans 1,571 1,585Definedbenefitplans 1,859 1,719

Leaveandotherentitlements 2,016 2,173Separationandredundancies ‐ 136Totalemployeebenefits 21,271 21,634

1.1B:SuppliersGoodsandservicessuppliedorrendered

Costofgoodssold 1,543 956Travel 552 559ITservicesandcommunications 1,394 1,464Propertyservices 6,969 6,730Professionalservices 1,201 846Exhibitionsandcollectionmanagement 1,841 1,953Staffsupportservices 786 1,081Promotionsandconsumables 2,553 1,607

Totalgoodsandservicessuppliedorrendered 16,839 15,196Goodssupplied 5,255 4,361Servicesrendered 11,584 10,835Totalgoodsandservicessuppliedorrendered 16,839 15,196Othersuppliers

Operatingleaserentals 2,319 2,247Workerscompensationexpenses 670 736

Totalothersuppliers 2,989 2,983Totalsuppliers 19,828 18,179Leasingcommitments

Nocontingentleasesorpurchaseoptionsexistformotorvehicleleases.

Within1year 2,720 987Between1to5years 1,264 15Morethan5years ‐ ‐

Totaloperatingleasecommitments 3,984 1,002

TheNationalMuseumofAustraliainitscapacityaslesseehasleasearrangementsforofficeaccommodation,warehousefacilitiesandmotorvehicles.Accommodationandwarehouseleasesaresubjecttoannualincreasesaccordingtothetermsoftheleaseagreement.IncreasesarebasedonmovementsintheConsumerPriceIndexormarketreviews.LeasesmaybereneweduptofiveyearsattheMuseum'sdiscretion.Leasesareexpensedonastraight‐linebasis,representativeofthepatternofbenefitsderivedfromtheleasedassets.

Commitmentsforminimumleasepaymentsinrelationtonon‐cancellableoperatingleasesarepayableasfollows:

AccountingPolicyAccountingpoliciesforemployeerelatedexpensesarecontained inthePeopleandRelationshipssection.

FinancialPerformance

AccountingPolicyTheNationalMuseumofAustralia hasonlyoperatingleaseswhereleasepaymentsareexpensedonastraight‐linebasis,representativeofthepatternofbenefitsderivedfromtheleasedassets.


1.2Own‐SourceRevenueandgains2017 2016$’000 $’000

Own‐SourceRevenue1.2A:SaleofGoodsandRenderingofServicesSaleofgoods 3,125 1,863Renderingofservices 4,107 1,239Totalsaleofgoodsandrenderingofservices 7,232 3,102

1.2B:InterestDeposits 1,275 1,421Totalinterest 1,275 1,421

1.2C:OtherRevenueDonations 309 75Sponsorships 148 79Grants 1,044 1,132Totalotherrevenue 1,501 1,286

Gains

1.2D:DonatedAssetsDonatedassets 235 453Totalothergains 235 453

1.2E:RevenuefromGovernmentCorporateCommonwealthentitypaymentitem 39,375 40,819TotalrevenuefromGovernment 39,375 40,819

AccountingPolicyRevenuefromthesaleofgoodsisrecognisedwhen:a)therisksandrewardsofownershiphavebeentransferredtothebuyer;andb)theentityretainsnomanagerialinvolvementoreffectivecontroloverthegoods.

Revenue fromrenderingofservicesisrecognisedbyreferencetothestageofcompletionofcontractsatthereportingdate.Thestage ofcompletionisdeterminedbyreferencetotheservicesperformedto date.Receivablesforgoodsandservices,whichhave30dayterms,arerecognisedatthenominalamountsdue,lessanyimpairmentallowance.Collectabilityofdebtsisreviewedattheendofthereportingperiod.Allowancesaremadewhencollectabilityofthedebtisnolongerprobable.

AccountingPolicyInterestrevenueisrecognisedusingtheeffectiveinterestratemethod.

AccountingPolicyCash receivedthroughsponsorship arrangementsanddonationsisrecognisedasrevenueonreceipt.Resourcesreceivedfreeofchargethrough sponsorshiparrangementsarerecognisedasrevenuewhentheresourcesarereceived,afairvaluecanbereliablydeterminedandtheMuseumwouldhavepurchasedtheresourcesiftheywerenotprovided freeofcharge.Useofthoseresourcesisrecognisedasanexpense.Grantsareassessedforrevenuerecognition inaccordancewithAASB118Revenueand AASB1004Contributions.Grantssatisfyingthecriteriatobeclassifiedasreciprocalarerecognisedasrevenuebyreferencetotherequirementsofthegrantagreement.Grantsnotsatisfyingthecriteriaarerecognisedasrevenuewhencashisreceived.

AccountingPolicyContributionsofassetsatnocostofacquisitionorfornominalconsiderationarerecognisedasgainsattheirfairvaluewhentheassetqualifiesforrecognition,unlessreceivedfromanotherGovernmententityasaconsequenceofarestructuringofadministrativearrangements.

AccountingPolicyFundingreceivedorreceivablefromtheDepartment ofCommunicationsandtheArtsisrecognisedasRevenuefromGovernmentbytheMuseumunlessthefundingisinthenatureofanequityinjectionoraloan.

FinancialPerformance


EmployeerelatedinformationisdisclosedinthePeopleandRelationshipssection.2.1FinancialAssets

2017 2016$’000 $’000

2.1A:CashandCashEquivalentsCashonhandorondeposit 900 1,766Totalcashandcashequivalents 900 1,766

2.1B:TradeandOtherReceivablesGoodsandservicesreceivablesGoodsandservices 398 374Totalgoodsandservicesreceivables 398 374

OtherreceivablesInterest 665 475GSTreceivablefromtheAustralianTaxationOffice 350 203

Totalotherreceivables 1,015 678Totaltradeandotherreceivables(net) 1,413 1,052Credittermsforgoodsandserviceswerewithin30days(2016:30days).

ThissectionanalysestheNationalMuseumofAustralia'sassetsusedtoconductitsoperationsandtheoperatingliabilitiesincurredasaresult.

AccountingPolicyCashisrecognisedatitsnominalamount.Cashandcashequivalentsinclude:a)cashonhand;andb)demanddepositsinbankaccountswithanoriginalmaturityofthreemonthsorlessthatarereadilyconvertibleto knownamountsofcashandsubjecttoinsignificantriskofchangesinvalue.

AccountingPolicyLoansandReceivablesTradereceivables,loansandotherreceivablesthathavefixedordeterminablepaymentsandthatarenotquotedinanactivemarketareclassifiedas'loansandreceivables'.Loansandreceivablesaremeasuredatamortisedcostusingtheeffectiveinterestmethodlessimpairment.Receivablesforgoodsandservices,whichhave30dayterms,arerecognisedatthenominalamountsduelessanyimpairmentallowance.Collectabilityofdebtsisreviewedatendofthereportingperiod.Allowancesaremadewhencollectabilityofthedebtisnolongerprobable.Held‐to‐MaturityAssetsHeld‐to‐maturity assetsareinitiallyrecognisedatfairvalueandsubsequentlyatamortisedcostsusingtheeffectiveinterestratemethod.ImpairmentofFinancialAssetsFinancialassetsareassessedforimpairmentattheendofeachreportingperiod.Financialassetsheldatamortisedcost‐ ifthereisobjectiveevidencethatanimpairmentlosshasbeenincurredforloansandreceivablesorheld‐to‐maturityinvestmentsheldatamortisedcost,theamountofthelossismeasuredasthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedattheasset’soriginaleffectiveinterestrate.Thecarryingamountisreducedbywayofanallowanceaccount.ThelossisrecognisedintheStatementofComprehensiveIncome.FinancialRiskManagement

CreditRiskTheMuseumisexposedtominimalcreditriskasthemajorityofloansandreceivablesandheld‐to‐maturityinvestmentsarecashdepositsheldwithfinancialinstitutions.Themaximumexposuretocreditriskistheriskthatarisesfrompotentialdefaultofatradedebtor.TheMuseumhasnosignificantexposurestoanyconcentrationsofcreditriskandhaspoliciesandprocedureswhichoutlineinvestmentofsurpluscashanddebtrecoverytechniques.InterestrateriskInterestrateriskreferstotheriskthatthefairvalueorfuturecashflowsofafinancialinstrumentwillfluctuatebecauseofchangesinmarketinterestrates.TheMuseumisexposedtointerestrateriskprimarilyfromheld‐to‐maturityinvestmentsandmanagesthisrisk byanalysingpossibleinterestratemovementsoverthetermoffinancialassetsuponenteringintotheinvestment.

FinancialPosition


2.2Non‐FinancialAssets

2.2A:ReconciliationoftheOpeningandClosingBalancesofProperty,PlantandEquipmentandIntangibles

Land

Buildings

Heritage

and

cultural1

Plantand

equipm

ent

Computer

Software

purchased

Other

Intangibles

Total

$’000

$’000

$’000

$’000

$’000

$’000

$’000

Asat1July2016

Gross

bookvalue

6,306

102,094

270,488

63,942

1,728

3,104

447,662

Accum

ulated

depre

ciation,a

mortisat

ionan

dimp

airme

nt‐

(691)

‐(10,544)

(812)

(1,537)

(13,584)

Totalasat1July2016

6,306

101,403

270,488

53,398

916

1,567

434,078

Addition

sPurch

ase‐

82,952

8,517

578

‐12,055

Intern

allyd

evelop

ed‐

‐‐

‐‐

308

308

Donation/Gift

‐‐

235

‐‐

‐235

Reval

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ntsrecog

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prehensi

veinc

ome

1,264

(4,048)

4,272

(107)

‐‐

1,381

Depre

ciationa

ndam

ortisation

‐(1,454)

(1,138)

(5,728)

(217)

(246)

(8,783)

Disposals

Gross

bookvalue

‐‐

‐(982)

‐‐

(982)

Accum

ulated

depre

ciation,a

mortisat

ionan

dimp

airme

nt‐

‐‐

916

‐‐

916

Totalasat30June2017

7,570

95,909

276,809

56,014

1,277

1,629

439,208

Totalasat30June2017representedby

Gross

bookvalue

7,570

95,909

276,809

56,014

2,306

3,412

442,020

Accum

ulated

depre

ciation,a

mortisat

ionan

dimp

airme

nt‐

‐‐

‐(1,029)

(1,783)

(2,812)

Totalasat30June2017

7,570

95,909

276,809

56,014

1,277

1,629

439,208

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FinancialPosition


AccountingPolicy

Property,plantandequipment

AssetRecognitionThreshold

Revaluations

Depreciation

Buildingsonfreeholdland 100yearsLeaseholdimprovements LeasetermPlantandEquipment 4‐100yearsHeritageandCulturalassets 50‐5,000years

Impairment

Derecognition

HeritageandCulturalAssets

Assetsarerecordedatcostonacquisitionexceptasstatedbelow.Thecostofacquisitionincludesthefairvalueofassetstransferredinexchangeandliabilitiesundertaken.Financialassetsareinitiallymeasuredattheirfairvalueplustransactioncostswhereappropriate.

Assetsacquiredatnocost,orfornominalconsideration,areinitiallyrecognisedasassetsandincomeattheirfairvalueatthedateofacquisition.

Followinginitialrecognitionatcost,property,plantandequipmentarecarriedatfairvaluelesssubsequentaccumulateddepreciationandaccumulatedimpairmentlosses.Valuationsareconductedwithsufficientfrequencytoensurethatthecarryingamountsofassetsdonotdiffermateriallyfromtheassets’fairvaluesasatthereportingdate.Theregularityofindependentvaluationsdependsuponthevolatilityofmovementsinmarketvaluesfortherelevantassets.Revaluationadjustmentsaremadeonaclassbasis.Anyrevaluationincrementiscreditedtoequityundertheheadingofassetrevaluationreserveexcepttotheextentthatitreversesapreviousrevaluationdecrementofthesameassetclassthatwaspreviouslyrecognisedinthesurplus/deficit.Revaluationdecrementsforaclassofassetsarerecogniseddirectlyinthesurplus/deficitexcepttotheextentthattheyreverseapreviousrevaluationincrementforthatclass.Anyaccumulateddepreciationasattherevaluationdateiseliminatedagainstthegrosscarryingamountoftheassetandtheassetrestatedtotherevaluedamount.

Depreciableproperty,plantandequipmentassetsarewritten‐offtotheirestimatedresidualvaluesovertheirestimatedusefullivestotheMuseumusing,inallcases,thestraight‐linemethodofdepreciation.Depreciationrates(usefullives),residualvaluesandmethodsarereviewedateachreportingdateandnecessaryadjustmentsarerecognisedinthecurrent,orcurrentandfuturereportingperiods,asappropriate.Depreciationratesapplyingtoeachclassofdepreciableassetarebasedonthefollowingusefullives:

Purchasesofproperty,plantandequipmentarerecognisedinitiallyatcostinthestatementoffinancialposition,exceptforpurchasescostinglessthan$2,000,whichareexpensedintheyearofacquisition(otherthanwheretheyformpartofagroupofsimilaritemswhicharesignificantintotal).

Allassetswereassessedforimpairmentat30June2017.Whereindicationsofimpairmentexist,theasset’srecoverableamountisestimatedandanimpairmentadjustmentmadeiftheasset’srecoverableamountislessthanitscarryingamount.Therecoverableamountofanassetisthehigherofitsfairvaluelesscostsofdisposalanditsvalueinuse.Valueinuseisthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Wherethefutureeconomicbenefitofanassetisnotprimarilydependentontheasset’sabilitytogeneratefuturecashflows,andtheassetwouldbereplacediftheentityweredeprivedoftheasset,itsvalueinuseistakentobeitsdepreciatedreplacementcost.

Anitemofproperty,plantandequipmentisderecognisedupondisposalorwhennofurtherfutureeconomicbenefitsareexpectedfromitsuseordisposal.

TheMuseumcollects,managesanddisplaysheritageandculturalassetsofAustralianhistory.Thecollectionisheldintrustforthenation.AkeyobjectiveoftheMuseumispreservationofthecollection.DetailsinrelationtotheMuseum'scuratorialandpreservationpoliciesarepostedontheMuseum'swebsiteat:www.nma.gov.au/about_us/ips/policies/collection_care_and_preservation_policy.

FinancialPosition


AccountingJudgementsandEstimates

AccountingPolicy

Intangibles

FairValueMeasurement

AccountingPolicy

TheMuseumprocuresvaluationservicesfromindependentvaluers.ThevaluersprovidewrittenassurancetotheMuseumthatthevaluationisincompliancewithAASB13.ThesignificantunobservableinputusedinthefairvaluemeasurementoftheMuseum’slandistheadjustmentmadetosalesevidencetoreflectthedifferencebetweenunrestrictedcrownleaseholdlandandassetsheldbythePublicSectorwhichmaybeaffectedduetopolitical,socialandeconomicrestraintsbecauseitisinapublicusezoneorconsideredaniconicpropertythatwouldbedifficulttosell.ThesignificantunobservableinputsusedinthefairvaluemeasurementoftheMuseum'sbuildings,leaseholdimprovementsandotherproperty,plantandequipmentarerelevantindustryindices.Significantincreases(decreases)oftheindiceswouldresultinasignificantlyhigher(lower)fairvaluemeasurement.ThesignificantunobservableinputsusedinthefairvaluemeasurementoftheMuseum’sheritageandculturalassetsareprivatesalesofsimilarartwork,antiquesandcollectablesandprofessionalappraisalsofsimilaritems,takingintoaccounttheprovenanceofparticularitemsheldbytheMuseum.

Significantincreases(decreases)inanyoftheseinputsinisolationwouldresultinasignificantlyhigher(lower)fairvaluemeasurement.

Thefairvalueoflandhasbeentakentobethemarketvalueasassessedbyanindependentvaluereverythreeyears.Thefairvalueofbuildings,leaseholdimprovementsandotherproperty,plantandequipmenthasbeentakentobethedepreciatedreplacementcostasassessedbyindependentvaluerseverythreeyears.

Thefairvalueofheritageandculturalassetsisbasedonmarketobservations.TheMuseum’scollectionsarediversewithmanyobjectsbeingiconicwithlimitedmarketsforcomparison.TheMuseumhasmadesignificantestimatesinmeasuringtheimpactofprovidencetothevalueofcollectionobjects.Asamplingmethodologyisadoptedforvaluationwithasampleofobjectsselectedfromeachcollectioncategory.Valuesforthesamplearedeterminedbyreferencetoart,antiquesandcollectablemarketsandanaveragevalueappliedtotheentirecollectioncategory.IndependentvaluationsareconductedeverythreeyearsbyavaluerontheapprovedlistofvaluersfortheCulturalGiftProgramadministeredbytheMinistryfortheArts.Intheyearsbetweenvaluations,adviceisreceivedfromthevaluerofestimatedmovementsinmarketsthatmayimpactthevalueofthecollections.Amanagementrevaluationoccurswhenthereisevidenceofasignificantvariationtoprices.

TheNationalMuseumofAustralia'sintangiblescompriseinternallydevelopedmultimediaapplicationsforinternaluse.Theseassetsarecarriedatcostlessaccumulatedamortisationandaccumulatedimpairmentlosses.Softwareisamortisedonastraight‐linebasisoveritsanticipatedusefullife.TheusefullivesoftheMuseum'ssoftwarearefourtoeightyears(2015:4to8years).Allsoftwareassetswereassessedforindicationsofimpairmentasat30June2017.

FinancialPosition


2.3Payables

2017 2016$’000 $’000

2.3A:SuppliersTradecreditorsandaccruals 2,233 1,486Operatingleaserentals 6 23Totalsuppliers 2,239 1,509

Financialliabilities

LiquidityRisk

2.3B:OtherPayables

Salariesandwages 272 164Prepaymentsreceived/unearnedincome 55 228Totalotherpayables 353 405

TheMuseum'sfinancialliabilitiesaretradeandothercreditors.TheexposuretoliquidityriskisbasedontheprobabilitythattheMuseumwillencounterdifficultyinmeetingitsobligationsassociatedwithfinancialliabilities.Thisriskisminimalduetoappropriationfundingandcontinuousmonitoringofcashflows.

Settlementisusuallymadewithin30days.

AccountingPolicy

Financialliabilitiesareinitiallyrecognisedatfairvalueandsubsequentlyatamortisedcost.Financialliabilitiesarerecognisedandderecognisedupon‘tradedate’.

LiquidityriskistheriskthattheNationalMuseumofAustraliawillnotbeabletomeetitsobligationsastheyfalldue.

X24A0T

X24A5T

FinancialPosition


4.1EmployeeProvisions

2017 2016$’000 $’000

4.1A:EmployeeProvisionsLeave 6,568 6,329Totalemployeeprovisions 6,568 6,329

Thissectiondescribesarangeofemploymentandpostemploymentbenefitsprovidedtoourpeopleandourrelationshipswithotherkeypeople.

Accountingpolicy

Liabilitiesforshort‐termemployeebenefitsandterminationbenefitsexpectedwithintwelvemonthsoftheendofreportingperiodaremeasuredattheirnominalamounts.Otherlong‐termemployeebenefitsaremeasuredas the nettotalofthepresentvalueofthedefinedbenefitobligationattheendofthereportingperiod.LeaveTheliabilityforemployeebenefitsincludesprovisionforannualleaveandlongserviceleave.Theleaveliabilitiesarecalculatedonthebasisofemployees’remunerationattheestimatedsalaryratesthatwillbeappliedatthetimetheleaveistaken,includingtheMuseum'semployersuperannuationcontributionrates,totheextentthattheleaveislikelytobetakenduringserviceratherthanpaidoutontermination.Theliabilityforlongserviceleavehasbeendeterminedbyreferencetotheshorthand methodassetoutinResourceManagementGuide125,CommonwealthEntitiesFinancialStatementGuide.SuperannuationTheMuseum'sstaffaremembersoftheCommonwealthSuperannuationScheme(CSS),thePublicSectorSuperannuationScheme(PSS),thePSSaccumulationplan(PSSap),orothersuperannuationfundsheldoutsidetheAustralianGovernment.TheCSSandPSSaredefinedbenefitschemesfortheAustralianGovernment.ThePSSapisadefinedcontributionscheme.TheliabilityfordefinedbenefitsisrecognisedinthefinancialstatementsoftheAustralianGovernmentandissettledbytheAustralianGovernmentinduecourse.ThisliabilityisreportedintheDepartmentofFinance’sadministeredschedulesandnotes.TheMuseummakesemployercontributionstotheemployees'definedbenefit superannuationschemeatratesdeterminedbyanactuarytobesufficienttomeetthecurrentcosttotheGovernment.TheMuseumaccountsforthecontributionsasiftheywerecontributionstodefinedcontributionplans.Theliabilityforsuperannuationrecognisedasat30Junerepresentsoutstandingcontributions.

PeopleandRelationships

50 nat ust epor 11 - national museum of australia

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