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VANCOUVER ART GALLERY ASSOCIATION
NOTES TO FINANCIAL STATEMENTS

Years ended June 30, 2013 and 2012

(xii) Use of estimates: 4. BANK INDEBTEDNESS
The preparation of the financial statements requires manage-
ment to make estimates and assumptions that affect the reported The Association has an available operating line of credit of $2
amounts of assets and liabilities and disclosure of contingent million which bears interest at the bank’s prime rate plus 0.50%
assets and liabilities at the date of the financial statements and and is secured by a general security agreement representing a
first charge on the Association’s assets excluding:
the reported amounts of revenue and expenses during the year.
Significant items requiring the use of management estimates (a) gifts, bequests and donations received by the Association with
include the determination of useful lives of capital assets for instructions for the specific use not forming part of the general
purposes of amortization, valuation of inventories, allowance for operating expenses of the Association; and
doubtful accounts related to accounts and pledges receivable, (b) any funds, including interest accumulated thereon received
and provisions, if any, for contingencies. Actual results may differ with respect to the relocation related capital campaign, includ-
from these estimates. ing without limitation the $50 million funding received from the
Province of British Columbia (note 7(c)).
2. PLEDGES RECEIVABLE
5. ACCOUNTS PAYABLE
Included in grants, pledges, interest and accounts receivable AND ACCRUED LIABILITIES
are pledges receivable of $1,100,000 (June 30, 2012–$760,000;
July 1, 2011–$678,000) net of $63,000 (June 30, 2012 and July 1, Included in accounts payable and accrued liabilities are govern-
2011 – nil) in provision for impairment. ment remittances payable of $31,596 (June 30, 2012 –$14,348;
July 1, 2011–$24,287), which includes amounts payable for PST,
3. CAPITAL ASSETS and payroll related taxes.

Accumulated Net book 6. OBLIGATIONS UNDER CAPITAL LEASE
JUNE 30, 2013 Cost amortization value
The following is a schedule of minimum lease payments under
Computers $ 674,448 $ 647,984 $ 26,464 fixed-rate capital leases, together with the balance of the obli-
Equipment 925,205 579,816 345,389 gation:
Furniture and building fixtures 734,299 412,896 321,403
Equipment under capital lease 560,357 203,240 357,117 2013 2012 2011
$ 2,894,309 $ 1,843,936 $ 1,050,373 Year ending March 31:
2012 $—$—$73,040
2013 — 42,384 7,444
Accumulated Net book
JUNE 30, 2012 Cost amortization value 2014 69,312 42,077 4,224
2015 69,312 42,077 4,224
Computers $ 652,020 $ 617,346 $ 34,674 2016 69,312 42,077 4,224
Equipment 895,533 466,513 429,020 2017 26,131 12,933 —
Furniture and building fixtures 732,257 352,026 380,231
2018 4,116 3,312 —
Equipment under capital lease 466,533 132,584 333,949
Total minimum lease
$ 2,746,343 $ 1,568,469 $ 1,177,874
payments $ 238,183 $ 184,860 $ 93,156
Less amount representing
Accumulated Net book
JULY 1, 2011 Cost amortization value interest at rates ranging
from 2.68% to 11.30% 23,644 21,053 8,411
Computers $ 650,783 $ 573,320 $ 77,463
Equipment 948,167 358,923 589,244 Present value of capital lease
Furniture and building fixtures 579,895 291,250 288,645 payments 214,539 163,807 84,745
Equipment under capital lease 297,761 79,784 217,977 Less current portion 58,562 34,625 67,695
$ 2,476,606 $ 1,303,277 $ 1,173,329 $ 155,977 $ 129,182 $ 17,050





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