Page 80 - 2012 | 2013 VANCOUVER ART GALLERY ANNUAL REPORT
P. 80
Interior_Annual Report 13-10-30 4:32 PM Page 78








VANCOUVER ART GALLERY ASSOCIATION
NOTES TO FINANCIAL STATEMENTS

Years ended June 30, 2013 and 2012

primarily made up of artwork available-for-sale and assets and (b) Interest rate risk
liabilities related to the Art Rental & Sales operation, to the
Association. The Association recorded the net assets transferred The Company’s bank indebtedness has a variable interest rate
as donation revenue in the General Fund. based on prime plus a margin. As a result, the Association is ex-
posed to interest rate risk related to the amount of bank indebted-
(d) Other ness outstanding (note 4).
During the year, the Association received approximately $1.66 (c) Credit risk
million (2012–$1.16 million) in contributions by members of the
Board of Trustees or organizations affiliated with these members The Association is exposed to credit risk related to its accounts
comprising donations, sponsorships and special event support. and pledges receivable. It is management’s opinion the related
risk is not significant due to the nature and credit worthiness of
the counterparties and that the amounts are only recorded when
12. COLLECTION
ultimate collection is reasonably assured.
The Association is responsible for the management of the (d) Industry
Vancouver Art Gallery collection and fine arts reference library.
The collection comprises paintings, drawings, sculptures, pho- The Association operates in the cultural industry environment
tography, prints and other visual art materials. The Association and can be affected by general economic trends. A decline in
incurred $195,277 (2012 – $963,582) in expenditures acquiring economic conditions, public consumer-spending levels or other
new works for the collection during the year. There were no adverse conditions could lead to reduced revenues and profitability.
disposals of any collection items during the year. Ownership of The Association is not subject to any significant currency risks.
the collection is held for the benefit of the citizens of Vancouver,
and as a result, neither the cost nor market value of the col- 14. COMMITMENTS
lection is included in the statement of financial position of the
Association. The Association is committed to minimum lease payments on
operating leases for the years ending June 30 as follows:
13. FINANCIAL RISKS
2014 $ 18,202
(a) Liquidity risk
2015 10,670
Liquidity risk is the risk that the Association will be unable to 2016 8,002
fulfill its obligations on a timely basis or at a reasonable cost.
The Association manages its liquidity risk by monitoring its oper- In addition, the Association leases its current premises from the
ating requirements. The Association prepares budget and cash City of Vancouver for a period of 99 years ending 2079 for annual
forecasts to ensure it has sufficient funds to fulfill its obligations. payments of $1. The fair value of the rent cannot be readily deter-
There has been no change to the risk exposures from 2012. mined and is not recorded in these financial statements.

























78 VANCOUVER ART GALLERY ASSOCIATION
   75   76   77   78   79   80   81   82   83   84   85