Basis of the Preparation of the Financial Statements

The financial statements are general purpose financial statements and required by section 42 of the Public Governance, Performance and Accountability Act 2013.

The financial statements have been prepared in accordance with:

1. Public Governance, Performance and Accountability (Financial Reporting) Rule 2015 ( FRR); and
2. Australian Accounting Standards and Interpretations - Reduced Disclosure Requirements issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period.

The consolidated financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, except for certain assets and liabilities at fair value. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are prepared in Australian dollars and values are rounded to the nearest thousand dollars unless otherwise specified.

Principles of Consolidation

The consolidated financial statements are those of the economic entity, comprising the National Library of Australia (NLA) (parent entity) and the NLA's Trust Accounts. The NLA's Trust Accounts comprise of funds originally received by way of gifts, bequests and assignments. Eight of the nine Trust accounts have no beneficiaries with equitable interests. The NLA derives benefit in the use of these Trust assets consistent with the purposes of the individual trusts and objectives of the NLA and enables the NLA to meet its objectives of providing services within its functions prescribed by the National Library of Australia Act 1960. Details of the Trust Accounts can be found at Note 6.2. The accounts of the NLA's Trust Accounts are prepared for the period 1 July 2018 to 30 June 2019 using the accounting policies consistent with those of the NLA. The effects of transactions and balances between entities are eliminated in full.

The NLA holds one Trust account which is not included within the financial statements of the NLA as this Trust has a beneficiary and is not deemed to be controlled by the NLA. Details of this Trust account can be found at Note 6.3.

New Australian Accounting Standards

All other new or revised or amended standards and/or interpretations that were issued prior to the sign-off date and are applicable to the current reporting period did not have a material effect and are not expected to have a future material effect on the NLA's financial statements.

Taxation

The NLA is exempt from all forms of taxation except Fringe Benefit Tax (FBT) and the Goods and Services Tax (GST).