i.
Revenue from exchange transactions Tuition & boarding revenue Tuition fee and boarding revenue is recognised in the academic year to which it relates. Amounts received in advance for services to be provided in future periods are recognised as a liability until such time as the service is provided. Rental revenue
Rental revenue arising from operating leases on investment properties is accounted for on a straight-line basis over the lease terms and is included in revenue in the Statement of Comprehensive Revenue and Expense due to its operating nature. Interest revenue Interest income is included in other exchange revenue and is recognised as it accrues, using the effective interest method. ii. Revenue from non-exchange transactions Non-exchange transactions are those where the College receives an inflow of resources but provides no (or nominal) direct consideration in return. Government grants Government grants based on the College’s student numbers and are recognised at fair value in the Statement of Comprehensive Revenue and Expense over the same student enrolment periods as the grants are based on. Government grants are recognised as income when the underlying requirements for receiving the grant have been met. Fundraising, donations and bequests The recognition of non-exchange revenue depends on the nature of any stipulations attached to the inflow of resources received, and whether this creates a present obligation rather than the recognition of revenue. Stipulations that are ‘conditions’ specifically require the College to return the inflow of resources received if they are not utilised in the way stipulated, resulting in the recognition of a non-exchange liability that is subsequently recognised as non-exchange revenue as and when the ‘conditions’ are satisfied. Stipulations that are ‘restrictions’ do not specifically require the College to return the inflow of resources received if they are not utilised in the way stipulated, and therefore do not result in the recognition of a non-exchange liability, which results in the immediate recognition of non-exchange revenue. Fundraising, donations and bequests are non-exchange revenue and are recognised as described above. b) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except for receivables and payables, which are stated inclusive of any GST. The net amount of GST recoverable from, or payable to, the Inland Revenue Department is part of receivables or payables in the Statement of Financial Position.
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