effective interest method. Financial liabilities classified as amortised cost comprise cash and cash equivalents (bank overdrafts), payables, fees in advance, loans and borrowings. Trade and other payables are unsecured and are usually paid within 30 days of recognition. Due to their short-term nature they are not discounted. Refer to Note 17. Fees in advance relate to fees received from international students, acceptance deposits and fees for multiple years received in advance where there are unfulfilled obligations to provide services in the future. Exchange revenue is recognised as the obligations are fulfilled. The College guarantees to hold sufficient funds or undrawn debt facilities to enable the full refund of unearned fees in relation to international students should the College be unable to provide the services to which they relate. e) Investment properties Investment property is property held either to earn rental income or for capital appreciation or both, but not for sale in the ordinary course of business, used in the production or supply of goods or services or for administrative purposes. Investment properties are measured initially at cost, including costs directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes costs directly attributable to bring the investment property to a working condition for its intended use. Investment property acquired through a non-exchange transaction is measured at its fair value at the date of acquisition. Subsequent to initial recognition, investment properties are measured at fair value. Fair value assessment is based on active market prices and adjusted if necessary for any difference in the nature, location or condition of the specific asset. Gains or losses arising from changes in the fair values of investment properties are recognised in surplus or deficit in the period in which they arise. Investment properties are derecognised either when they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit or service potential is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in surplus or deficit in the year of retirement or disposal. f) Property, plant and equipment • Recognition and measurement Property, plant and equipment is initially measured at cost, except those acquired through non- exchange transactions which are instead measured at fair value as their deemed cost at initial recognition. The cost of an item of property, plant and equipment is recognised only when it is probable that the future economic benefit or service potential associated with the item will flow to the College, and if the item’s cost or fair value can be measured reliably. Cost includes expenditure that is directly attributable to the acquisition of the asset. Heritage assets with no future economic benefit or service potential other than their heritage value are not recognised in the Statement of Financial Position.
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