g) Income tax The College is a registered charity under the Charities Act 2005. Due to its charitable status, the College is exempt from income tax. h) Finance expense Finance costs are expensed in the period they are incurred. Borrowing costs consist of interest and other costs that are incurred in connection with the borrowing of funds. The College capitalises borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets. i) Employee benefits Liabilities for wages and salaries (including non-monetary benefits), annual leave, long service leave and accumulating sick leave are recognised in surplus or deficit during the period in which the employee rendered the related services and are generally expected to be settled within 12 months of the reporting date. Employee benefits are recognised when there is a legal or constructive obligation to remunerate employees for services provided up to the reporting date. The liabilities for these short-term benefits are measured at the amounts expected to be paid when the liabilities are settled. Expenses for non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable. j) New and changes to accounting standards The College applied the following standards and amendments for the first time for its annual reporting period commencing 1 February 2024: Disclosure of Fees for Audit Firms' Services - Amendments to PBE IPSAS 1 The amendments did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.
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