Christ’s College Canterbury
Notes to the financial statements for the year ended 31 January 2026
a) Revenue recognition Revenue is recognised to the extent that it is probable the economic benefit will flow to the College and revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable. The following specific recognition criteria must be met before revenue is recognised: 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.
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. Cash flows are included on the Statement of Cash Flows on a gross basis. The GST component of the cash flows arising from investing and financing activities, which is recoverable from, or payable to, the Inland Revenue Department are classified as part of operating cash flows. c) Cash and cash equivalents Cash and cash equivalents comprise cash on hand, depos- its held at call with financial institutions, other highly liquid investments with maturities of three months or less that are readily convertible to known amounts of cash and with an insignificant risk of changes in value. d) Financial instruments Financial instruments are recognised when the College becomes a party to the contractual provisions of the instrument. Financial instruments are derecognised when the contractual rights to the cash flows from the asset expire, or College transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. The College derecognises a financial liability when its contractual obligations are discharged, cancelled, or expire. The College also derecognises financial assets and liabilities when there have been significant changes to the terms and/or the amount of contractual payments to be received/paid. Financial assets and liabilities are offset, and the net amount presented in the Statement of Financial Position when, and only when, the College has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously. i. Financial assets Financial assets are classified, at initial recognition, as financial assets at fair value through surplus or deficit, loans and receivables, and held-to-maturity investments or available-for-sale financial assets. All financial assets are recognised initially at fair value. Financial assets include cash and cash equivalents, short-term investments, receivables from non-exchange transactions, receivables from exchange transactions and investments. All financial assets except for those at fair value through surplus or deficit are subject to review for impairment at least at each reporting date. Financial instruments are impaired when there is any objective evidence that a financial asset or group of financial assets is impaired. • Financial assets at fair value through surplus or deficit Financial assets at fair value through surplus or deficit include financial assets held for trading and financial
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.
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