Christ’s College Canterbury
Notes to the financial statements for the year ended 31 January 2026
assets designated upon initial recognition at fair value through surplus or deficit. Investments in equities held are included in this category of financial instruments. Financial assets are classified as held for trading if they are acquired for the purpose of selling or repurchasing in the near term. Derivatives are also classified as held for trading unless they are designated as effective hedging instruments (as defined by PBE IPSAS 29). Movements in the financial assets at fair value through surplus (positive changes in fair value) or deficit (negative changes in fair value) are recognised in the Statement of Comprehensive Revenue and Expense. • Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. After initial recognition, such financial assets are subsequently measured at amortised cost using the effective interest method, less impairment. This category generally applies to cash and cash equivalents (Note 8), term deposits, derivative financial instruments and trade and other receivables (refer Note 10). ii. Impairment of financial assets The College considers evidence of impairment for financial assets at both a specific asset and at collective level. All individually significant assets are assessed for specific impairment. Those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. A financial asset not measured at fair value through surplus or deficit is assessed at each reporting date to determine whether there is objective evidence that it is impaired. Objective evidence that financial assets are impaired as a result of one or more events after the initial recognition of the asset, and that the loss event(s) had an impact on the estimated future cash flows of that asset can be reliably estimated. Objective evidence includes default or delinquency by a counterparty, restructuring of an amount due on terms that the College would not consider otherwise, indications that a counterparty or issuer will enter bankruptcy, adverse changes in the payment status of borrowers or issuers, economic conditions that correlate with defaults or the disappearance of an active market for a security. In addition, for an equity security classified as an availablefor-sale financial asset, a significant or prolonged decline in its fair value below its cost is objective evidence of impairment. An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate. Losses are recognised in surplus or deficit and reflected
in an allowance account against loans and receivables. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through surplus or deficit. Individual trade receivable balances that are known to be uncollectible are written off when identified, along with any associated allowances. iii. Financial liabilities Financial liabilities classified at amortised cost are non-derivative financial liabilities that are not classified as fair value through surplus or deficit. Financial liabilities classified as amortised cost are subsequently measured at amortised cost using the 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 .
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