Christ’s College Canterbury
Notes to the financial statements for the year ended 31 January 2026
f) Property, plant and equipment • Recognition and measurement
• The nature of the asset, its susceptibility and adaptability to changes in technology and processes • The nature of the processes in which the asset is deployed • The availability of funding to replace the asset changes in the market in relation to the asset 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 There were no new accounting standards, amendments, or interpretations that became effective and were required to be applied for the first time in the annual reporting period commencing 1 February 2025. Reclassification of Comparative Information During the year ended 31 January 2026, the presentation and classification of certain balances were reviewed to improve the relevance and clarity of the financial statements. (a) Correction of Property expenses and Other expenses Within Note 6 – Other Expenses, Insurance expenses for the prior year were identified as being included within both Property expenses and Insurance, with a corresponding offset recorded within Other expenses. This resulted in an overstatement of Property Expenses of $1,337,000 and an equal understatement of Other expenses. The comparative information has been restated to correct the presentation. (b) CCOBA acceptance deposits held as agent $490,000 relating to CCOBA acceptance deposits held as agent on behalf of the CCOBA has been reclassified from Deferred revenue to a separate liability line item, CCOBA acceptance deposits, within Trade and other payables. This reclassification reflects the substance of the arrangement, whereby these amounts are held on behalf of a third party. This reclassification also impacts Note 9 – Reconciliation of
Property, plant and equipment is initially measured at cost, except those acquired through nonexchange 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. Subsequent to initial recognition, property, plant and equipment are measured at cost less accumulated depreciation and impairment except for land and investment property which are not depreciated. An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits or service potential are expected from its use or disposal. Gains or losses on disposal are determined by comparing proceeds with the carrying amount of the asset and are recognised in surplus or deficit. Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the College. Ongoing repairs and
maintenance are expensed as incurred. • Reclassification to investment property
When the use of a property changes from operational use to investment property, the property is re-measured to fair value and reclassified as investment property. • Depreciation Depreciation is recognised in surplus or deficit on a straight-line or a diminishing value basis over the estimated useful lives of each component of an item of property, plant and equipment. Land is not depreciated. The estimated useful lives/diminishing value depreciation rates are: School Buildings & Infrastructure 1.5% - 2% straight line Office and ICT Equipment 2 - 20 years straight line Motor Vehicles 20% diminishing value Boats 5 - 10 years straight line Other Plant and Equipment 8% - 67% diminishing value Depreciation methods, useful lives, and residual values are reviewed at reporting date and adjusted if there is a change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset. • Useful lives and residual values The useful lives and residual values of assets are assessed using the following indicators to determine potential future use and value from disposal: • The condition of the asset
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