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UNISA ANNUAL REPORT 2011
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the University.
Such contingent assets are only recognised in the financial statements where the realisation of income is virtually
certain. If the inflow of economic benefits is only probable, the contingent asset is disclosed as a claim in
favour of the University but not recognised in the statement of financial position.
2.19 CONTINGENT LIABILITIES
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control
of the University, or a present obligation that arises from past events but is not recognised because it is not
probable that an outflow of resources embodying economic benefits will be required to settle the obligation or
the amount of the obligation cannot be measured with sufficient reliability.
If the likelihood of an outflow of resources is remote, the possible obligation is neither a provision nor a contingent
liability and no disclosure is made.
2.20 DETERMINATION OF FAIR VALUES
A number of the University’s accounting policies and disclosures require the determination of fair values, for
both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/
or disclosure purposes based on the methods indicated below. Where applicable, further information about
the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
2.20.1 Investment property
An external, independent valuation company, having appropriate recognised professional qualifications and
recent experience in the location and category of property being valued, values the University’s investment
property portfolio. The fair values are based on market values, being the estimated amount for which a property
could be exchanged on the date of the valuation between a willing buyer and a willing seller in an arm’s
length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and
without compulsion.
In the absence of current prices in an active market, the valuations are prepared by considering the aggregate
of the estimated cash flows expected to be received from renting out the property. A yield that reflects the
specific risks inherent in the net cash flows is then applied to the net annual cash flows to arrive at the property
valuation.
2.20.2 Investments in equity and debt securities
The fair value of financial assets at fair value through profit or loss, held-for-trading investments, is determined
by reference to their quoted bid price at the reporting date.
2.20.3 Student and other receivables
The fair value of student and other receivables is estimated as the present value of future cash flows, discounted
at the market rate of interest at the reporting date.
2.21 REVENUE
2.21.1 Goods sold
Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of
returns and allowances and discounts. Revenue is recognised when the significant risks and rewards of ownership
have been transferred to the buyer, recovery of the consideration is probable, the associated costs and
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