Download the Annual report 2011 - Unisa

UNISA ANNUAL REPORT 2011
possible return of goods can be measured reliably, the amount of revenue can be measured reliably, and there
is no continuing management involvement with the goods.
2.21.2 Services and tuition fees
Revenue from services rendered is recognised in profit or loss in proportion to the stage of completion of the
transaction at the reporting date. Stage of completion is assessed based on the proportion that costs incurred
to date bear to the estimated total costs, subject to recoverability. Tuition fees are recorded as income in the
period to which it relates. Deposits received from prospective students are recognised as income once the
service has been rendered.
2.21.3 Rental income
Rental income from investment property is recognised in profit or loss on a straight-line basis over the term of
the lease. Lease incentives granted are recognised as an integral part of the total rental income over the term
of the lease.
2.21.4 Government grants
An unconditional government grant or subsidy is recognised in profit or loss when the grant becomes receivable.
Other conditional government grants are recognised initially as deferred income when there is reasonable
assurance that they will be received and that the University will comply with the conditions associated with
the grant. Grants that compensate the University for expenses incurred are recognised in profit or loss on a
systematic basis in the same periods in which the expenses are recognised.
Non-monetary assets received through a government grant are accounted for at a nominal amount.
2.21.5 Donations
Donations are recognised as income when received.
2.21.6 Dividend income
Dividend income is recognised when the right to receive payment is established.
2.22 EMPLOYEE BENEFITS
2.22.1 Short-term employee benefits
The cost of all short-term employee benefits is recognised during the period in which the employee renders
the related service. The accruals for employee entitlements to salaries and annual leave represent the amount
which the University has a present obligation to pay as a result of employee services provided to the reporting
date. The accruals have been calculated at undiscounted amounts based on current salary rates.
2.22.2 Long-term service benefits
The University’s net obligation in respect of long-term service benefits, other than pension plans, is the amount
of future benefit that employees have earned in return for their service in the current and prior periods. The
obligation is calculated using the projected unit credit method and is discounted to its present value and the
fair value of any related assets is deducted. Any actuarial gains and losses are recognised in profit or loss in the
period in which they arise. The discount rate is the yield at the reporting date on AAA credit rated bonds that
have maturity dates approximating to the terms of the University’s obligation.
2.22.3 Termination benefits
Termination benefits are recognised as an expense when the University is demonstrably committed without
realistic possibility of withdrawal to a formal detailed plan to terminate employment before the normal retire-
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