siast 2006-2007 annual report - Saskatchewan Institute of Applied ...

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year ended June 30, 2007
(in thousands of dollars)
1. Statutory authority:
Saskatchewan Institute of Applied Science and Technology (SIAST) was established as a public educational corporation by the Legislative Assembly of
Saskatchewan under The Institute Act and is continued under The Saskatchewan Institute of Applied Science and Technology Act.
2. Significant accounting policies:
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles, and include the following significant
accounting policies:
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(a) Basis of consolidation:
These consolidated financial statements include 50% of the assets, liabilities, revenue and expenses of the SIAST/PAGC Student Housing Corporation (note
15). This corporation is jointly controlled by SIAST and the Prince Albert Grand Council.
(b) Revenue recognition:
SIAST follows the deferral method of accounting for grants and other contributions. Grants and contributions for expenses of future periods are deferred and
recognized as revenue in the year in which the related expense is incurred.
Grants for capital assets are deferred and recognized as revenue on the same basis as the acquired capital assets are amortized.
Contributions, including investment income, to scholarship and other trust funds are deferred and recognized as revenue in the year in which the conditions
of the contribution are met.
Endowment contributions are recognized as direct increases in net assets in the year received.
Amounts received for tuition fees, contractual services, and sale of goods and services are recognized as revenue in the year that the goods are delivered or
the services are provided.
(c) Inventories:
Inventories consist of merchandise and supplies held for resale and are valued at the lower of cost and net realizable value. Administrative and program
supplies and library periodicals are not inventoried.