CQUniversity Annual Report - Central Queensland University

CQUniversity ANNUAL REPORT 2012
(c)
Central Queensland University
and Controlled Entities
Notes to the Financial Statements
for the year ended 31 December 2012
Consideration transferred in a business combination shall be measured at fair value. Where the business combination is
achieved in stages, the acquirer shall re-measure previously held equity interest in the acquiree at its acquisition date fair
value and recognise the resulting gain or loss in profit or loss.
Where a business combination is achieved in stages, previously held equity interests in the acquiree are re-measured to
fair value at the acquisition date and any resulting gain or loss is recognised in profit or loss.
Foreign currency translation
(i) Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary
economic environment in which the entity operates (“the functional currency”). The consolidated financial statements are
presented in Australian dollars, which is Central Queensland University’s functional currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised
in the income statement.
Translation differences on non-monetary financial assets and liabilities are reported as part of the fair value gain or loss.
Translation differences on non-monetary financial assets and liabilities, such as equities held at fair value through profit
and loss, are recognised in profit or loss as part of the fair values gain or loss. Translation differences on non-monetary
financial assets are included in the foreign currency revaluation reserve in equity.
(iii) Group companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary economy)
that have a functional currency different from the presentation currency are translated into the presentation currency as
follows:
13
ANNUAL FINANCIAL STATEMENTS
assets and liabilities for each statement of financial position presented are translated at the closing rate at the
date of that statement of financial position;
income and expenses for each income statement are translated at average exchange rates (unless this is not a
reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case
income and expenses are translated at the dates of the transactions); and
all resulting exchange differences are recognised as a separate component of equity.
(d)
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net
of refunds, trade allowances and duties and taxes paid. Revenue is recognised for the major business activities as follows:
(i) Government grants
Central Queensland University treats operating grants received from Australian government entities as income in the year
of receipt. A provision is recognised where there is an obligation that the University will be required to return the funds to
the government in a future period.
(ii) Investment income
Investment Income is recognised as it accrues based on the interest rate applicable to the asset and distributions received.
(iii) Fees and charges
Fees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate to
courses to be held in future periods. Such receipts (or portion thereof) are treated as income in advance in liabilities.
Conversely, fees and charges relating to debtors are recognised as revenue in the year to which the prescribed course
relates.
(iv) Sale of goods
Sale of goods is recognised upon delivery of goods to the customer.