CQUniversity Annual Report - Central Queensland University

CQUniversity ANNUAL REPORT 2012
Central Queensland University
and Controlled Entities
Notes to the Financial Statements
for the year ended 31 December 2012
Acquisition of assets with a cost or other value equal to or in excess of the following thresholds are recognised for financial
reporting purposes in the year of acquisition:
Buildings $10,000
Infrastructure $10,000
Land $1
Plant and equipment $5,000
Shares $1
Computer software $100,000
Goodwill $1
Other (including artworks and heritage) $1
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate
at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
15
ANNUAL FINANCIAL STATEMENTS
(h)
Impairment of assets
The carrying amounts of the consolidated entity’s assets, other than inventories and deferred tax assets are assessed on
an annual basis to determine whether there is any indication of impairment. If any such indication exists, the asset’s
recoverable amount is estimated.
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are
reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. For
the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable
cash flows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units).
Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of the impairment at
each reporting date.
(i)
Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly
liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value.
(j)
Receivables
Commercial and general debtors are recognised at cost less impairment losses and are generally due for settlement
within 14 days.
Student debtors are recognised at cost and are due within 14 days of invoice.
Collectability of trade receivables are reviewed on an on-going basis. An allowance for impaired receivables is established
when there is objective evidence that the Group may not be able to collect certain debts. Debts which are known to be
uncollectible, when formally approved for write off, are written off against the allowance for impaired receivables to the
extent that the expense has previously been provided for. Receivables expected to be received in the next 12 months are
classified as current.
(k)
Inventories
Inventories are stated at the lower of cost or net realisable value which is the estimated selling price in the ordinary course
of business less the estimated costs of completion and the estimated costs necessary to make the sale.
The cost of inventories comprises all costs of purchases and other costs of bringing the inventories to their present location
and condition. Bookshop inventory cost is determined using the weighted average cost method.
Obsolete, redundant and slow moving inventories are identified and written down to their estimated current replacement
cost.