Annual Accounts 2011 - University of Abertay Dundee

University of Abertay Dundee
Annual report and financial statements
31 July 2012
Statement of principal accounting policies (continued)
Fixed Asset and Current Asset Investments
Fixed Asset Unlisted Investments are included at cost, except where there is evidence of a permanent diminution
in value.
Current Asset Investments, which are entirely in the form of listed securities, are included in the Balance Sheet
at the lower of their original cost or net realisable value.
Endowment Asset Investments
The heritable property and investments that form part of Endowment Assets are included in the Balance Sheet at
market value, apart from the property held by the University which has not been revalued since 2004.
Stocks
Stocks of catering supplies are valued at the lower of cost or net realisable value on the basis of first in first out
(FIFO). Where necessary, provision is made for slow-moving stock.
Cash Flows
Cash flows comprise increases or decreases in cash. Cash includes cash in hand, deposits repayable on demand
and overdrafts. Deposits are repayable if they are in practice available within 24 hours without penalty. Liquid
resources comprise assets held as a readily disposable store of value. They include deposits, government
securities and loan stock held as part of the University's treasury management activities.
Foreign Currencies
Transactions denominated in foreign currencies are recorded at the exchange rates ruling at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at
year-end rates. The resulting exchange differences are dealt with in the determination of income and
expenditure for the financial year.
Financial Instruments
Financial Instruments are recognised on the balance sheet when an obligation is identified and released as that
obligation is fulfilled. Cash, debtors, creditors and borrowing are held at cost. Measurement of investments is
discussed above.
Accounting for Charitable Donations
Charitable donations are recognised in the accounts when the charitable donation has been received or if, before
receipt, there is sufficient evidence to provide the necessary certainty that the donation will be received and the
value of the incoming resources can be measured with sufficient reliability.
Charitable donations which are expendable with no restrictions placed on the University by the donor on the
application of the donation are recognised as in the income and expenditure account during the year of receipt.
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