CQUniversity Annual Report - Central Queensland University

CQUniversity ANNUAL REPORT 2012Objectives and principal activitiesCentral Queensland Universityand Controlled EntitiesNotes to the Financial Statementsfor the year ended 31 December 2012The principal activities of the consolidated entity are listed in the Council Members Report.Note 1: Summary of significant accounting policiesThe principal accounting policies adopted in the preparation of the financial report are set out below. These policies have beenconsistently applied to all the years presented, unless otherwise stated.The Chancellor by signature has approved the release of the financial statements as at the date of signature.(a)Basis of preparationCentral Queensland University is a statutory body established under the Central Queensland University Act 1998, anddomiciled in Australia. The financial report includes separate financial statements for Central Queensland University as anindividual entity and the consolidated entity consisting of Central Queensland University and the entities it controls.11ANNUAL FINANCIAL STATEMENTSThe annual financial statements represent the audited general purpose financial statements of Central QueenslandUniversity. They have been prepared on an accrual basis and comply with the Australian Accounting Standards.Additionally the statements have been prepared in accordance with the following statutory requirements: Higher Education Support Act 2003 (Financial Statement Guidelines) Central Queensland University Act 1998 Financial and Performance Management Standard 2009 made under the Financial Accountability Act 2009With respect to compliance with Australian Accounting Standards and Interpretations, Central Queensland University hasapplied those requirements applicable to not-for-profit entities, as the University is a not-for-profit entity.Basis of measurementThese financial statements have been prepared under the historical cost convention, except for available-for-sale financialassets, land, buildings and infrastructure, artworks, heritage collection and investment property.Critical accounting estimatesThe preparation of financial statements in conformity with Australian Accounting Standards requires the use of certaincritical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’saccounting policies. Estimates and judgments are continually evaluated and are based on historical experience and otherfactors, including expectations of future events that are believed to be reasonable under the circumstances.Estimates and assumptions that have a potential significant effect are outlined in the following financial statement notes:Available for sale financial assets – Note 21Property, plant and equipment – Note 25Deferred tax assets and liabilities – Note 27Provisions – Note 29Contingencies – Note 34Retrospective restatementThe group has made a retrospective restatement to the prior period to recognise internally generated software. As thischange effected the 2011 financial year only no column for the 2010 financial year has been provided. The effect of thisrestatement is set out in the table below:Note 2011 Unadjusted Adjustment 2011 Adjusted$’000 $’000 $’000Income StatementsEmployee related expenses 10 146,448 (651) 145,797Depreciation 11 12,990 138 13,038Management and other fees 13 15,122 (305) 14,817Travel 7,775 (3) 7,772Statements of FinancialPositionIntangible assets 26 5,325 820 6,145EquityRetained surplus 31(b) 206,376 820 207,196