CQUniversity Annual Report - Central Queensland University

CQUniversity ANNUAL REPORT 2012(c)Central Queensland Universityand Controlled EntitiesNotes to the Financial Statementsfor the year ended 31 December 2012Consideration transferred in a business combination shall be measured at fair value. Where the business combination isachieved in stages, the acquirer shall re-measure previously held equity interest in the acquiree at its acquisition date fairvalue 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 tofair value at the acquisition date and any resulting gain or loss is recognised in profit or loss.Foreign currency translation(i) Functional and presentation currencyItems included in the financial statements of each of the Group’s entities are measured using the currency of the primaryeconomic environment in which the entity operates (“the functional currency”). The consolidated financial statements arepresented in Australian dollars, which is Central Queensland University’s functional currency.(ii) Transactions and balancesForeign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates ofthe transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from thetranslation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognisedin 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 profitand loss, are recognised in profit or loss as part of the fair values gain or loss. Translation differences on non-monetaryfinancial assets are included in the foreign currency revaluation reserve in equity.(iii) Group companiesThe 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 asfollows:13ANNUAL FINANCIAL STATEMENTSassets and liabilities for each statement of financial position presented are translated at the closing rate at thedate of that statement of financial position;income and expenses for each income statement are translated at average exchange rates (unless this is not areasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which caseincome and expenses are translated at the dates of the transactions); andall resulting exchange differences are recognised as a separate component of equity.(d)Revenue recognitionRevenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are netof refunds, trade allowances and duties and taxes paid. Revenue is recognised for the major business activities as follows:(i) Government grantsCentral Queensland University treats operating grants received from Australian government entities as income in the yearof receipt. A provision is recognised where there is an obligation that the University will be required to return the funds tothe government in a future period.(ii) Investment incomeInvestment Income is recognised as it accrues based on the interest rate applicable to the asset and distributions received.(iii) Fees and chargesFees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate tocourses 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 courserelates.(iv) Sale of goodsSale of goods is recognised upon delivery of goods to the customer.