CQUniversity Annual Report - Central Queensland University

CQUniversity ANNUAL REPORT 2012(r)(s)(t)(u)(v)Central Queensland Universityand Controlled EntitiesNotes to the Financial Statementsfor the year ended 31 December 2012(vi) Executive remunerationKey executive management personnel and remuneration disclosures are made in accordance with Section 5 to theFinancial Reporting Requirements for Queensland Government Agencies, issued by Queensland Treasury in conjunctionwith the requirements of the Financial Statement Guidelines for Australian Education Providers, issued by the Departmentof Industry, Innovation, Science, Research and Tertiary Education. Refer to Note 32 for the disclosures on key executivemanagement personnel and remuneration.ProvisionsProvisions for grant recovery and lease make good are recognised when: the Group has a present obligation as a result ofpast events; it is probable that an outflow of resources will be required to settle the obligation; and the amount can bereliably estimated. Provisions are not recognised for future operating losses.Provisions are measured at the present value of management’s best estimate of the expenditure required to settle thepresent obligation at the balance sheet date. The discount rate used to determine the present value reflects current marketassessments of the time value of money and the risks specific to the liability. The increase in the provision due to thepassage of time is recognised as a finance cost.Financial instrumentsRecognitionFinancial assets and financial liabilities are recognised in the statement of financial position when the Group becomes partyto the contractual provisions of the financial instrument.ClassificationFinancial instruments are classified and measured as follows: cash and cash equivalents - held at fair value through profit or loss receivables – held at amortised cost available for sale financial assets – fair value and cost (Note 21) payables – held at amortised cost provisions – held at amortised costThe Group does not enter into transactions for speculative purposes, nor for hedging. Apart from cash and cashequivalents, the Group holds no financial assets classified at fair value through profit or loss.Council member benefitsCentral Queensland University Council members do not receive any remuneration for attendance at council meetings oractivities. Council members who are also employees of the University receive their normal remuneration while attending tocouncil business. Council members who are also public service employees of other entities are remunerated by theiremploying entity in accordance with arrangements with that entity. The University accepts financial responsibility for travelcosts related to university meetings and activities.Rounding and comparativesAmounts shown in these financial statements have been rounded to the nearest thousand dollars, or in certain cases, thenearest dollar. Comparative information has been restated where necessary to be consistent with disclosures in the currentreporting period.Goods and services tax (GST)Revenues, expenses and assets are recognised net of the amount of associated GST, unless the amount of GST incurredis not recoverable from the Australian Taxation Office (ATO). In this case it is recognised as part of the cost of acquisitionof an asset or as part of an item of expense.Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GSTrecoverable from, or payable to, the ATO is included with receivables or payables in the statement of financial position.Cash flows are presented on a gross basis. The GST component of the cash flows arising from investing or financingactivities, which are recoverable from or payable to the ATO, are presented as operating cash flows.19ANNUAL FINANCIAL STATEMENTS