Annual Report 2005 - Publications Unit - The University of Western ...

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1. Summary of significant accounting policies (continued)THE UNIVERSITY OF WESTERN AUSTRALIANOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2005(l)Property, plant and equipmentProperty, plant and equipment is measured at cost less accumulated depreciation less accumulated impairment losses.Where an asset is acquired at no cost or for a nominal cost, the cost recorded is the fair value of the asset at theacquisition date.Subsequent costs are included in the assets carrying value or recognised as a separate asset, where appropriate, whenit is probable that future economic benefit associated with the asset will flow to the University. All other repairs andmaintenance are charged to the income statement when incurred.The depreciation rate policy is as follows:Asset classLeasehold landFreehold landBuildingsComputer hardwareEquipmentMotor vehiclesArtworksSpecial collectionsLibrary booksDepreciation rateNot depreciatedNot depreciated2% reducing balance25% straight line12.5% straight line17.5% straight line if held more than one yearNot depreciatedNot depreciatedDepreciated 100% in fourth year after acquisitionAssets’ residual values and useful lives are reviewed at each balance sheet date. Profits and losses on disposal arerecorded in the income statement for the year.Impairment testing is performed when an indicator of impairment is identified.(m)ImpairmentAssets that have an indefinite useful life are tested annually for impairment. Assets with a finite life are tested forimpairment when events or changes in circumstances indicate the carrying value may not be recoverable.An impairment loss is recognised for the amount by which the asset’s carrying value exceeds the recoverable amount.The recoverable amount is the higher of its fair value less costs to sell and its value in use. As the University is a not-forprofitentity, if the future economic benefits of the asset are not primarily dependent on its ability to generate net cashflows, unless the asset has been identified as surplus, the value in use is its depreciated replacement cost.(n)Intangible assetsIntangible assets are capitalised at cost and from a business combination are capitalised at fair value as at the date ofacquisition. Following initial recognition, the cost model is applied to the class of intangible assets.Expenditure on research activities is recognised as an expense in the income statement when incurred. Expenditure ondevelopment activities is expensed unless the outcome is technically and commercially feasible, resources are availableto complete the development and there is a commitment to complete the project.Amortisation is calculated on a straight line basis over the estimated useful life of the asset. The useful life of software iscurrently determined to be ten years.Impairment testing is performed when an indicator of impairment is identified.(o)LeasesLeases where the lessor has substantially all the risks and rewards of ownership are classified as finance leases.Finance leases are capitalised at the lower of fair value and the present value of the minimum lease payments and thecorresponding obligation is recorded in payables. Each lease payment is allocated between the finance charge andreducing the liability.Leases are classified as operating leases when the lessor retains substantially all the risks and rewards of ownership.Payments or income received under operating leases are recognised in the income statement on a straight line basisover the lease term. Where the University is the lessor, the asset subject to an operating lease is recognised in thebalance sheet according to the nature of the asset.43
1. Summary of significant accounting policies (continued)THE UNIVERSITY OF WESTERN AUSTRALIANOTES TO THE FINANCIAL STATEMENTS31 DECEMBER 2005(p)PayablesPayables represent liabilities for goods or services incurred on or before reporting date.(q)ProvisionsProvisions are recognised where there is a present obligation as a result of a past event, it is probable that an outflow ofeconomic benefit will be required to settle the obligation and a reliable estimate can be made of the amount.If the effect of the time value of money is material the provision will be discounted.(r)Employee benefits(i)Wages, salaries and annual leaveLiabilities for wages, salaries and annual leave are recognised and measured as the amount unpaid at thereporting date at expected value in respect of employees’ services up to that date.(ii)Long service leaveA liability for long service leave is recognised and measured as the present value of expected future paymentsto be made in respect of services provided by employees up to the reporting date. Consideration is given toexpected future wage and salary levels, based on statistical data related to employee departures and periods ofservice.(iii)Parental leaveA liability for parental leave is recognised based on the University’s present obligation to make future parentalleave payments in respect of services provided by employees up to the reporting date. The value of these futurepayments incorporates expected future wage and salary levels, based on statistical data related to historicalemployee parental leave and periods of service.(iv)SuperannuationThe University contributes to a number of employee funds that exist to provide benefits for employees and theirdependants on retirement, disability or death. Three of these funds are defined benefit pension schemes.Expenses incurred in relation to schemes accounted for as defined benefit schemes are determined using theprojected unit credit actuarial valuation method. Actuarial gains and losses are recognised immediately as anincome or expense in the income statement.The University recognises amounts payable to defined contributions schemes as an expense in the incomestatement in the period that the service has been rendered by the employee.(v)Other employee benefitsAll other benefits are recognised when the benefit is received by the employee and measured at the rates paidor payable.(s)Income taxThe University is exempt from income tax in Australia.The University is subject to foreign income tax for overseas operations, currently no income tax has been payable.Deferred tax assets are only recognised where it is probable that future taxable amounts will be available to utilise thosetemporary differences and unused tax losses.(t)Foreign currency transactionsThe functional currency of the University and its subsidiaries is the Australian dollar.Foreign currency transactions are initially translated into Australian currency at the rate of exchange at the date of thetransaction. At the reporting date, amounts payable and receivable in foreign currencies are translated to Australiancurrency at rates of exchange at that date. Non-monetary items held at the reporting date are measured using theexchange rate at the date of the initial transaction.Resulting exchange differences are recognised in the income statements.44
Page 1 and 2: Annual Report2005
Page 4 and 5: Chancellor’sIntroductionIt is my
Page 6 and 7: • the successful negotiation of t
Page 8 and 9: performance and to ensure its fisca
Page 10 and 11: SENATE MEMBERSAPPENDIX AThe members
Page 12 and 13: APPENDIX CExecutive Director(Financ
Page 14 and 15: • comprehensive, with a broad tea
Page 16 and 17: ResearchThe University of Western A
Page 18 and 19: Community RelationsBeyond serving t
Page 20 and 21: Capital WorksDuring 2005, in line w
Page 22 and 23: The Impact ofState LegislationIn Au
Page 24: StatisticalProfile23
Page 27 and 28: TABLE 2: STUDENT ENROLMENTS AND LOA
Page 29 and 30: TABLE 5: STUDENT LOAD (EFTSL) BY FA
Page 31 and 32: TABLE 8: STAFF FTE (a) BY MAJOR ORG
Page 33 and 34: INDEPENDENT AUDIT OPINIONTo the Par
Page 36 and 37: THE UNIVERSITY OF WESTERN AUSTRALIA
Page 42 and 43: 1. Summary of significant accountin
Page 46: THE UNIVERSITY OF WESTERN AUSTRALIA
Page 54 and 55: `THE UNIVERSITY OF WESTERN AUSTRALI
Page 62: `THE UNIVERSITY OF WESTERN AUSTRALI
Page 79 and 80: 48. Acquittal of Australian Governm
Page 81 and 82: 48.4 DEST ResearchTHE UNIVERSITY OF
Page 85: SUMMARY OF KEY PERFORMANCE INDICATO
Page 88 and 89: Proportion of Top School Leavers Ap
Page 90: Indicator 1.4 Graduate Destinations
Page 93 and 94: Commencing Higher Degree by Researc
Page 95 and 96:
Selected Research Publications (a)
Page 97:
Total Research Income (a) per Acade
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