annual-report-2016-2017

NIAGARA COLLEGE OF APPLIED ARTS AND TECHNOLOGY
Notes to Consolidated Financial Statements
Year ended March 31, 2017
Niagara College of Applied Arts and Technology (the “College”) is an Ontario College established as a
Community College under The Department of Education Act of the Province of Ontario. The College
is a registered charity and is exempt from income taxes under the Income Tax Act.
The consolidated financial statements have been prepared by management in accordance with
Canadian Public Sector Accounting Standards including the 4200 standards for government not-forprofit
organizations.
1. Significant accounting policies and disclosure:
(a) Basis of presentation:
These consolidated financial statements reflect the assets, liabilities, revenues and expenses
of the College, its wholly owned subsidiaries, Niagara College Learning Enterprise Corporation
and Niagara College Foundation. All inter-organization assets, liabilities, revenue and
expenses have been eliminated.
Niagara College KSA is a for-profit subsidiary of Niagara College and Niagara College Learning
Enterprise Corporation, which is accounted for on a modified equity method basis. Information
concerning this entity is presented in note 5 to these financial statements.
(b) Revenue recognition:
The College follows the deferral method of accounting for contributions which include donations
and government grants. Externally restricted contributions are recognized as revenue in the
year in which the related expenses are recognized. Contributions restricted for the purchase
of capital assets are deferred and amortized into revenue on a straight-line basis at a rate
corresponding with the amortization rate for the related capital assets. Unrestricted
contributions are recognized as revenue when received or receivable.
Donations of assets are recorded at fair value when a fair value can be reasonably estimated.
Long-term receivables for capital assets are recorded as an asset in the accompanying
consolidated financial statements when the amount to be received can be reasonably
estimated and collection is reasonably assured. Long-term receivables are commitment from
students for capital assets.
Tuition fees are recognized as revenue when earned through the provision of service. Ancillary
revenue including residence, parking and other sundry revenues are recognized when products
are delivered or services provided to the student or client, the sales price is fixed and
determinable, and collection is reasonably assured.
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