Challenger TAFE | Annual Report 2006 - Parliament of Western ...

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90 Challenger TAFE | Annual Report 2006 Challenger TAFE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 (e) Income Revenue Revenue is measured at the fair value of consideration received or receivable. Revenue is recognised for the major business activities as follows: The funds received from the Department of Education and Training in respect of the delivery of services forming part of the Delivery Performance Agreement have been disclosed as State Funds under ‘Revenues from State Government’. This revenue is recognised in the period in which the College meets the terms of the Agreement. The majority of operating revenue of the College represents revenue earned from student fees and charges, fee for service, ancillary services, trading activities and Commonwealth grants and subsidies, as well as revenue received from the Department of Education and Training as a result of training successfully tendered for under competitive tendering arrangements. Revenue from the sale of goods and disposal of other assets, and the rendering of services is recognised when the College has passed control of the goods or other assets, or delivery of the service to the customer. Sale of goods Revenue is recognised from the sale of goods and disposal of other assets when the signifi cant risks and rewards of ownership control transfer to the purchaser and can be measured reliably. Rendering of services Revenue is recognised on delivery of the service to the client or by reference to the stage of completion of the transaction. Interest Revenue is recognised as the interest accrues. Grants, donations, gifts and other non-reciprocal contributions Revenue is recognised at fair value when the College obtains control over the assets comprising the contributions, usually when cash is received. Other non-reciprocal contributions that are not contributions by owners are recognised at their fair value. Contributions of services are only recognised when a fair value can be reliably determined and the services would be purchased if not donated Where contributions recognised as revenues during the reporting period were obtained on the condition that they be expended in a particular manner or used over a particular period, and those conditions were undischarged as at the balance sheet date, the nature of, and amounts pertaining to, those undischarged conditions are disclosed in the notes. Gains Gains may be realised or unrealised and are usually recognised on a net basis. These include gains arising on the disposal of non current assets and some revaluations of non - current assets. (f ) Borrowing Costs Borrowing costs for qualifying assets are capitalised net of any investment income earned on the unexpended portion of the borrowings. Other borrowing costs are expensed when incurred. (g) Property, Vehicles, Plant and Equipment Capitalisation/Expensing of assets Items of property, plant and equipment and infrastructure costing over $1,000 are recognised as assets and the cost of utilising assets is expensed (depreciated) over their useful lives. Items of property, plant and equipment and infrastructure costing less than $1,000 are immediately expensed direct to the Income Statement (other than where they form part of a group of similar items which are signifi cant in total). Initial recognition and measurement All items of property, vehicles, plant and equipment are initially recognised at cost. For items of property, vehicles, plant and equipment acquired at no cost or for nominal consideration, the cost is their fair value at the date of acquisition.
Challenger TAFE NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006 Challenger TAFE | Annual Report 2006 91 Subsequent measurement After recognition as an asset, the revaluation model is used for the measurement of land and buildings and the cost model for all other property, plant and equipment. Land and buildings are carried at fair value less accumulated depreciation on buildings and accumulated impairment losses. All other items of property, vehicles, plant and equipment are stated at fair value with the exception of Works of Art which are shown at historical cost. Where market-based evidence is available, the fair value of land and buildings is determined on the basis of current market buying values determined by reference to recent market transactions. When buildings are revalued by reference to recent market transaction, the accumulated depreciation is eliminated against the gross carrying amount of the asset and the net amount restated to the revalued amount. Where market-based evidence is not available, the fair value of land and buildings is determined on the basis of existing use. This normally applies where buildings are specialised or where land use is restricted. Fair value for existing use assets is determined by reference to the cost of replacing the remaining future economic benefi ts embodied in the asset, ie. the depreciated replacement cost. Where the fair value of buildings is dependent on using the depreciated replacement cost, the gross carrying amount and the accumulated depreciation are restated proportionately. Independent valuation of land and buildings are performed independently on an annual basis by the Department of Land Information (Valuation Services). With suffi cient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at the balance sheet date. The most signifi cant assumptions in estimating fair value are made in assessing whether to apply the existing use basis to assets. Professional judgement by the valuer is required where the evidence does not provide a clear distinction between market type assets and existing use assets. Refer to note 26 ‘Property, plant and equipment’ for further information on revaluations. Depreciation All non-current assets having a limited useful life are systematically depreciated over their estimated useful lives in a manner that refl ects the consumption of their future economic benefi ts. Land is not depreciated. Depreciation on other assets is calculated using the straight line method, using rates which are reviewed annually. Estimated useful lives for each class of depreciable asset are: Buildings 40 to 95 years Leasehold Improvements 4 to 13 years Motor Vehicles, Caravans and Trailers 5 to 23 years Plant, Furniture and General Equipment 4 to 28 years Computing, Communications and Software 1 to 15 years Marine Craft 8 to 19 years Works of art controlled by the College are classifi ed as plant, property and equipment which is anticipated to have a very long and indefi nite useful lives. Their service potential has not, in any material sense, been consumed during the reporting period and so no depreciation has been recognised. (h) Intangible Assets Capitalisation/Expensing of assets Acquisition of intangible assets costing over $5,000 and internally generated intangible assets costing over $50,000 are capitalised. The cost of utilising the assets is expensed (amortised) over their useful life. Costs incurred below these thresholds are immediately expensed directly to the Income Statement. All acquired and internally developed intangible assets are initially recognised at cost. For assets acquired at no cost or for nominal consideration, the cost is their fair value at the date of acquisition. The cost model is applied for subsequent measurement requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses
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Challenger TAFE | Annual Report 200
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The Hon Mark McGowan Minister for E
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CONTENTS Challenger TAFE | Annual R
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CHALLENGER TAFE IN WESTERN AUSTRALI
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7 Kadadjiny Mia - Centre for Aborig
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CHAPTER 2 - BETTER PLANNING: BETTER
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2.3 The Environment From State Goal
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CHAPTER 3 - KEY PRIORITIES FOR TAFE
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CHAPTER 4 - CHAIRPERSON’S REPORT
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CHAPTER 7 - OVERVIEW OF OPERATIONS
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Table 7.2 All delivery 2006 by fund
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INDEPENDENT AUDIT OPINION To the Pa
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Key Performance Indicators Challeng
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Figure 8.2: Cost per SCH 2002-2006
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Figure 8.4: Targeted Profi le Achie
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Page 43 and 44: Figure 8.11: Graduate Labour Market
Page 45 and 46: Figure 8.13 Profi le to Non-Profi l
Page 47 and 48: Table 8.18 Total Indigenous Student
Page 49 and 50: Figure 8.22 Comparison of Customer
Page 51 and 52: CHAPTER 9 - MANAGEMENT STRUCTURE 9.
Page 57 and 58: CHAPTER 10 - CUSTOMER FOCUS Challen
Page 59 and 60: 10.1.1.1 CareerConnect, Jan-Nov 200
Page 63 and 64: CHAPTER 11. OUTPUT REPORTS Challeng
Page 75 and 76: CHAPTER 12 - STATEMENT OF COMPLIANC
Page 83 and 84: FINANCIAL STATEMENTS CHALLENGER TAF
Page 89: Challenger TAFE NOTES TO THE FINANC
Page 93 and 94: Challenger TAFE NOTES TO THE FINANC
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