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DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
DURBAN UNIVERSITY OF TECHNOLOGY
BAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
1. ACCOUNTING POLICIES
1.1 University Information
The consolidated financial statements of the University and its subsidiaries for the year ended December 31, 2020 were approved for issue in accordance with a resolution of Council on 26 June 2021. The Durban University of Technology Foundation Trust was dormant in the 2020 financial period.
The principal activities of the University and its subsidiaries relate to teaching, research and the providing of residential accommodation to students.
1.2 Basis of preparation
These consolidated financial statements have been prepared under the historical cost convention, unless otherwise stated in the accounting policies. The consolidated financial statements are presented in South African Rands (R), and all values are rounded to the nearest thousand (R’000) except where otherwise indicated.
These policies have been consistently applied to all the years presented, except where otherwise stated.
1.3 Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and in the manner required by the Minister of Higher Education and Training in terms of Section 41 of the Higher Education Act, 1997 (Act No 101 of 1997) as amended.
1.4 Presentation of consolidated statement of income statement
In terms of IFRS and the Higher Education Act, 1997 (Act No 101 of 1997) as amended, the income statement is required to include disclosure up to the line item “net surplus for the year after transfers”. The University has included the line items “Income allocated to departments” and “net surplus after income allocated to departments” over and above the minimum requirements as it considers this to be improved disclosure.
1.5 Significant accounting judgements, estimates and assumptions Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are as follows:
Depreciation/amortisation and impairment of property, plant and equipment and intangible assets
The University depreciates/amortises its assets over their estimated useful lives taking into account residual values, where appropriate. The appropriateness of its assets’ estimated useful lives, residual values and their depreciation/amortisation methods are re-assessed on an annual basis. The actual lives of these assets and their respective residual values may vary depending on a variety of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Management used their judgement in applying the internal and external impairment indicators to its assets. No impairment indicators were identified and as such, the recoverable amounts of the aforementioned assets were not calculated.