Page 113 - DUT 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 (continued)
1.7 Standards, interpretations and amendments to published standards
The following amendments to standards and early adoptions are only those, which are applicable to the University.
1.7.1 Standards early adopted by the University
There were no standards or interpretations that were early adopted by the University.
1.7.2 Standards, interpretations and amendments that are not yet effective
At the date of authorisation of these financial statements, the following new accounting standards and interpretations of accounting standards have been issued but are not yet effective:
Standard or Interpretation
a) IFRS 17- Insurance contracts
This standard replaces IFRS 4 – Insurance contracts.
The amendment is not expected to have an impact on the entity’s financial statements as the entity is not an insurer.
The University does expect that the adoption of the Standards listed above will have a material impact on the financial statements in future periods,
1.8 Property, plant and equipment
Effective for years beginning
1 January 2023
Property, plant and equipment are initially stated at cost. The cost of an asset comprises the purchase price and costs directly attributable to bringing the asset to the location and condition necessary for it to operate as intended by management.
Land and buildings, which have been adapted to specialised functions, and all other land and buildings which are used for general purposes, plant and equipment are recorded at cost net of accumulated depreciation and accumulated impairment losses, if any, except for donations, which are valued by externally independent valuators at fair value on initial recognition.
No depreciation is provided on freehold land as it is deemed to have an indefinite life. Assets that are expected to be used for more than one reporting period of which have a negligible cost are written off in the year of acquisition. Property, plant and equipment are depreciated on a straight-line basis estimated to write each asset down to its estimated residual value over the estimated useful lives of the asset which range as follows:
Buildings
Motor vehicles Computer equipment Equipment
Furniture
50 - 100 years 8 - 15 years
4 - 8 years
10 - 40 years 20 years
The assets’ residual values, useful lives and methods of depreciation are reviewed at each reporting date, and adjusted prospectively, if appropriate.
Library acquisitions
New library books, journals and collections are written off in the year of acquisition.
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
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