Page 123 - 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) 1.17 Revenue recognition (continued)
1.17.1 State appropriations - subsidies and grants (IAS 20) (continued)
The University adopts the income approach whereby the grant is not credited to the carrying amount of the capital asset.
Appropriations and grants from government that is intended to compensate future operating expenditure is released to net surplus or deficit over the period necessary to match the income with the operating expenditure that the income is intended to compensate.
1.17.2 Tuition and residence fees (IFRS 15)
Tuition income includes the provision of educational services to students through an accredited degree or through short courses. The performance obligation is satisfied over time.
Residence fees includes the provision of residential accommodation to students during the academic year. The performance obligation is satisfied over time.
Payments by students are typically made in cash or within the academic year of registration, based on the fee payment plan chosen by the student.
The income recognised is limited to the extent that it is considered recoverable. A provision is realistically made for the estimated unrealisable amount. Deposits provided by prospective students are treated as current liabilities.
1.17.3 Designated revenue from contracts, grants and donations
Revenue in the scope of IFRS 15
Revenue received for designated purposes may arise from contracts, grants, donations and income on specifically purposed endowments. The receipts arising from these transactions are initially brought into the statement of financial as a liability or deferred revenue and later released to restricted revenue on the fulfilment of the applicable performance obligations.
Revenue in the scope of IAS 20
Revenue received for designated purposes may arise from contracts, grants, donations and income on specifically purposed endowments. Such revenue is recognised in the consolidated income statement over time in the financial period in which progress is satisfied in accordance with the relevant agreement terms and conditions
Private gifts, grants and donations with no specific condition in relation to either the expenses they aim to compensate, the period in which they need to be spent or conditions to repay when certain conditions are not fulfilled, etc. but with stipulation that the grant should be used to compensate certain type of expenditure (e.g. bursaries, research (whether in general of within certain areas)) are recognised as revenue at the fair value of the consideration received or receivable in the period in which they are received or the University becomes entitled to it.
1.17.4 Sales of goods and services (IFRS 15)
Revenue from the sale of services is recognised as the service is rendered and performance obligations are met. Revenue from the sale of products is recognised at the point of sale, or as goods are transferred.
DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
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