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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 (continued) 1.17 Revenue recognition (continued)
1.17.5 Interest and dividend revenue (IFRS 9)
Interest is recognised on a time proportion basis, taking account of the principle outstanding and the effective rate over the period to maturity, when it is determined that such revenue will accrue to the University.
Dividends are recognised when the right to receive payment is established.
Interest, dividends and other revenue received or due on assets representing endowment and trust funds are recognised as revenue in the statement of comprehensive income. Amounts are transferred to the respective funds and the amounts appropriately re-invested, if required in terms of the establishment of the respective funds.
1.17.6. Research revenue
-Research revenue in the scope of IAS 20
Revenue is recognised in the financial period in which the University becomes entitled to the use of those funds. Funds in the possession of the University that it cannot use until some specified future period or occurrence are recognised when the terms and conditions attached to the funds are met.
-Research revenue in the scope of IFRS 15
Revenue from research contracts is measured based on the contract value. Progress payments are received over the period of the contract and recognised as revenue as performance obligations are fulfilled or milestones as stipulated in the contract are reached. Where the revenue has been received and the related performance obligations have not yet been fulfilled, a contract liability is created.
1.17.7 Rendering of services
Revenue, involving the rendering of services, is recognised over time to the extent that the service has been provided. Revenue includes rentals earned, short course fees and club subscriptions. When the University is not able to reasonably measure the outcome of the obligation under the contract but expects to recover the costs incurred in satisfying the obligations to date, revenue shall be recognised only to the extent that expenses incurred are eligible to be recovered.
Rental income includes receipts in respect of operating leases which is recognised in the consolidated income statement on a straight-line basis over the period of the lease.
1.17.8 Contract assets and liabilities
Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to the customer only when this right is conditional upon something other than the passage of time. If the University performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the University has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the University transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the University performs under the contract.