Page 39 - Nanyang Technological University

ON A RAPID RISE

NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.1 Basis of preparation (cont’d)

(c) Use of estimates and judgements (cont’d)

• Notes 2.8, 9 and 11 - valuation of financial instruments (cont’d)

Derivative financial instruments

The fair value of derivatives (foreign currency forwards) is estimated by discounting the
difference between the contractual forward price and the current forward price for the
residual period to maturity of the contract.

Financial assets at fair value through profit or loss

The fair values of financial instruments traded in active markets are based on quoted market
prices at the end of the reporting period. The Group and University Company also holds
unquoted investments, of which the valuation methodologies are set out in Note 11.

• Notes 2.10 and 15 (b) — measurement of provisions

Provision for undergraduate funding

Provision for undergraduate funding relates to the adjustment to the undergraduate output
funding from MOE in the event the University achieves fewer undergraduates than MOE’s
output target. The provision is based on the University’s actual and projected number of
undergraduates.

(d) Adoption of new and revised standards

On 1 April 2014, the Group has adopted all the new and revised FRSs and Interpretations of FRS
(“INT FRS”) that are effective from that date and are relevant to its operations. The adoption of
these new/revised FRSs does not result in changes to the Group’s and University Company’s
accounting policies and has no material effect on the amounts reported for the current or prior
years.

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