Page 43 - Nanyang Technological University
P. 43
ON A RAPID RISE
NOTES TO
FINANCIAL STATEMENTS (CONT’D)
31 March 2015
2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
2.4 Funds (cont’d)
The following funds termed as “Other Restricted Fund” are set up and disclosed separately from the
University Company’s general fund:
(i) funds created from donations from external bodies for special purposes;
(ii) funds created from grants received for carrying out activities under special arrangements; and
(iii) funds maintained separately to account for the self-financing activities carried out by the University
Company.
The use of these funds are governed by the terms and conditions set out by the respective funds.
The income and expenditure of General Fund and Other Restricted Fund are included in the consolidated
statement of comprehensive income.
Endowment fund
Donations received and Government matching grants received/receivable during the year are taken
directly to the statement of funds and reserves. Income and expenditure arising from the management of
the Endowment Fund are taken to the statement of comprehensive income of the Endowment Fund.
2.5 Grants and sinking fund
Grants and sinking fund from the Government Ministry, other ministries and statutory boards and
contributions received/receivable from other organisations for the purchase of depreciable assets or
to finance research or capital projects are taken to the grants received in advance account in the first
instance. They are taken to the deferred capital grants account upon the utilisation of the grants for
purchase of assets, which are capitalised, or to the profit or loss for purchase of assets which are written
off in the year of purchase.
Deferred capital grants are recognised in the profit or loss over the periods necessary to match the
depreciation, write off and/or impairment loss of the assets purchased with the related grants. Upon the
disposal of property, plant and equipment, the balance of the related deferred capital grants is recognised
in the profit or loss to match the net book value of the property, plant and equipment written off.
NANYANG TECHNOLOGICAL UNIVERSITY AND ITS SUBSIDIARIES 41