Page 44 - Nanyang Technological University

NOTES TO
FINANCIAL STATEMENTS (CONT’D)

31 March 2015

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

2.5 Grants and sinking fund (cont’d)

Development grant is recognised when there is reasonable assurance that the University Company will
comply with the conditions attach to them and that the grants will be received.

Information Technology and Furniture and Equipment (“IT and F&E”) grants received from the Government
Ministry are for the purchase of information technology appliances and furniture and equipment to
support teaching and administrative function of the University Company. These grants are taken to the
grants received in advance account in the first instance. They are taken to 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.

Grants from the Government Ministry and other ministries to meet the current year’s operating expenses
are recognised as income in the same year these operating expenses were incurred.

All grants and contributions are accounted for on the accrual basis.

Special Employment Credit scheme

Cash grants received from the government in relation to the Special Employment Credit scheme (“SEC”)
are recognised upon receipt. The SEC was introduced as a 2011 Budget Initiative to support employers
as well as to raise the employability of older low-wage Singaporeans.

Wage Credit scheme

Cash grants received from the government in relation to the Wage Credit scheme (“WCS”) are recognised
upon receipt. The WCS was introduced to help businesses which may face rising wage costs in a tight
labour market.

42 NTU ANNUAL REPORT 2015