Page 45 - Nanyang Technological University

NOTES TO FINANCIAL STATEMENTS
(cont’d)
31 March 2016

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 profit or loss and other 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 profit or loss and other 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 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 profit or loss to match
the net book value of the property, plant and equipment written off.

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