Page 46 - Nanyang Technological University

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

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.
Wage Credit scheme, Special Employment Credit scheme and Temporary Employment Credit scheme
Cash grants received from the government in relation to the Wage Credit scheme, Special Employment Credit
scheme and Temporary Employment Credit scheme are recognised upon receipt. Such grants are provided to
defray the wage costs incurred and are offset against manpower costs in the financial statements.

44 NTU ANNUAL REPORT 2016