Keele University
Statement of Accounting Policies ( continued ) For the year ended 31 July 2021
Basis of Consolidation ( continued )
The results of subsidiaries acquired or disposed of during the period are included in the Consolidated Statement of Comprehensive Income and Expenditure from the date of acquisition or up to the date of disposal . Goodwill arising on consolidation ( representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired ) is capitalised on acquisition .
Intra-group transactions are eliminated on consolidation . Gains or losses on any intra-group transactions are eliminated in full . Amounts in relation to debts and claims between undertakings included in the consolidation are also eliminated . Balances between the University and any associates and joint ventures are not eliminated . Normal trading transactions that are not settled by the balance sheet date are included as current assets or liabilities . Any gains or losses are included in the carrying amount of assets of either entity , the part relating to the University ’ s share is eliminated .
Associated companies and joint ventures are accounted for using the equity method .
The consolidated financial statements do not include the income and expenditure of the Students ’ Union or Postgraduate Association as the University does not exert control or dominant influence over their policy decisions , but simply provides grant funding . The Students ’ Union and Postgraduate Association are both separately registered with the Charity Commission .
6 . Income recognition
Income from the sale of goods or services is credited to the Statement of Comprehensive Income and Expenditure when the goods or services are supplied to the external customers or the terms of the contract have been satisfied .
Tuition fee income is stated gross of any expenditure which is not a discount and credited to the Statement of Comprehensive Income and Expenditure over the period in which students are studying . Where the amount of the tuition fee is reduced , income receivable is shown net of the discount . Externally funded bursaries and scholarships are accounted for gross as expenditure and not deducted from income .
Education contracts are recognised when the University is entitled to the income , which is the period in which students are studying , or where relevant , when performance conditions have been met .
Investment income is credited to the Statement of Comprehensive Income and Expenditure on a receivable basis .
In both 2000 / 01 and 2006 / 07 the University received premiums for the lease of student accommodation to Keele Residential Funding plc , previously Owengate ( Keele ) plc . These premiums are held under Creditors on the balance sheet and are being released to the Statement of Comprehensive Income and Expenditure over the period of the respective lease agreements on a straight-line basis .
The income received for student lettings of the Halls is recognised as income in full , with any payments that are made to Keele Residential Funding Plc being accounted for as non-pay expenditure .
Funds the University receives and disburses as paying agent on behalf of a funding body are excluded from the Statement of Comprehensive Income and Expenditure of the University where the University is exposed to minimal economic benefit related to the transaction .
Grant funding
Government revenue grants , including Funding Council block grant and Government research grants , are recognised within the Statement of Comprehensive Income and Expenditure over the periods in which the University recognises the related costs for which the grant is intended to compensate . Where part of a Government grant is deferred it is recognised as deferred income within creditors and allocated between creditors due within one year and due after more than one year as appropriate .
Grants ( including research grants ) from non-government sources are recognised in the Statement of Comprehensive Income and Expenditure when the University is entitled to the income and performance related conditions have been met . Income received in advance of performance related conditions being met is deferred within creditors in the Balance Sheet and released to the Statement of Comprehensive Income and Expenditure as the conditions are met .
Donations and endowments
Non exchange transactions without performance related conditions are donations and endowments . Donations and endowments with donor imposed restrictions are recognised within the Statement of Comprehensive Income and Expenditure when the University is entitled to the funds . Income is retained within the restricted reserve until such time that it is utilised in line with such restrictions at which point the income is released to general reserves through a reserve transfer .
Donations with no restrictions are recorded in the Statement of Comprehensive Income and Expenditure when the University is entitled to the funds .
Investment income and appreciation of endowments is recorded in income in the year in which it arises and as either restricted or unrestricted income according to the terms or other restriction applied to the individual endowment fund .
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