CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

A nnuA l Rep oRt

2015 Financial Statements

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

2015 FINANCIAL STATEMENTS

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES REPORT BY MEMBERS OF COUNCIL

The members of the Council of Charles Darwin University present their report on the consolidated entity and the entities it controlled as at the end of, or during, the year ended 31 December 2015.

Members

The following persons were members of the Council of Charles Darwin University during the whole of the year and up to the date of this report:

Mr Neil Balnaves AO

The Honourable Sally Thomas AC Professor Simon Maddocks Associate Professor Steve Shanahan Professor Mary O"Kane AC

Mr Elliott McAdam Mr Richard Ryan AO Mr Alan Morris Mr Matthew Gardiner Mr Ken Davies Mr Justin Busse Mr Kingsley Brenton Professor Keith Christian Mr Jeffery Gaden Ms Jodie Ryan Ms Louise King Mr Lorenzo Strano OAM Professor Judith Whitworth AC

appointed Chancellor on 22 April 2016 and continues in office at the signing date of this report

appointed Chancellor on 1 January 2010 and continues in office at the date of this report

appointed a member on 24 March 2014 and continues in office until the date of this report

appointed a member on 1 July 2013 and continues in office until the date of this report

appointed a member on 25 January 2009 and continued in office until the expiry of the term on 28 February 2015

appointed a member on 25 January 2009 and continued in office until his resignation on 28 February 2015

appointed a member on 15 March 2010 and continues in office at the date of this report

appointed a member on 25 January 2009 and continues in office at the date of this report

appointed a member on 24 June 2009 and continued in office until his resignation on 23 April2015

appointed a member on 28 June 2013 and continues in office at the date of this report

appointed a member on 1 January 2011 and continued in office until his resignation on 19 May 2015

appointed a member on 1 January 2013 and continued in office until the expiry of the term on 31 December 2015

appointed a member on 1 January 2014 and continues in office at the date of this report

appointed a member on 1 January 2015 and continued in office until the expiry of the term on 31 December 2015

appointed a member on 11 August 2014 and continues in office at the date of this report

appointed a member on 11 August 2015 and continues in office at the date of this report

appointed a member on 29 September 2015 and continues in office at the date of this report

appointed a member on 29 September 2015 and continues in office at the date of this report

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES REPORT BY MEMBERS OF COUNCIL

Meetings of Members

The number of meetings of the members of the Council of Charles Darwin University and each council committee held during the year ended 31 Deo:::ember 2015, and the number of meetings attended by eacll member were:

Meetin s of Committees

Councll Finance and Audit and Nominations Executive Meetings Infrastructure Risk Honorary Awards

Develooment and Legislation

A B A B A B A B A B

Sally Tllomas AC 6 6 6 7 3 4 8 B 4 4

Simon Maddocks 6 6 7 7 4 4 8 8 4 4

Steve Shanallan 5 6

. ^{. . .}

. .

Mary O'Kane AC

.

. ^.

. . . .

Elliott McAdam

. . .

Richard Ryan AO 5 6 6 7 2 4 7 8 4 4

Alan Morris 3 3 5 7 4 4

. . . .

Matlhew Gardiner

.

. . .

. . . .

Ken Davies 6 6

. . . . . . . .

Justin Busse 2 2

. . . . . . . .

Kingsley Brenton 6 6

. . . . . . . .

Keitll Christian 6 6

. . ^{. . . . . .}

Jodie Ryan 3 6 2 7

. . . . . .

Jeffery Gaden 3 6

- - ^{. . . . . .}

Louise King 4 4

- ^{. . . . . . .}

Lorenzo Strano 2 2

. . . . ^{. . . .}

Judith Wllitworth AC 2 2

- - ^.

A~ Number of meet!ngs attended

B -Number of meetings held during the time the member held office or was a member of the committee during the year

Principal Activities

During the year, the principal continuing activities of the consolidated entity were:

a) to undertake teaching activities tllat fulfil the requirements of an undergraduate and postgraduate university education and training and further education by way of a course of Instruction that Is, or Is preparatory to, a course of a kind relevant to a trade, technical or other vocational education;

b) to undertake research (taking advantage of the human and physical resources of the University) and, where appropriate, to consider commercial exploitation of research that is undertaken;

c) to undertake teaching activities to provide otller education and training as determined by the Council;

d) to co-operate with other universities and witll institutloos of higher education, training and further education or research (whether within or outside of Australia):

e) to liaise with industry and professional organisations, training committees and the community;

f) to disseminate knowledge and advance skills and their practical application;

g) to provide consultative and research services and facilities;

h) to administer schemes of financial and other assistance for students of the University and persons studying or carrying out research at tile University Including, in the case of students, financial assistance in the form of loans;

i) to provide library and other educational facilities that may be used by the public on conditions as determined by the Council; and

j) to carry out any otfler function that Is conferred

on

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES REPORT BY MEMBERS OF COUNCIL

Review of Operations lfltroduction

The University's high level of research intensity was reflected In the University achieving a ranking in the 251-300 category in the Times Higher Education World University Rankings 2015-2016.

Capital Warks

Construction was completed on the following capital projects during 2015:

Casuarina Fire Mains Upgrade Ground Maintenance Bulldlng Upgrade Trade Training Facilities· Casuarina

Construction commenced or was continuing on the following capital projects during 2015:

Theatre Building Refurbishment Trade Training Facilities· Alice Springs Purple Precinct Refurbishment Palmerston Residential Estate

The residential development, known as The Heights, Durack progressed during 2015. A total of 32B blocks were sold through to 31 December 2015. The development will include a neighbourhood centre, parklands, wetland as well as a retirement village.

Works will continue during 2016.

Specific Purpose Grants

Included in the 2015 consolidated deficit amount of $13.9 million Is capital funding received of $3.9 million that ts committed to fund specific capital projects in 2015 and future years. This funding was received as specific purpose grant funds from the Federal and the Northern Territory Governments. The bulk of this funding was for VET training facilities.

Capital funding received In 2015 and recorded as revenue Included specific grants for the following projects:

·$1M Trades Training Centre FacHity

• SZ.9M Northern Territory Government Capital funding

Significant Cha.nges In the State of Affairs

No significant changes in the economic entity's state of affairs occurred during the financial year.

Matters Subsequent to the End of the Financial Year

Since the end of the financial year a portion of the VET funding provided from the Northern Territory Government has become subject to competitive tender. Apart from this there are no other matters or circumstances which significantly affected or may affect the operations of the economic entity, the results of those operations, or the state of the affairs of the economic entlty ln future financial years.

Likely Developments and Expected Results of Opera.tlons

Likely developments In the operations of the economic entity and the expected results of those operations in future financial years have not been included in this report as the inclusion of such information is likely to result in unreasonable preJudice to the economic entity.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES REPORT BY MEMBERS Of COUNCil

E·nvlronmontal R•gulaUon

The economk: entity ts subject to the foUowfng envtronmentat r~utat1ons:

Gene Technotog:y Act 2000 (amended 2008) and Gene Technology R~gulatfoM 2001 Gene Technology {Northem Tetr1tory) Act 2(1().4

Radlatton Protection Act 2009 and Radiation ProtKtioo Regulations 2011 Danserous Goods Act 2012 and Danaerous Goods Regutauons 2012

Ttansport or Dangerous Goods by Rail and Road (National Uniform Leglstat1on} Act 2010 Waste Disposal on Royal Oarwfn Hospital Campo$ Rtgul.\Uons

Waste Management and PottuUonControlAct 2011 and Regu1atlons tntemauonal Aft Transpoft Associat-Ion (lATA) Danserous Goods ReautaUoos

Insurance of ofUcors

TM Group has insurance in place to iMure the members of the Couocn and Its Committees and the OUicers llgalnst c1atms arising from thctr lnVolVOfl,'IC'flt fn tne actlvttiM of the ec:onomk MIJ~y. The ccwer for Menzies Schoot of Health Resl!arch is ~S million and for-Charles Oarwfn University is $10 mHllon.

Proce~dings on behalf o( the entity

There were no material proceedings Ollf:Oine a£alnst the Universfty at the-end of 2015.

This repoct ls made ln i.'ICcordanc~ with a rcsotutlon of the membeB or lhe Councrl.

CHAIICELLOR VICE·CHANCELLOR

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES ANNUAL FINANCIAL REPORT- 31 DECEMBER 2015

Contents

Financial Report

Income Statement

Statement of Comprehensive Income Statement of Financial Position Statement of Changes in Equity Statement of Cash Flows

Notes to the Financial Statements Certifications

Auditor's Report

Page

7 B 9 10 11 12-60

61 62

The financial report was authorised for issue by the members of Council of Charles Darwin University on

13 May 2016.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015

Not• Consolidated Parent Enti~

2015 2014 2015 2014

$'000 $'000 $'000 $'000

Income from continuing operations Australian Government financial assistance

Australian Government grants 3 99,624 121,746 82,272 100,498

HELP" Australian Government payments 3 24,061 24,851 24,061 24,851

NT Government financial assistance 4 68,445 64,543 63,805 60,203

HECS - HELP student payments 5,342 5,949 5,347 5.949

Fees and charges 5 45,289 34.282 43,969 34,046

Investment revenue and income 6 4,001 4,491 3,135 3,232

Consultancy and contracts 7 19,875 24,909 13,414 15,760

Other revenue 8 32,582 56,339 32,701 55,342

Gains on disposal of assets

29

Share of profit or loss on investments accounted for

using the equity method 22 148 112 148 112

Total Income from continuing operations 308,003 339,514 268,852 302,285 Expenses from continuing operations

Employee-related expenses 9 177,040 171,395 154,034 147,703

Depreciation and amortisation 10 25,622 21,353 23,256 20,714

Repairs and maintenance 11 7,741 7,195 7,671 6,474

Impairment of assets 12 894 464 894 464

Losses on disposal of assets

29

Other expenses 13 110,602 126,328 104,880 119,916

Total expenses from continuing operations 321,899 330,556 291 000 295,271

Net result before income tax (131896) 8,958 j22, 148) 7,014

Income tax expense 1 (x)

Net result after Income lax for the period (13,896) 8,958 (22,148) 7,014

Net result attributable to members (13,896) 8.958 (22,148) 7,014

Net result attributable to members

from continuing operations (13,896) 8,958 (22,148) 7,014

The above Income Statement should be read in conjunclion wilh /he accompanying noles

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2015

Note Consolidated Parent Entity

2015 2014 2015 2014

$'000 $'000 $'000 $'000

Net result after income tax for the period (13,896) 8,958 (22, 148) 7,014

Gain/(loss) on value of available for sale financial

assets, net of tax 30(a)

4 24

Items that will not be reclassified to profit or loss Gainf(loss) on revaluation on land and buildings, net

of tax 30(a)

660 18,658 660 18,658

Total other comprehensive income 664 18,682 660 18,658

Total comprehensive income (13,232)

(21 ,488) 25,672

Total comprehensive income attributable to

members (13,232) 27,640 (21,488) 25,672

Total comprehensive income attributable to

members from continuing operations

27,640 (21,488)

The sbove Stslement of Comprehensive Income should be read in conjunction with the accompsnying notes.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2015

Note

Consolidated

2015 2014 2015 2014

$'000 $'000 $'000

ASSETS Current assets

Cash and cash equivalents

14 108,190 107,343 101,711 77,851

Receivables

15 6,085 21,543 4,800 19,130

Inventories

16 1,161 1,197 1,161

Other financial assets

19 844 1,985 824 776

Non-current assets classified as held for sale

20 16,244 16,976 16,244 16,976

Other non-financial assets

21 5,206 5,181 5,066 4,915

Total current assets

137,730 154,225 129,806 120,845

Non-current assets

Biological assets

17 718 2,135 718 2,135

Investment property

18 285 300

Investments accounted for using the equity method

22 576 428 576 428

Other financial assets

19 307 303

Property, plant and equipment

23 492,254

489,348 494,245

Intangible assets

24 32,239 16,395 521 529

Total non-current assets

526,379 524,165 491,163 497,337

Total assets

664,109 678,390 620,969 ^618,182

LIABILITIES

Current liabilities

Trade and other payables

25 5,978

9,641 9,353

Borrowings

26 ^2,000

^2,000

Provisions

27 25,866 24,718 22,396

Other liabilities

28 14,481 12,446 36,845

Total current liabilities 48,325

70,882

Non-current liabilities

Borrowings

26 ^{2,000 4,000 2,000}

Provisions

27 2,722 2,362 2,241

Total non-current liabilities 4,722 6,362 ^{4,241 6,055}

Total liabilities 53,047 54,096 75,123 50,989

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2015 Restricted Reserves Retained

Funds Earnings Total

$'000

Consolidated

Balance at 1 January 2014

39,856 235,581 321,371 596,808

Net result

8,958 8,958

Gain/(loss) on revaluation on land and buildings,

net of lax

18,658 18,658

Gain/(loss) on value of available for sale financial

assets, net of tax

24 24

Total comprehensive income

18,682

27,640

Transfers (to)lfrom restricted reserves

827 {827)

Transfers (to)lfrom revaluation reserves (3,294) 3,294

Transfers from retained earnings

{154) 154

Balance at31 December 2014

40,683 250,969 332,642 624,294

Balance at 1 January 2015 40,683 250,969

624,294

Net result (13,896)

(13,896)

Gain/(loss) on revaluation on land and buildings,

net of tax

660 660

Gain/(loss) on value of available for sale financial

assets, net of tax

4 4

Total comprehensive income

664

Transfers (to)/from restricted reserves (11,715) 11,715

Transfers (to)/from revaluation reserves (6,663) 6,663

Transfers from retained earnings

Balance at 31 December 2015 28,968 244,970 337,124 611,062

Parent

Balance at 1 January 2014 39,856 225,429 260,472 525,757

Net result 7,014 7,014

Other comprehensive income 18,658 18,658

Total comprehensive income 18,658 7,014 25,672

Transfers (to)/from restricted reserves

827 {827)

Transfers (to)/from revaluation reserves (118)

118

Transfers from retained earnings (154) (154)

Distribution from Subsidiaries 15,918 15,918

Balance at 31 December 2014 40,683 243,969 282,541 567,193

Balance at 1 January 2015 40,683 243,969 282,541 567,193

Net result (22,148) (22,148)

Other comprehensive income

660 660

Total comprehensive Income

660

Transfers (to)/from restricted reserves (11,715) 11,715

Transfers (to)/from revaluation reserves (5,921) 5,921

Distribution from Subsidiaries

141 141

Balance at 31 December 2015 28,968 238,708 278,170 545,846

The ebo~e Sla/emeti/ of Changes in Equity should be read in conjunclion with the accompMying notes.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2015

Note Consolidated Parent Entit~

2015

2015

$'000

$'000

Cash flows from operating activities

Australian Government Grants 3(h}

128,191

108,000

OS-HELP (net) 3(h)

(15)

(15)

Superannuation Supplementation 3(h)

29

29

State Government Grants

82,515

77,875

HECS-HELP student payments

5,342

5,347

Receipts from student fees and other customers

96,880

110,827

Interest received

3,957

3,087

Proceeds from sale of biological assets

1,851

1,851

Payments to suppliers and employees

(296,817)

(264,059)

Net cash provided by operating activities 40

21,933

42,942

Cash flows from investing activities

Proceeds from sale of property, plant and equipment

1,679

1,679

(20,765)

(18,761)

Payments for biological assets (44) (44)

Other investing outflows ( 11 0) (110)

Net cash used in investing activities

(19,086)

(17,082)

Cash flows from financing activities

Repayment of borrowings

(2,000)

(2,000}

Net cash used in financing activities

(2,000)

(2,000)

Net increase I (decrease) in cash and cash equivalents

847

23,860

Cash and cash equivalents at the beginning of the financial year

107,343

77,851

Cash and cash equivalents at the end of the financial year 14

108,190

101,711

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES ANNUAL FINANCIAL REPORT- 31 DECEMBER 2015

Note Contents of the notes to the financial statements Summary of significant accounting policies

2 Disaggregated information Income

3 Australian Government financial assistance including Australian Government loan programs (HELP)

4 Northern Territory Government financial assistance 5 Fees and charges

6 Investment revenue and other investment income 7 Consultancy and contracts

8 Other revenue and income Expenses

9 Employee-related expenses 10 Depreciation and amortisation 11 Repairs and maintenance 12 Impairment of assets 13 Otherexpenses

Assets

14 Cash and cash equivalents 15 Receivables

16 Inventories 17 Biological assets 18 Investment property 19 Other financial assets

20 Non-current assets classified as held for sale 21 Other non-financial assets

22 Investments accounted for using the equity method 23 Property, plant and equipment

24 Intangible assets Liabilities

25 Trade and other payables 26 Borrowings

27 Provisions 28 Other liabilities

29 Gain/(loss) on disposal of assets Equity

30 Reserves, restricted funds and retained earnings 31 Key management personnel disclosures

32 Remuneration of auditors 33 Contingencies

34 Commitments 35 Related parties 36 Subsidiaries 37 Joint operations 38 Economic dependency

39 Events occurring after the balance sheet date

40 Reconciliation of operating result after income tax to net cash flows from operating activities 41 Financial risk management

42 Acquittal of Australian Government financial assistance

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Charles Darwin University was enacted as a Body Corporate on 5 November 2003 by the Charles Darwin University Act 2003 (the Act) and is domiciled in Australia. The University is subject to all directions of the Council of the University. The functions of the University are set out in Section 5 of the Act. Under the provisions of the Act, at its commencement, Charles Darwin University assumed all the property, rights and liabilities of Northern Territory University, Centralian College (Alice Springs based), and Northern Territory Rural College (Katherine based), except for the superannuation liability for Centralian College which remained with the Northern Territory Government's Central Holding Authority. Subsequently as per the Charles Darwin University Act 2003 and amendment to the Menzies School of Health Research Act, the Menzies School of Health Research became a controlled entity of the University from 1 January 2004.

The principal address of Charles Darwin University is Ellengowan Drive, Casuarina, Darwin.

The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied for all years reported, unless otherwise stated. The financial statements include separate statements of Charles Darwin University as the parent entity and the consolidated entity consisting of Charles Darwin University and its controlled entities.

(a) Basis of preparation

The annual financial statements represent the audited general purpose financial statements of Charles Darwin University. They have been prepared on an accrual basis and comply with Australian Accounting Standards, AASB Interpretations, Australian Charities and Not-for-profits Commission Act 2012, the Australian Charities and Not-for-profits Commission Regulation 2013, the requirements of the Department of Education and other State/Australian Government legislative requirements.

Charles Darwin University is a not-for-profit entity and these statements have been prepared on that basis. Some of the Australian Accounting Standards requirements for not-for-profit entities are inconsistent with the International Financial Reporting Standards (I FRS) requirements.

-Accounting for Government grants. AASB 1004 "Contributions" requires contributions received or receivable to be recognised immediately as revenue when; the entity obtains control of the contribution or the right to receive the contribution; it is probable that the economic benefits comprising the contribution will flow to the entity; and the amount of the contribution can be measured reliably.

Date of authorisation for issue

The financial statements were authorised for issue by the members' Council of Charles Darwin University on 13 May 2016.

Historical cost convention

These financial statements have been prepared under the historical cost convention, as modified by the revaluation of available-for-sale financial assets, financial assets and liabilities at fair value through profit or loss, certain classes of property, plant and equipment and investment property.

Critical accounting estimates

The preparation of financial statements in conformity with Australian Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Charles Darwin University's accounting policies.

The estimates and underlying assumptions are reviewed on an ongoing basis. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, have been explained in the accounting policy notes.

(b) Basis of consolidation (i) Subsidiaries

The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Charles Darwin University ("parent entity") as at 31 December 2015 and the results of all subsidiaries for the year then ended. Charles Darwin University and its subsidiaries together are referred to in this financial report as the Group or the consolidated entity.

Subsidiaries are all those entities (including structured entities) over which the Group has control. The Group has control over an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Power over the in vestee exists when the Group has existing rights that give it current ability to direct the relevant activities of the investee. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controls another entity. Returns are not necessarily monetary and can be only positive, only negative, or both positive and

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Entities controlled by Charles Darwin University and forming part of the Charles Darwin University consolidated entity are as follows:

-Charles Darwin University

-Charles Darwin University Foundation Trust -Charles Darwin University Charitable Trust - CDU Amenities Limited

-Menzies School of Health Research (ii) Joint arrangements

Joint operations

The Charles Darwin University share of assets, liabilities, revenue and expenses of a joint operation have been incorporated in the financial statements under the appropriate headings. Details of the joint operation are set out in Note 37.

Joint venture entities

The interests in joint venture entities are accounted for in the consolidated financial statements using the equity method and is carried at cost by the parent entity. Details relating to joint ventures are set out in Note 22. Under the equity method, the share of the profits or losses of the entity is recognised in the income statement, and the share of movements in reserves is recognised in reserves in the statement of comprehensive income and the statement of changes in equity.

(c) Foreign currency translation (i) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ('the functional currency'). The consolidated financial statements are presented in Australian dollars, which is the University's functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions.

Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Amounts receivable and payable in foreign currencies are translated at the rate of exchange ruling at balance date. Translation differences on non-monetary financial assets and liabilities are recognised in the income statement as part of the fair value gain or loss.

(iii) Group entities

The results and financial position of all the Group is presented in Australian dollars.

(d) Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade allowances, rebates and amounts collected on behalf of third parties.

The Group recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Group and specific criteria have been met for each of the Group's activities as described below. In some cases this may not be probable until consideration is received or an uncertainty is removed. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Revenue is recognised for the major business activities as follows:

(i) Government grants

The Group treats operating grants received from Australian Government entities as income in the year of receipt. Grants from the government are recognised at their fair value where the Group obtains control of the right to receive the grant, it is probable that economic benefits will flow to the Group and it can be reliably measured.

(ii) HELP (Higher Education Loan Program) payments

Revenue from HELP is categorised into those received from the Australian Government and those received directly from students. Revenue is recognised and measured in accordance with the above disclosure.

(iii) Student fees and charges

Fees and charges are recognised as income in the year of receipt, except to the extent that fees and charges relate to courses to be held in future periods. Such receipts (or portion thereof) is treated as income in advance in liabilities. Conversely, fees and charges relating to debtors are recognised as revenue in the year to which the prescribed course relates.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(iv) Consultancy and Contracts/Fee for Service

Contract revenue is recognised in accordance with the percentage of completion method. The stage of completion is determined within the individual contracts.

(v) Sale of goods and disposal of assets

Revenue from the sale of goods and disposal of assets is recognised when the group has passed control to the buyer.

(vi) Contribution of assets

Revenue arising from the contribution of assets is recognised when the group gains control of the contribution or the right to receive the contribution.

(vii) Liabilities forgiven

The gross amount of a liability forgiven by a credit provider is recognised as revenue.

(e) Cash and cash equivalents

For statement of cash flow presentation purposes, cash and cash equivalents includes cash-an-hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of twelve months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

(f) Leases

Leases of property, plant and equipment where the Group, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases, are capitalised at the lease's inception at the lower of the fair value of the leased property and the present value of the minimum lease payments. The property, plant and equipment acquired under finance leases is depreciated over the shorter of the leased item's useful life and the lease term (using the straight-line method).

Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.

Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight line basis over the lease term. Lease expenditure relating to leases deemed to be "operating leases" is expensed as incurred.

(g) Impairment of assets

Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Other assets that are subject to amortisation are reviewed whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows which are largely independent of the cash inflows from other assets or groups of assets (cash generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at each reporting date.

(h) Trade receivables

Trade receivables are recognised initially at fair value being original invoice amount, subsequently measured at amortised cost, less provision for impairment. Trade receivables are due for settlement within no more than 30 days.

Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off. A provision for impairment of receivables is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The amount of the provision is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The amount of the provision is recognised in the income statement.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(i) Inventories

Raw materials and stores, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials and direct labour. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

U) Non-current assets (or disposal groups) held for sale and discontinued operations

Non-current assets (or disposal groups) are classified as held for sale and stated at the lower of their carrying amount and fair value less costs of disposal, if their carrying amount will be recovered principally through a sale transaction rather than through continuing use.

An impairment loss is recognised for any initial or subsequent write down of the asset (or disposal group) to fair value less costs to sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal group), but not in excess of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-current asset (or disposal group) is recognised at the date of derecognition.

Non-current assets classified as held for sale and the assets of a disposal group classified as held for sale are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

(k) Investments and other financial assets Classification

The Group classifies its investments in the following categories: financial assets at fair value through profit or loss; loans and receivables; held- to-maturity investments; and available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Management determines the classification of its investments at initial recognition and, in the case of assets classified as held-to- maturity, re-evaluates this designation at each reporting date.

(i) Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss include financial assets held for trading. A financial asset is classified in this category if it is acquired principally for the purpose of selling in the short term. The University does not enter into derivative contracts. Assets in this category are classified as current assets.

(ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for those with maturities greater than twelve months after the balance sheet date which are classified as non- current assets. Loans and receivables are included in receivables in the balance sheet.

(iii) Held-to-maturity investments

Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturities that the Group's management has the positive intention and ability to hold to maturity.

(iv) Available-for-sale financial assets

Available-for-sale financial assets, comprising principally marketable equity securities, are non-derivatives that are either designated in this category or not classified in any of the other categories. They are included in non-current assets unless management intends to dispose of the investment within twelve months of the balance sheet date.

Subsequent measurement

Available-for-sale financial assets and financial assets at fair value through profit and loss are subsequently carried at fair value. Loans and receivables and held-to-maturity investments are carried at amortised cost using the effective interest method. Gains or losses arising from changes in the fair value of the 'financial assets at fair value through profit or loss' category are included in the income statement within other income or other expenses in the period in which they arise.

Changes in the fair value of a monetary security denominated in a foreign currency and classified as available-for-sale are analysed between translation differences resulting from changes in amortised cost of the security and other changes in the carrying amount of the security (other than interest). The translation differences related to changes in the amortised cost are recognised in profit or loss, and other changes in carrying amount (other than interest) are recognised in equity. Changes in the fair value of other monetary and non-monetary securities classified as available-for-sale are recognised in equity.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Fair value

The fair values of investments and other financial assets are based on quoted prices in an active market. If the market for a financial asset is not active (and for unlisted securities), the Group establishes fair value by using valuation techniques, that maximise the use of relevant data. These include reference to the estimated price in an orderly transaction that would take place between market participants at the measurement date.

Other valuation techniques used are the cost approach and the income approach based on the characteristics of the asset and the assumptions made by market participants.

Impairment

The Group assesses at each balance date whether there is objective evidence that a financial asset or group of financial assets is impaired. In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of a security below its cost is considered in determining whether the security is impaired. If any such evidence exists for available-for-sale financial assets, the cumulative loss- measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that financial asset previously recognised in profit and loss- is removed from equity and recognised in the income statement. Impairment losses recognised in the income statement on equity instruments are not reversed through the income statement.

Fair value measurement

The fair value of assets and liabilities must be measured for recognition and disclosure purposes.

The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of inputs used in making the measurements.

The fair value of assets or liabilities traded in active markets is based on quoted market prices for identical assets or liabilities at the balance sheet date. The quoted market price used for assets held by the Group is the most representative of fair value in the circumstances within the bid-ask spread.

The fair value of instruments that are not traded in an active market is determined using valuation techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date.

Fair value measurement of non-financial assets is based on the highest and best use of the asset. The Group considers market participants use of, or purchase price of the asset, to use it in a manner that would be highest and best use.

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values due to their short- term nature. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

(I) Biological assets Livestock

Livestock consists of cattle and horses located at Katherine Rural Campus. Livestock are measured at their fair value less estimated point of sale costs. The fair value of the livestock is determined by an independent valuation based on market prices for livestock in the local area, at the time of sale. Changes in the fair value less estimated point of sale costs are recognised in the income statement in the year they arise plus purchases of livestock are recorded as cash flows used in investing activities. Further details are disclosed in Note 17.

(m) Property, plant and equipment

Land and buildings (except for investment properties- refer to Note 18) are shown at fair value, based on periodic, but at least triennial, valuations by external independent valuers, less subsequent depreciation for buildings. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. All other property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Increases in the carrying amounts arising on revaluation of land and buildings are recognised, net of tax, in other comprehensive income and accumulated in equity under the heading revaluation surplus. To the extent that the increase reverses a decrease previously recognised in profit or loss, the increase is first recognised in profit or loss. Decreases that reverse previous increases of the same asset are also firstly recognised in other comprehensive income before reducing the balance of revaluation surpluses in equity, to the extent of the remaining reserve

attributable to the asset; all other decreases are charged to the income statement.

Land and Works of Art are not depreciated. Depreciation on other assets is calculated using the straight line method to allocate their cost or revalued amounts, net of their residual values, over their estimated useful lives, as follows:

Buildings including demountables Building improvements

Leasehold land and improvements

Plant and equipment Library books and periodicals Furniture and fittings Motor vehicles

2015

Useful life or unexpired period of the lease, whichever is shorter 3-8 years

10 years 5 years 3-4 years

2014

Useful life or unexpired period of the lease, whichever is shorter 3-8 years

10 years 5 years 3-4 years

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Charles Darwin University has adopted the policy of revaluing its land and buildings once every three years unless there is a material change in the market value. Colliers International NT carried out a desktop valuation of land and buildings as at 31 December 2014 and 2015. The basis of the valuation was fair value methodology. The fair value of an asset generally equates to the asset's market price and where reliable evidence was not available the asset's depreciated replacement cost has been assumed to be its fair value. Land improvements were valued by Colliers International NT in December 2015 using fair value methodology. All additions during 2015 have been recorded at cost which equates approximately to fair value. The Palmerston Campus freehold land revaluation is disclosed in Note 23.

The library and works of art collections were revalued by Colliers International NT in December 2015. The basis of the valuation was fair value.

The valuation performed in December 2015 was not included in the financial statements as at year end except for works of art collections.

(n) Repairs and Maintenance

Repairs and maintenance costs are recognised as expenses as incurred, except where they relate to the replacement of a component of an asset, in which case, the costs are capitalised and depreciated. Other routine operating maintenance, repair and minor renewal costs are also recognised as expenses, as incurred.

(o) Intangible assets

(i) Software is carried at cost less accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to allocate the cost of software over their estimated useful lives.

(ii) Right of use of research building- is carried at the present value of lease payments measured at fair value less accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to allocate the present value of lease payments measured at fair value.

Amortisation on intangible assets is calculated using the straight line method to allocate their cost, net of their residual values, over their estimated useful lives, as follows:

Intangible assets

(p) Trade and other payables

2015

2014

These amounts represent liabilities for goods and services to the Group prior to the end of the financial year and which are unpaid. The amounts are unsecured and are normally paid within 30 days of recognition.

(q) Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the income statement over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities, which are not incremental cost relating to the actual draw-down of the facility, are recognised as prepayments and amortised on a straight-line basis over the term of the facility.

Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in other income or other expenses.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date and does not expect to settle the liability for at least 12 months after the balance sheet date.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(r) Borrowing costs

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they occurred.

(s) Employee benefits (i) Shorl-term obligations

Liabilities for short-term employee benefits including wages and salaries, non-monetary benefits and profit-sharing bonuses are measured at the amount expected to be paid when the liability is settled, if it is expected to be settled wholly before twelve months after the end of the reporting period, and is recognised in other payables. Liabilities for non-accumulating sick leave are recognised when the leave is taken and measured at the rates payable.

(H) Other long-term obligations

The liability for other long-term obligations are those that are not expected to be settled wholly before twelve months after the end of the annual reporting period. Other long-term employee benefits include such things as annual leave and long service leave liabilities.

The obligations are measured at the present value of expected future payments to be made in respect of services provided by employees up to the reporting date using the projected unit credit method. Consideration is given to expected future wage and salary levels, experience of employee departures and periods of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimate future cash outflows.

Regardless of the expected timing of settlements, provisions made in respect of employee benefits are classified as a current liability, unless there is an unconditional right to defer the settlement of the liability for at least twelve months after the reporting date, in which case it would be classified as a non-current liability.

(iii) Profit-sharing and bonus plans

The Group recognises a liability and an expense for bonuses and profit-sharing based on a formula that takes into consideration the entity's positive adjusted operating result. The Group recognises a provision where it is contractually obliged or where there is a past practice that has created a constructive obligation.

(iv) Retirement benefit obligations

The Group does not have any retirement benefit obligations.

(v} Termination benefits

Termination benefits are payable when employment is terminated before the normal retirement date, or when an employee accepts an offer of benefits in exchange for the termination of employment. The Group recognises termination benefits when it can no longer withdraw the offer of those benefits or when it has recognised costs for restructuring within the scope of AASB137 that involves the payment of termination benefits when it is demonstrably committed to either terminating the employment of current employees according to a detailed formal plan without possibility or withdrawal or providing termination benefits as a result of an offer made to encourage voluntary redundancy.

Termination benefits are measured on initial recognition and subsequent changes are measured and recognised in accordance with the nature of the employee benefit. Benefits not expected to be settled wholly before twelve months after the reporting period are discounted to present value.

(t) Superannuation

The Group contributes to several superannuation funds on a pay-as-you-go basis. Employee contributions are based on various percentages of their gross salaries. After serving a qualifying period, all employees are entitled to benefits on retirement, disability or death. Under these schemes the Group's legal obligation is limited to the amount that it agrees to contribute to the fund and the actuarial and investment risks fall on the employee.

Most of the funds provide defined benefits based on years of service, employee contributions and final average salary. The Group is under no legal obligation to make up any shortfall in the funds assets to meet payments due to employees.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

(u) Rounding of amounts

Amounts in the financial statements have been rounded off in accordance with Class Order 98/100 as amended by Class Order 04/667 issued by the Australian Securities and Investment Commission, relating to the rounding off of amounts in the financial statements. Amounts have been rounded off to the nearest thousand dollars.

(v) Provisions

Provisions for legal claims and service warranties are recognised when there is a present legal or constructive obligation as a result of past event; and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the balance sheet date. The discount rate used to determine the present value reflects current market assessments of the time value of money, and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as a finance cost.

(w) Web site costs

Costs in relation to web sites controlled by the University are charged as expenses in the period in which they are incurred unless they relate to the acquisition of an asset, in which case they are capitalised and amortised over their period of expected benefit.

(x) Taxation

Charles Darwin University is a public authority within the meaning of Section 50-25 of the Income Tax Assessment Act 1997 and its income is exempt under the provisions of that Act.

Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except:

(i) Where the amount of GST incurred is not recoverable from the Australian Tax Office, the GST is recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

(ii) For receivables and payables which are recognised inclusive of GST.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

The University incurs Payroll Tax at the rate determined by the state and territory governments for payments made to and benefits received by employees.

(y) Investment property

Investment properties exclude properties held to meet service delivery objectives of the Group.

Investment properties are initially recognised at cost. Costs incurred subsequent to initial acquisition are capitalised when it is probable that future economic benefits in excess of the originally assessed performance of the asset will flow to the Group. Where an investment property is acquired at no cost or for nominal consideration, its cost shall be deemed to be its fair value as at the date of acquisition.

Subsequent to initial recognition at cost, the investment property is carried at fair value, which is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specific asset. If this information is not available, the Group uses alternative valuation methods such as recent prices in less active markets or discounted cash flow projections. These valuations are reviewed annually by a member of the Australian Property Institute. Changes in fair values are recorded in the income statement as part of the other income.

Rental revenue from the leasing of investment properties is recognised in the income statement in the periods in which it is receivable, as this represents the pattern of service rendered through the provision of the properties.

(z) Comparative amounts

Where necessary, comparative information has been reclassified to enhance comparability in respect of changes in presentation adopted in the current year.

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (aa) New accounting standards and interpretations

Adoption of new and revised accounting standards

In the current year Charles Darwin University has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that are relevant to its operations and effective for the current annual reporting period. The adoption of these new and revised Standards and Interpretations has not resulted in changes to the accounting policies of the Group, except for adoption of AASB 11.

At the date of authorisation of the financial report, the following standards and interpretations had been issued but were not mandatory for the financial year.

Effective for Annual Expected to be Likely impact on initial Standards/Interpretation Reporting initially applied in application

Period Beginning On the financial year

or After endin

MSB 9 'Financial Instruments' 1 January 2018 31 December 2018 There will be no

(December 2014)- (Also refer to material impact on the

MSB 2010-7 and AASB 2014-7 entity

below)

AASB 14 'Regulatory Deferral 1 January 2016 31 December 2016 There will be no

Accounts' material impact on the

entity

AASB 15 'Revenue from Contracts 1 January 2018 31 December 2018 The entity has not yet

with Customers' assessed the full

impact of this Standard

AASB 16 'Leases' 1 January 2019 31 December 2019 The entity has not yet assessed the full impact of this Standard

AASB 2010-7 'Amendments to 1 January 2018 31 December 2018 There will be no

Australian Accounting Standards material impact on the

arising from AASB 9 (December entity

2010)

AASB 2014-3 'Amendments to 1 January 2016 31 December 2016 There will be no

Australian Accounting Standards - material impact on the

Accounting for Acquisitions of entity

Interests in Joint Operations (AASB 1 and AASB 11)

AASB 2014-4 'Amendments to 1 January 2016 31 December 2016 There will be no

Australian Accounting Standards - material impact on the

Clarification of Acceptable Methods entity

of Depreciation and Amortisation (AASB 116 & AASB 138)

AASB 2014-5 'Amendments to 1 January 2018 31 December 2018 The entity has not yet

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Effective for Annual Expected to be Likely impact on initial Standards/Interpretation Reporting initially applied in application

Period Beginning On the financial year

or After ending

AASB 2014-9 'Amendments to 1 January 2016 31 December 2016 There will be no

Australian Accounting Standards- material impact on the

Equity Method in Separate Financial entity

Statements (AASB 1, 127 and 128)

AASB 2014-10 'Amendments to 1 January 2016 31 December 2016 There will be no impact

Australian Accounting Standards- on the entity

Sale of Contribution of Assets between an Investor and its Associate of Joint Venture (AASB 10

&AASB 128)

AASB 2015-1 'Amendments to 1 January 2016 31 December 2016 There will be no

Australian Accounting Standards- material impact on the

Amendments to Australian entity

Accounting Standards- Annual Improvements to Australian Standards 2012-2014 Cycles

AASB 2015-2 'Amendments to 1 January 2016 31 December 2016 There will be no

Australian Accounting Standards - material impact on the

Disclosure Initiative; Amendments to entity

AASB 101

AASB 2015-3 'Amendments to 1 January 2016 31 December 2016 There will be no

Australian Accounting Standards material impact on the

arising from the Withdrawal of AASB entity

1031 Materiality

AASB 2015-6 'Amendments to 1 July 2016 31 December 2017 There will be no

Australian Accounting Standards - material impact on the

Extending Related Party Disclosures entity

to Not-for-Profit Public Sector Entities (AASB 10, AASB 124 &

AASB 1049)

AASB 2015-7 'Amendments to 1 July 2016 31 December 2017 There will be no

Australian Accounting Standards- material impact on the

Fair Value Disclosures of Not-for- entity

Profit Public Sector Entities (AASB 13)

CHARLES DARWIN UNIVERSITY AND ITS CONTROLLED ENTITIES

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED

31

2015

NOTE 2: DISAGGREGATED INFORMATION (a) Industry- Dual Sector Providers (Parent)

Operating revenues and expenses for Higher Education and VET are shown in the following tables. The figures refer only to the parent entity; consolidated totals are not included. Discrete sets of accounts are not maintained for these divisions. They have been derived based on the results of castings determined via Activity Based Costing.

Parent Entity Parent Entity

Higher Total Higher Total

Note Education VET Parent Education VET Parent

2015 2015 2015 2014 2014 2014

$'000 $'000 $'000 $'000 $'000 $'000

INCOME STATEMENT

Income from continuing operations

Australian Government financial assistance 3 75,816 6,456 82,272 82,554 17,944 100,498 Australian Government grants

HECS - HELP Australian Government payments 3 23,699 362 24,061 24,851 24,851

NT Government financial assistance 4 11,676 52,129 63,805 7,418 52,785 60,203

HECS - HELP student payments 5,347 5,347 5,824 125 5,949

Fees and charges 5 37,275 6,694 43,969 26,540 7,506 34,046

Investment revenue 6 2,025 1,110 3,135 2,036 1,196 3,232

Consultancy and contracts 7 12,990 424 13,414 15,618 142 15,760

Other revenue 8 21,356 11,345 32,701 34,745 20,597 55,342

Gain on disposal of assets 29 1,444 848 2,292

Share of profit or loss on investments accounted

for using the equity method 22 148 148 112 112

Total income from continuing operations 190,332 78,520 268,852 201,142 101,143 302,285 Expenses from continuing operations

Employee related expenses 9 99,506 54,528 154,034 93,053 54,650 147,703

Depreciation and amortisation 10 15,023 8,233 23,256 13,050 7,664 20,714

Repairs and maintenance 11 4,956 2,715 7,671 4,079 2,395 6,474

Impairment of assets 12 578 316 894 292 172 464

Losses on disposal of assets 29 (622) 887 265

Other expenses 13 67,752 37,128 104,880 75,547 44,369 119,916

Total expenses from continuing operations 187,193 103,807 291,000 186,021 109,250 295,271

Net result before income tax 3,139 (25,287) (22,148) 15,121 (8, 107) 7,014

Income tax expense 1(x)

Net result after income tax for the period 3,139 (25,287) (22,148) 15,121 {8,107) 7,014 Net result attributable to non-controlling interest

Net result attributable to members from

continuing operations 3,139 (25,287) (22,148) 15,121 (8,107) 7,014