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City of Glasgow College Annual Report & Accounts 2020-21
CITY OF GLASGOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 12 MONTHS ENDED 31 JULY 2021
a. Land and buildings
b. Equipment
Intangible Fixed Assets
Leased assets
Investments
Stocks
Where land and buildings are funded by grants from non government sources, the grants are
recognised in income when the College is entitled to the income and performance related
conditions have been. Income received in advance of performance conditions being met is
recognised as deferred income with creditors on the balance sheet and released to income when
performance conditions have been met.
Where equipment is acquired with the aid of specific grants it is capitalised and depreciated in
accordance with the above policy.
Assets which are held under hire purchase contracts which have the characteristics of finance
leases are depreciated over their useful lives.
Fixed asset investments that are not listed on a recognised stock exchange are carried at
historical cost less any provision for impairment in their value.
Stocks are stated at the lower of their cost and net realisable value. Where necessary, provision
is made for obsolete, slow moving and defective stocks.
Current asset investments are included at the lower of their cost and net realisable value.
Where equipment is funded by government grants, the grants are recognised as income over the
period in which the College 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.
Where equipment is funded by grants from non government sources, the grants are recognised
in income when the College is entitled to the income and performance related conditions have
been met. Income received in advance of performance conditions being met is recognised as
deferred income with creditors on the balance sheet and released to income when performance
conditions have been met.
Equipment costing less than £10,000 is written off to the Statement of Comprehensive Income in
the period of acquisition. All other equipment is capitalised at cost. Capitalised equipment is
depreciated over its useful economic life of four years; except for specialised Engineering and
Nautical equipment which is depreciated over 20 years.
When expenditure the recognition criteria for capitalisation as set out in FRS 102 18.4 and 18.8H,
the asset will be depreciated on a straight line basis over its useful economic life.