2021 Annual Report web - Flipbook - Page 35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Note 2. Summary of Significant Accounting Policies (continued)
(b) Basis of Consolidation
The consolidated financial statements comprise the financial statements of Christian Outreach Centre and its
subsidiaries and special purpose entities (the Group) as at 31 December 2020. Control is achieved when the
Group is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability
to affect those returns through its power over the subsidiary. Specifically, the Group controls a subsidiary if and
only if the Group has:
Power over the subsidiary (i.e. existing rights that give it the current ability to direct the relevant activities
of the subsidiary);
ii) Exposure, or rights, to variable returns from its involvement with the subsidiary; and
iii) The ability to use its power over the subsidiary to affect its returns.
When the group has less than a majority of the voting or similar rights of a subsidiary, the Group considers all
relevant facts and circumstances in assessing whether it has power over a subsidiary including:
The contractual arrangement with the other vote holders of the subsidiary
ii) Rights arising from other contractual arrangements
iii) The Group's voting rights and potential voting rights
All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between
members of the Group are eliminated in full on consolidation.
Revenue from government grants received under enforceable agreements, where there are sufficiently specific
performance obligations imposed, is deferred until the obligations are satisfied. If the performance obligations
are not sufficiently specific, revenue will be recognised upon receipt.
Donations, Tithes and Offerings
Revenue from fundraising, including donations titles and offerings, is recognised when received.
Tuition and Educational Related Income
Fees and other educational related income is recognised on an accruals basis consistent with the provision of
the relevant educational service, and taking into consideration the completion of all material performance
Rendering of Services
Revenue from services provided by the Group is recognised over time as the services are rendered.
Sale of Goods
Revenue from sale of goods is recognised at the point in time when the customer obtains control of the goods,
which is generally at the time of the delivery.
Interest income is recognised as interest accrues using the effective interest method. This is the method of
calculating the amortised cost of a financial asset and allocating the interest income over the relevant period
using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through
the expected life of the financial assets to the net carrying amount of the financial assets.
All revenue is stated net of the amount of goods and services tax (GST).