City of Glasgow College Annual Report & Accounts 2019-20
CITY OF GLASGOW COLLEGE
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 12 MONTHS ENDED 31 JULY 2020
3 STATEMENT OF ACCOUNTING POLICIES
Basis of Accounting
Recognition of Income
The financial statements are prepared in accordance with the historical cost convention modified
by the revaluation of certain fixed assets.
Government revenue grants including the funding council block grant are recognised in income
over the periods 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 more than one year as
Grants from non government sources 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 related conditions being met is recognised as deferred income within creditors on
the balance sheet and released to income as the conditions are met.
Although Covid-19 has has a significant impact on the College's finances the Board of
Management is satisfied that it has adequate resources to continue in operation for the
foreseeable future, for this reason the going concern basis continues to be adopted in the
preparation of the financial statements.
Income from tuition fees and from short-term deposits are credited to the Statement of
Comprehensive Income in the period in which they are earned. Income from specific
endowments and donations is included to the extent of the relevant expenditure incurred during
the period, together with any related contributions towards overhead costs.
Income from contracts and other services rendered is included to the extent of completion of the
contract or service concerned. This is generally equivalent to the sum of the relevant expenditure
incurred during the period and any related contributions towards overhead costs.