Novosibirsk State University (NSU)
Financial statements
prepared in accordance with
International Public Sector Accounting Standards (IPSAS)
for the year ended 31 December 2014
Novosibirsk State University (NSU)
Financial statements
prepared in accordance with
International Public Sector Accounting Standards (IPSAS)
for the year ended 31 December 2014
Contents
Independent auditors’ report ............................................................................................................ 1
Statement of financial position ........................................................................................................ 3
Statement of financial performance ................................................................................................ 4
Statement of changes in net assets ................................................................................................. 5
Statement of cash flows .................................................................................................................. 6
Statement of comparison of budgeted and actual amounts ............................................................ 7
Notes to the financial statements ..................................................................................................... 9
Independent auditors’ report
To the Founder and Supervisory Board of Novosibirsk State University
We have audited the accompanying financial statements of Novosibirsk State University (the “University”), which
comprise the statement of financial position as at 31 December 2014 and the statement of financial performance,
statement of changes in net assets, statement of cash flows and statement of comparison of budgeted and actual
amounts for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements
The University’s management is responsible for the preparation and fair presentation of these financial statements in
accordance with International Public Sector Accounting Standards and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditors’ responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including an assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the University as at
31 December 2014 and its financial performance and cash flows for the year then ended in accordance with
International Public Sector Accounting Standards.
5 May 2015
Novosibirsk State University (NSU)
Statement of financial position
as at 31 December 2014
(All amounts are in thousands of Russian rubles, unless stated otherwise)
Notes
Assets
Non-current assets
Intangible assets
Property, plant and equipment
Investments in associates
At 31 December At 31 December At 31 December
2014
2013
2012
7
8
127,350
8,518,459
2,959
8,648,768
215,013
7,278,897
3,686
7,497,596
161,302
6,062,913
2,577
6,226,792
9
105,943
45,517
52,367
10,016
9,912
36,193
98,695
–
2,533
839,469
1,056,656
34,251
46,155
–
1,166,731
1,302,566
38,133
77,386
–
146,617
350,696
9,705,424
8,800,162
6,577,488
11
22
10,662
5,864
16,526
22,057
21,381
43,438
55,568
23,374
78,942
11
436,004
860,702
91,784
12
211,373
674,213
235,231
13
196,579
1,438
–
204,670
–
8,933
81,310
–
24,589
21,812
867,206
28,126
1,776,644
16,202
449,116
883,732
1,820,082
528,058
Net assets
Accumulated surplus
8,821,692
6,980,080
6,049,430
Total net assets
8,821,692
6,980,080
6,049,430
Total net assets and liabilities
9,705,424
8,800,162
6,577,488
Current assets
Inventories
Accounts receivable from exchange
transactions
Advances issued for exchange
transactions
Value added tax receivable
Income tax receivable
Cash and cash equivalents
10
Total assets
Net assets and liabilities
Liabilities
Non-current liabilities
Deferred revenue
Deferred tax liabilities
Current liabilities
Deferred revenue
Trade and other accounts payable from
exchange transactions
Advances received for exchange
transactions
Value added tax payable
Income tax payable
Other taxes and social contributions
payable
Total liabilities
_________________________________
Mikhail P. Fedoruk
Rector
_________________________________
Nadezhda A. Tarskikh
Chief Accountant
5 May 2015
The accompanying notes are an integral part of these financial statements.
3
Novosibirsk State University (NSU)
Statement of financial performance
for the year ended 31 December 2014
(All amounts are in thousands of Russian rubles, unless stated otherwise)
Notes
Revenue from non-exchange transactions
Government subsidies
Voluntary donations from individuals and legal entities
Revenue from rights to rent without compensation
Grants and other special-purpose receipts
Revenue from exchange transactions
Revenue from fee-based educational services
Revenue from research and development services
Revenue from other fee-based services
Other income
4,284,736
23,517
34,365
219,558
2,416,581
106,132
33,511
33,530
16
283,346
173,646
171,428
891
231,092
140,742
168,135
–
5,191,487
3,129,723
17
18
19
7, 8
21
Total expenses
Surplus before tax
Income tax benefit/(expense)
Surplus for the year
2013
14
15
Total revenue
Expenses
Employee costs
Social contributions
Purchases of goods and services
Depreciation and amortization expense
Scholarships
Taxes and other payments to the budget
Other expenses
2014
22
(1,574,517)
(423,218)
(578,618)
(508,265)
(196,690)
(84,014)
–
(841,971)
(211,451)
(450,944)
(401,032)
(144,940)
(92,036)
(2,936)
(3,365,322)
(2,145,310)
1,826,165
15,447
984,413
(53,763)
1,841,612
930,650
The accompanying notes are an integral part of these financial statements.
4
Novosibirsk State University (NSU)
Statement of changes in net assets
for the year ended 31 December 2014
(All amounts are in thousands of Russian rubles, unless stated otherwise)
Accumulated
surplus
Total net
assets
Balance as at 31 December 2012
Surplus for the year
6,049,430
930,650
6,049,430
930,650
Balance as at 31 December 2013
Surplus for the year
6,980,080
1,841,612
6,980,080
1,841,612
Balance as at 31 December 2014
8,821,692
8,821,692
The accompanying notes are an integral part of these financial statements.
5
Novosibirsk State University (NSU)
Statement of cash flows
for the year ended 31 December 2014
(All amounts are in thousands of Russian rubles, unless stated otherwise)
Notes
Operating activities
Surplus before tax
Adjustments to reconcile surplus before tax and net cash
flows:
Depreciation and amortization expenses
Charge/(reversal) of allowance for doubtful receivables
Donation of property, plant and equipment
Charge of provision for unused vacations
Loss on disposal of property, plant and equipment
Share of (profit)/loss of associates
Other non-cash operating expenses/(income)
Operating cash flows before changes in working
capital
Working capital adjustments:
(Increase)/decrease in receivables and advances issued
(Increase)/decrease in inventories
Increase/(decrease) in payables
Increase/(decrease) in deferred revenue
Increase/(decrease) in advances received
Income tax paid
Net cash flows from operating activities
Investing activities
Acquisition and construction of property, plant and
equipment
Acquisition and production of intangible assets
Net cash flows used in investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
2014
1,826,165
7, 8
15
12
8
508,265
(891)
(1,467)
128,031
5,432
727
1
2,466,263
2013
984,413
401,032
2,936
(66,238)
45,431
5,782
(1,109)
(1)
1,372,246
(17,502)
(60,426)
(34,823)
(436,093)
(8,091)
58,458
6,850
(44,891)
735,407
123,360
22
(11,536)
1,897,792
(71,411)
2,180,019
8
7
(2,191,213)
(33,841)
(2,225,054)
(1,046,330)
(113,575)
(1,159,905)
(327,262)
1,166,731
839,469
1,020,114
146,617
1,166,731
9
12
11
13
10
10
The accompanying notes are an integral part of these financial statements.
6
Novosibirsk State University (NSU)
Statement of comparison of budgeted and actual amounts
for the year ended 31 December 2014
(All amounts are in thousands of Russian rubles, unless stated otherwise)
Presented below are the University’s original and final budget for 2014 and 2013 and its execution
by the cash-basis method.
For the year ended 31 December 2014
Actual on a
Original Final budget, comparable
budget, 2014
2014
basis, 2014
Cash balance at the
beginning of the year
Perfor-mance
difference,
thousands Performance
of rubles difference, %
1,166,644
1,127,343
1,166,731
39,388
3%
Cash proceeds, total
Including:
Subsidy for the government
task
Other subsidies
Subsidy for the construction
Fee-based services and other
income-generating activities
2,619,874
4,813,048
4,736,879
(76,169)
-2%
220,183
225,593
1,060,000
913,242
1,038,439
1,955,300
913,242
1,040,600
1,916,000
–
2,161
(39,300)
0%
0%
-2%
1,114,098
906,067
867,037
(39,030)
-4%
Payments, total
Including:
Employee costs and payroll
accruals
Acquisition and construction of
property, plant and
equipment, acquisition and
production of intangible
assets
Scholarships
Property maintenance services
Purchases of inventories
Utilities and communication
services
Transportation services
Other payments
Cash balance at the end of
the year
4,164,963
5,099,587
5,064,141
(35,446)
-1%
1,281,306
1,871,128
1,855,938
(15,190)
-1%
2,145,497
133,787
70,304
91,201
2,186,767
199,034
144,121
172,613
2,225,054
196,690
144,117
172,625
38,287
(2,344)
(4)
12
2%
-1%
0%
0%
48,222
30,063
364,583
90,363
29,689
405,872
90,340
29,684
349,693
(23)
(5)
(56,179)
0%
0%
-14%
121,555
840,804
839,469
(1,335)
0%
Comment
The reconciliation of the statement of cash flows and the statement of budget execution is
presented below:
Cash flow details
Budget execution details
2014
Net cash used in investing
activities
Net cash from operating
activities
(2,225,054)
1,897,792
Deviation
2014
Acquisition and construction of
property, plant and
equipment, production of
intangible assets
Cash proceeds, total:
Payments, total:
Net cash flows less costs to
acquire property, plant and
equipment
The accompanying notes are an integral part of these financial statements.
(2,225,054)
–
4,736,879
(5,064,141)
–
–
1,897,792
–
7
Novosibirsk State University (NSU)
Statement of comparison of budgeted and actual amounts (continued)
For the year ended 31 December 2013
Actual on a
Original Final budget, comparable
budget, 2013
2013
basis, 2013
Cash balance at the
beginning of the year
Cash proceeds, total
Including:
Subsidy for the government
task
Other subsidies
Subsidy for the construction
Fee-based services and other
income-generating activities
Payments, total
Including:
Salaries and payroll accruals
Acquisition and construction of
property, plant and
equipment, acquisition and
production of intangible
assets
Scholarships
Property maintenance services
Acquisition of inventories
Utilities and communication
services
Transportation services
Other payments
Cash balance at the end of
the year
Performance
difference,
thousands Performance
of rubles difference, %
Comment
145,635
145,635
146,617
982
1%
3,072,429
4,378,814
3,895,330
(483,484)
-11%
646,722
937,752
620,000
870,852
1,573,760
1,090,000
870,851
1,641,452
583,196
(1)
67,692
(506,804)
0%
4%
-46%
867,955
3,168,020
844,202
4,191,023
799,831
2,875,216
(44,371)
(1,315,807)
-5%
-31%
981,652
1,588,320
1,017,839
(570,481)
-36%
[2]
1,317,493
144,940
24,558
100,063
1,635,735
144,940
112,949
108,310
1,159,905
144,940
24,082
90,549
(475,830)
–
(88,867)
(17,761)
-29%
0%
-79%
-16%
[1]
97,039
13,264
489,011
90,138
32,123
478,508
90,138
14,354
333,409
–
(17,769)
(145,099)
0%
-55%
-30%
50,044
333,426
1,166,731
833,305
250%
[1]
[2]
[2]
[1]
The original subsidy for the construction of the main building was provided in the amount of RUB 500 million. This
amount was increased by RUB 500 million in the final budget, as approved on 31 December 2013. In 2013, the
University received RUB 500 million for the construction. In 2013, construction work done on the main building by a
contractor amounted to RUB 1,000 million, of which RUB 500 million was paid. The RUB 500 million due to the
contractor was recognized as accounts payable as of the end of 2013. Construction work on a recreation area with
a cafeteria amounted to RUB 38 million. In 2014, the University received an additional RUB 500 million from the
Ministry of Education and Science of the Russian Federation and repaid the amount due to the contractor.
[2]
The difference is largely explained by the fact that in 2013 the University received a government subsidy as part of
a program of state support for leading Russian universities to make them more competitive globally. Of this subsidy,
RUB 409 million was budgeted for payroll, RUB 89 million was budgeted for property maintenance services, and
RUB 140 million was budgeted for other payments. These expenses were not incurred in 2013 and were carried
forward to 2014.
The reconciliation of the statement of cash flows and the statement of budget execution is
presented below:
Cash flow details
Budget execution details
2013
Net cash used in investing
activities
Net cash from operating
activities
(1,159,905)
2,180,019
Deviation
2013
Acquisition and construction of
property, plant and equipment,
production of intangible assets
Cash proceeds, total:
Payments, total:
Net cash flows less costs to
acquire property, plant and
equipment
The accompanying notes are an integral part of these financial statements.
(1,159,905)
–
3,895,330
(2,875,216)
–
–
2,180,019
–
8
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
1.
General
The Federal Autonomous Institution of Higher Education “Novosibirsk National Research State
University” or, in short, “Novosibirsk State University” (hereinafter, “NSU” or the “University”) is a
federal institution of higher education that has the status of a legal entity and national research
university. The University was founded in 1958. NSU’s registered address is 2 Pirogov St.,
Novosibirsk 630090.
NSU’s founder is the Russian Federation. The founder’s functions are performed by the Ministry of
Education and Science of the Russian Federation. The University’s overall governance is the
responsibility of the Academic Board, headed by the rector of NSU. Another governing body of the
University is the Supervisory Board.
The University has ISO 9001:2008 quality management certification, as verified by
TUV NORD CERT, Germany.
NSU is distinguished by close cooperation between higher education and academical science of
the Siberian Branch of the Russian Academy of Sciences. Many University’s employees are
concurrently on the staff of scientific institutes of the Siberian Branch of the Russian Academy of
Sciences. Upper-year students are taught using the resources of scientific research institutes of
the Siberian Branch of the Russian Academy of Sciences in Akademgorodok, Novosibirsk.
NSU’s core activities are education, scientific work and other activities (including teaching,
publishing and information activity).
In accordance with its license, NSU offers programs of higher education, full secondary education,
secondary and further vocational education and further education as well as graduate, doctoral,
internship and residency programs. The University comprises 13 colleges, 111 departments
(98 offering degree programs), a school of physics and mathematics (The Specialized Educational
Scientific Center of NSU), a Higher College of Informatics of NSU, graduate and doctoral
programs, an Institute for professional skills upgrading and retraining of NSU, research centers and
laboratories. On-campus and distance education are offered as well as a combination of the two.
Academic activities include research funded by state subsidies and government and private grants
as well as on the basis of commercial agreements. Academic activities also include support for and
registration of patents and know-how; academic conferences, symposiums, forums and olympiads;
and the publication of scholarly monographs and articles.
In 2013 NSU became one of fifteen winners of a competition for subsidies from the Russian
Ministry of Education and Science to improve Russian universities’ QS, THE and
ARWU international rankings. The competition was one of a number of measures taken in
fulfillment of the Presidential Edict “On Measures for the Implementation of State Education
Policy”.
The University has over 6,000 students. Its teaching staff includes 650 professors and doctors of
science, 1,006 candidates of science, 31 associates and 26 academicians of the Russian
Academy of Sciences. NSU’s intellectual base comprises 30 research institutes with a research
staff of over 5,000. In 2014, 1,555 new students were enrolled, including 867 with state
scholarships (in 2013, 1,701 students were enrolled, including 906 with state scholarships).
The accompanying notes are an integral part of these financial statements.
9
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
1.
General (continued)
In 2014, English-language programs were realized – primarily master’s programs in the natural
sciences. In 2014, the School of Economics provided training courses for two English-language
programs in which Russian students are taught entirely in English.
NSU is constructing a new main building to be commissioned in late 2015. In the first phase of
construction, the new building will have an area of 55.3 thousand square meters. The building will
include academic and administrative areas. The construction is funded by state subsidies.
Under the Russian Civil Code, NSU’s property is assigned to it on the basis of operational
management. The Russian Federation is the owner of NSU’s property. NSU is liable for its
obligations to the extent of all property that it holds on the basis of operational management, with
the exception of immovable property and especially valuable movable property assigned to NSU
by the owner or acquired by NSU using funds allocated by the owner.
NSU’s financial statements for the year ended 31 December 2014 were approved by a decision of
the Rector of the University on 5 May 2015.
2.
Going concern and operating environment
Management believes that the University will continue its activities and settle its liabilities in the
foreseeable future. NSU’s founder has neither the intention nor the need to liquidate the University
or cease its operations in the foreseeable future. This statement is based on the founder’s plans
and intentions that the University is aware of concerning the continuation or discontinuation of the
University’s activities.
Operating environment
Russia continues to make economic reforms and develop its legal, tax and regulatory frameworks
as required by a market economy. The future stability of the Russian economy is largely dependent
upon these reforms and developments and the effectiveness of economic, financial and monetary
measures undertaken by the government.
In 2014, the Russian economy was negatively impacted by a sharp decline in crude oil prices, a
significant devaluation of the Russian ruble and sanctions imposed on Russia by several countries.
In December 2014, ruble interest rates increased significantly after the Central Bank of Russia
raised its key rate to 17%. This combination of factors resulted in reduced access to capital, a
higher cost of capital, increased inflation and uncertainty regarding economic growth, which could
negatively affect the University’s future financial position, results of operations and business
prospects. Management believes it is taking appropriate measures to support the sustainability of
the University’s operations in the current circumstances.
3.
Summary of accounting policies
Basis of preparation
These financial statements for the year ended 31 December 2014 are the first University’s financial
statements prepared in full compliance with the International Public Sector Accounting Standards
(IPSAS) developed by the International Public Sector Accounting Standards Board (IPSASB)
under the International Federation of Accountants (IFAC). For all reporting periods up to and
including the year ended 31 December 2012, the University prepared only its financial statements
in accordance with Russian Accounting Standards.
The accompanying notes are an integral part of these financial statements.
10
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Basis of preparation (continued)
Accordingly, the University prepared its financial statements in accordance with IPSAS applicable
to the reporting periods ending on or after 31 December 2014, together with the comparatives as of
31 December 2013 and for the year then ended, as stated in the IPSAS accounting policies. In
preparing these financial statements, the opening IPSAS statement of financial position was
prepared as of 1 January 2013 – the date of the University’s transition to IPSAS.
These financial statements have been prepared on an accrual basis and on the basis of historical
cost, excluding certain types of intangible assets and property, plant and equipment measured at
fair value as of the date of their acquisition.
The University’s functional currency is the Russian ruble. The financial statements are presented in
Russian rubles with all values rounded to the nearest thousand, except where otherwise indicated.
Property, plant and equipment
NSU selected the method of accounting for assets at cost. In accordance with the requirements of
IPSAS 17 concerning historical cost model, an item of property, plant and equipment is carried at
cost, less any accumulated depreciation and any accumulated impairment losses.
Certain items of NSU’s property, plant and equipment are acquired free of charge. These items are
recognized as items of property, plant and equipment acquired as a result of non-exchange
transactions. The cost of an item of property, plant and equipment acquired through a nonexchange transaction is equal to its fair value as of the transaction date.
The cost of an item of property, plant and equipment that has been acquired as a result of an
exchange transaction includes:
•
its purchase price, including import fees and duties and non-refundable purchase taxes, less
trade discounts and rebates;
•
any costs directly attributable to bringing the item to the required location and ensuring that it
is capable of operating in the manner intended by management;
•
an initial estimate of the costs of dismantling and removing the item and restoring the site on
which it is located – an obligation that NSU incurs either when the item is acquired or as a
consequence of having used the item during a particular period for purposes other than
producing inventories during that period.
The accompanying notes are an integral part of these financial statements.
11
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Property, plant and equipment (continued)
The cost of an item of property, plant and equipment that has been built includes:
•
the construction cost under an agreement or a consignment note;
•
insurance costs under the project;
•
non-refundable taxes that relate to the acquisition of property, plant and equipment;
•
depreciation of property, plant and equipment used in construction;
•
employee benefit costs directly related to the acquisition, construction or production of
property, plant and equipment;
•
costs for the preparation of foundations or land plots;
•
costs to restore used equipment after acquisition;
•
costs for advisory/professional services that relate to the acquisition of property, plant and
equipment;
•
costs for the installation of new equipment;
•
cost of spare parts used in construction;
•
design work that relates to the construction of property, plant and equipment;
•
other direct costs, e.g., transportation costs incurred by contractors.
The University applies transitional provisions of IPSAS 17, as described in more detail in Note 4
First-time adoption of IPSAS.
Depreciation of property, plant and equipment
Depreciation of property, plant and equipment is calculated using the straight-line method to
allocate their historical cost or revalued amounts to their residual values over their estimated useful
lives. The ranges of useful lives of property, plant and equipment (in years) used to calculate
depreciation are shown below:
Classes of property, plant and equipment
Residential buildings
Non-residential buildings
Facilities
Machinery and equipment
Motor vehicles
Library fund
Fixtures and furniture
Other property, plant and equipment
Useful life, years
30-100
30-100
30-50
3-10
3-10
1-6
3-6
1-6
The classes represented by land, construction in progress and equipment for installation are not
depreciated.
The accompanying notes are an integral part of these financial statements.
12
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Property, plant and equipment (continued)
Impairment of property, plant and equipment
The University assesses at the end of each reporting period whether there is any indication that an
item of property, plant and equipment may be impaired. If any such indication exists, the University
estimates the asset’s recoverable amount. The recoverable amount of the asset is the higher of the
fair value of an asset, less costs to sell, and its value in use. Where the carrying amount of an
asset or cash-generating unit exceeds its recoverable amount, the asset is written down to its
recoverable amount.
Derecognition of property, plant and equipment
An item of property, plant and equipment is derecognized:
•
upon disposal;
•
when no future economic benefits or service potential are expected from its use or disposal.
Any gain or loss arising on derecognition of an item of property, plant and equipment is calculated
as the difference between the net disposal proceeds and the carrying amount of this item. Such
gain or loss is recognized in the statement of financial performance for the period when the item of
property, plant and equipment has been derecognized.
Depreciation of an item of property, plant and equipment is derecognized starting with the month
following the month when the item was derecognized.
Intangible assets
NSU recognizes the following classes of intangible assets: educational programs, software,
patents, rights to rent without compensation, and other intangible assets.
The cost of an intangible asset acquired for consideration includes:
•
the purchase price, including import duties and non-refundable purchase taxes, after trade
discounts and rebates are deducted;
•
any directly attributable cost of preparing the asset for its intended use.
NSU recognizes software as intangible assets acquired for consideration.
Intangible assets acquired through non-exchange transactions are measured at fair value, which is
determined using active market data. NSU recognized the right to rent without compensation as
intangible assets acquired through non-exchange transactions.
NSU recognizes educational programs and patents as intangible assets produced internally. The
process of asset production comprises two stages: research and development.
NSU recognizes research costs as expenses, because at the research stage it is not able in
general to demonstrate the availability of an intangible asset that will generate probable future
economic benefits or service potential.
The accompanying notes are an integral part of these financial statements.
13
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Intangible assets (continued)
An intangible asset produced as a result of development (or implementation of the development
stage) is recognized when NSU is able to demonstrate the following:
•
the technical feasibility of completing the intangible asset so that the asset will be available
for use or sale;
•
the intention to complete and to use or sell the asset;
•
the ability to use or sell the intangible asset;
•
how the asset will generate probable future economic benefits or service potential. In
particular, NSU can demonstrate the existence of a market for the output of the intangible
asset or for the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset;
•
the availability of adequate technical, financial and other resources to complete the
development and to use or sell the intangible asset;
•
the ability to measure reliably the expenditure attributable to the asset during development.
Brands and articles that have been developed internally are not recognized as intangible assets.
Amortization of intangible assets
Following initial recognition, intangible assets are carried at cost, less any accumulated
amortization and any accumulated impairment losses. NSU’s intangible assets are amortized on a
straight-line basis. Intangible assets have finite useful lives. Amortization is calculated based on
the following useful lives:
Classes of intangible assets
Educational programs
Software
Patents
Rights to rent without compensation
Other
Useful life, years
3-6
1-3
10-20
Determined based on the rental period
3-10
Impairment of intangible assets
NSU assesses at each reporting date whether there is any indication that an intangible asset may
be impaired. If any such indication exists, the University makes an estimate of the asset’s
recoverable amount. Where the carrying amount of an asset or cash-generating unit exceeds its
recoverable amount, the asset is written down to its recoverable amount.
The accompanying notes are an integral part of these financial statements.
14
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Intangible assets (continued)
Derecognition of intangible assets
An intangible asset is derecognized:
•
upon disposal; or
•
when no future economic benefits or service potential are expected from its use or disposal.
Any gain or loss arising on derecognition of an intangible asset is calculated as the difference
between the net disposal proceeds and the carrying amount of the asset. Such gain or loss is
recognized in the statement of financial performance for the period when the asset was
derecognized.
Amortization of an intangible asset is derecognized starting with the month following the month
when the asset was derecognized.
Investments in associates
NSU’s investments in associates are accounted under the equity method. An associate is an entity
on which NSU has significant influence and which is neither a subsidiary nor a joint venture. The
determination of significant influence by NSU on an investee is a matter of judgement based on the
nature of their relations.
According to the equity method, investments in associates are recognized in the statement of
financial position at cost, adjusted to changes in NSU’s share in the surplus/profit or deficit/loss of
an associate as well as to other changes in an associate’s net assets after the acquisition date.
NSU recognizes its share in an associate’s surplus/profit or deficit/loss in the statement of financial
performance. Changes in an associate’s net assets which are not recognized in the associate’s
surplus/profit or deficit/loss are recognized by NSU directly in net assets in the statement of
financial position.
For the purpose of applying the equity method, an associate’s financial statements are prepared
for the same reporting period as that of NSU. Where necessary, adjustments are made to bring an
associate’s accounting policies in line with those of NSU.
After applying the equity method, NSU determines whether it is necessary to recognize an
additional impairment loss on NSU’s investment in its associates. NSU determines at each
reporting date whether there is any objective evidence that an investment in an associate is
impaired. If so, NSU calculates the amount of impairment as the difference between the
recoverable amount of the associate and its carrying value and recognizes the amount in the
statement of financial performance.
NSU stops using the equity method on the date when it ceases to have significant influence on the
associate and recognizes investments in accordance with IPSAS 29 starting on this date, provided
that the associate would not become a controlled entity or a jointly controlled entity, as defined in
IPSAS 8. The carrying amount of an investment at the date when it ceases to be an investment in
an associate is subsequently deemed to be its cost determined at initial recognition as a financial
asset pursuant to IPSAS 29.
The accompanying notes are an integral part of these financial statements.
15
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Cash
Cash is recognized upon receipt. Monetary items denominated in foreign currency are translated at
the exchange rate of the Central Bank of Russia at the end of the reporting period.
Cash and cash equivalents include: Treasury accounts in rubles, bank accounts in rubles, bank
accounts in foreign currency, cash on hand, other cash (monetary documents) and cash in transit.
Inventories
Inventories that are held for distribution at no charge or for a nominal charge or for consumption
during the production of goods to be distributed at no charge or for a nominal charge are measured
at the lower of cost and current replacement cost.
When inventories are acquired through non-exchange transactions, their cost is measured at fair
value at the acquisition date.
In all other cases, inventories are valued at the lower of cost and net realizable value.
When inventories are written off, they are valued based on the weighted average cost method. The
cost of inventories acquired by NSU comprises their purchase price (including import duties and
other taxes), storage and transportation costs as well as other costs incurred in bringing the
inventories to their present location and condition, less any trade discounts, rebates and other
similar payments.
When inventories are issued for use in the course of NSU’s operations, their carrying amount is
expensed in the period in which the respective revenue is recognized. If no respective revenue is
recognized, expenses are recorded when goods are distributed or the respective services are
rendered.
Accounts payable
Accounts payable are recognized at fair value less deductions and discounts, if possible and
economically feasible. Accounts payable are recognized when all risks and rewards of ownership
are transferred to NSU or when NSU receives a service.
Provisions and contingencies
Provisions are recognized when NSU has a present obligation (legal or constructive) as a result of
a past event, and outflow of resources to settle the obligation are probable and can be reliably
measured.
A provision is recognized based on the best estimate of outflow of resources required to settle the
obligation at the reporting date (the amount that NSU, acting reasonably, would pay to settle the
obligation at the reporting date).
If NSU determines that the obligation will be settled within one year, provisions are classified as
short-term. If the effect of the time value of money is material, the provision is equal to the
discounted value of outflow of resources expected to be incurred to settle the obligation. As a
discount rate, NSU uses a pre-tax rate that reflects current market assessments of the time value
of money, and the risks specific to the obligation.
The accompanying notes are an integral part of these financial statements.
16
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Provisions and contingencies (continued)
Expenses related to any provision are recognized in the statement of financial performance.
Provisions are re-assessed at each reporting date.
A contingent liability is a possible obligation that arises from past events and which existence will
be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of NSU, or a present obligation that arises from past events but is not
recognized because it is not probable that an outflow of resources will be required to settle the
obligation or the amount of the obligation cannot be reliably measured. A contingent liability is
disclosed in the notes to the financial statements.
The amount of contingent liabilities is reviewed at each reporting date to determine the probability
of an outflow of resources embodying economic benefits and the amount of these resources.
Revenue
Revenue from exchange transactions
Revenue includes the fair value of a compensation for the sale of services received or receivable in
the ordinary course of NSU’s operations.
NSU recognizes revenue from fee-based educational services, revenue from the boarding school,
revenue from dormitory services and revenue from canteen services on a regular basis in the
period when such services are provided to students.
Revenue from educational services is recognized in proportion to the number of months of
education (academic year) in the current reporting period (calendar year).
Revenue from non-exchange transactions
The exchange of assets of different value occurs in non-exchange transactions, and NSU therefore
receives resources and provides no consideration or nominal consideration directly in return.
Obtaining rights to rent without compensation is recognized as a non-exchange transaction.
An asset purchased through a non-exchange transaction is initially measured at its fair value at the
acquisition date. Revenue from non-exchange transactions is measured as the amount of increase
in net assets recognized by NSU.
Revenue from transactions without conditions and restrictions (please see the definition in the
section below) is recognized in the reporting period, in which the assets are received. Voluntary
donations from individuals and legal entities are an example of NSU’s revenue from non-exchange
transactions without conditions and restrictions.
Revenue from non-exchange transactions with conditions
These types of revenue are subject to conditions which require NSU to use the future economic
benefits or service potential of the acquired asset as specified or to return the future economic
benefits or service potential to the transferor in the event that the conditions are not met. Control
over an asset with a transfer condition obligates the receiving party to transfer future economic
benefits or service potential to a third party. Therefore, NSU recognizes a current liability with
respect to revenue from non-exchange transactions upon acquisition of such an asset.
The accompanying notes are an integral part of these financial statements.
17
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Revenue (continued)
If non-exchange transactions with conditions result in an inflow of resources, the revenue is
recognized to the extent that such resources exceed the liability recognized against such inflow.
The amount of the recognized liability represents the best estimate of the amount required to
discharge the current liability as of the reporting date. The estimate accounts for risks and
uncertainties related to the event for liability recognition. If the time value of money is material, the
liability is measured as a discounted amount required to discharge such liability. Current liability is
recognized in the statement of financial position in the deferred revenue line. Afterwards, when the
conditions are satisfied, NSU recognizes revenue of the current period and reduces the liability
recognized at the moment when asset is received.
NSU’s revenue with conditions includes:
•
Subsidy for the construction;
•
Subsidy for the government support of leading Russian universities to enhance their
competitive position among leading international scientific and educational centers;
•
Grants under the federal target program “Academic and teaching staff in innovative Russia”
for 2009-2013;
•
Subsidy for the government support of scientific research;
•
Subsidy for constructing educational and research laboratories and equipping existing
laboratories in the areas of engineering and the natural sciences;
•
Subsidy for the implementation of measures to support the Russian language and education
in Russian;
•
Financing of the NSU development program;
•
Grant from the Skolkovo Foundation;
•
Grant from the Russian Science Foundation;
•
Grant from the Russian Foundation for Basic Research;
•
Revenue from the rights to rent buildings without compensation;
•
Other subsidies and grants with conditions.
Revenue from non-exchange transactions with restrictions
A restriction on transferred assets is the requirement that NSU should use future economic
benefits or service potential from an asset received for certain purposes (performance obligation)
in the absence of a requirement that the transferred asset or any other economic benefits or
service potential be returned to the transferor if the asset is not deployed as specified.
Gaining control over an asset with a transfer restriction does not impose an obligation on the
transferee, at the time when control is gained, to transfer future economic benefits or service
potential to third parties. Thus, NSU recognizes revenue for this type of subsidy at the time when
an asset is received in full if there are no other liabilities recognized with respect to the asset
received.
The accompanying notes are an integral part of these financial statements.
18
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Revenue (continued)
NSU’s revenue with restrictions comprises:
•
Subsidy for the government task;
•
Revenue from the transfer of property, plant and equipment to operational management and
of lands to unlimited use;
•
Other subsidies and grants with restrictions.
Revenue from subsidies when an asset is to be transferred to third parties
Having received assets that are to be transferred to third parties, NSU recognizes the current
obligation to transfer the assets, which is recognized as a liability in the financial statements as at
the time when assets are received, because:
•
It is probable that an outflow of resources embodying economic benefits or service potential
will be required for the performance of the obligation, and
•
The amount of the obligation may be reliably estimated.
Consequently, NSU recognizes the respective amount of revenue at the time when assets are
transferred to third parties.
NSU’s revenue from subsidies where an asset is to be transferred to third parties comprises the
subsidy for scholarships for students.
Non-monetary voluntary donations from individuals and legal entities
Voluntary donations from individuals and legal entities often represent the transfer of non-monetary
assets (property, plant and equipment or inventories) to be used by NSU. In this case, NSU
measures a non-monetary asset at fair value and recognizes both the asset and revenue at this
fair value.
Recognition of expenses
NSU recognizes expenses on an accrual basis, i.e. in the period when they arise, even if the
respective payments are made in another period.
Leases
NSU as a lessee
Leases in which the lessor does not transfer substantially all risks and rewards of ownership of an
asset are classified by NSU as operating leases. Lease payments under operating leases are
recognized as operating expenses on a straight-line basis over the lease term and included in
surplus or deficit.
NSU as a lessor
Leases in which NSU does not transfer substantially all risks and rewards of ownership of an asset
are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are
added to the carrying amount of the leased asset and recognized over the lease term. Lease
income from operating leases is recognized as income on a straight-line basis over the lease term.
The accompanying notes are an integral part of these financial statements.
19
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Related parties
NSU recognizes as a related party any individual or legal entity which has the ability to control
NSU, individually or jointly, or exercise significant influence over NSU, or vice versa.
NSU recognizes as related parties:
•
key management personnel and members of NSU’s Academic Council, Supervisory Board,
Board of Trustees and Science and Technical Council;
•
the Ministry of Education and Science of the Russian Federation;
•
the government of the Russian Federation and all organizations established or controlled by
the government of the Russian Federation.
Key management personnel include: the Rector, Vice Rectors and Heads of structural divisions
with a separate balance sheet.
Budget information
NSU’s annual budget is based on the cash method.
Budget data represent amounts from NSU’s Plan of Financial and Operational Activities, approved
by NSU’s Supervisory Board at the beginning of the reporting year and revised during the year as
necessary.
NSU compares budgeted and actual amounts arising from budget execution in order to include
them in the financial statements, as NSU publishes its approved budget and is responsible for it in
the future. The results of comparing budgeted and actual data are provided in a separate
statement (Statement of comparing budgeted and actual amounts), included in the financial
statements.
Statement of cash flows
NSU presents data on cash flows from operating activity using an indirect method by which net
surplus or deficit is adjusted for non-cash transactions, all deferred or accrued proceeds or cash
payments in prior or future periods arising from operations, and income or expenses related to
cash flows from investment or financial activities.
Financial instruments
Financial assets
NSU’s financial assets include cash and cash equivalents and trade and other receivables from
exchange transactions. Financial assets are recognized initially at fair value, adjusted for directly
attributable transaction costs. The subsequent measurement of financial assets depends on their
classification.
NSU recognizes accounts receivable from exchange transaction as financial assets carried at
amortized cost.
After initial measurement, accounts receivable are measured at amortized cost, using the effective
interest rate method, less the allowance for impairment.
The accompanying notes are an integral part of these financial statements.
20
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
3.
Summary of accounting policies (continued)
Financial instruments (continued)
Financial liabilities
NSU’s financial liabilities include trade and other payables from exchange transactions, and are
measured at the amortized cost. All financial liabilities are recognized initially at fair value adjusted
for directly attributable transaction costs.
Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount reported in the statement of
financial position if, and only if, there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the assets and settle the
liabilities simultaneously.
Changes in IPSAS
The below IPSAS standards, published but not yet effective as of 31 December 2014, were not
adopted early by the University.
•
IPSAS 33 First-time Adoption of Accrual Basis IPSASs;
•
IPSAS 34 Separate Financial Statements;
•
IPSAS 35 Consolidated Financial Statements;
•
IPSAS 36 Investments in Associates and Joint Ventures;
•
IPSAS 37 Joint Arrangements;
•
IPSAS 38 Disclosure of Interests in Other Entities.
The University does not expect that adoption of these standards will have a material effect on its
IPSAS financial statements.
4.
First-time adoption of IPSAS
It is the first time the University has adopted IPSAS standards in accordance with the
IPSAS transitional provisions.
Property, plant and equipment
In accordance with the transitional provisions of IPSAS 17, NSU is not required to recognize
property, plant and equipment for reporting periods beginning on a date within five years following
the date of first adoption of IPSAS accrual-based accounting.
The accompanying notes are an integral part of these financial statements.
21
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
4.
First-time adoption of IPSAS (continued)
Property, plant and equipment (continued)
Subject to the above transitional provision, NSU recognized its property, plant and equipment as
follows:
•
Property, plant and equipment acquired after 1 January 2007 are recognized at cost for
IPSAS purposes.
•
Property, plant and equipment acquired before 2007 and related to residential and nonresidential buildings, machinery and equipment, facilities and transport are not recognized in
the IPSAS financial statements for the year ended 31 December 2014 (revaluation will be
done for IPSAS purposes by an independent appraiser within five years after the date of first
adoption of IPSAS).
•
Property, plant and equipment acquired before 2007 and related to fixtures and furniture, the
library fund and other property, plant and equipment are not recognized for IPSAS purposes,
as their useful lives have expired and their residual values as of the date of first-time
adoption of IPSAS are insignificant for reporting purposes.
Estimates
At the date of transition, IPSAS estimates should correspond to the estimates made at the same
date according to the previously used accounting standards (given the adjustments reflecting all
changes in accounting policies) unless there are objective evidence of errors in estimates.
IPSAS estimates, used by NSU at the date of transition but not required by the previously used
accounting principles, reflect the conditions existing as of the date of transition to IPSAS. In
particular, as of the date of transition to IPSAS, estimates related to market prices and interest
rates reflect market situations at the respective date.
5.
Significant accounting judgments, estimates and assumptions
NSU uses estimates and assumptions that affect the amounts recognized in the financial
statements and the carrying amounts of assets and liabilities during the next financial year.
Estimates and assumptions are continuously assessed and are based on the management
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances. Management also uses certain judgments, except for those
that require estimates, when implementing the accounting policy which basic provisions are listed
in Note 3.
Judgements that have the most significant effect on the amounts recognized in the financial
statements and estimates that can cause a significant adjustment to the carrying amount of assets
and liabilities within the next financial year include the following:
The accompanying notes are an integral part of these financial statements.
22
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
5.
Significant accounting judgments, estimates and assumptions (continued)
Property, plant and equipment
The value of property, plant and equipment is depreciated over its useful life, which is calculated
based on the expected service life, expected physical wear, repair and maintenance programs and
technological obsolescence.
Useful lives of fixed assets
The NSU’s property, plant and equipment are depreciated on a straight-line basis over their useful
lives determined based on management estimates relating to such assets.
NSU’s management regularly reviews the accuracy of useful lives based on current condition of
the assets and the estimated period during which they will continue to bring economic benefits or
service potential and information on the comparable assets for previous periods.
Impairment of inventories
A 100% allowance is charged against inventories which have not moved for more than 365 days,
based on the assumption that the probability of future economic benefits or service potential from
such inventories is low. In addition, for purposes of the impairment assessment of inventories,
NSU exercises significant judgment in determining whether the inventory carrying amount exceeds
its net realizable value or current replacement cost in accordance with the measurement principles
described in Note 3 in the Inventories section.
Litigation
NSU exercises considerable judgment in measuring and recognizing provisions and the exposure
to contingent liabilities related to pending litigations or other outstanding claims subject to
negotiated settlement, mediation, arbitration or government regulation, as well as other contingent
liabilities. Judgment is necessary in assessing the likelihood that a pending claim will succeed, or a
liability will arise, and to quantify the possible range of the final settlement. Because of the inherent
uncertainties in this evaluation process, actual losses may be different from the originally estimated
provision. These estimates are subject to change as new information becomes available, primarily
with the support of internal specialists, if available, or with the support of outside consultants.
Revisions to the estimates may significantly affect future operating results.
Impairment of cash-generating assets
NSU uses the following basic criterion to classify assets into cash-generating assets and non-cashgenerating assets: if an asset is acquired at the expense of a particular target subsidy, it is
classified as non-cash-generating; most non-financial assets are classified in the second category.
Examples of non-financial cash-generating assets are assets of the canteen, hairdressing salon,
etc.
The recoverable amount of an asset is determined based on the higher of value in use and fair
values less costs to sell. The recoverable amount is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of inflows from other assets or
groups of assets.
NSU reviews and tests the carrying value of assets when events or changes in circumstances
suggest that the carrying amount may not be recoverable. If there are indications that impairment
may have occurred, estimates of expected future cash flows are prepared for each group of
assets. Expected future cash flows used to determine the value in use of tangible assets are
inherently uncertain and could materially change over time.
The accompanying notes are an integral part of these financial statements.
23
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
5.
Significant accounting judgments, estimates and assumptions (continued)
Impairment of non-cash-generating assets
The recoverable service amount of a non-cash-generating asset is the higher of its fair value less
costs to sell and value in use.
NSU reviews and tests the carrying value of non-cash-generating assets when events or changes
in circumstances suggest that there may be a reduction in the future service potential that can
reasonably be expected to be derived from the asset. Where indicators of possible impairment are
present, NSU performs impairment tests, which require a determination of the fair value of the
asset and its recoverable service amount. The estimation of these inputs into the calculation relies
on the use estimates and assumptions. Any subsequent changes in the factors supporting these
estimates and assumptions may have an impact on the reported carrying amount of the related
asset.
Allowance for doubtful receivables
Management creates an allowance for doubtful receivables to account for estimated losses
resulting from the inability of legal entities or individuals to make required payments.
NSU assesses whether objective evidence of impairment exists individually for receivables from
legal entities.
With respect to receivables from individuals, NSU first assesses whether there are objective
indicators of impairment for individually significant balances and then assesses impairment
collectively for less significant balances receivable. The amount of the allowance for accounting
purposes is calculated as a percentage of NSU’s total receivable balance based on the probability
of debt recovery.
When deciding on the amount of the allowance for doubtful receivables, management performs an
aging analysis of the receivables and recoverability of the debt. The rates used to accrue provision
for doubtful receivables are provided below:
Number of days overdue
6 to 12 months
Over 12 months
Classification of outstanding
amounts
Rate of allowance
for doubtful debt
Doubtful debt
Doubtful debt
50%
100%
Provision for unused vacations
NSU recognizes the expected costs of accumulated compensated absence from work (annual
vacations) when employees provide services, which will extend the period of compensated
absence from work in the future, to which they are entitled.
The accompanying notes are an integral part of these financial statements.
24
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
6.
Segment information
For management purposes, the University’s activity is divided into the following three reportable
segments:
•
The educational services segment: educational activity, including higher education programs,
intermediate vocational education programs, main professional programs, additional
education programs and general education programs;
•
The research and development services segment: research (fundamental and experimental
research) and training of research employees;
•
The “other activity” segment: housing services, organizing and holding events, fitness and
health recreation events, social welfare facilities, etc.
No operating segments have been aggregated to present the above reportable segments.
Management of the University monitors each segment separately to make decisions on the
allocation of resources. General expenses and taxes (income tax, property tax, land tax) paid by
the University are treated as the expenses of the entire University and are not allocated to
operating segments.
Segment information for the year ended 31 December 2014 is presented as follows:
Educational
services
Revenue including:
Revenue from budget subsidies and
grants
Revenue from subsidy for the
construction
Revenue from the subsidy for the
government support of leading
Russian universities to enhance their
competitive position among leading
international scientific and
educational centers
Revenue from financing of the
NSU development program
Revenue from the subsidy for
constructing educational and
research laboratories and equipping
existing laboratories in the areas of
engineering and the natural sciences
Revenue from other external sources
Revenue, total
Expenses
Assets
Liabilities
Acquisition and construction of
property, plant and equipment
Research
and development
Not allocated
services
Other activity to segments
Total
segments
3,607,810
801,459
–
–
4,409,269
1,959,848
–
–
–
1,959,848
615,588
435,252
–
–
1,050,840
–
55,607
–
–
55,607
16,633
344,657
16,634
267,338
–
170,223
–
–
33,267
782,218
3,952,467
1,068,797
170,223
–
5,191,487
(2,047,382)
6,868,302
400,428
(1,059,055)
2,730,679
443,607
(65,990)
103,912
10,583
1,594,508
49,246
1,290
The accompanying notes are an integral part of these financial statements.
(192,895)
2,531
29,114
–
(3,365,322)
9,705,424
883,732
1,645,044
25
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
6.
Segment information (continued)
Segment information for the year ended 31 December 2013 is presented as follows:
Educational
services
Revenue, including:
Revenue from budget subsidies and
grants
Revenue from subsidy for the
construction
Revenue from the subsidy for the
government support of leading
Russian universities to enhance their
competitive position among leading
international scientific and
educational centers
Revenue from financing of the
NSU development program
Revenue from the subsidy for
constructing educational and
research laboratories and equipping
existing laboratories in the areas of
engineering and the natural sciences
Revenue from other external sources
Revenue, total
Expenses
Assets
Liabilities
Acquisition and construction of
property, plant and equipment
7.
Research
and development
Not allocated
services
Other activity to segments
Total
segments
1,771,000
621,626
43,196
–
2,435,822
543,896
–
–
–
543,896
–
–
–
–
–
260,902
260,903
–
–
521,805
28,625
375,165
28,626
149,918
–
168,818
–
–
57,251
693,901
2,146,165
771,544
212,014
–
3,129,723
(1,334,460)
6,062,959
1,167,168
(551,591)
2,108,238
590,153
(69,316)
582,811
4,322
1,399,704
117,618
32,323
–
Software
Patents
Other
intangible
assets
(189,943)
46,154
58,439
(2,145,310)
8,800,162
1,820,082
1,549,645
Intangible assets
NSU’s intangible assets comprise:
For the year ended 31 December 2014
Rights to
rent without
compensation
Educational
programs
Cost
At 31 December 2013
Additions
165,046
3,415
178,927
–
38,305
16,731
2,709
406
455
–
385,442
20,552
At 31 December 2014
168,461
178,927
55,036
3,115
455
405,994
Accumulated
amortization
At 31 December 2013
Amortization
(109,478)
(34,365)
(39,173)
(61,272)
(21,463)
(12,274)
(315)
(176)
–
(128)
(170,429)
(108,215)
At 31 December 2014
(143,843)
(100,445)
(33,737)
(491)
(128)
(278,644)
Net book value
At 31 December 2013
At 31 December 2014
55,568
24,618
139,754
78,482
16,842
21,299
455
327
215,013
127,350
2,394
2,624
The accompanying notes are an integral part of these financial statements.
Total
26
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
7.
Intangible assets (continued)
For the year ended 31 December 2013
Rights for
rent without
compensation
Educational
programs
Software
Patents
Other
intangible
assets
Total
Cost
At 31 December 2012
Additions
165,046
–
61,113
117,814
29,949
8,356
2,401
308
69
386
258,578
126,864
At 31 December 2013
165,046
178,927
38,305
2,709
455
385,442
Accumulated
amortization
At 31 December 2012
Amortization
(75,966)
(33,512)
(10,083)
(29,090)
(11,048)
(10,415)
(179)
(136)
–
–
(97,276)
(73,153)
At 31 December 2013
(109,478)
(39,173)
(21,463)
(315)
–
(170,429)
Net book value
At 31 December 2012
At 31 December 2013
89,080
55,568
51,030
139,754
18,901
16,842
8.
2,222
2,394
69
455
161,302
215,013
Property, plant and equipment
All items of the property, plant and equipment of NSU, except for land, are under operational
management in accordance with the Civil Code of the Russian Federation. Land is in perpetual
use.
This disclosure does not include the property, plant and equipment purchased by NSU before 2007
and classified within the following categories: residential buildings, non-residential buildings,
machinery and equipment, facilities and transport. In accordance with the transitional provisions of
IPSAS, these property, plant and equipment were not recognized in these financial statements and
will be recognized in the IPSAS financial statements at fair value which will be determined by an
independent appraiser until 1 January 2018 (please also refer to Note 4).
NSU’s property, plant and equipment are recorded at cost and comprise:
The accompanying notes are an integral part of these financial statements.
27
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
8.
Property, plant and equipment (continued)
For the year ended 31 December 2014
Cost
At 31 December
2013
Additions
Disposals
At 31 December
2014
Accumulated
depreciation
At 31 December
2013
Depreciation
Written off on
disposal
At 31 December
2014
Net book value
At 31 December
2013
At 31 December
2014
Land
Residential
buildings
Nonresidential
buildings
2,488,795
–
–
1,171,287
–
–
18,572
7,241
–
2,488,795
1,171,287
–
–
Construction in
Other
progress and property,
Fixtures and
equipment to plant and
furniture
Library fund be installed equipment
Machinery
and
equipment
Transport
14,151
3,432
–
2,801,702
146,683
(224,007)
21,872
2,352
–
92,095
3,636
(11,452)
22,344
3,870
(4,698)
1,799,685
1,477,825
–
23
5
(19)
8,430,526
1,645,044
(240,176)
25 813
17,583
2,724,378
24,224
84,279
21,516
3,277,510
9
9,835,394
(20,806)
(11,713)
(4,983)
(8,438)
(832)
(318)
(1,074,867)
(359,456)
(8,680)
(2,226)
(30,184)
(14,223)
(11,255)
(3,674)
–
–
(22)
(2)
(1,151,629)
(400,050)
–
–
–
–
219,804
–
10,223
4,698
–
19
234,744
–
(32,519)
(13,421)
(1,150)
(1,214,519)
(10,906)
(34,184)
(10,231)
–
(5)
(1,316,935)
2,488,795
1,150,481
13,589
13,319
1,726,835
13,192
61,911
11,089
1,799,685
1
7,278,897
2,488,795
1,138,768
12,392
16,433
1,509,859
13,318
50,095
11,285
3,277,510
4
8,518,459
Facilities
Total
28
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
8.
Property, plant and equipment (continued)
For the year ended 31 December 2013
Residential
buildings
Nonresidential
buildings
Machinery
and
equipment
Transport
2,488,795
–
–
–
593,636
–
–
577,651
15,793
2,779
–
–
14,151
–
–
–
2,359,254
453,048
(10,600)
–
21,872
–
–
–
85,690
17,715
(11,310)
–
23,324
3,572
(4,552)
–
1,304,806
1,072,530
–
(577,651)
98
1
(76)
–
6,907,419
1,549,645
(26 538)
–
2,488,795
1,171,287
18,572
14,151
2,801,702
21,872
92,095
22,344
1,799,685
23
8,430,526
–
–
(10,056)
(10,750)
(3,356)
(1,627)
(540)
(292)
(785,987)
(294,177)
(6,493)
(2,187)
(25,930)
(15,091)
(12,062)
(3,741)
–
–
(82)
(14)
(844,506)
(327,879)
–
–
–
–
5,297
–
10,837
4,548
–
74
20,756
–
(20,806)
(4,983)
(832)
(1,074,867)
(8,680)
(30,184)
(11,255)
–
(22)
(1,151,629)
2,488,795
583,580
12,437
13,611
1,573,267
15,379
59,760
11,262
1,304,806
16
6,062,913
2,488,795
1,150,481
13,589
13,319
1,726,835
13,192
61,911
11,089
1,799,685
1
7,278,897
Land
Cost
At 31 December
2012
Additions
Disposals
Put into operation
At 31 December
2013
Accumulated
depreciation
At 31 December
2012
Depreciation
Written off on
disposal
At 31 December
2013
Net book value
At 31 December
2012
At 31 December
2013
Construction in
Other
progress and property,
Fixtures and
equipment to plant and
furniture
Library fund be installed equipment
Facilities
The accompanying notes are an integral part of these financial statements.
29
Total
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
8.
Property, plant and equipment (continued)
In 2014 and 2013, NSU was constructing a new main building (construction commenced in 2008,
and the building is to be put into operation in 2015) and a building with recreation premises and a
cafeteria (construction commenced in 2012, and the building is to be put into operation in 2015).
Each of these projects is included in the Federal Targeted Investment Program.
No buildings were put into operation in 2014 (in 2013 NSU put a new student dormitory building
into operation).
9.
Inventories
NSU’s inventories comprise:
At 31
December 2014
Microcircuits
Dormitory bedding items
Accumulators, batteries and other devices
Components for computers
Chemicals and laboratory inventory
Food items
Stationery
Construction materials
Spare parts
Technical inventory
Medicines and bandaging materials
Printed and educational materials
Fuel and lubricants
Other
Total
At 31
December 2013
At 31
December 2012
17,310
16,756
11,270
9,554
8,204
6,908
6,533
4,916
3,730
2,799
673
475
448
16,367
639
15,264
2,109
1,491
1,740
4,151
3,890
4,200
827
3,163
326
1,368
744
5,605
303
13,701
5,313
6,918
1,603
6,426
2,586
4,129
740
448
179
43
113
9,865
105,943
45,517
52,367
As at 31 December 2014, 2013 and 2013 the inventories were carried at cost. No inventory items
were pledged as security. There was no impairment of inventories in 2014 and 2013.
10.
Cash and cash equivalents
NSU’s cash and cash equivalents comprise:
At
31 December
2014
At
31 December
2013
At
31 December
2012
Balances on Treasury accounts in Russian rubles
Balances on bank accounts in foreign currency
Monetary documents
Cash on hand
838,451
803
204
11
1,166,643
–
81
7
145,652
411
436
118
Total
839,469
1,166,731
146,617
30
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
10.
Cash and cash equivalents (continued)
All NSU accounts in rubles are opened with the Novosibirsk Regional Administration of the Federal
Treasury. Accounts in foreign currency are opened with OJSC “MDM Bank”.
The University also manages special-purpose funds that are included in the balances on Treasury
accounts in rubles. As of 31 December 2014, such funds amounted to 0 (39,300 thousand rubles
as of December 2013; 0 as of December 2012). These funds may only be used to construct
property, plant and equipment and to pay aid to orphans.
11.
Deferred revenue
Deferred revenue represents liabilities recognized as a result of the recognition of assets obtained
from non-exchange transactions with conditions.
The current portion of deferred revenue comprises:
Subsidy for the government support of leading
Russian universities to enhance their competitive
position among leading international scientific and
educational centers
Grant from the Skolkovo Foundation
Deferred revenue from rights to rent without
compensation
Subsidy for constructing educational and research
laboratories and equipping existing laboratories in
the areas of engineering and the natural sciences
Financing of the NSU development program
Subsidy for the construction
Subsidy for the implementation of measures to
support the Russian language and education in
Russian
Grant from the Russian Science Foundation
Other
Balance at 31 December 2014
2014
2013
2012
316,560
90,000
592,400
90,000
–
–
13,956
33,512
33,512
7,218
–
–
40,485
55,607
39,300
57,736
–
–
518
5,204
2,548
8,000
–
1,398
–
–
536
436,004
860,702
91,784
The non-current portion of deferred revenue is fully attributable to receiving rights for rent buildings
without compensation.
12.
Accounts payable from exchange transactions
NSU’s accounts payable comprise:
At 31 December At 31 December At 31 December
2014
2013
2012
Accounts payable under contracts for the
purchase and construction of property, plant
and equipment
Accounts payable under contracts for the
acquisition and creation of intangible assets
Payables to employees
Trade accounts payable
Other accounts payable
4,787
552,423
115,346
–
144,381
21,067
41,138
13,289
68,928
5,384
34,189
–
75,566
10,524
33,795
Total
211,373
674,213
235,231
The accompanying notes are an integral part of these financial statements.
31
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
12.
Accounts payable from exchange transactions (continued)
As of 31 December 2013, the line Accounts payable under contracts for the purchase and
construction of property, plant and equipment mainly comprises payables to OJSC “SU-9” for the
construction of the main building in the amount of RUB 500,000 thousand. Additional government
funding for construction purposes equivalent to this amount was approved on 31 December 2013.
Payables to OJSC “SU-9” were settled in 2014 after the respective subsidy for the construction
was received. Accordingly, as of 31 December 2014 there are no payables to this contractor.
Payables to employees are mainly represented by the provision for unused vacations. Movements
in the provision in 2014 and 2013 were as follows:
Provision for
unused
vacations
Balance at 1 January 2014
Charge of provisions
Utilization of provisions
68,005
128,031
(55,608)
Balance at 31 December 2014
140,428
Provision for
unused
vacations
Balance at 1 January 2013
Charge of provisions
Utilization of provisions
74,018
45,431
(51,444)
Balance at 31 December 2013
13.
68,005
Advances received for exchange transactions
Advances received for exchange transactions by the University comprise:
At 31
December 2014
At 31
December 2013
At 31
December 2012
Advances for research and development services
Advances for main fee-based educational
services
Advances for additional fee-based educational
services
Advances for other fee-based services
112,515
121,030
16,437
75,830
73,645
61,682
3,027
5,207
9,260
735
774
2,417
Total
196,579
204,670
81,310
The accompanying notes are an integral part of these financial statements.
32
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
14.
Government subsidies
NSU’s revenue from government subsidies comprises:
2014
2013
Subsidy for the construction
Subsidy for the government task
Subsidies for other purposes, including:
Subsidy for the government support of leading Russian universities
to enhance their competitive position among leading international
scientific and educational centers
Subsidy for scholarships to students studying in institutions
Subsidy for the government support of scientific research
Funding of the development program
Subsidy for constructing educational and research laboratories and
equipping existing laboratories in the areas of engineering and the
natural sciences
Subsidy for the implementation of measures to support the Russian
language and education in Russian
Subsidy for the support of young Russian scientists who are
candidates and doctors of science in the form of grants of the
President of the Russian Federation
Receipts from local and regional budgets
Grants under the federal target program “Academic and teaching
staff in innovative Russia” for 2009-2013
Other
1,959,848
913,242
543,896
870,851
1,050,840
168,705
88,740
55,607
–
147,684
230,979
521,805
33,267
57,251
7,482
–
5,000
1,205
4,000
–
1
799
36,821
3,294
Total
4,284,736
2,416,581
The subsidy for the government task includes financing for the following purposes:
•
Payroll;
•
Purchase of goods and services for government needs;
•
Payment of taxes, levies and other mandatory payments.
Subsidy for the construction consist of budgetary transfers provided for the construction of the new
main building and recreation premises.
15.
Voluntary donations from individuals and legal entities
NSU’s revenue from voluntary donations of individuals and legal entities comprises:
2014
2013
Voluntary donations of property, plant and equipment
Voluntary donations of cash
Voluntary donations of inventory
1,467
22,050
–
66,238
39,253
641
Total
23,517
106,132
The accompanying notes are an integral part of these financial statements.
33
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
16.
Revenue from fee-based educational services
The NSU’s revenue from fee-based educational services is as follows:
2014
2013
Revenue from main fee-based educational services
Revenue from additional fee-based educational services
245,088
38,258
189,623
41,469
Total
283,346
231,092
2014
2013
17.
Revenue from other fee-based services
NSU’s revenue from other fee-based services is as follows:
Revenue from dormitory services
Revenue from canteen services
Revenue from boarding school services
Fitness and health recreation events
Revenue from providing Internet
Social welfare facilities
Editing and publishing services
Revenue from organizing and holding events
Other fee-based services
Total
18.
49,783
46,077
45,032
8,577
8,425
5,077
2,728
2,045
3,684
38,759
45,320
41,170
8,574
8,007
5,368
9,220
2,757
8,960
171,428
168,135
2014
2013
493,697
927,743
153,077
374,740
374,359
92,872
1,574,517
841,971
Employee costs
Employee costs fo NSU’s employees were as follows:
Salaries
Remuneration, compensation and bonuses to employees
Other payments to employees
The accompanying notes are an integral part of these financial statements.
34
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
19.
Purchases of goods and services
NSU’s expenses for purchases of goods and services are as follows:
2014
2013
Repair and maintenance services
Materials
Utilities
Research and development expenses
Business event services
Transport services
Fire protection
Hotel services to employees on business trips
Information and consulting services
Communication services
Security services
Software upgrades and database updates
Subscription to periodicals and reference guides
Rent expenses
Printing and publishing
Other services
140,780
106,389
86,273
59,667
38,003
29,425
12,007
11,914
10,411
4,335
4,276
3,570
2,212
1,623
1,592
66,141
23,527
92,972
82,605
49,500
77,754
14,844
27
2,658
3,164
3,558
4,633
16,430
2,231
1,837
5,267
69,937
Total
578,618
450,944
20.
Related-party transactions
Outstanding balances and transactions with NSU’s related parties are as follows:
Revenue from related parties
2014
2013
Purchases from related parties
2014
2013
Organizations established by
the government of the
Russian Federation
Associates
4,516,724
5,100
2,485,996
–
(108,432)
–
(224,796)
–
Total
4,521,824
2,485,996
(108,432)
(224,796)
Amounts owed by
Amounts owed to
related parties
related parties
At 31
At 31
At 31
At 31
At 31
At 31
December December December December December December
2014
2013
2012
2014
2013
2012
Organizations established by
the government of the
Russian Federation
Associates
1,438
–
46,205
–
78,413
–
363,073
–
786,861
5,100
102,719
–
Total
1,438
46,205
78,413
363,073
791,961
102,719
Compensation of key management personnel consisted of short-term remuneration and amounted
to 30,845 thousand rubles for 2014 (20,393 thousand rubles for 2013), including social insurance
contributions in the amount of 3,460 thousand rubles (2,515 thousand rubles for 2013). As of
31 December 2014, the headcount of key management personnel was 11 employees
(11 employees in 2013).
The accompanying notes are an integral part of these financial statements.
35
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
21.
Taxes and other payments to the budget
Taxes and other payments to the budget comprised:
2014
2013
Land tax
Property tax
Transport tax
Fines, penalties, pollution charges, water tax
29,470
54,258
239
47
29,470
59,197
248
3,121
Total
84,014
92,036
22.
Income tax
Income tax is paid only on income earned from entrepreneurial activity, less expenses related to
entrepreneurial activity. In 2014 and 2013, the income tax rate applicable to the University was
15.5%. Reconciliation between theoretical and actual income tax expense/(benefit) is provided
below.
The main components of income tax expense/(benefit) were as follows:
2014
Current income tax
Current income tax expense
Deferred income tax
Relating to origination and reversal of temporary differences
Income tax expense/(benefit) reported in the statement of
financial performance
2013
70
55,755
(15,517)
(1,992)
(15,447)
53,763
Reconciliation between income tax expense/(benefit) and accounting profit multiplied by the
income tax rate effective in the Russian Federation for budgetary institutions, for 2014 and 2013:
2014
Surplus before tax
Statutory income tax rate
Theoretical income tax
Income exempted from tax
Expenses not deductible for income tax purposes
Total actual income tax expense/(benefit)
2013
1,826,165
15.5%
283,056
(707,137)
408,634
984,413
15.5%
152,584
(320,532)
221,711
(15,447)
53,763
The accompanying notes are an integral part of these financial statements.
36
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
22. Income tax (continued)
The tax effect of the major temporary differences that give rise to deferred tax assets and liabilities
is as follows:
Statement of financial position
At 31
At 31
At 31
December
December
December
2014
2013
2012
Property, plant and
equipment
Advances received for
exchange transactions
Intangible assets
Trade and other
payables on exchange
transactions
Other
Deferred income tax
benefit
Net deferred income
tax liabilities
Statement of financial
performance
2014
2013
(10,214)
(11,735)
(14,708)
(1,521)
(2,973)
700
(1,084)
(10,187)
(2,610)
(9,859)
(2,930)
(10,887)
(1,527)
328
(319)
189
4,545
4,356
(1,205)
2,865
1,258
4,167
(5,749)
(1,491)
2,463
–
(15,517)
(1,992)
–
(5,864)
–
(21,381)
–
(23,374)
–
As of 31 December 2014, 2013 and 2012, the University determined deferred tax assets and
liabilities based on the rate of 15.5% that is expected to be applied when the asset is realized or
the liability is settled.
23.
Contractual obligations
As of 31 December 2014, NSU had capital investment commitments in the amount of
1,205,433 thousand rubles (2,604,023 thousand rubles as of 31 December 2013;
3,573,000 thousand rubles as of 31 December 2012), including commitments related to
construction of NSU’s new main building and recreation premises in the amount of 1,145,000
thousand rubles (2,560,000 thousand rubles as of 31 December 2013; 3,561,000 thousand rubles
as of 31 December 2012).
24.
Financial instruments
NSU’s financial assets and financial liabilities are as follows:
At
31 December
2014
At
31 December
2013
At
31 December
2012
Financial assets
Accounts receivable from exchange transactions
Cash and cash equivalents
10,016
839,469
9,912
1,166,731
36,193
146,617
Total financial assets
849,485
1,176,643
182,810
The accompanying notes are an integral part of these financial statements.
37
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
24. Financial instruments (continued)
At
31 December
2014
At
31 December
2013
At
31 December
2012
Financial liabilities
Trade and other accounts payable from exchange
transactions
211,373
674,213
235,231
Total financial liabilities
211,373
674,213
235,231
Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations, resulting in a
financial loss to NSU. As a major part of fee-based services are provided on a prepayment basis
and a portion of accounts receivable in the statement of financial position is not material, NSU is
not exposed to significant credit risk. The University’s maximum exposure to credit risk is the
carrying amount of each class of financial assets, as recognized in the statement of financial
position and is as follows:
At
31 December
2014
At
31 December
2013
At
31 December
2012
Cash and cash equivalents
Accounts receivable from exchange transactions
839,469
10,016
1,166,731
9,912
146,617
36,193
Maximum exposure to credit risk
849,485
1,176,643
182,810
Net assets management
The primary objective of NSU’s net assets management is to maintain sufficient amounts of
monetary funds to satisfy the project financing needs and ensure financial stability of the
University.
Currency risk
Currency risk is a risk that exchange rate changes will affect the financial results and cash flows of
the University. As the University’s operations in foreign currency are limited and their share in
NSU’s activity is not material, NSU is not exposed to significant currency risk.
Liquidity risk
Liquidity risk is the risk that the University will encounter difficulty in meeting obligations associated
with financial liabilities. The objective of liquidity risk management is to maintain sufficient liquidity
to meet the University’s liabilities when due, under both normal and stressed financial conditions.
NSU has no loans or borrowings, and the accounts payable are represented by payables related to
construction of the main building, which is financed through subsidy for the construction and by
payables to employees, which are also largely financed by government subsidies. Therefore,
NSU’s liquidity risk is not significant.
The accompanying notes are an integral part of these financial statements.
38
Novosibirsk State University (NSU)
Notes to the financial statements (continued)
24.
Financial instruments (continued)
The maturity analysis of NSU’s financial liabilities is presented below:
On demand
Less than
3 months
3 to
12 months
1 to 5 years
Over
5 years
Total
31 December 2014
Trade and other
accounts payable
from exchange
transactions
–
211,373
–
–
–
211,373
Total liabilities
–
211,373
–
–
–
211,373
On demand
Less than
3 months
3 to
12 months
1 to
5 years
Over
5 years
Total
31 December 2013
Trade and other
accounts payable
from exchange
transactions
–
674,213
–
–
–
674,213
Total liabilities
–
674,213
–
–
–
674,213
On demand
Less than
3 months
3 to
12 months
1 to 5 years
Over
5 years
Total
31 December 2012
Trade and other
accounts payable
from exchange
transactions
–
235,231
–
–
–
235,231
Total liabilities
–
235,231
–
–
–
235,231
Fair value
Fair values of financial instruments approximate their carrying amounts largely due to the shortterm maturities of these instruments. Financial assets and financial liabilities fair value
measurement is included in Level 2 of the fair value hierarchy (unobservable inputs).
The accompanying notes are an integral part of these financial statements.
39