Page 6 University of Technology, Jamaica Notes to the Financial Statements 31 March 2020 (expressed in Jamaican dollars unless otherwise indicated) 1. Identification and Activities University of Technology, Jamaica (“the University”) was established as a body corporate by the University of Technology, Jamaica Act 1999 (“the Act”), and is deemed to have come into operation on 1 September 1995. The University’s registered office and principal place of operation is 237 Old Hope Road, Kingston 6, Jamaica. The University is the successor to the College of Arts, Science and Technology, which was first established in March 1958 as the Jamaica Institute of Technology and renamed in 1959 under sections 42 and 77B of the Education Law (The College of Arts, Science and Technology Scheme 1959). The primary objective of the University is the provision of a place of education, learning and research. 2. Summary of Significant Accounting Policies The principal financial accounting policies adopted in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. (a) Basis of preparation These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations of IFRS Interpretations Committee (IFRIC IC) applicable to companies reporting under IFRS. The financial statements comply with IFRS as issued by the International Accounting Standards Board (IASB). These financial statements have been prepared under the historical cost convention, as modified by the revaluation of the FVPL of investments. The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Unviversity’s accounting policies. Although these estimates are based on management’s best knowledge of current events and action, actual results could differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the entity’s financial statements are disclosed in Note 4. Standards, interpretations and amendments to published standards effective in current year Certain new standards, interpretations and amendments to existing standards have been published that became effective during the current financial year. The University has assessed the relevance of all such new standards, interpretations and amendments and has adopted the following which are relevant to its operations. Unless stated otherwise, the adoption of these new standards, amendments to existing standards or interpretations to published standards did not have a material impact on the operations of the University. • IFRS 16, ‘Leases’ (effective for annual periods beginning on or after 1 January 2019). This standard replaces the current guidance in IAS 17 and is a far-reaching change in accounting by lessees in particular. Under IAS 17, lessees were required to make a distinction between a finance lease (on statement of financial position) and an operating lease (off statement of financial position). IFRS 16 now requires lessees to recognise a lease liability reflecting future lease payments and a ‘right-of-use asset’ for virtually all lease contracts. The IASB has included an optional exemption for certain shortterm leases and leases of low-value assets; however, this exemption can only be applied by lessees. For lessors, the accounting stays almost the same. However, as the IASB has updated the guidance on the definition of a lease (as well as the guidance on the combination and separation of contracts), lessors are also affected by the new standard. University of Technology, Jamaica 122
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