Document ID: chunk:federal_register_of_legislation:F2025C00172:body:0:p74
Version: federal_register_of_legislation:F2025C00172
Segment Type: other
Provision Reference: 
Character Range: 192353–195401

the chief executive officer of the University and responsible for the conduct of the University's affairs in all matters;

    * determine the composition of borrowings within the parameters set by the State Government;

    * approve the University's budget for a financial year, incorporating total revenue and the planned revenue sources, including planning the mix between teaching, research and commercial activities, the fees and charges to apply to those activities, and the type and value of government grants desired;

    * determine the course mix and target student mix, such as vocational, undergraduate, graduate and executive courses, on-campus or distance learning, and local and international students;

    * appoint staff and determine their terms and conditions;

    * decide whether to operate through multiple campuses and how to utilise the University's infrastructure; and

    * make university regulations with respect to any matter relating to the University.

Example IG4A

Control of the University

Based on the facts and circumstances outlined above, does the State Government or the Australian Government control the University in accordance with the definition of control in the Standard?  If not, who controls the University?

Economic dependence

The State and Australian Governments each has a range of rights in relation to the University.  The University may be economically dependent on the grants from those Governments in order to carry out its activities at their present scope and scale, but paragraphs B19 and B40 of the Standard make clear that economic dependence alone does not lead to the investor having power (as that term is used in AASB 10) over the investee.  The State Government and Australian Government rights under some of their grants to the University to recover misapplied funds amount to protective rights.  The repayment of such grants, potentially coupled with a reduction of Government grants in the future given the lack of compliance with grant conditions, may require the University to curtail its activities due to the reduction in funding.  However, such a curtailment does not involve either Government in directing activities of the University, since it is the University that would determine which activities would be curtailed.

Relevant activities

Judgement is required to identify the University's relevant activities, that is, the activities that significantly affect the University's returns.  All of the University's activities and functions contribute in some way (positive or negative) to the University achieving or furthering its objectives.  Thus they are activities that affect the financial and non-financial returns of the University.  However, as the University has fairly limited commercial activities in this example, the activities that most significantly affect the University's returns are the education and research activities.

Power

Protective rights held by the State and Australian Governments cannot give them power over the University.  Instead,