7. Principles of revenues determination

General

Revenues and charges are allocated to the fiscal year to which they relate. Revenues are recognized only to the extent that they have been realized by the balance sheet date. Costs and risks originating before the end of the reporting year are taken into account if they became known before the financial statements were adopted.

Revenues

Government funding and other contributions

This refers to the government contribution allocated by the minister according to the model allocation, as well as the target subsidies awarded.

Tuition and examination fees

This refers to tuition and examination fees received to the extent that they can be attributed to the reporting year. This includes institutional tuition and examination fees.

Revenues work for third parties

This represents revenues from contract education and contract research related to completed projects and revenues from ongoing projects up to an amount of project costs incurred. Any positive results are realized at the time they can be reliably estimated. These results are recognized pro rata to the progress of the project (percentage of completion method) for which progress is determined based on the eligible project costs incurred in relation to the estimated total eligible project costs. If a reliable estimate is not possible, the result is recognized at project closure. The contract research revenues item includes both revenues from projects in progress and grant projects. Grant projects are earmarked contributions to operating costs intended for specifically named activities that are part of the university's regular business activities. The grant to cover (part of) the specific operating costs is allocated on the basis of the progress of the project, so any university contribution is also accounted for in accordance with the progress. Projects in progress are those for which the output is intended directly and/or exclusively for the client (customization). In many cases this will involve research aimed at a need of a market party. If it is likely that the total project costs exceed the total project revenues in the case of projects in progress, the expected losses are immediately processed in the operation.

Other revenues

This refers to revenues from all other activities to the extent that they can be attributed to the reporting year.

Charges

Personnel expenses

Included here are expenses related to remuneration for work performed, including social security contributions, pension premiums, and other personnel costs to the extent that they relate to the reporting year.

Tilburg University has a pension plan with General Pension Fund for Public Employees (Algemeen Burgerlijk Pensioenfonds(ABP)). This pension plan is subject to the provisions of the Dutch Pension Act and premiums are paid by the institution on a mandatory, contractual, or voluntary basis. There is no obligation to make additional contributions in the event of a deficit at the pension fund other than the payment of future contributions. The pension plan is accounted for in these financial statements as a defined contribution plan. Premiums are recognized as personnel expenses as they are due. Prepaid contributions are recognized as accrued assets if this results in a refund or a reduction in future payments. Premiums not yet paid are recognized as liabilities on the balance sheet.

Depreciation of intangible and tangible fixed assets

Intangible and tangible fixed assets are depreciated from the year of initially being used over the estimated future useful life of the asset. Grounds are not depreciated.

If there is a change in estimate of the economic life, future depreciation is adjusted.

Book gains and losses from incidental sales of tangible fixed assets are included in depreciation.

Housing and other expenses

These are all housing and other expenses to the extent they relate to the reporting year.

Interest revenues and interest charges

Interest revenues and interest charges are processed on a time proportion basis, taking into account the effective interest rate of the assets and liabilities involved. When processing interest charges, account is taken of the recognized transaction costs on loans received.

Taxes

Income tax is calculated on the result before tax in the statement of revenues and charges, taking into account available tax-deductible losses from previous fiscal years and exempt profit components and after addition of non-deductible costs. Changes in deferred tax claims and deferred tax liabilities arising from changes in the tax rate to be applied are also taken into account.