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Notes to the Financial StatementsRendering of servicesRevenue from a contract to provide services is recognised byreference to the stage of completion of the contract at balance date.Interest revenueInterest revenue is recognised on a time-proportionate basis thattakes into account the effective yield on the financial asset.TaxationTertiary institutions are exempt from payment of income tax, asthey are treated by the Inland Revenue Department as charitableorganisations. Accordingly, no income tax is provided for.Critical accounting estimates and assumptionsIn preparing these financial statements, WelTec and Group hasmade estimates and assumptions concerning the future. Theseestimates and assumptions may differ from the subsequent actualresults. Estimates and assumptions are continually evaluated andare based on historical experience and other factors, includingexpectations or future events that are believed to be reasonableunder the circumstances. The estimates and assumptions that havea significant risk of causing a material adjustment to the carryingamounts of assets and liabilities within the next financial year arediscussed below:Land and buildings valuationNote 16 provides information about the estimates and assumptionsexercised in the measurement of revalued land, buildings andequipment.Retirement leaveNote 20 provides information about the estimates and assumptionsexercised in the measurement of retirement leave.Critical judgements in applyingaccounting policiesManagement has exercised the following critical judgements inapplying accounting policies for the year ended 31 December 2012:Crown-owned land and buildingsCrown-owned land and buildings are included as part of WelTecand Group’s property, plant and equipment. Although legal title hasnot been transferred, the Crown has vested all the normal risks andrewards of ownership to WelTec and Group.Restrictions on disposal of these Crown owned land and buildings arein place, as per section 192 of the Education Act 1989.Distinction between revenue and capital contributionsMost Crown funding received is operational in nature and is providedby the Crown under the authority of an expense appropriation and isrecognised as revenue. Where funding is received from the Crownunder the authority of a capital appropriation, WelTec and Groupaccounts for the funding as an equity injection directly in equity.Information about equity injections recognised in equity is disclosedin note 22.66 | WELLINGTON INSTITUTE OF TECHNOLOGY