Notes to the Financial Statements

Note 10: Intercompany Balances

Consolidated University
This Year Last Year This Year Last Year
$000 $000 $000 $000
University of Waikato Foundation Trust - - (221) -
University of Waikato Alumni Association - - (5) -
Student Campus Building Fund Trust - - (926) (720)
LCo New Zealand Limited Investment - - (61) (40)
WaikatoLink Limited - - 5,972 4,547
University of Waikato Research Trust - - (15,796) (15,595)
Total Intercompany Balances - -   (11,037) (11,808)
Current Portion - -   4,759 3,787
Non Current Portion - -   (15,796) (15,595)
Total Intercompany Balances - -   (11,037) (11,808)

The intercompany balances are a cumulative record of the transactions between the University and its subsidiaries.

All current accounts with the exception of the University of Waikato Research Trust are classified as current. The University of Waikato Research Trust is classified as non-current as the Research Trust trustees are unable to determine the repayment amount, if any, that will be required during the 12 months to December 2011.

Intercompany balances are unsecured, non-interest bearing, and are repayable on demand. The fair value of the on demand accounts cannot be less than the amount repayable on demand. Therefore, the carrying value of the accounts on demand reflects their fair value.

As at 31 December 2010 the University had advanced to WaikatoLink Ltd a total of $5,971,790 by way of shareholder loan. $400,000 of this loan is subject to an interest rate equal to the interest rate that the University receives on deposits, and an additional $210,000 advanced during 2009 and $1,500,000 advanced during 2010 is subject to a 3% pa interest rate. The balance of the loan is interest free and repayable on demand. The University has undertaken not to demand repayment until WaikatoLink has sufficient free cash available to make repayments.

<< Note 9: Trade and Other Receivables Table of contents Note 11: Short Term Investments >>

In New Zealand



+64 7 856 2889