Notes to the Financial Statements
Note 17: Property, Plant and Equipment
This Year Consolidated | Cost/ Revaluation 1 Jan 10 | Accumulated Depreciation and Impairment Charges 1 Jan 10 | Carrying Amount 1 Jan 10 | Current Year Additions | Current Year Disposals | Current Year Impairment Charges | Current Year Depreciation | Revaluation Movement | Cost/ Revaluation 31 Dec 10 | Accumulated Depreciation and Impairment Charges 31 Dec 10 | Carrying Amount 31 Dec 10 |
---|---|---|---|---|---|---|---|---|---|---|---|
$000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | |
Land | 1,825 | - | 1,825 | - | - | - | - | - | 1,825 | - | 1,825 |
Infrastructural Assets | 17,894 | - | 17,894 | 376 | - | - | ( 772 ) | - | 18,270 | ( 772 ) | 17,497 |
Buildings | 256,085 | - | 256,085 | 3,425 | - | - | ( 8,370 ) | - | 259,510 | ( 8,370 ) | 251,140 |
Leasehold Building Improvements | 2,251 | ( 1,699 ) | 552 | 297 | - | - | ( 98 ) | - | 2,548 | ( 1,797 ) | 751 |
Library Collection | 54,139 | ( 29,030 ) | 25,109 | 3,213 | - | - | ( 2,287 ) | - | 57,352 | ( 31,317 ) | 26,035 |
Teaching & Research Equipment | 60,257 | ( 43,726 ) | 16,531 | 4,814 | ( 83 ) | - | ( 4,324 ) | - | 61,570 | ( 44,631 ) | 16,938 |
Art Collection | 325 | ( 6 ) | 319 | 10 | - | - | - | - | 335 | ( 6 ) | 329 |
Administration, Plant and Furniture | 614 | ( 390 ) | 223 | 26 | - | - | ( 73 ) | - | 622 | ( 444 ) | 177 |
Motor Vehicles | 3,586 | ( 1,851 ) | 1,735 | 634 | ( 127 ) | - | ( 402 ) | - | 3,795 | ( 1,956 ) | 1,839 |
Work in Progress | 18,276 | - | 18,276 | 10,410 | - | - | - | - | 28,686 | - | 28,686 |
Total | 415,250 | ( 76,701 ) | 338,549 | 23,207 | ( 210 ) | - | ( 16,326 ) | - | 434,512 | ( 89,294 ) | 345,217 |
Last Year Consolidated | Cost/ Revaluation 1 Jan 09 | Accumulated Depreciation and Impairment Charges 1 Jan 09 | Carrying Amount 1 Jan 09 | Current Year Additions | Current Year Disposals | Current Year Impairment Charges | Current Year Depreciation | Revaluation Movement | Cost/ Revaluation 31 Dec 09 | Accumulated Depreciation and Impairment Charges 31 Dec 09 | Carrying Amount 31 Dec 09 |
---|---|---|---|---|---|---|---|---|---|---|---|
$000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | $000 | |
Land | 1,870 | - | 1,870 | - | - | - | - | ( 45 ) | 1,825 | - | 1,825 |
Infrastructural Assets | 14,314 | ( 782 ) | 13,532 | 1,220 | - | - | ( 451 ) | 3,593 | 17,894 | - | 17,894 |
Buildings | 251,737 | ( 15,209 ) | 236,528 | 8,831 | - | - | ( 7,950 ) | 18,676 | 256,085 | - | 256,085 |
Leasehold Building Improvements | 2,955 | ( 2,313 ) | 642 | - | ( 29 ) | - | ( 61 ) | - | 2,251 | ( 1,699 ) | 552 |
Library Collection | 50,864 | ( 26,816 ) | 24,048 | 3,275 | - | - | ( 2,214 ) | - | 54,139 | ( 29,030 ) | 25,109 |
Teaching & Research Equipment | 58,175 | ( 40,505 ) | 17,670 | 3,456 | ( 58 ) | - | ( 4,538 ) | - | 60,257 | ( 43,726 ) | 16,531 |
Art Collection | 315 | ( 6 ) | 310 | 9 | - | - | - | - | 325 | ( 6 ) | 319 |
Administration, Plant and Furniture | 568 | ( 336 ) | 232 | 43 | - | - | ( 54 ) | - | 614 | ( 390 ) | 223 |
Motor Vehicles | 3,660 | ( 2,001 ) | 1,659 | 603 | ( 132 ) | - | ( 395 ) | - | 3,586 | ( 1,851 ) | 1,735 |
Work in Progress | 11,433 | - | 11,433 | 6,860 | ( 17 ) | - | - | - | 18,276 | - | 18,276 |
Total | 395,892 | ( 87,968 ) | 307,924 | 24,298 | ( 236 ) | - | ( 15,663 ) | 22,224 | 415,250 | ( 76,701 ) | 338,549 |
The $134,000 (2009 - $172,000) difference between the PPE carrying amount, represented in the Balance Sheet for the University as compared to the value under Consolidated, is the Property, Plant and Equipment held by The University of Waikato Foundation of $1,000 (2009 $2,000) and WaikatoLink Limited of $133,000 (2009 - $172,000).
Land and Buildings
Specialised buildings (e.g. campuses) are valued at fair value using optimised depreciated replacement cost because no reliable market data is available for buildings designed for education delivery purposes.
Depreciated replacement cost is determined using a number of significant assumptions. Significant assumptions include:
- The replacement asset is based on the reproduction cost of the specific asset with adjustments where appropriate for obsolescence due to over-design or surplus capacity.
- The replacement cost is derived from recent construction contracts of similar assets and Property Institute of New Zealand cost information.
- The remaining useful life of assets is estimated.
- Straight-line depeciation has been applied in determining the depreciated replacement cost value of the asset.
Non-specialised building and land are valued at fair value using market-based evidence. Market rents and capitalisation rates were applied to reflect market value.
Land and Buildings were revalued as at 31 December 2009 by Darroch Valuations Limited (Registered Valuers), on a fair value basis. The total fair value of Land and Buildings valued by Darroch Valuations Ltd at 31 December 2009 was $257,909,689.
In accordance with the land lease agreement with Tainui Group Holdings Limited the University is able to sublet up to 25% of the gross floor area of the buildings.
Infrastructure
Infrastructure assets such as roads, car parks, footpaths, underground utilities (e.g. water supply and sewerage systems), and site drainage have been independently valued at optimised depreciated replacement cost. The valuations have been performed in accordance with the New Zealand Valuation and Depreciation Guidelines issued by the NAMS Group. The significant assumptions applied in determining the depreciated replacement cost of infrastructure assets are similar to those described above for specialised buildings.
Infrastructural Assets were revalued as at 31 December 2009 by Opus International Consultants Limited on a fair value basis. The total fair value of infrastructure valued by Opus at 31 December 2009 was $17,894,000.
The net carrying amount of Property, Plant and Equipment held under finance leases is $2,042,000 (2009 - $1,860,000)
Restrictions on title.
Under the Education Act 1989, the University and group is required to obtain the consent from the Ministry of Education to dispose or sell of property where the value of the property exceeds an amount determined by the Minister.
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