Wintec Annual Report 2009

FINANCIAL PERFORMANCE
NOTES TO THE FINANCIAL STATEMENTS (CONT)
FOR THE YEAR ENDED 31 DECEMBER 2009
9 PROPERTY, PLANT AND EQUIPMENT (CONT)
Revaluations
An independent valuation was obtained to determine fair value of land and buildings.
Fair value is determined by reference to an open market basis, being the amount for
which the assets could be exchanged between a knowledgeable willing buyer and
a knowledgeable willing seller in an arm’s length transaction at the valuation date for
land and buildings of a non-educationally specific nature. Where buildings have been
designed specifically for educational purposes they are valued at depreciated replacement
cost which is considered to reflect fair value for such assets.
Land and buildings were valued by Doug Saunders, independent registered valuer of the
firm Telfer Young (Waikato) Ltd.
The effective date of the revaluation was 31 December 2008.
Land and buildings with a carrying amount of $31,753,582 (2008: $30,806,074)
included in the property, plant and equipment are owned by the Crown. Although legal
title has not been transferred, The Waikato Institute of Technology has assumed all
normal risks and rewards of ownership.
Restrictions on title
Under the Education Act 1989, the Institute 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.
There are also various restrictions in the form of historic designations, reserve,
and endowment encumbrances attached to land. The Institute and group does not
consider it practical to disclose in detail the value of land subject to these restrictions.
Work in progress
The total amount of property, plant, and equipment in the course of construction
is $5,782,884 (2008 $336,151).
Wintec Annual Report 2009 _ 59