Keele statement of accounts 20/21 | Page 50

Keele University
Notes to the Accounts For the year ended 31 July 2021
13 Tangible Assets Consolidated
Freehold Land and Buildings
Leasehold Land and Buildings
Equipment
Assets in the Course of
Construction ( AUC )
Tangible Assets Total
Investment Properties
Heritage assets
£’ 000
£’ 000
£’ 000
£’ 000
£’ 000
£’ 000
£’ 000
£’ 000
Cost / valuation At 1 August 2020
307,389
413
22,178
9,590
339,570
8,650
12,116
360,336
Additions
3,380
-
2,826
3,014
9,220
-
-
9,220
Valuation increase
-
-
-
-
-
1,350
-
1,350
Transfers - AUC
8,123
-
77
( 8,200 )
-
-
-
-
Transfers – Investment Property
( 2,000 )
-
( 7 )
-
( 2,007 )
1,950
-
( 57 )
Disposals
-
-
( 325 )
-
( 325 )
-
-
( 325 )
At 31 July 2021 316,892 413 24,749 4,404 346,458 11,950 12,116 370,524
Depreciation At 1 August 2020
35,529
49
14,206
-
49,784
-
-
49,784
Charge for the year
8,880
8
1,812
-
10,700
-
-
10,700
Impairment
-
-
-
-
-
-
-
-
Transfers – Investment Property
( 293 )
-
( 4 )
-
( 297 )
-
-
( 297 )
Disposals
-
-
( 252 )
-
( 252 )
-
-
( 252 )
At 31 July 2021 44,116 57 15,762 - 59,935 - - 59,935
Net book value
At 31 July 2021
272,776
356
8,987
4,404
286,523
11,950
12,116
310,589
At 31 July 2020 271,860 364 7,972 9,590 289,786 8,650 12,116 310,552
Total
University £’ 000 £’ 000 £’ 000 £’ 000 £’ 000 £’ 000 £’ 000 £’ 000
Cost / valuation At 1 August 2020
304,041
413
22,099
9,590
336,143
8,650
12,116
356,909
Additions
3,545
-
2,826
3,014
9,385
-
-
9,385
Valuation increase
-
-
-
-
-
1,350
-
1,350
Transfers - AUC
8,123
-
77
( 8,200 )
-
-
-
-
Transfers – Investment Property
( 2,000 )
-
( 7 )
-
( 2,007 )
1,950
-
( 57 )
Disposals
-
-
( 325 )
-
( 325 )
-
-
( 325 )
At 31 July 2021 313,709 413 24,670 4,404 343,196 11,950 12,116 367,262
Depreciation At 1 August 2020
35,107
49
14,130
-
49,286
-
-
49,286
Charge for the year
8,786
8
1,809
-
10,603
-
-
10,603
Impairment
165
-
-
-
165
-
-
165
Transfers – Investment Property
( 293 )
-
( 4 )
-
( 297 )
-
-
( 297 )
Disposals
-
-
( 252 )
-
( 252 )
-
-
( 252 )
At 31 July 2021 43,765 57 15,683 - 59,505 - - 59,505
Net book value
At 31 July 2021
269,944
356
8,987
4,404
283,691
11,950
12,116
307,757
At 31 July 2020 268,934 364 7,969 9,590 286,857 8,650 12,116 307,623
The University and Group revalued its land and buildings on a fair value basis as at 31 July 2014 , taking advantage of the transitional provisions of FRS 102 section 35.10 . The University appointed Gerald Eve LLP , an independent external valuer which is regulated by the Royal Institution of Chartered Surveyors (“ RICS ”). The valuation was performed in accordance with the RICS Valuation – Professional Standards January 2014 . In accordance with the FRS 102 transitional provisions these revised values are now used as the deemed cost of land and buildings going forward .
At 31 July 2021 , freehold land and buildings included £ 34,601k university and £ 34,893k consolidated ( 2020 - £ 34,643k University ; £ 34,935k Consolidated ) in respect of freehold land that is not depreciated . There are no leased assets included in the above , other than the Leasehold Land and Buildings .
The investment properties held by the University currently totalling £ 11,950k ( 2020 : £ 8,650k ) were valued on a fair value basis as at 31 July 2021 by an external valuer ( GeraldEve LLP ), which is regulated by the RICS . The historical cost of these investment properties is £ 8,800k ( 2020 : £ 6,900k ). The valuations have been carried out in compliance with the Practice Statements contained within the Valuation – Global Standards 2020 of the Royal Institution of Chartered Surveyors ( RICS ). The critical assumption made relating to the valuations is an equivalent net yield on the properties of between 8.5 % - 10.0 % ( 2020 : between 8.5 % and 10.0 %).
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