University of Wollongong
NOTES TO THE FINANCIAL STATEMENTS For the Year Ended 31 December 2016
ending 31 December 2016, the borrowing rates were determined to be between 3% and 8%, depending on the type of borrowing. The fair value of current borrowings approximates the carrying amount, as the impact of discounting is not significant (level 2). Derivative contracts classified as held for trading are fair valued by comparing the contracted rate to the current market rate for a contract with the same remaining period to maturity. (c)
Valuation techniques used to derive level 2 and level 3 fair values (i) Recurring fair value measurements The fair value of financial instruments that are not traded in an active market (for example, over‑the‑counter derivatives) is determined using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities. The Group uses a variety of methods and makes assumptions that are based on market conditions existing at each balance date. Specific valuation techniques used to value financial instruments include: ‑ The use of quoted market prices or dealer quotes for similar instruments.
(d)
Fair value measurements using significant unobservable inputs (level 3) The following table is a reconciliation of level 3 items for the periods ended 31 December 2016 and 2015. Consolidated Unlisted equity securities 000’s $
Level 3 Fair Value Measurement 2016
-
Closing balance
Total 000’s $ -
Consolidated Unlisted equity securities 000’s $
Level 3 Fair Value Measurement 2015
Total 000’s $
Opening balance
1,900 1,900
Transfers out of level 3
(1,900) (1,900)
*change in unrealised gains/(losses) recognised in profit or loss attributable to assets held at the end of the reporting period (included in gains/(losses) recognised in OCI above)
33 Investments where the University has significant influence The University of Wollongong has a significant influence on the Illawarra Health and Medical Research Institute Limited. Details of the entity and the nature of risks for the University of Wollongong are disclosed in the following two tables.
112
Name of entity
Nature of entity
Purpose of entity
Size of entity
Activities of entity
How the entity is financed
Illawarra Health and Medical Research Institute Ltd (IHMRI)
Company Limited by guarantee
The objectives of IHMRI are to foster, develop and promote health and medical research between through the University of Wollongong and the Illawarra Shoalhaven Local Health District.
Medium sized organisation
Health and medical research, publication of research and training.
Government grants and service agreements
UNIVERSITY OF WOLLONGONG