Oireachtas Joint and Select Committees
Thursday, 9 May 2024
Public Accounts Committee
Financial Statements 2022: University of Limerick
9:00 am
Mr. John Field:
We conducted an impairment review during late February and early March of 2024 when it became apparent that the carrying value of the asset, which was €12.7 million on our balance sheet, exceeded the recoverable value of the asset. That involved us having to do one or two tests on what the market value was. We retained Power Property to do a market valuation. On 30 September 2023, it valued the 20 houses at €6.585 million. We also engaged Mazars Ireland to conduct what is called a value-in-use test, which looks at a cash generating asset and what it will generate in net cash terms over a period of time and it discounts that back to a present value. That value-in-use figure came in at €7.4 million. Therefore, the difference between that value-in-use figure and the carrying value became an impairment. Therefore, we have to write the asset down to the new value, which is the-value-in use figure. The €5.2 million is the amount of the write-down-----