Notes to Financial Statements
Note 5: Members’ equity
The members’ equity of the College is comprised of four components. Invested in capital assets represents the costs of the land, building and equipment, net of other funds used to purchase them. The reserve for working capital has been established by the College in recognition of the need to provide working capital for continuing operations. The College also maintains a reserve for fee stabilization to assist in avoiding yearly fee increases. A reserve for stabilization of facility costs was established in 2004 to accumulate funds that can be deployed when the College’s main office facility lease expires in 2012. During the year, that reserve was utilized to acquire the new premises located at 101 Bloor Street West (note 12). The unappropriated members’ equity represents the undesignated funds of the College.
| 2010 | 2009 | |
|---|---|---|
| $ (thousands) | $ (thousands) | |
| Members’ equity invested in capital assets | 31,904 | 3,442 |
| Less | ||
| Amount financed by deferred capital contribution | (117) | (428) |
| Amount financed by deferred lease inducements | – | (578) |
| Amount financed by mortgage | (20,260) | – |
| 11,527 | 2,436 |