APM AUTOMOTIVE HOLDINGS BERHAD
68
NOTES TO THE
FINANCIAL STATEMENTS
3.
Property, plant and equipment (continued)
Had the revalued properties been carried under the cost model, the net carrying amount of the properties that
would have been included in the financial statements of the Group as at 31 December 2014 is as follows:
Freehold
land
Long term
leasehold
land Buildings
Total
Group
RM’000
RM’000
RM’000
RM’000
2014
Cost
42,426
26,968
155,845
225,239
Accumulated depreciation
-
(5,854)
(51,532)
(57,386)
42,426
21,114
104,313
167,853
Fair value information
Level 1
Level 2
Level 3
Total
Group
RM’000
RM’000
RM’000
RM’000
2014
Freehold land
-
-
62,402
62,402
Long term leasehold land
-
-
55,500
55,500
Buildings
-
-
165,879
165,879
-
-
283,781
283,781
Policy on transfer between levels
The fair value of an asset to be transferred between levels is determined as of the date of the event or change in
circumstances that caused the transfer.
Level 3 fair value
Level 3 fair value is estimated using unobservable inputs for the land and buildings.
Fair values of land and buildings have been generally derived using the sales comparison and depreciated
replacement cost approach. In the sales comparison approach, sales price of comparable properties in close
proximity are adjusted for differences in key attributes such as property size. The most significant input into this
valuation approach is price per square foot of comparable properties. Depreciated replacement cost approach is
based on how much it would cost to reproduce the property after adjusting for depreciation.
Valuation process applied by the Group for Level 3 fair value
The fair value of land and buildings is determined by external, independent property valuers, having appropriate
recognised professional qualifications and recent experience in the location and category of property being
valued.
