ANNUAL REPORT 2014
71
NOTES TO THE
FINANCIAL STATEMENTS
5.
Investment properties (continued)
5.1 Fair value information (continued)
Level 1
Level 2
Level 3
Total
Group
RM’000
RM’000
RM’000
RM’000
1.1.2013 (Restated)
Freehold land
-
-
2,840
2,840
Long term leasehold land
-
-
73,908
73,908
Buildings
-
-
11,051
11,051
-
-
87,799
87,799
The fair value of investment properties can be categorised based on the following:
Level 3 fair value
Level 3 fair value is estimated using unobservable inputs for the investment property.
Fair values of lands 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 processes applied by the Group for Level 3 fair value
The fair value of investment properties is determined by external, independent property valuers, having
appropriate recognised professional qualifications and recent experience in the location and category of
property being valued. The valuation companies provide the fair value of the Group’s investment properties
portfolio every year. Changes in Level 3 fair values are analysed by the management every year after
obtaining valuation report from the valuation company.
6.
Investment in subsidiaries
Company
2014
2013
RM’000
RM’000
Unquoted shares, at cost
394,251
365,284
Less: Accumulated impairment losses
(9,539)
(9,539)
384,712
355,745
Details of the subsidiaries are shown in Note 32.
