TAN CHONG MOTOR HOLDINGS BERHAD
Annual Report 2014
76
NOTES TO THE FINANCIAL STATEMENTS
4.
Investment properties (continued)
Fair value information (continued)
Level 1 fair value
Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical investment properties that the
entity can access at the measurement date.
Level 2 fair value
Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the
investment properties, either directly or indirectly.
Level 2 fair values of land and buildings have been generally derived using 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.
Transfer between Level 1 and Level 2 fair values
There is no transfer between Level 1 and 2 fair values during the financial year.
Level 3 fair value
Level 3 fair value is estimated using inputs with significant adjustments for the investment properties.
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.
5.
Prepaid lease payments
Group
2014
2013
RM’000
RM’000
Long term leasehold land
Cost
At 1 January
26,331
17,611
Additions
20,703
7,620
Effects of movement in exchange rates
1,407
1,100
At 31 December
48,441
26,331
