NOTES TO THE FINANCIAL STATEMENTS
For the Financial Year Ended 31 December 2014
43 FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
D.
Level 3 fair value measurements (cont’d)
ii)
Movements in Level 3 assets and liabilities measured at fair value (cont’d)
Group
2013
$’000
Fair value measurement using significant
unobservable inputs (Level 3)
Available-for-
sale financial
assets
Property,
plant and
equipment
Unquoted
equity
securities
Land and
buildings
Total
At 1 January
3,646
16,352
19,998
Total gains or losses for the period
included in other comprehensive income
–
697
697
Transfer in
–
355
355
Depreciation
–
(306)
(306)
Additions
–
24
24
Impairment
(3,543)
–
(3,543)
Exchange adjustment
(103)
(536)
(639)
At 31 December
–
16,586
16,586
Total gains or losses for the period included in
Other comprehensive income:
– Net surplus on revaluation of land and buildings
–
697
697
iii)
Valuation policies and procedures
It is the Group’s policy to engage external valuation experts to perform the valuation. The management is responsible
for selecting and engaging valuation experts that possess the relevant credentials and knowledge on the subject
of valuation, valuation methodologies, and FRS 113 fair value measurement guidance.
The Group revalues its properties and the valuation techniques used are as follows:
a)
Market comparable approach that considers the sales of similar properties that have been transacted in
the open market with adjustment made for differences in factors that affect value.
b)
Depreciated replacement cost method that is based on an estimate of the current market value of the land,
plus the current gross replacement of improvements, less allowances for physical deterioration, obsolescence
and optimisation.
161
THE STRAITS TRADING COMPANY LIMITED ANNUAL REPORT 2014
