NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2015
147
ANNUAL REPORT 2015
43.
FAIR VALUE OF ASSETS AND LIABILITIES (CONT’D)
D.
Level 3 fair value measurements (cont’d)
i)
Information about significant unobservable inputs used in Level 3 fair value measurements (cont’d)
Description
Valuation
techniques
Key unobservable
inputs
Inter-relationships
between key
unobservable inputs and
fair value measurement
Recurring fair value
measurements
Investment properties in
Singapore, Malaysia,
Australia and China
Discounted
cashflow
method
– Discount rate:
8% to 9%
The estimated fair value
varies inversely against
the discount rate
– Terminal yield rate:
4.75% to 6.63%
The estimated fair value
varies inversely against
the terminal yield rate
– Net rental growth rate:
3.72%
The estimated fair value
increases with higher net
rental growth rate
– Net incentive rate:
15% to 27.5%
The estimated fair value
varies inversely against
the net incentive rate
Direct
comparison
method
– Comparable price: $60
to $18,600 per square
meter (2014: $70 to
$19,300 per square
meter)
The estimated fair value
increases with higher
comparable price
Asset held for sale
Direct
comparison
method
– Comparable price:
$1,060 to $3,260 per
square meter (2014:
$1,180 to $3,230 per
square meter)
The estimated fair value
increases with higher
comparable price
