N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
33 Determination of fair values (continued)
Fair value hierarchy (continued)
The fair value of investment properties of the Group and the Trust of $7,868 million (2014: $6,923 million) and $7,559
million (2014: $6,651 million), respectively, and the fair value of the property held for sale of the Group and the Trust of
$24.8 million (2014: $10.5 million), as at 31 March 2015, have been classified as a Level 3 fair value based on the inputs to
the valuation techniques used.
There were no transfers between Level 1, Level 2 or Level 3 during both years.
The reconciliation from the beginning balance to the ending balance for fair value measurement in Level 3 of the fair value
hierarchy is set out in Note 4.
The following table shows the key unobservable inputs used in the valuation models:
Type
Key unobservable inputs
Inter-relationship
between
key
unobservable inputs and fair value
measurements
2015
Investment properties and
property held for sale
Group
•
Capitalisation rates of 5.25% to 7.75%
(2014: 5.25% to 8.00%)
•
Discount rates of 6.93% to 10.43%
(2014: 7.50% to 10.43%)
Trust
•
Capitalisation rates of 5.50% to 7.75%
(2014: 5.50% to 8.00%)
•
Discount rates of 6.93% to 8.75%
(2014: 7.50% to 8.75%)
The estimated fair value would increase if
the capitalisation rate and discount rate
decrease.
34 Operating segments
For the purpose of making resource allocation decisions and the assessment of segment performance, the Group’s CODM
reviews internal/management reports of its investment properties. This forms the basis of identifying the operating segments
of the Group under FRS 108
Operating Segments
.
Segment revenue comprises mainly income generated from its tenants. Segment net property income represents the
income earned by each segment after allocating property operating expenses. This is the measure reported to the CODM
for the purpose of assessment of segment performance. In addition, the CODM monitors the non–financial assets as well
as financial assets attributable to each segment when assessing segment performance.
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis. Unallocated items comprise mainly management fee, performance fee, trust expenses, finance
income, finance costs and related assets and liabilities.
198 199
