Notes to the financial statements
Year ended 31 March 2016
33 Determination of fair values (continued)
(ix)
Other financial assets and liabilities (continued)
Fair value hierarchy for investment properties and property held for sale (continued)
There were no transfers between Level 1, Level 2 or Level 3 during both years.
The following table shows the key unobservable inputs used in the valuation models:
Valuation technique
Key unobservable inputs
Inter–relationship between key
unobservable inputs and fair value
measurements
2016
Group
Capitalisation Approach
Discounted Cash Flow
Method
•
Capitalisation rates of 5.50% to 7.50%
(2015: 5.25% to 7.75%)
•
Discount rates of 7.50% to 9.50%
(2015: 6.93% to 10.43%)
•
Terminal yields of 5.75% to 7.75%
(2015: 5.50% to 8.00%)
The estimated fair value would
increase if the capitalisation rate,
discount rate and terminal yield
decreased. The estimated fair value
would increase if the price psm
increased.
Direct Comparison
Method
•
Prices (psm) of $1,019 to $4,818
(2015: $1,388 to $6,682)
Capitalisation Approach
Discounted Cash Flow
Method
Trust
•
Capitalisation rates of 5.75% to 7.50%
(2015: 5.50% to 7.75%)
•
Discount rates of 7.50% to 8.50%
(2015: 6.93% to 8.75%)
•
Terminal yields of 6.00% to 7.75%
(2015: 5.75% to 8.00%)
Direct Comparison
Method
•
Prices (psm) of $1,019 to $4,818
(2015: $1,388 to $6,682)
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.
.213
A-REIT ANNUAL REPORT
2015/2016
