ANNUAL REPORT 2014
77
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
For the financial year ended 31 December 2014
9.
PROPERTY, PLANT AND EQUIPMENT
(CONTINUED)
Leasehold
land and
buildings
Plant
and
equipment
Total
$’000
$’000
$’000
The Group
Cost
At 1 January 2013
44,152
53,341
97,493
Additions
160
2,416
2,576
Disposals/write-offs
(45)
(553)
(598)
Currency translation differences
289
265
554
At 31 December 2013
44,556
55,469
100,025
Accumulated depreciation and impairment losses
At 1 January 2013
21,651
37,895
59,546
Charge for 2013
1,980
3,398
5,378
Disposals/write-offs
(24)
(499)
(523)
Currency translation differences
(136)
2
(134)
At 31 December 2013
23,471
40,796
64,267
Net book value
At 31 December 2013
21,085
14,673
35,758
Included in leasehold land and buildings is land use rights amounting to $1,085,000 (2013: $1,059,000).
10. INVESTMENT PROPERTIES
The Group
2014
$’000
2013
$’000
Beginning of financial year
222,139
211,545
Improvements
339
978
Fair value gains on investment properties recognised in profit or loss (net)
3,075
10,664
Currency translation differences
(304)
(1,048)
End of financial year
225,249
222,139
At valuation:
Freehold and 999-year leasehold properties
47,149
47,039
Leasehold properties
178,100
175,100
The Group’s investment properties consist of both commercial and industrial properties. Investment properties are
mainly leased to third parties under operating leases (Note 24(b)).
The Group engages external, independent and qualified valuers to determine the fair value of the Group’s properties
at the end of every financial year based on the properties’ highest and best use. Discussions on the valuation
processes, key inputs applied in the valuation approach and the reasons for the fair value changes are held amongst
the Group’s property manager, the chief financial officer and the independent valuer annually.
