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NOTES TO THE FINANCIAL STATEMENTS
For the Ànancial year ended 31 December 2013
116
COSCO Corporation (Singapore) Limited
F i nanc i a l Statement s
21. Investments in subsidiaries
(continued)
(i)
Audited by PricewaterhouseCoopers LLP, Singapore.
(ii) Audited by PricewaterhouseCoopers firms outside Singapore.
(iii) Audited by Ruihua Certified Public Accountants, PRC.
(iv) Audited by PricewaterhouseCoopers LLP, Singapore and firms outside Singapore for the purposes of
preparation of consolidated financial statements of the Group.
22. Investment properties
The Group
2013
2012
$’000
$’000
Cost
Beginning of financial year
16,083
19,598
Currency translation differences
271
(286)
Reclassification to property, plant and equipment (Note 23)
(438)
(3,229)
End of financial year
15,916
16,083
Accumulated depreciation
Beginning of financial year
4,353
5,193
Currency translation differences
61
(45)
Depreciation charge
384
506
Reclassification to property, plant and equipment (Note 23)
(175)
(1,301)
End of financial year
4,623
4,353
Net book value
11,293
11,730
Fair values
21,667
19,727
Investment properties are stated at cost less accumulated depreciation as the Group has elected to adopt the cost
model method to measure its investment properties.
Valuation techniques used to derive Level 2 fair values
Level 2 fair values of the investment properties are stated based on independent professional valuations using the
direct comparison method.
Sale prices of the comparable properties in close proximity are adjusted for differences in key attributes, such as
property size. The most significant input into this valuation approach is selling price per square metre.
Valuation process of the Group
The Group engages external, independent and qualified valuers to determine the fair values of the investment
properties at the end of each financial year based on the properties’ highest and best use. As at 31 December
2013, the fair values of the properties have been determined by CBRE Private Limited.
Investment properties are leased to fellow subsidiaries, associated companies and non-related parties under
operating leases.