NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2014
Financial Statements
118
COSCO Corporation (Singapore) Limited
22.
Investment properties
(continued)
Investment properties comprise mainly office units leased to fellow subsidiaries, associated companies and
non-related parties under operating leases.
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 have been derived using the sales comparison approach.
Sale prices of 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 2014 and 2013, the fair values of the properties have been determined by CBRE Private
Limited.
The following amounts are recognised in profit or loss:
The Group
2014
2013
$’000
$’000
Rental income
1,088
1,044
Direct operating expenses arising from investment properties that
generate rental income
515
500
