notes to the financial statements
for the financial year ended 31 December 2014 (Continued)
7 INVESTMENT PROPERTIES (CONTINUED)
Fair value of investment properties is categorised as follows (continued):
Company
Level 1
Level 2
Level 3
Total
RM’000
RM’000
RM’000
RM’000
2014
Buildings
-
-
28,974
28,974
2013
Buildings
-
-
27,256
27,256
On 27 June 2011, certain properties were valued by Jordan Lee & Jaafar, an independent firm of professional valuer, registered with the Board of Valuers, Appraisers &
Estate Agents Malaysia using the comparison method of valuation. During the financial year, the Group and the Company carried out a review and noted there was no
significant change to the fair value of these properties since the last valuation.
Level 1 fair value is derived from quoted price in active markets for identical investment properties that the entity can access at the measurement date.
Level 2 fair value is estimated using inputs other than quoted price included within Level 1 that are observable for the investment properties, either directly or indirectly.
Level 3 fair value is estimated using unobservable inputs for the investment properties. The unobservable input relates to the price per square feet. The fair value of
investment properties were estimated based on valuation by independent professionally qualified valuers using the comparison method.
8 INVESTMENT IN SUBSIDIARIES
Company
2014
2013
RM’000
RM’000
Unquoted shares, at cost
773,420
785,056
Accumulated impairment losses
(126,526)
(125,886)
646,894
659,170
Advances to subsidiaries, deemed as net investment
32,393
32,393
679,287
691,563
Advances to subsidiaries for long term working capital purposes represent an extension of capital to the subsidiaries and are such deemed to be net investment.
95
Wah Seong Corporation Berhad • Annual Report 2014
