Al-`Aqar Healthcare REIT Annual Report 2019

Al-`Aqar Healthcare REIT 06 FINANCIAL STATEMENT 133 Notes To The Financial Statements For The Financial Year Ended 31 December 2019 (Continued) The fair value was determined based on capitalisation of net income method (“investment method”) as the primary valuation method with comparison and cost methodologies as a secondary check. In estimating the fair value of the investment properties, the highest and best use of the investment properties is their current use. The valuers have considered the results of the above methods in their valuation and applied professional judgement in the determination of the fair value of the Group’s and of the Fund’s investment properties. Further details are disclosed in Note 11. (b) Impairment of investment in a subsidiary The Fund reviews the carrying amount of investment in subsidiary at the end of each reporting period. The recoverable amount of the investment in subsidiary has been determined on the basis of its fair value less cost of disposal. The fair value of disposal is determined based on the realisable value of the assets of the subsidiary to the Fund determined using the foreign exchange rate at the end of the reporting period. The net carrying amount of investment in subsidiary as at 31 December 2019 is RM31,492,186 (2018: RM 35,492,186) and an impairment loss amounting to RM4,000,000 (2018: RM7,000,000) has been recognised in profit or loss during the current financial year. Further details are disclosed in Note 12. 4. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY (CONTINUED) 4.2 Key sources of estimation uncertainty (Continued) (a) Fair value of investment properties (Continued)