Sasbadi Annual Report 2017

NOTES TO THE FINANCIAL STATEMENTS 97 ANNUAL REPORT 2017 4. Investment properties (continued) The following are recognised in profit or loss in respect of investment properties: Group 2017 2016 RM’000 RM’000 Rental income 104 6 Direct operating expenses (94) (5) Fair value information Fair value of the investment properties are categorised as follows: Group 2017 2016 Level 3 Level 3 RM’000 RM’000 Commercial buildings 2,640 2,640 Level 3 fair value The following table shows the valuation techniques used in the determination of fair values within level 3, as well as the significant unobservable inputs used in the valuation models. Description of valuation techniques and inputs used Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurements Sales comparison method: Entails recent transactions and asking prices of similar property in and around the locality for comparison purposes with adjustment made for differences in location, physical characteristics, time element, if any and other relevant characteristics to arrive at the market value. Price per square foot (RM114 to RM384) The estimated fair value would increase if the price per square foot is higher.