Wah Seong Corporation Berhad Annual Report 2018

6 INVESTMENT PROPERTIES (CONTINUED) Fair value of investment properties is categorised as follows (continued): 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. 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. 7 INVESTMENT IN SUBSIDIARIES Company 2018 2017 RM’000 RM’000 Unquoted shares, at cost 858,730 817,334 Accumulated impairment losses (127,526) (127,526) 731,204 689,808 Advances to subsidiaries, deemed as net investment 32,393 32,393 763,597 722,201 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. Details of subsidiaries are as follows: Group’s effective interest 2018 % 2017 % Country of incorporation Principal activities Wasco Energy Ltd. 100 100 Bermuda Investment holding Wasco Management Services Sdn. Bhd. 100 100 Malaysia Provision of management support services * Wasco Capital Pte. Limited 100 100 Singapore Investment and management of treasury activities ~ Wasco (Australia) Pty. Ltd. 60 60 Australia Provision of construction services for the oil and gas industry # Wasco Coatings Limited 100 100 Hong Kong, SAR Investment holding * Wasco Coatings UK Ltd. 100 100 England and Wales Dormant * Wasco Management Services S.R.L. 100 100 Italy Dormant * Wasco Coatings Singapore Pte. Ltd. 100 100 Singapore Investment holding NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 WAH SEONG CORPORATION BERHAD 118