Yinson Annual Report 2018

17. INVESTMENT PROPERTIES Investment properties are stated at fair value, which was determined based on valuations at the reporting date using market comparison approach. Group 2018 2017 RM’000 RM’000 At 1 February 29,931 – Additions – 29,931 Changes in fair value (Note 9) (5,623) – At 31 January 24,308 29,931 The investment properties of the Group have been pledged to financial institutions for banking facilities granted to the Company as disclosed in Note 32. The following amounts are recognised in profit or loss in respect of investment properties: Group 2018 2017 RM’000 RM’000 Rental income (Note 6) 200 181 Direct operating expenses arising from: - Investment properties that generate rental income 84 29 - Investment properties that do not generate rental income 180 104 The Group uses assumptions that are based on market conditions existing at the end of each reporting periods. The fair value of investment properties were estimated based on market evidence of transaction prices for similar properties, adjusted for differences in key attributes such as property size, view and quality of interior fittings. Fair value is determined using Level 3 inputs (defined as unobservable inputs for asset or liability) in the fair value hierarchy of MFRS 13 Fair Value Measurement. Changes in fair value are recognised in profit or loss during the reporting period in which they are reviewed. The fair value measurements using Level 3 inputs as at 31 January 2018 are as follows: Significant unobservable inputs Price per Valuation Technique square foot RM/psf Residential Market approach 934 - 1,370 Sensitivity to significant unobservable inputs Changes in the price per square foot by 5% will result in a change in fair value of approximately RM1,228,000 (2017: RM1,680,000). Financial Statements (Cont’d) For the financial year ended 31 January 2018 144 Yinson Holdings Berhad Annual Report 2018 Accountability