FINANCIAL STATEMENTS (continued) 85 5. PROPERTY, PLANT AND EQUIPMENT (continued) (e) The Group’s condominiums, leasehold land and buildings are stated at Directors’ valuation which is supported by the professional valuation carried out in February 2018 by an external independent valuation company, KGV International Property Consultants (M) Sdn. Bhd., using the Market Value basis of valuation that made reference to sales of similar properties in the vicinity on a price per square feet basis, which ranged from RM205 to RM265. Had the condominiums, leasehold land and buildings been carried at historical cost less accumulated depreciation, the carrying amounts of the revalued assets that would have been included in the financial statements at the end of the financial year are as follows: Group 2022 2021 RM’000 RM’000 Condominiums 180 189 Leasehold land 1,873 1,919 Buildings 7,351 7,572 9,404 9,680 The fair value of condominiums, leasehold land and buildings are categorised as Level 3 in the fair value hierarchy. There were no transfers between levels in the hierarchy during the financial year. 6. INVESTMENT PROPERTIES Group Buildings RM’000 Cost Balance as at 1 September 2020/31 August 2021/1 September 2021/ 31 August 2022 2,640 Accumulated depreciation Balance as at 1 September 2020 214 Charge for the financial year 53 Balance as at 31 August 2021/1 September 2021 267 Charge for the financial year 53 Balance as at 31 August 2022 320 Carrying amounts Balance as at 31 August 2021 2,373 Balance as at 31 August 2022 2,320 (a) Investment properties comprise of commercial buildings that are leased to third parties. Each of the lease contains an initial non-cancellable period of 3 years. Subsequent renewals are negotiated with the lessees with an average renewal period of 2 years. No contingent rents are charged. (b) Investment properties are stated at cost, less accumulated depreciation and any accumulated impairment losses. The depreciation policy adopted for investment properties is similar to property assets under property, plant and equipment. 85 ANNUAL REPORT 2022
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