17. INVESTMENT PROPERTIES (CONT’D.) Description of valuation techniques used and key inputs to valuation on investment properties: Valuation techniques Significant unobservable inputs Range 2021 2020 Commercial building Investment method* Estimated rental value RM1.00 to RM1.00 to per sqft per month RM6.00 RM6.00 Long-term vacancy rate 5% to 10% 5% to 10% Yield rate 3.75% to 8% 3.75% to 8% Commercial building Cost method** Estimated construction costs RM18 to RM18 to per sqft RM235 RM235 Land Comparison method The comparison method -30% to 30% -30% to 30% entails analysing recent transactions and asking prices of similar property in and around the locality for comparison purposes with adjustments made for differences in location, visibility, size and tenure. * The investment method entails determining the net annual income by deducting the annual outgoings from the gross annual income and capitalising the net income by a suitable rate of return consistent with the type and quality of the investment to arrive at the market value of the subject property. ** Buildings are valued by reference to the current estimates on construction costs to erect equivalent buildings, taking into consideration of similar accommodation in terms of size, construction, finishes, contractors’ overheads, fees and profits. Appropriate adjustments are then made for the factors of obsolescence and existing physical condition of the building. 18. INVESTMENTS IN SUBSIDIARIES Company 2021 2020 RM’000 RM’000 Unquoted shares, at cost 3,392,736 3,422,089 Discount on amounts due from subsidiaries 47,910 47,910 3,440,646 3,469,999 Less: Accumulated impairment losses (399,556) (399,556) 3,041,090 3,070,443 Company 2021 2020 RM’000 RM’000 Movement in the accumulated impairment losses: At 1 January 399,556 382,661 Charge for the financial year (Note 9) – 16,895 At 31 December 399,556 399,556 FINANCIAL STATEMENTS NOTES TO THE For the financial year ended 31 December 2021 Annual Report 2021 TROPICANA CORPORATION BERHAD FINANCIAL STATEMENTS AND OTHER INFORMATION 272 273
RkJQdWJsaXNoZXIy NDgzMzc=