KEY!AUDIT!MATTERS!(CONT’D*) Valuation!of!investment!properties!(cont’d*) (Refer!to!Note!$0!to!the!financial!statements)!(cont’d') How!have!our!audit!addressed!the!matter Our!audit!procedures!focused!on!the!valuations!performed!by!firms!of!independent!valuers&!which!included!amongst!others!the!following! procedures)! • Considered!the!objectivity&!competence!and!capabilities!of!the!firms!of!independent!valuers*! • Obtained! an! understanding! of! the! methodology! adopted! by! the! independent! valuers! in! estimating! the! fair! values! of! the! investment! properties!and!assessed!whether!such!methodology!is!consistent!with!those!used!in!the!industry* • As!part!of!our!evaluations!of!the!fair!values!of!investment!properties&!we!had!discussions!with!the!independent!valuers!to!obtain!an! understanding!of!their!valuation!process!which!included!assessment!of!the!comparability!of!historical!transactions!used!and!property! related!data!used!as!input!to!the!valuation!models* • Obtained!an!understanding!of!the!adjustments!factors!made!by!the!valuers!to!account!for!di(erences!in&!amongst!others&!the!occupancy! rate&!property’s!location&!property’s!size!and!tenure!between!the!subject!property!and!the!comparable!properties*!and!!! • Assessed!whether!the!capitalisation!rate!used!in!the!valuation!models!reflects!the!return!that!investors!would!require!if!they!were!to!choose! an!investment!that!would!generate!cash!flows!of!amounts&!timing!and!risk!profile!equivalent!to!those!that!the!entity!expects!to!derive' Valuation!of!land!held!for!sale! (Refer!to!Note!$%!to!the!financial!statements) As!of!+$!December!"#"+&!the!Group’s!land!held!for!sale&!which!is!classified!as!inventories&!had!a!carrying!amount!of!RM$,0&,--&###&!representing! "3!of!the!Group’s!total!assets'!The!Group!recognised!an!inventory!write-down!to!its!net!realisable!value&!amounting!to!RM$#/&11#&###&!which! represents!0-3!of!the!Group’s!loss!after!tax!during!the!financial!year' The!estimates!of!net!realisable!values!are!based!on!the!estimated!selling!price!at!the!time!the!estimate!is!made&!as!well!as!the!estimated!costs! of!completion!and!costs!necessary!to!make!the!sale'!These!estimates!involve!some!degree!of!subjectivity&!so!we!consider!this!area!to!be!an! audit!focus' How!have!our!audit!addressed!the!matter Our!audit!procedures!in!evaluating!management’s!assessment!of!net!realisable!values!of!land!held!for!sale!included&!amongst!others&!the! following!procedures) • We!obtained!an!understanding!of!the!management!process!in!estimating!the!net!realisable!value!of!the!land!held!for!sale* • We! evaluated! the! assumption! applied! in! the! estimated! selling! price! by! comparing! the! selling! price! stated! in! the! sale! and! purchase! agreement*!and • We!evaluated!the!key!assumptions!applied!in!estimating!the!estimated!costs!of!completion!by!examining!documentary!evidence&!such!as! letters!of!awards!issued!to!contractors&!to!support!the!estimated!costs!of!completion'!We!also!evaluated!the!reasonableness!of!the!key! assumptions!used!by!comparing!to!the!Group’s!historical!experience!and!relevant!market!data' 181 FINANCIAL STATEMENTS & OTHER INFORMATION
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