'" SIGNIFICANT#ACCOUNTING#ESTIMATES#AND#JUDGEMENTS#(CONT’D") $*# Key!sources!of!estimation!uncertainty!(cont’d*) (d) Fair!valuation!of!investment!properties T he!Group!carries!its!investment!properties!at!fair!value&!with!changes!in!fair!value!being!recognised!in!the!profit!or!loss'!Significant! judgement!is!required!in!determining!the!fair!value!which!may!be!derived!based!on!di(erent!valuation!methods'!In!making!the! judgement&!the!Group!engaged!independent!valuation!specialists!to!determine!the!fair!values!as!disclosed!in!Note!$0' (e) Income!tax Significant!judgement!and!estimates!are!used!in!arriving!at!taxable!profits!for!the!year!and!for!prior!years&!including!assessing! the!deductibility!of!expense!items!for!tax!purposes'!Management!are!guided!by!tax!laws.cases!on!such!instances'!Management! believes!that!all!deductions!claimed&!in!arriving!at!taxable!profits!for!current!and!prior!years&!are!appropriate!and!justifiable' (f) Inventories Inventories!are!stated!at!the!lower!of!cost!and!net!realisable!value' Significant!judgement!is!required!in!arriving!at!the!net!realisable!value&!particularly!the!estimated!selling!price!of!inventories!in! the!ordinary!course!of!the!business'!The!Group!has!considered!all!available!information&!including!but!not!limited!to!property! market!conditions&!locations!of!property!inventories!and!target!buyers' Details!of!inventories!are!disclosed!in!Note!$%' $*+ Judgement!made!in!applying!accounting!policies! In!the!process!of!applying!the!Group’s!and!the!Company’s!accounting!policies&!management!has!made!the!following!judgements&! apart!from!there!involving!estimations&!which!have!the!most!significant!e(ect!on!the!amounts!recognised!in!the!financial!statements) Classification!between!investment!properties!and!property%!plant!and!equipment The!Group!has!developed!certain!criteria!based!on!MFRS!$1#!in!making!judgement!whether!a!property!qualifies!as!an!investment! property'!Investment!property!is!a!property!held!to!earn!rentals!or!for!capital!appreciation!or!both'!Some!properties!comprise!a! portion!that!is!held!to!earn!rentals!or!for!capital!appreciation!and!another!portion!that!is!held!for!use!in!the!production!or!supply! of!goods!or!services!or!for!administrative!purposes'!If!these!portions!could!be!sold!separately!(or!leased!out!separately!under!a! finance!lease)&!the!Group!would!account!for!the!portions!separately'!If!the!portions!could!not!be!sold!separately&!the!property! is! an! investment! property! only! if! an! insignificant! portion! is! held! for! use! in! the! production! or! supply! of! goods! or! services! or! for!administrative!purposes'!Judgement!is!made!on!an!individual!property!basis!to!determine!whether!ancillary!services!are!so! significant!that!a!property!does!not!qualify!as!investment!property' NOTES TO THE FINANCIAL STATEMENTS FOR!THE!FINANCIAL!YEAR!ENDED!'$!DECEMBER!"%"' 210 ANNUAL REPORT 2023
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