114 / 152
notes tothe
financial statements
112
STARHILL global reit ANNUAL REPORT FY 2016/17
Fair value hierarchy
The Group’s investment properties are valued based on unobservable inputs and classified in Level 3 of the fair value
hierarchy. The different levels of the fair value hierarchy are defined in Note 24.
The following table shows the key unobservable inputs used in the valuation models of the investment properties as at
30 June 2017:
Investment properties
Key unobservable inputs
Inter-relationship between key unobservable
inputs and fair value measurement
Commercial properties
for leasing
·
Capitalisation rates from 3.75% to
8.25% (2016: from 3.90% to 8.25%)
·
Discount rates from 3.80% to 8.50%
(2016: from 3.70% to 8.50%)
The estimated fair value would increase
if capitalisation rates and discount rates
decrease.
Key unobservable inputs correspond to:
·
Capitalisation rates derived from specialised publications from the related markets and comparable transactions.
·
Discount rates, which are largely based on the risk-free rate of government bonds in the relevant market, adjusted
for a risk premium to reflect the increased risk of investing in the asset class.
5.
Plant and equipment
Group
$’000
Trust
$’000
Cost:
At 1 July 2015
3,302
790
Additions
41
–
Disposal/write-off
(14)
–
Translation differences
(161)
–
At 30 June 2016
3,168
790
Additions
53
–
Disposal/write-off
(1,230)
–
Translation differences
(3)
–
At 30 June 2017
1,988
790
Accumulated depreciation:
At 1 July 2015
(2,252)
(367)
Depreciation charge
(622)
(282)
Disposal/write-off
14
–
Translation differences
138
–
At 30 June 2016
(2,722)
(649)
Depreciation charge
(361)
(141)
Disposal/write-off
1,150
–
Translation differences
4
–
At 30 June 2017
(1,929)
(790)
Carrying amount:
At 1 July 2015
1,050
423
At 30 June 2016
446
141
At 30 June 2017
59
–