Page 78 - Forterra

76 FORTERRA
ANNUAL REPORT 2012
NOTES TO THE
FINANCIAL STATEMENTS
4 INVESTMENT PROPERTIES (CONTINUED)
The Trustee-Manager believes that the independent valuer has appropriate professional qualifications
and experience in the location and category of the properties being valued. In determining the fair
value, the valuer used the direct comparison approach, discounted cash flow approach, income
capitalisation approach and residual approach which involve certain estimates. The Trustee-Manager
has exercised its judgement and is satisfied that the valuation methods and estimates are reflective
of the current market conditions. The key assumptions used to determine the fair value of investment
properties include market-corroborated capitalisation yields, terminal yields and discount rates.
* Management plans to divest Central Plaza and Beijing Logistics Park (collectively as “the Properties”).
Accordingly, the entire assets and liabilities of the group entities which hold the Properties were
reclassified as assets and liabilities held for sale (see Note 10).
5 PROPERTY, PLANT AND EQUIPMENT
Self-use
office units
Furniture,
fittings and
equipment Total
Group $’000 $’000 $’000
Cost
At 1 January 2011 990 444 1,434
Acquisition of subsidiaries – 157 157
Additions 394 92 486
Exchange translation 139 26 165
At 31 December 2011 1,523 719 2,242
Additions – 16 16
Exchange translation (181) (81) (262)
Reclassification to assets held for sale (113) (98) (211)
At 31 December 2012 1,229 556 1,785
Accumulated depreciation
At 1 January 2011 33 81 114
Depreciation charge for the year 223 116 339
Exchange translation 15 11 26
At 31 December 2011 271 208 479
Depreciation charge for the year 226 141 367
Exchange translation (70) (60) (130)
Reclassification to assets held for sale (64) (75) (139)
At 31 December 2012 363 214 577
Carrying amounts
At 1 January 2011 957 363 1,320
At 31 December 2011 1,252 511 1,763
At 31 December 2012 866 342 1,208