Page 142 - SAR141018_Forterra AR 2013

FORTERRA
ANNUAL REPORT 2013
NOTES TO THE
FINANCIAL STATEMENTS
140
30 DETERMINATION OF FAIR VALUES (CONTINUED)
Accounting classifications and fair values (Continued)
Key unobservable inputs
Key unobservable inputs correspond to:
• Market rents and sale prices derived from the same open markets and rent and sale prices
of comparable property units.
• Investment property capitalisation rate/yields derived from market data for similar
properties, adjusted for nature, location and condition of the properties.
• The discount rate reflects the overall rate of return expected by the investor. The discount
rate is the sum of the risk-free return and equity risk premium.
31 RELATED PARTIES
For the purposes of these financial statements, parties are considered to be related to the Group
if the Group has the ability, directly or indirectly, to control the party or exercise significant
influence over the party in making financial and operating decisions, or vice versa, or where the
Trustee-Manager or the Group and the party are subject to common control. Related parties may
be individuals or other entities.
Other than those disclosed elsewhere in the financial statements, there were following significant
transactions entered into on terms agreed with related parties during the year:
2013 2012
$’000 $’000
Treasury Holdings (Shanghai) Property Management Co., Ltd.,
the Property Manager
Rental income received/receivable 763 737
Property management fees paid/payable 2,754 3,386
Development management service fee paid/payable 225 415
Marketing services commission 1,574 2,417
Reimbursements 2,172 1,805
Forterra Real Estate Pte. Ltd., the Trustee-Manager
Trustee-Manager’s fees paid/payable 16,129 16,316
Divestment fee paid/payable 1,809 –
Reimbursements 417 391