Annual Report 2015
FINANCIAL SECTION
159
16 INVESTMENT PROPERTIES
(continued)
Completed
investment
properties
Investment
properties
under
development
Total
HK$m
HK$m
HK$m
At 1 July 2013
50,142.8
21,548.4
71,691.2
Translation differences
(257.5)
(38.8)
(296.3)
Acquisition of a subsidiary
1,898.7
–
1,898.7
Disposal of a subsidiary
(41.0)
–
(41.0)
Additions
400.3
1,816.3
2,216.6
Transfer between investment properties,
property, plant and equipment and land use rights
132.0
–
132.0
Transfer between investment properties, properties under
development and properties held for sale
530.4
341.1
871.5
Disposals
(382.5)
–
(382.5)
Changes in fair value
1,034.0
391.5
1,425.5
Transfer between investment properties and
non-current assets classified as assets held for sale
(131.1)
–
(131.1)
Reclassification
(135.5)
135.5
–
At 30 June 2014
53,190.6
24,194.0
77,384.6
Valuation processes of the Group
The Group measures its investment properties at fair value. The investment properties were revalued by Jones
Lang LaSalle Corporate Appraisal and Advisory Limited, BMI Appraisals Limited, Savills Valuation and Professional
Services Limited, and Knight Frank Petty Limited, independent qualified valuers, who hold recognised relevant
professional qualification and have recent experience in the locations and segments of the investment properties
valued, at 30 June 2015 on an open market value basis. For all investment properties, their current use equates to
the highest and best use.
The Group’s finance department includes a team that reviews the valuation performed by the independent valuers
for financial reporting purposes. This team reports directly to the senior management and the Audit Committee.
Discussions of valuation processes and results are held between the management and valuers at least once every
six months, in line with the Group’s interim and annual reporting dates.
At each financial year end, the finance department verifies all major inputs to the independent valuation reports;
assesses property valuation movements when compared to the prior year valuation reports; and holds discussions
with the independent valuers.
