121
A N N U A L R E P O R T 2 0 1 6
For the Financial Year Ended 31 March 2016
NOTES TO THE
FINANCIAL STATEMENTS
32.
Fair value of assets and liabilities (cont¡¯d)
(c)
Level 3 fair value measurements
(i)
Information about significant unobservable inputs used in Level 3 fair value measurements
The following table shows the information about fair value measurements using significant unobservable inputs (Level 3):
Fair value as
at 31 March
2016
Fair value as
at 31 March
2015
Valuation
techniques
Significant
Unobservable
inputs
Range
$¡¯000
$¡¯000
Non-financial assets:
Property, plant and equipment (Note 11)
- Freehold land
906
906
Market comparable
approach
Yield adjustments
5% to 10%
- Buildings
9,190
9,190
Market comparable
approach
Yield adjustments
-5% to 30%
For freehold land and buildings, a significant increase (decrease) in yield adjustments would result in a significantly higher
(lower) fair value measurement.
(ii)
Valuation policies and procedures
The Group Financial Controller (GFC), who is assisted by the assistant finance manager and accountant (collectively referred
to as the ¡°Finance Department¡±) oversees the Group¡¯s financial reporting valuation process and is responsible for setting and
documenting the Group¡¯s valuation policies and procedures. In this regard, the Finance Department reports to the Group¡¯s
Audit Committee.
For all significant financial reporting valuations using valuation models and significant unobservable inputs, it is the Group¡¯s
policy to engage external valuation experts to perform the valuation. The Finance Department is responsible for selecting
and engaging valuation experts that possess the relevant credentials and knowledge on the subject of valuation, valuation
methodologies, and FRS 113 fair value measurement guidance.
