FGV Audited Financial Statements 2019

114 FGV HOLDINGS BERHAD NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 22 INVESTMENT PROPERTIES (CONTINUED) Company Buildings 2019 RM’000 2018 RM’000 Cost At 1 January/31 December 2019 17,627 17,627 Accumulated depreciation/impairment At 1 January 3,680 1,581 Charge for the financial year 882 881 Impairment loss - 1,218 At 31 December 4,562 3,680 Net book value at 31 December 13,065 13,947 The following amounts have been recognised in profit or loss: Group Company 2019 RM’000 2018 RM’000 2019 RM’000 2018 RM’000 Rental income from investment properties 5,099 3,939 187 - Direct operating expenses arising from investment properties that generate rental income (2,133) (2,468) (142) - Direct operating expenses arising from investment properties that did not generate rental income - - (38) (89) The fair value of the investment properties above as at 31December 2019 is estimated at RM281,476,000 (2018: RM269,417,000) for the Group and RM21,963,000 (2018: RM18,741,000) for the Company based on independent valuations carried out by registered professional valuers using the comparison method by reference to recent transactions involving other similar properties in the vicinity. The valuation is a Level 2 fair value estimation. Leasing arrangements – Group and Company as a lessor The investment properties are leased to tenants under operating leases. The Group and the Company are not exposed to any variable lease considerations under the arrangements.