FGV Annual Report 2016

ANNUAL INTEGRATED REPORT 2016 241 FINANCIAL REPORT NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 20 INVESTMENT PROPERTIES (CONTINUED) Company Buildings 2016 RM'000 2015 RM'000 Cost At 1 January/ 31 December 8,715 8,715 Accumulated depreciation At 1 January 508 73 Charge for the financial year 435 435 At 31 December 943 508 Net book value at 31 December 7,772 8,207 The following amounts have been recognised in profit or loss: Group Company 2016 RM'000 2015 RM'000 2016 RM'000 2015 RM'000 Rental income from investment properties 4,043 3,977 - - Direct operating expenses arising from investment properties that generate rental income (2,997) (2,482) - - Direct operating expenses arising from investment properties that did not generate rental income - - (85) (66) The fair value of the investment properties above as at 31 December 2016 is estimated at RM209,707,000 (2015: RM208,630,000) for the Group and RM7,610,000 (2015: RM7,900,000) 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.