FGV Annual Report 2017

FELDA GLOBAL VENTURES HOLDINGS BERHAD FINANCIAL STATEMENTS 210 NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 19 INVESTMENT PROPERTIES (CONTINUED) Company Buildings 2017 RM’000 2016 RM’000 Cost At 1 January 8,715 8,715 Addition 7,609 - Transfer from property, plant and equipment (Note 18) 1,303 - At 31 December 17,627 8,715 Accumulated depreciation At 1 January 943 508 Charge for the financial year 638 435 At 31 December 1,581 943 Net book value at 31 December 16,046 7,772 The following amounts have been recognised in profit or loss: Group Company 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 Rental income from investment properties 4,008 4,043 - - Direct operating expenses arising from investment properties that generate rental income (2,475) (2,997) - - Direct operating expenses arising from investment properties that did not generate rental income - - (94) (85) The fair value of the investment properties above as at 31 December 2017 is estimated at RM214,014,000 (2016: RM209,707,000) for the Group and RM15,962,000 (2016: RM7,610,000) 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.