FGV Annual Report 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2018 226 FGV HOLDINGS BERHAD EXAMINED OUR NUMBERS 20 INVESTMENT PROPERTIES (CONTINUED) Company Buildings 2018 RM’000 2017 RM’000 Cost At 1 January 17,627 8,715 Addition - 7,609 Transfer from property, plant and equipment (Note 19) - 1,303 At 31 December 17,627 17,627 Accumulated depreciation/impairment At 1 January 1,581 943 Charge for the financial year 881 638 Impairment loss 1,218 - At 31 December 3,680 1,581 Net book value at 31 December 13,947 16,046 Net book value at 1 January 2017 - 7,772 The following amounts have been recognised in profit or loss: Group Company 2018 RM’000 2017 RM’000 2018 RM’000 2017 RM’000 Rental income from investment properties 3,939 4,008 - - Direct operating expenses arising from investment properties that generate rental income (2,468) (2,475) - - Direct operating expensesarising from investment properties that did not generate rental income - - (89) (94) The fair value of the investment properties above as at 31 December 2018 is estimated at RM269,417,000 (2017: RM214,014,000) for the Group and RM18,741,000 (2017: RM15,962,000) 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.