NOTES TO FINANCIAL STATEMENTS
December 31, 2015
3
CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY
(Cont’d)
Valuation of investment properties
As disclosed in Note 8, investment properties are stated at fair value based on the valuation performed by an
independent professional valuer. In determining the fair values, the valuer has made reference to both the comparable
sales transactions as available in the relevant market of these properties and the capitalisation of the existing and
reversionary rental income potential.
The estimated value from capitalisation of the existing and reversionary rental income potential is used as an estimate
of fair value, and the estimate is dependent on several variable parameters and projections including projected rental
income, occupancy rate, rental yield, discount rate and terminal yield.
Any change in the variable parameters and projections will result in change in fair value estimate for the investment
properties which can potentially be significant.
In relying on the independent professional valuation report, management considered the method of valuation and
the Group’s marketing strategy and is of the view that the estimated values are reasonable.
4
FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL RISK MANAGEMENT
(a)
Categories of financial instruments
The following table sets out the financial instruments as at the end of the reporting period:
GROUP
COMPANY
2015
2014
2015
2014
RMB’000
RMB’000
RMB’000
RMB’000
(Restated)
Financial assets
Fair value through profit or loss:
Held-for-trading investment
19,510
13,610
–
–
Derivative financial instruments:
In designated hedge
accounting relationships
–
1,426
–
–
Loans and receivables
(including cash and cash equivalents)
19,861,783
8,247,904
12,471,824
12,546,363
Financial liabilities
Derivative financial instruments:
In designated hedge
accounting relationships
145,236
–
–
–
Amortised cost
26,966,674
25,885,108
8,168,491
8,334,669
85
