China Communications Services Corporation Limited Annual Report 2015
131
NOTES TO THE
CONSOLIDATED FINANCIAL STATEMENTS
For the year ended 31 December 2015
17. INVESTMENT PROPERTIES
2015
2014
RMB’000
RMB’000
COST
As at 1 January
1,066,782
1,081,013
Transfer from property, plant and equipment (note 16)
20,115
35,563
Transfer to property, plant and equipment (note 16)
(2,930)
(52,875)
Additions
141
3,081
As at 31 December
1,084,108
1,066,782
ACCUMULATED DEPRECIATION
As at 1 January
384,493
346,892
Transfer from property, plant and equipment (note 16)
840
12,024
Transfer to property, plant and equipment (note 16)
(942)
(18,113)
Depreciation charge
41,490
43,270
Others
41
420
As at 31 December
425,922
384,493
NET CARRYING VALUE
As at 31 December
658,186
682,289
As at 1 January
682,289
734,121
Fair value
2,160,543
2,130,704
All the Group’s investment properties are located in the PRC.
The fair value measurement of the Group’s investment properties is categorised into Level 3 of fair value measurement. The
fair value was determined based on the income approach, where the market rentals of all lettable units of the properties
are assessed and discounted at the market yield expected by investors for this type of properties. The market rentals are
assessed by reference to the rentals achieved in the lettable units of the properties as well as other lettings of similar
properties in the neighbourhood. The discount rate is determined by reference to the yields derived from analysing the
sales transactions of similar commercial properties in the PRC and adjusted to take into account the market expectation
from property investors to reflect factors specific to the Group’s investment properties.
The current use of the investment properties is their highest and best use.
