13 FIXED ASSETS (Continued)
(a)
Fair value measurement of investment properties
(i)
Fair value hierarchy
Hong Kong Ferry (Holdings) Company Limited Annual Report 2013
Notes to the Accounts (Continued)
The following table presents the fair value of the Group's investment properties measured at the balance
sheet date on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS
13, Fair value measurement. The level into which a fair value measurement is classified is determined with
reference to the observability and significance of the inputs used in the valuation technique as follows:
Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in
active markets for identical assets or liabilities at the measurement date
Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to
meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for
which market data are not available
Level 3 valuations: Fair value measured using significant unobservable inputs
Fair value at
31 December
Fair value measurements as at
31 December 2013 categorised into
The Group
Recurring fair value
measurement
Investment properties
2013
HK$'000
Level 1
HK$'000
Level 2
HK$'000
Level 3
HK$'000
1,251,900
1,251,900
During the year ended 31 December 2013, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group's policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur.
Valuation process
All the Group's investment properties were revalued as at 31 December 2013. The valuations were carried out by an independent firm of surveyors, DTZ Debenham Tie Leung Limited, who have among their staff Members of the Hong Kong Institute of Surveyors with recent experience in the location and category of property being valued, on a market value basis. The management has discussion with the surveyors on the valuation assumptions and valuation results when the valuation is performed at each interim and annual reporting date.
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