13

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

INVESTMENT PROPERTIES, OTHER PROPERTY, PLANT AND EQUIPMENT AND LEASEHOLD LAND (Continued)

(a) Fair value measurement of investment properties

(1)

Fair value !

The following table presents the fair value of the Group's investment properties measured at the end of the reporting period 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 measurements as at

31 December 2017 categorised into

Fair value at

31 December

2017

HK$'000

Level 1

HK$'000

Level 2

HK$'000

Level 3

HK$'000

Recurring fair value measurement

Investment properties

2,107,585

Recurring fair value measurement

Investment properties

2,107,585

Fair value measurements as at

31 December 2016 categorised into

Fair value at

31 December

2016

HK$'000

Level 1

HK$'000

Level 2

HK$'000

Level 3

HK$'000

2,050,655

2,050,655

119

Hong Kong Ferry (Holdings) Company Limited

Annual Report 2017

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