132
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
11
INVESTMENT PROPERTIES, OTHER PROPERTY, PLANT AND EQUIPMENT AND LEASEHOLD LAND (Continued)
(a) Fair value measurement of investment properties (Continued)
(ii)
Information about Level 3 fair value measurements (Continued)
The fair value measurement of investment properties is positively correlated to the occupancy rate and market unit sales price and negatively correlated to the capitalisation rate.
The movements during the year in the balance of these Level 3 fair value measurements are as follows:
2018
HK$'000
2017
HK$'000
Investment properties
At 1 January
Cost adjustment
Valuation gains
At 31 December
2,107,585
43,885
2,050,655
(24)
56,954
2,151,470
2,107,585
Fair value adjustment of investment properties is recognised in the line item "valuation gains on investment properties" on the face of the consolidated statement of profit or loss.
All the gains recognised in profit or loss for the year arise from the properties held at the end of the reporting period.
(b) The analysis of the net book value of all the properties, which are held in
Hong Kong, is as follows:
Medium-term leases
Hong Kong Ferry (Holdings) Company Limited Annual Report 2018
2018
HK$'000
2017
HK$'000
2,201,519
2,159,725