2014 — Page 80

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13 FIXED ASSETS (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:

Investment properties

At 1 January

Transfer from inventories

Disposals

Valuation gains

At 31 December

2014

HK$'000

2013

HK$'000

1,251,900

1,182,800

486,624

(24,000)

141,676

93,100

1,880,200

1,251,900

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:

The Group

2014

HK$'000

2013

HK$'000

Medium-term leases

Hong Kong Ferry (Holdings) Company Limited Annual Report 2014

1,936,124

1,308,252

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