2015 — Page 101

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

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:

Investment properties

At 1 January

Transfer from inventories

Cost adjustment

Valuation gains

At 31 December

2015

HK$'000

2014

HK$'000

1,880,200

1,251,900

107,050

486,624

(1,777)

15,627

141,676

2,001,100

1,880,200

(b)

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.

The analysis of the net book value of all the properties, which are held in Hong Kong, is as follows:

Medium-term leases

2015

HK$'000

2014

HK$'000

2,054,428

1,936,124

Hong Kong Ferry (Holdings) Company Limited

99

Annual Report 2015