2017E — Page 123

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

13 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:

2017

HK$'000

2016

HK$'000

Investment properties

At 1 January

Cost adjustment

Disposal

Valuation gains

At 31 December

2,050,655

2,001,100

(24)

(8,258)

(1,492)

56,954

59,305

2,107,585

2,050,655

(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

2017

HK$'000

2016

HK$'000

2,159,725

2,104,686

121

Hong Kong Ferry (Holdings) Company Limited

Annual Report 2017