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SABANA
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revenues and incur expenses, including revenues and expenses that relate to transactions with
other components. All operating segments’ operating results are reviewed regularly by the Gro
decisions about resources to be allocated to the segment and to assess its performance, and
fnancial information is available.
Segment results that are reported to the CEO include items directly attributable to a segment as we
be allocated on a reasonable basis.
(o)
New standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annua
after 1 January 2011, and have not been applied in preparing these fnancial statements. None of
to have a signifcant effect on the fnancial statements of the Group and the Trust.
4
INVESTMENT PROPERTIES
At date of constitution
Acquisition of investment properties
Changes in fair value of investment properties
At 31 December 2011
Investment properties are stated at fair value based on valuations performed by independent professi
appropriate recognised professional qualifcations and recent experience in the location and category of pro
In determining the fair value, the valuers used valuation techniques which involve certain estimates. In relyi
reports, the Manager has exercised its judgement and is satisfed that the valuation methods and estima
current market conditions. The valuation reports are prepared in accordance with recognised appraisal and v
The estimates underlying the valuation techniques in the next fnancial year may differ from current estimate
in valuations that may be materially different from the valuations as at reporting date.
The valuers have considered the capitalisation approach and/or discounted cash fows in arriving at the
as at the reporting date. The capitalisation approach capitalises an income stream into a present valu
capitalisation rates, the income stream used is adjusted to market rentals currently being achieved
investment properties and recent leasing transactions achieved within the investment property. The dis
method involves the estimation and projection of an income stream over a period and discounting the inc
internal rate of return to arrive at the market value. The discounted cash fow method requires the valuer
growth rate indicative of market and the selection of a target internal rate of return consistent with current m
Security
As at 31 December 2011, investment properties with an aggregate carrying amount of $998,045,000 are
to secure borrowing (see Note 10).
Sabana AR 2011 Financial V9.indd 86
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