NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
86
11. PROPERTY, PLANT AND EQUIPMENT
(continued)
FAIR VALUE HIERARCHY
At 30 June 2015, fair value measurements of all of the Group’s leasehold land and buildings are using significant
unobservable inputs (Level 3) as defined in IFRS 13. During the year, there were no transfers of fair value
measurements between Level 1 (quoted prices in active markets) and Level 2 (significant observable inputs) and
no transfers into or out of Level 3.
Below is a summary of the valuation techniques used and the key inputs to the valuation of the Group’s leasehold
land and buildings:
Valuation techniques
Significant
unobservable inputs
Input/range of input
(weighted average)
2015
Property located in Hong Kong
Direct comparison method
Price per square feet
(s.q.f)
Ground floor:
HK$12,000 to
HK$13,000 per s.q.f
Ground floor:
HK$10,000 to
HK$12,000 per s.q.f
Non-ground floors:
Non-ground floors:
HK$3,400 to
HK$4,400 per s.q.f
HK$2,700 to
),
QFS T R G
Properties located in Mainland China
Direct comparison method
Price per square metre
(s.q.m)
RMB38,000 to
RMB54,000 per s.q.m
RMB37,500 to
3.#
QFS T R N
Under the direct comparison method, the Group assumes sale in the existing states with the benefit of vacant
possession and refers to comparable sales evidence as available in the relevant market. Appropriate adjustments
have then been made to account for the differences between the properties and the comparables in terms of
age, time, location, floor level and other relevant factors.
The aforementioned valuations have been made on the assumption that the Group sells the properties in the
market without the benefit of deferred term contracts, leasebacks, joint ventures, management agreements or any
similar arrangements which would serve to affect the values of the properties. In addition, no account has been
taken of any option or right of pre-emption concerning or affecting the sale of the properties and no allowance
has been made for the properties to be sold in one lot or to a single purchaser.
An increase/(decrease) in the price per square feet per square meter in isolation would result in an increase/
(decrease) in the fair value of the leasehold land and buildings.
