NOTES TO FINANCIAL STATEMENTS
30 June 2015
Karin Technology Holdings Limited
Annual Report 2015
88
12. INVESTMENT PROPERTIES
(continued)
Notes: (continued)
(b)
(continued)
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 income capitalisation approach was used to cross-check the valuation results from the direct comparison method.
The income capitalisation approach is applied based on net rental income that can be generated from the properties
under existing tenancies and the reversionary potential of the tenancies if they have been or would be let to tenants.
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 capitalisation rate in isolation would result in a decrease/(increase) in the fair value of the
investment properties, while an increase/(decrease) in the annual rental income and price per square meter in isolation
would each result in increase/(decrease) in the fair value of the investment properties.
13. GOODWILL
Group
2015
HK$’000
HK$’000
At beginning and end of financial year:
Cost
5,104
Accumulated impairment
(3,006)
(3,006)
______
______
Net carrying amount
2,098
Goodwill acquired through business combinations has been allocated to the following cash-generating units,
which are reportable operating segments, at the date of acquisition for impairment testing:
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