NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
36. Fair values of financial instruments (cont’d)
(c) Level 2 fair value measurements
The following is a description of the valuation techniques and inputs used in the fair value measurement for assets that
are categorised within Level 2 of the fair value hierarchy:
Investment property (office premises)
The valuation of the office premises is based on comparable market transactions that consider sales of similar properties
that have been transacted in the open market.
(d) Level 3 fair value measurements
Information about significant unobservable inputs used in Level 3 fair value measurements
The following table shows the information about fair value measurements using significant unobservable inputs (Level
3):
Description
Fair value at 31
December 2014
Valuation
techniques
Unobservable
inputs
Range
(weighted
average)
S$’000
Recurring fair value measurements
Investment property:
- Workers’ dormitory
2,700
Discounted cash
flow
Discount rate Not applicable
Rental rate per
head
S$285 to S$315
(S$300)
Occupancy
rate
55% to 65%
(60%)
Hock Lian Seng Holdings Limited
Annual report 2014
94
