NOTES TO THE FINANCIAL STATEMENTS
31 December 2014
36. Fair values of financial instruments (cont’d)
(d) Level 3 fair value measurements (cont’d)
Movement in Level 3 assets measured at fair value
Valuation policies and procedures
The Group’s Chief Financial Officer (CFO) oversees the Group’s financial reporting valuation process and is responsible
for setting and documenting the Group’s valuation policies and procedures. In this regard, the CFO reports to the Group’s
ARMC.
For all significant financial reporting valuations using valuation models and significant unobservable inputs, it is the
Group’s policy to engage external valuation experts to perform the valuation. The CFO is responsible for selecting and
engaging valuation experts that possess the relevant credentials and knowledge on the subject of valuation, valuation
methodologies, and FRS 113. The Group had engaged an external valuer to provide a valuation for the investment
properties in 2014.
Significant changes in fair value measurements from period to period are evaluated by the CFO for reasonableness. Key
drivers of the changes are identified and assessed for reasonableness against relevant information from independent
sources, or internal sources if necessary and appropriate.
The CFO documents and reports its analysis and results of the external valuation to the ARMC at year-end. The ARMC
performs a high-level independent review of the valuation process and results and recommends if any revisions need to
be made before presenting the results to the Board of Directors for approval.
Group
S$’000
Fair value measurements using significant unobservable inputs (Level 3)
Investment property:
- Workers’ dormitory
At 1 January 2014
7,000
Net loss from fair value adjustments recognised in profit or loss
(4,300)
At 31 December 2014
2,700
At 1 January 2013
10,030
Net loss from fair value adjustments recognised in profit or loss
(3,030)
At 31 December 2013
7,000
Hock Lian Seng Holdings Limited
Annual report 2014
97
