Ni Hsin Berhad Annual Report 2018

4. Investment property (continued) Included in the above are: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 At cost: Building 1,252 1,279 1,252 1,279 The following are recognised in profit or loss in respect of investment property: Group Company 2018 2017 2018 2017 RM’000 RM’000 RM’000 RM’000 Direct operating expenses: - non-income generating investment property 12 13 12 13 4.1 Fair value information Fair value of investment properties are categorised as follows: 2018 2017 Level 3 Level 3 RM’000 RM’000 Group and Company Building 2,472 1,899 Level 3 fair value The following table shows the valuation techniques used in the determination of fair values within Level 3, as well as the significant unobservable inputs used in the valuation models. Description of valuation technique and inputs used Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Comparison method: The valuation method considers the sales and listing of comparable properties recorded in the area and adjustments are made between the subject properties and those similar properties. The adjustments are made in relation to location and accessibility, size of the lot, legal and legislation constraints, supply and demand. The most significant input into this valuation approach is price per square foot. Price per square foot (2018: RM857 – RM1,000) (2017: RM658 – RM879) The estimated fair value would increase (decrease) if the price per square foot is higher (lower). Notes to the financial statements (continued) Annual Report 2018 68