NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 30 SEPTEMBER 2025 43. FAIR VALUE (CONT'D) Fair value reconciliation of land and building under property, plant and equipment measured at Level 3 are as follows: The Group Factory buildings Office and shoplot Production buildings Total RM RM RM RM 2025 At beginning of year 8,349,262 39,872,768 11,597,391 59,819,421 Reclassification - - 3,696,042 3,696,042 Depreciation charge for the financial year (581,474) (734,306) (1,529,938) (2,845,718) Reclassification to assets for disposal group classified as held for sale (7,825,384) - - (7,825,384) Revaluation - 5,311,538 8,982,456 14,293,994 Effect of movements in exchange rate 57,596 - (1,010,721) (953,125) At end of year - 44,450,000* 21,735,230 66,185,230 * Included in office and shoplot is an amount of RM1,450,000 represents the Company’s freehold land and buildings. Description of valuation techniques used and key unobservable inputs to valuation on land and buildings under property, plant and equipment measured at Level 3 are as follows: Property category Valuation technique Significant unobservable inputs Range The Group The Company 2025 2025 Freehold land Cost method Market value per square feet RM60 – RM200 RM190 – RM200 Buildings Cost method Construction price per square feet RM9 – RM150 RM60 – RM120 Office and shop lot Comparison method Market value per square feet RM270 - Office and shop lot Cost method Construction price per square feet RM250 - 6 Financial Insights Through Numbers 1 3 5 2 4 7 PG | 305 ANNUAL REPORT 2025 MKH BERHAD
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