Press Metal Annual Report 2023

Financial Statements Financial Statements Press Metal Aluminium Holdings Berhad 232 233 Integrated Annual Report 2023 Notes to the Financial Statements Notes to the Financial Statements 5. INVESTMENT PROPERTIES Group RM’000 Cost At 1 January 2022 75,745 Disposal (3,528) Effect of movements in exchange rates (1,743) At 31 December 2022/1 January 2023 70,474 Disposal (3,252) Effect of movements in exchange rates 1,054 At 31 December 2023 68,276 Depreciation and impairment loss At 1 January 2022 Accumulated depreciation 16,219 Accumulated impairment loss 200 16,419 Depreciation for the year 2,141 Disposal (382) Effect of movements in exchange rates (509) At 31 December 2022/1 January 2023 Accumulated depreciation 17,469 Accumulated impairment loss 200 17,669 Depreciation for the year 1,558 Disposal (447) Effect of movements in exchange rates 315 At 31 December 2023 Accumulated depreciation 18,895 Accumulated impairment loss 200 19,095 Carrying amounts At 1 January 2022 59,326 At 31 December 2022/1 January 2023 52,805 At 31 December 2023 49,181 5. INVESTMENT PROPERTIES (CONT’D) Group 2023 RM’000 2022 RM’000 Included in the above are: Land owned - 180 Land leased 33,520 33,840 Buildings 15,661 18,785 49,181 52,805 Investment properties comprise land and a number of residential properties and commercial properties that are leased to third parties or are currently vacant. Investment properties of the Group amounting to RM4,967,000 (2022: RM5,080,000) have been charged to secure banking facilities granted to the Group (see Note 16). The following are recognised in profit or loss in respect of investment properties: Group 2023 RM’000 2022 RM’000 Lease income 2,262 2,491 Direct operating expenses: - income generating investment properties (1,552) (2,053) - non-income generating investment properties (406) (438) Fair value information Fair value of investment properties is categorised as follows: Group 2023 RM’000 2022 RM’000 Level 3 Land 104,460 89,764 Buildings 20,616 25,869 125,076 115,633 Valuation process applied by the Group for Level 3 fair value The fair value of investment properties is estimated by the Directors using the comparison method. The comparison method entails critical analyses of recent evidences of values of comparable properties in the neighbourhood and making adjustment for differences such as differences in location, size and shape of land, age and condition of building, tenure, title restrictions, if any, and other relevant characteristics. 5.1 Material accounting policy information Investment properties are initially and subsequently measured at cost and are accounted for similarly to property, plant and equipment.

RkJQdWJsaXNoZXIy NDgzMzc=