13. PROPERTY, PLANT AND EQUIPMENT (CONTD.) (a) The net carrying amounts of property, plant and equipment of the Group charged to a bank for banking facilities (Note 35(a)) are as follows: Group 2022 RM’000 2021 RM’000 Plant and equipment 92,829 103,826 (b) During the year, the Group and the Company acquired property, plant and equipment by way of: Group Company 2022 RM’000 2021 RM’000 2022 RM’000 2021 RM’000 Cash payment 21,814 22,815 623 863 Other payables 3,651 – – – 25,465 22,815 623 863 (c) As at 31 December 2022, plant and equipment with net carrying amount of RM8,000 has been reclassified to asset held for sale as disclosed in Note 28. 14. INVESTMENT PROPERTIES Group 2022 RM’000 2021 RM’000 At 1 January – – Transfer from land held for property development (Note 16) 477 – Fair value adjustment (Note 5) 13,323 – At 31 December 13,800 – The Group’s investment properties consist of two pieces of land in Sabah, which is held under lease term. As at 31 December 2022, the fair values of the properties are based on valuations performed by Raine & Horne International, an accredited independent valuer. Raine & Horne International is a specialist in valuing these types of investment properties. A valuation model in accordance with that recommended by the International Valuation Standards Committee has been applied. For the financial year ended 31 December 2022, the expenses incurred in relation to the investment properties was RM15,000. The Group has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements. 14. INVESTMENT PROPERTIES (CONTD.) Description of valuation techniques Under the comparison method, a property’s fair value is estimated based on comparable transactions. This approach is based upon the principle where a potential buyer will not pay more for the property than it will cost to buy a comparable substitute property and would indicate, by the known selling price of the duplicate, the price for which the subject property could be sold. Investment properties valued using the comparison method with significant adjustments made for differences such as location, size, condition, accessibility and design (“adjustment factors”) are categorised as Level 3 in the fair value hierarchy. The significant unobservable inputs for this category of investment properties, which are the adjustment factors, range generally between -20% and 15% of the property’s comparable. Sensitivity analysis An increase in the price per square feet of comparable properties in the surrounding vicinity will result in an increase of fair value of the investment properties. Fair value measurement hierarchy for investment properties as at 31 December 2022 Group 2022 Date of valuation Quoted prices in active markets (Level 1) Significant observable inputs (Level 2) Significant unobservable inputs (Level 3) Land 31 December 2022 – – 13,800 (i) Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities (ii) Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable (iii) Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable The following table show a reconciliation of Level 3 fair value: Group 2022 RM’000 2021 RM’000 Land As at 1 January – – Transfer from land held for development 477 – Fair value adjustment 13,323 – As at 31 December 13,800 – p.314 p.315 UEM EDGENTA BERHAD INTEGRATED ANNUAL REPORT 2022 1 2 3 4 5 6 7 8 9 FINANCIAL STATEMENTS Notes to the financial statements For the year ended 31 December 2022 Notes to the financial statements For the year ended 31 December 2022
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