NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2023 3. MATERIAL ACCOUNTING POLICIES (continued) (r) Segment reporting (continued) Segment results that are reported to the CODMs include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise mainly financial derivative assets and liabilities, other receivables, cash and cash equivalents, trade and other payables, and interest-bearing borrowings. Segment capital expenditure is the total cost incurred during the year for acquisition of plant and equipment and capital expenditure on investment properties. (s) New standards and interpretations not yet adopted A number of new standards are effective for annual periods beginning after 1 January 2023 and earlier application is permitted; however, the Group has not early adopted the principles under the new or amended standards in preparing these consolidated financial statements. The principles under the following new FRSs, amended standards and interpretations are not expected to have a significant impact on the Group’s consolidated financial statements: • Amendments to FRS 1: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants • Amendments to FRS 7 and FRS 107: Supplier Finance Arrangements • Amendments to FRS 116: Lease Liability in a Sale and Leaseback • Amendments to FRS 21: Lack of Exchangeability 4. INVESTMENT PROPERTIES Group Note 2023 2022 $’000 $’000 At 1 January 4,909,377 5,249,617 Reclassified to asset held for sale 10 (156,907) – Expenditure capitalised 30,257 29,079 Reclassification from plant and equipment 5 – 53 Changes in fair value (39,769) 67,845 Translation differences (199,745) (437,217) At 31 December 4,543,213 4,909,377 Security At 31 December 2023, investment properties of the Group with carrying amounts of $1,444.2 million (2022: $1,519.4 million) are pledged as security to secure bank loans (see Note 12). Measurement of fair value Investment properties are stated at fair value based on valuation performed by independent professional valuers having appropriate recognised professional qualifications and recent experience in the location and category of property being valued. In determining the fair value, the valuers have used valuation methods which involve certain estimates. The Manager reviews the key valuation parameters and underlying data including discount, capitalisation and terminal yield rates adopted by the valuers and is of the view that the valuation methods and estimates are reflective of the current market conditions. 182 CAPITALAND CHINA TRUST
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