Megachem Limited Annual Report 2015 99 Notes to the Financial Statements 31 December 2015 11. Investment property Group 2015 2014 $ $ At cost: Balance at beginning of year 158,128 161,200 Currency translation difference (20,100) (3,072) Balance at end of year 138,028 158,128 Accumulated depreciation: Balance at beginning of year 53,432 50,852 Depreciation charge 3,337 3,639 Currency translation difference (7,031) (1,059) Balance at end of year 49,738 53,432 Net book value: Balance at beginning of year 104,696 110,348 Balance at end of year 88,290 104,696 Fair value: Fair value at end of year 288,667 295,000 Rental and service income from investment property 16,449 17,111 Description / Location Gross floor area Tenure of land Condominium BL 20-3, 20th Floor, Mont’ Kiara Palma, Jalan 1/70C, Off Bukit Kiara, Kuala Lumpur 50480, Malaysia 129 sq m Freehold The fair value of the investment property was measured in June 2015 based on the highest and best use method to reflect the actual market state and circumstances as of the end of the reporting year. The fair value was based on a valuation made by independent professional valuer, Jones Lang Wootton on a systematic basis at least once in five years. The firm holds a recognised and relevant professional qualification with sufficient recent experience in the location and category of the investment property being valued. Management determined that the highest and best use of the asset is the current use and that it would provide maximum value to market participants principally through its use in combination with other assets. The investment property was leased out for the years ended 31 December 2015 and 31 December 2014. The direct operating expenses (including repairs and maintenance) arising from investment property that generated rental income during the year are not significant.
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