Fraser & Neave Holdings Bhd Annual Report 2020

180 FRASER & NEAVE HOLDINGS BHD 196101000155 (4205-V) Notes to The Financial Statements (Cont’d.) 5. INVESTMENT PROPERTIES (CONTINUED) FAIR VALUE INFORMATION (CONTINUED) Valuation processes applied by the Group for Level 3 fair value The fair values of investment properties are based on valuation performed by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of property being valued. The valuation company provides the fair value of the Group’s investment property portfolio annually. Changes in Level 3 fair values are analysed by the management annually after obtaining valuation report from the valuation company. Highest and best use The Group’s investment properties comprise office building and car park which represented the highest and best use of the properties as they are on prime land in the city centre. 6. PROPERTIES HELD FOR DEVELOPMENT Group 2020 RM’000 2019 RM’000 At cost At 1 October 2019/2018 56,047 56,047 Property development cost written off (1,089) – As at 30 September 54,958 56,047 Properties held for development comprise: – Freehold land 49,783 49,783 – Development costs 5,175 6,264 54,958 56,047