All investment properties are measured at fair value, which is determined annually based on current market rents and investment yields for comparable properties. Adjustments are made where necessary to reflect differences in the nature, location, or condition of the individual assets.
Depreciation is not charged on investment properties. Changes in fair value are recognised in the profit and loss account. Corresponding amounts are transferred to a separate non-distributable reserve, which is ring-fenced from distribution.
The fair value of investment properties has been determined by the directors using current market rents and investment yields for comparable properties, with adjustments for location and condition. No external valuation was undertaken during the year.
Deferred taxation is recognised at each valuation period based on measurement of deferred tax liabilities and asset reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.