Annual Report 2023

236 2023 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 14 Investment properties and investment property under development (continued) (b) Fair value measurement The following table presents the fair value of the Group’s investment properties and investment property under development disclosed at the end of the reporting period on a recurring basis, categorised into the three-level fair value hierarchy as defined in HKFRS 13, Fair value measurement . The level into which a fair value measurement is classified is determined with reference to the observability and significance of the inputs used in the valuation technique as follows: – Level 1 valuations: Fair value measured using only Level 1 inputs i.e. unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date – Level 2 valuations: Fair value measured using Level 2 inputs i.e. observable inputs which fail to meet Level 1, and not using significant unobservable inputs. Unobservable inputs are inputs for which market data are not available – Level 3 valuations: Fair value measured using significant unobservable inputs 2023 Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Recurring fair value disclosures Investment properties in Hong Kong – commercial properties 5,303,500 – – 5,303,500 – industrial properties 103,000 – – 103,000 Investment property under development in Hong Kong 2,805,000 – – 2,805,000 2022 (restated) Fair value measurements categorised into Fair value Level 1 Level 2 Level 3 $’000 $’000 $’000 $’000 Recurring fair value disclosures Investment properties in Hong Kong – commercial properties 1,365,800 – – 1,365,800 – industrial properties 103,000 – – 103,000 Investment property under development in Hong Kong 5,840,000 – – 5,840,000 During the years ended 31 December 2023 and 2022, there were no transfers between Level 1 and Level 2, or transfers into or out of Level 3. The Group’s policy is to recognise transfers between levels of fair value hierarchy as at the end of the reporting period in which they occur. The Group’s investment properties and investment property under development were revalued at 31 December 2023 by Knight Frank Petty Limited, an independent firm of professional qualified valuers, who have among their staff Fellows of the Hong Kong Institute of Surveyors with recent experience in the location and category of property being valued, on a market value basis, in accordance with Valuation Standards on Properties issued by Hong Kong Institute of Surveyors.