Annual Report 2021

201 2021 Annual Report Transport International Holdings Limited NOTES TO THE FINANCIAL STATEMENTS (Expressed in Hong Kong dollars unless otherwise indicated) 13 Investment properties, investment property under development, interest in leasehold land and other property, plant and equipment (continued) (c) Fair value measurement of properties (i) Fair value hierarchy 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 2021 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 3,407,870 – – 3,407,870 – industrial property 617,417 – 617,417 – Investment property under development in Hong Kong 5,025,500 – – 5,025,500 2020 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 3,085,560 – – 3,085,560 Investment property under development in Hong Kong 4,470,000 – – 4,470,000 During the years ended 31 December 2021 and 2020, 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 valuations were carried out by an independent firm of surveyors, Centaline Surveyors Limited, who have among their staff members of the Hong Kong Institute of Surveyors with recent experience in the locations and categories of properties being valued. The Group’s management have had discussions with the surveyors on the valuation assumptions and valuation results when the valuation was performed at each annual reporting date. As at 31 December 2021, investment property under development of $3,844,604,000 (2020: $3,005,416,000) related to the Group’s interests in a joint operation.