BIMB Integrated Annual Report 2019

16 INVESTMENT PROPERTIES (CONTINUED) The following are amounts arising from investment properties that have been recognised in profit or loss during the financial year: Group 2019 2018 RM’000 RM’000 Rental income (net of direct operating expenses) 5,399 3,509 Level 3 RM’000 2019 Freehold land and buildings 2,680 Leasehold land and buildings 10,062 12,742 2018 Freehold land and buildings 2,620 Leasehold land and buildings 9,956 12,576 Policy on transfer between levels The fair value of an asset to be transferred between levels is determined as of the date of the event or change in circumstances that caused the transfer. Fair value information Level 1 fair value Level 1 fair value is derived from quoted price (unadjusted) in active markets for identical investment properties that the entity can access at the measurement date. Level 2 fair value Level 2 fair value is estimated using inputs other than quoted prices included within Level 1 that are observable for the investment property, either directly or indirectly. Level 2 fair values of land and buildings have been generally derived using the sales comparison approach. Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property size. The most significant input into this valuation approach is price per square foot of comparable properties. Transfer between Level 1 and 2 fair values There is no transfer between Level 1 and 2 fair values during the financial year. NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2019 (CONTINUED) 231 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary