ASCENDAS india trust ANNUAL REPORT 2014/15
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
For the financial year ended 31 March 2015
28.
Accounting classifications and fair value (continued)
(c)
Fair value measurements (continued)
(iii)
Level 3 fair value measurements
The following table shows the information about fair value measurements using significant unobservable
inputs (Level 3):
Description
Fair Value at
31 March 2015
$'000
Valuation
Techniques
Unobservable Inputs
Range
Recurring Fair Value
Measurements
– Investment properties
979,247
Discounted
cash flow
– Discount rate
12-14%
– Investment properties
under construction
32,628
Income
capitalisation
method
– Capitalisation rate
10-11%
– Investment in
available-for-sale
financial assets
50,505
Description
Fair Value at
31 March 2014
$'000
Valuation
Techniques
Unobservable Inputs
Range
Recurring Fair Value
Measurements
– Investment properties
869,085
Discounted
cash flow
– Discount rate
12-14%
Income
capitalisation
method
– Capitalisation rate
10-11%
(iii)
Level 3 fair value measurements
The valuation is determined through the two approaches, income capitalisation and discounted cash flow.
The income capitalisation approach involves capitalising a single year’s net property income estimate by an
appropriate yield, whereas, the discounted cash flow approach explicitly models future net income from the
property which is then discounted to a present value at an appropriate discount rate. The final valuations
determined are an average of the two approaches employed by Cushman & Wakefield India Pte. Ltd.
