Page 238 - Bank-Muamalat-AR2020

236 BANK MUAMALAT MALAYSIA BERHAD About Us Our Leadership Our Strategy
ANNUAL REPORT FY2020

Notes to the fiNaNcial statemeNts
31 December 2020 (16 JamaDil awal 1442h)

12. INvESTMENT PrOPErTIES
Group and Bank

Building Investment
on properties
Freehold freehold under
land land construction Total
rM’000 rM’000 rM’000 rM’000

As at 31 December 2020
As at 1 January 2019 14,001 35,855 3,207 53,063
Additions - - 872 872
Change in fair value recognised in profit or loss
(Note 29) (40) 1,994 - 1,954

As at 31 December 2020 13,961 37,849 4,079 55,889

As at 31 December 2019
As at 1 April 2019 14,001 29,360 1,942 45,303
Additions - 8,413 1,265 9,678
Change in fair value recognised in profit or loss (Note 29) - (1,918) - (1,918)
As at 31 December 2019 14,001 35,855 3,207 53,063

The Group’s and the Bank’s investment properties consist of a few units of commercial properties and a few pieces of
undeveloped freehold commercial land.

As at 31 December 2020, the fair values of the properties are based on valuations performed by Proharta Consultancy
Sdn. Bhd together with Rahim & Co International Sdn Bhd, accredited independent valuers. A valuation approach as guided
by the Malaysian Valuation Standards as issued by the Board of Valuers, Appraisers, Estate Agents and Property Managers,
has been applied. Fair value hierarchy disclosures for investment properties have been further disclosed in Note 47.

Description of valuation techniques used and key inputs to valuation on investment properties:

Types of investment properties Valuation Technique Significant unobservable inputs

- Buildings on freehold land Direct comparison method (“DCM”) Selling price per square foot (“psf”) of
- Freehold land comparable properties sold adjusted for
location, size and shape of land, planning
provisions, land tenure, title restrictions
and any other characteristics.