i'mpact Singapore Tourism Board Annual Report 2010/2011
i'mpact Singapore Tourism Board Annual Report 2010/2011
i'mpact Singapore Tourism Board Annual Report 2010/2011
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NOTES TO THE FINANCIAL STATEMENTS<br />
31 March <strong>2011</strong><br />
8 INVESTMENT PROPERTIES<br />
<strong>2010</strong>/<strong>2011</strong> 2009/<strong>2010</strong><br />
$’000 $’000<br />
Cost:<br />
Balance at beginning of the year 24,089 20,146<br />
Additions 869 3,943<br />
Balance at end of the year 24,958 24,089<br />
Accumulated depreciation<br />
Balance at beginning of the year 4,427 4,154<br />
Depreciation for the year 293 273<br />
Balance at end of the year 4,720 4,427<br />
Carrying amount 20,238 19,662<br />
Fair value 55,300 56,376<br />
Investment properties are held by STB for the purpose of tourism promotion and development and generate rental income<br />
for STB.<br />
The fair values of investment properties at end of the respective reporting periods are determined by independent professional<br />
valuers with appropriate recognised professional qualifications and recent experience in the location and category of the properties<br />
being valued. The valuation were arrived at by reference to market evidence of transaction prices for similar properties.<br />
Investment properties are leased to non-related parties under operating leases.<br />
The following amounts are recognised in the income or expense:<br />
<strong>2010</strong>/<strong>2011</strong> 2009/<strong>2010</strong><br />
$’000 $’000<br />
Rental income 382 246<br />
Direct operating expenses (including repairs and maintenance) arising from<br />
investment properties that generated rental income 687 227<br />
9 FINANCE LEASE RECEIVABLE<br />
STB entered into an agreement with a third party company incorporated in <strong>Singapore</strong> to lease a parcel of land granted to STB<br />
by the <strong>Singapore</strong> Land Authority for the purpose of a tourism-related project. The average discount rate implicit in the lease is<br />
6.4% (2009/<strong>2010</strong> : 6.4%) per annum.<br />
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