i'mpact Singapore Tourism Board Annual Report 2010/2011

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