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Notes to the Consolidated Financial Statements

31st March 2018

15 INVESTMENT PROPERTIES

2018 2017
HK$’000 HK$’000

Beginning of the year 90,488 79,420
Fair value gain (Note 6) 3,500 11,068
End of the year 93,988 90,488

Rental income derived from the investment properties amounted to approximately HK$3,846,000 (2017:
HK$2,979,000) during the year (Note 6).

Valuation process of the Group

The Group measures its investment property at fair value. The fair value of the Group’s investment
property at 31st March 2018 has been determined on the basis of valuation carried out by an
independent qualified valuer, LCH (Asia-Pacific) Surveyors Limited (the “Valuer”) (2017: same). The
valuation, which conforms to the valuation standards issued by Hong Kong Institute of Surveyors
(“HKIS”) was arrived at by reference to the current and forecast rental income, allowing for reversionary
potential of the investment property.

The Group reviews the valuation performed by the Valuer for financial reporting purposes. Discussions of
valuation processes and results are held between management and the Valuer at least once every year,
which is in line with the Group’s annual reporting date.

ALCO HOLDINGS LIMITED ANNUAL REPORT 2018 99