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Investment property includes property that is held to earn rent or for value appreciation or both and property that is being constructed or developed for future use as investment property.
Investment property is initially measured at purchase cost or manufacturing cost, including the costs of transaction and external financing.
After initial recognition, the Group measures all investment property according to the cost model, i.e. purchase price or manufacturing cost, less accumulated depreciation and accumulated impairment losses.
Investment properties are depreciated using the straight-line method over their useful life. The estimated useful life of investment property is 42 years.
Investment properties are removed from the ledgers when sold or withdrawn from use permanently, provided that no benefits from its disposal are expected in the future.
| 2018 | 2017 | |
|---|---|---|
| AS AT 1 JANUARY | ||
| Net carrying amount at the beginning of the period | 21.7 | 22.4 |
| Depreciation and amortization | (0.6) | (0.7) |
| NET CARRYING AMOUNT | 21.1 | 21.7 |
| AS AT 31 DECEMBER | ||
| Gross value | 31.0 | 31.0 |
| Accumulated amortization * | (9.9) | (9.3) |
| NET CARRYING AMOUNT | 21.1 | 21.7 |
*This item includes accumulated depreciation and an impairment loss on investment property.
Rental income from and cost associated with investment property:
| Nota | 2018 | 2017 | |
|---|---|---|---|
| Rental income from investment properties | 4.3 | 1.7 | 1.2 |
| Direct operating expenses generating rental income in the period | 4.4 | (1.0) | (1.0) |