Annual REPORT

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
NOTES TO THE FINANCIAL STATEMENTS (Continued)
2015 2014
Sh’000
Sh’000
21 a) INVESTMENT PROPERTIES – Group & Bank
At start of year 127,400 106,000
Disposal (4,200) (3,000)
Gain on revaluation - 24,400
To non-current assets held for sale (105,000) -
________ ________
At end of year 18,200 127,400
b) NON-CURRENT ASSETS HELD FOR SALE – Group & Bank
======= =======
At start of year - -
From Investment properties 105,000 -
Fair value loss (15,000) -
________ ________
At end of year 90,000 -
======= =======
Investment property relate to Leasehold land acquired at a cost of Shs 24,500,000 as part of the Group’s expansion
plans and Lease hold land acquired at a cost of Shs 3,170,000 for national customer promotion raffle in 2015 part of
the land at value of shs.7,200,000 was given out in Kunacha Mili na Acre promotion to the various winners. The
properties were re-valued as at 31 December 2015 by M.S Kibui & Associates Valuers, registered valuers. Valuations
for the properties were made on the basis of the open market value and the concept of highest and best use was used.
The book values of the re-valued items were adjusted to the re-valued amounts and the resultant surplus was credited
to profit and loss.
In accordance with IFRS 13, the fair value ranking of the Investment Property is at Level 2 as the fair value measurement
is derived from inputs other than quoted prices that are observable for the asset or liability, either directly as prices or
indirectly as derived from prices.
The industrial area property was transferred from investment property to assets held for sale as the bank had entered
into a sale agreement and a deposit of Kshs 9 million had been received by the bank as at 31 December 2015.
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