CapitaLand Integrated Commercial Trust - Annual Report 2021

Notes to the Financial Statements YEAR ENDED 31 DECEMBER 2021 32 ACQUISITION OF SUBSIDIARY (continued) Measurement of fair values The valuation techniques used for measuring the fair value of material assets acquired and liabilities assumed were as follows: Assets acquired and liabilities assumed Valuation Technique Investment properties The fair value of investment properties approximate the carrying value of the investment properties as at the date of acquisition. The carrying value of investment properties are supported by the desktop valuations performed by independent professional valuers as at 30 June 2020, adjusted for capital expenditure capitalised from1 July 2020 to the date of acquisition. The valuation of the investment properties as at 30 June 2020 has been determined using one or more of the following methods: (i) Capitalisation method; (ii) Discounted cash flow method; and/or (iii) Direct comparison method. Investments in joint ventures The fair value of investments in non-listed joint ventures were determined based on their respective adjusted net asset values as at the date of acquisition. The fair value of the investment properties held by these joint ventures are supported by the desktop valuations performed by independent professional valuers as at 30 June 2020, adjusted for capital expenditure capitalised from 1 July 2020 to date of acquisition. The fair value of fixed rate medium term notes held by these joint ventures has been determined based on quoted market prices as at the date of acquisition. Other current assets and liabilities Other current assets and liabilities include trade and other receivables, cash and cash equivalents, trade and other payables and other current liabilities. The fair value of these assets and liabilities are assessed to approximate the carrying amounts since they are short term in nature. Loans and borrowings Loans and borrowings consist of floating and fixed rate term loans and medium term notes. The carrying amount of floating rate loans and borrowings are determined to approximate the fair values as floating rate instruments are re-priced to market interest rates on or near the date of acquisition. The fair value of fixed rate term loans is estimated by discounting expected future principal and interest cash flows at market rates as at the date of acquisition. The fair value of fixed rate medium term notes has been determined based on quoted market prices as at the date of acquisition. Annual Report 2021 315