Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How the matter was addressed in the audit Valuation of Investment Properties (Refer to Note 5 of financial statements) The Group owns a portfolio of investment properties comprising retail, office and integrated developments located in Singapore, Australia and Germany. The investment properties represent the single largest category of assets on the statements of financial position with a carrying amount of S$23,702 million as at 31 December 2024. The Group has engaged external independent valuers to perform the fair value assessment of the investment properties. The fair valuation of investment properties is considered to be a matter of significance as the valuation process requires the application of judgement in determining the appropriate valuation methodology to be used, and the use of subjective assumptions and various unobservable inputs. The fair valuations are sensitive to certain key assumptions applied in deriving the underlying cash flows, discount rate and terminal capitalisation rate as a small change in these assumptions can result in an increase or decrease in fair valuation of the investment properties. We have assessed the Group’s process of appointment and determination of the scope of work of the Valuers, as well as their process of reviewing, and accepting the Valuers’ investment property valuations. We have reviewed the qualifications, competence, independence, and the terms of engagement of the Valuers with the Group to determine whether there were any matters which might affect the objectivity of the Valuers or impede their scope of work. We held discussions with the Manager and the Valuers on the valuation reports and engaged our valuation specialists to assist us in our audit. We considered the valuation methodologies adopted against those applied by other valuers for similar property types. We evaluated the key assumptions and inputs used in the valuations, which included discount rates, terminal capitalisation rates, capitalisation rate, and projected cash flows by comparing them against historical rates and available industry data, taking into consideration comparability and market factors. Where the rates were outside the expected range, we undertook further procedures to understand the effect of additional factors and, when necessary, held further discussions with the external property valuers. Based on the audit procedures performed, the fair valuation of the properties and the various inputs used are within a reasonable range of our expectations. We have also assessed the adequacy and appropriateness of the disclosures made in the financial statements. 105 Annual Report 2024
RkJQdWJsaXNoZXIy NTkwNzg=