FINANCIAL STATEMENTS
STRATEGIC REPORT
GOVERNANCE
14 PROPERTY, PLANT AND EQUIPMENT continued The Company’s freehold land and buildings are stated at their revalued amounts, being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value measurements of the Company’s freehold land and buildings as at 5 October 2020 were performed by Hurst Warne & Partners Surveyors Ltd, independent valuers not related to the Company. Hurst Warne & Partners Surveyors Ltd is registered for regulation by the Royal Institution of Chartered Surveyors (“RICS”). The valuation process relies on expert judgement which is heightened due to the macroeconomic related COVID-19 uncertainty. The valuer has sufficient current local knowledge of the particular market, and the knowledge, skills and understanding to undertake the valuation competently. The fair value of the freehold land was undertaken using a residual valuation assuming a new build office on each site to an exact equivalent size as currently and disregarding the possibility of developing any alternative uses or possible enhancements. The fair value of the buildings was determined based on open market comparable evidence of market rent. The fair value measurement of revalued land and buildings has been categorised as Level 3 within the fair value hierarchy based on the non-observable inputs to the valuation technique used. Revaluations during 2020 comprise a loss of £1.2m recognised in profit or loss, a loss of £1.2m recognised in other comprehensive income (gross of tax of £0.1m) partially reversing previously recognised gains of £5.3m (gross of tax of £0.9m), and the elimination of depreciation on the revaluations of £1.2m. If freehold land and buildings were stated on the historical cost basis, the carrying values would be land of £3.6m (2020: £4.3m) and buildings of £6.1m (2020: £10.2m).
Right-of-use assets are property assets leased by the Group (see note 26).
15 INVESTMENT PROPERTY
Year ended 31 December 2021 £m
Year ended 31 December 2020 £m
–
At 1 January
– – – –
70.6
Recognised on acquisition of the Jersey Property Unit Trust (see note 35)
(1.0)
Net loss from fair value adjustment
At 31 December
69.6
Investment properties are leased to tenants under operating leases. Minimum lease payments receivable on leases of investment properties are as follows: 2021 £m 2020 £m Within 1 year 1.1 – Between 1 and 2 years 1.1 – Between 2 and 3 years 1.1 – Between 3 and 4 years 1.1 – Between 4 and 5 years 1.1 – Later than 5 years 128.8 – Total 134.3 –
147
Powered by FlippingBook