Office building for rent Cost Less: Accumulated depreciation Less: Allowance for diminution in value Net book value
(Unit: Thousand Baht) Consolidated and separate financial statements 2012 2011 888,957 (259,287) (100,305) 529,365
888,957 (238,281) (106,384) 544,292
A reconciliation of the net book value of investment properties for the years 2012 and 2011 is presented below.
Net book value at beginning of 1 January 2011 Depreciation charged Depreciation adjustment Net book value at beginning of 31 December 2011 Depreciation charged Depreciation adjustment Net book value at end of 31 December 2012
(Unit: Thousand Baht) Consolidated and separate financial statements 559,219 (21,006) 6,079 544,292 (21,006) 6,079 529,365
As at 31 December 2012, the net book value of rental income received in advance from lessee amounting to Baht 650 million (2011: Baht 676 million), and the fair value of investment properties as determined based on valuations performed by an accredited independent valuer was Baht 839 million (2011: Baht 860 million), which has been determined using the income approach. The main assumptions used in the valuation are yield rate, inflation rate, long-term vacancy rate and long-term growth in real rental rates which has been determined based on rental information of tenants of building of Quality Houses Leasehold Property Fund that leased the building from the Company.
154 Annual report 2012