NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 41 FINANCIAL INSTRUMENTS (CONT’D) (v) Accounting classifications and fair values (cont’d) Measurement of fair values (cont’d) Level 3 fair values The following table shows a reconciliation from the beginning balances to the ending balances for fair value measurements in Level 3 of the fair value hierarchy: Group Company Unquoted debt investments mandatorily at FVTPL Unquoted equity investments at FVOCI Unquoted equity investments mandatorily at FVTPL Unquoted equity investments at FVOCI $’000 $’000 $’000 $’000 At 1 January 2023 20,011 432,164 136,713 407,903 Additions – – 78,858 – Distribution of income and return of capital – – (18,446) – Total loss recognised in profit or loss - finance costs (19,650) – (9,601) – Total loss for the period included in other comprehensive income - net change in fair value of equity investments at FVOCI – (5,811) – (3,814) Translation differences on consolidation (361) – (3,035) – At 31 December 2023 – 426,353 184,489 404,089 At 1 January 2022 32,923 357,870 130,465 327,577 Additions – – 30,867 – Distribution of income and return of capital – – (21,960) – Total loss recognised in profit or loss - finance costs (11,119) – (1,769) – Total gain for the period included in other comprehensive income - net change in fair value of equity investments at FVOCI – 74,294 – 80,326 Translation differences on consolidation (1,793) – (890) – At 31 December 2022 20,011 432,164 136,713 407,903 42 OPERATING SEGMENTS Information reported to the Board of Directors for the purposes of resource allocation and assessment of segment performances is specifically focused on the functionality of services provided. The following summary describes the operations in each of the Group’s reportable segments: • Property development – develops and purchases properties for sale • Hotel operations – owns and manages hotels • Investment properties – develops and purchases investment properties for lease Others comprises mainly investment in shares, management and consultancy services, and provision of laundry services. None of these segments meet any of the quantitative thresholds for determining reportable segments in 2023 and 2022. Information regarding the results of each reportable segment is included below. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Board of Directors. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Information about reportable segments Property development Hotel operations Investment properties Total Others Total $’000 $’000 $’000 $’000 $’000 $’000 2023 Total revenue (including inter-segment revenue) 2,792,570 1,498,700 460,057 4,751,327 234,001 4,985,328 Inter-segment revenue – (185) (10,569) (10,754) (33,453) (44,207) External revenue 2,792,570 1,498,515^ 449,488 4,740,573 200,548 4,941,121 Profit from operating activities 382,327 302,979 113,286 798,592 19,936 818,528 Share of after-tax profit/ (loss) of associates and joint ventures 78,467 2,074 (27,808) 52,733 (5,085) 47,648 Finance income 50,284 27,663 17,679 95,626 2,344 97,970 Finance costs (171,546) (144,152) (143,936) (459,634) (31,944) (491,578) Net finance costs (121,262) (116,489) (126,257) (364,008) (29,600) (393,608) Reportable segment profit/ (loss) before tax 339,532 188,564 (40,779) 487,317 (14,749) 472,568 Depreciation and amortisation 5,004 111,176 118,456 234,636 19,394 254,030 ^ Hotel operations for 2023 comprise revenue and Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) attributable to hotel rooms owned by the Group of $1,056.4 million and $256.6 million respectively. FINANCIALS FINANCIALS ANNUAL REPORT 2023 CITY DEVELOPMENTS LIMITED 251 250
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