DMIT Annual Report 2017

N OTES TO THE C ONSOLIDATED F INANCIAL S TATEMENTS (Thousands of US dollars) Dar Al-Maal Al-Islami Trust 55 13. Investment property (continued) Investment property under operating leases The Group leases out part of its investment property under operating leases. The leases are for terms of one to five years. The future aggregate minimum rentals receivable under non-cancellable operating leases are as follows: 2017 2016 Not later than one year 1,975 1,836 Later than one year and not later than five years 3,874 5,100 5,849 6,936 14. Fair values of land and buildings An independent valuation of the Group’s land and buildings recognised as investment property in the consolidated statement of financial position was performed by valuers to determine the fair value of the land and buildings as at 31 December 2017 and 2016. The revaluation surplus net of applicable deferred income taxes was debited or credited to the consolidated statement of income for assets recorded as investment property. The following table analyses the non-financial assets carried at fair value, by valuation method. The different levels have been defined as follows: (a) Land and buildings in Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities. (b) Land and buildings in Level 2 Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (that is, as prices) or indirectly (that is, derived from prices). (c) Land and buildings in Level 3 Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs). Recurring fair value measurements At 31 December 2017 Significant unobservable input (Level 3) Total Land 267,347 267,347 Office buildings 48,822 48,822 Other 28,891 28,891 345,060 345,060 At 31 December 2016 Land 246,764 246,764 Office buildings 48,560 48,560 Other 22,725 22,725 318,049 318,049 There are no Level 1 or Level 2 investment property nor transfers between Levels 1 and 2 during 2017 or 2016. Other land and buildings comprise several smaller properties located in South Asia and the Middle East and individually would not have a material impact on the Group accounts.