119 / 203
PPS
INTEGRATED REPORT 2018
118
NOTES TO THE
CONSOLIDATED
FINANCIAL STATEMENTS
(continued)
for the year ended 31 December 2018
Deferred tax has been provided on the revaluation difference arising on owner-occupied property owned
by PPS Insurance Company Limited, based on the amounts and at the rate applicable to capital gains.
Owner occupied property is carried at fair value and is classified as level 3 in terms of the IFRS 13 hierarchy.
The Group’s owner-occupied property owned by PPS Insurance Company Limited, consisting of an office
block situated at 6 Anerley Road, Parktown was revalued at 31 December 2018 by Mills Fitchet Valuations
(Pty) Limited.
Owner-occupied properties owned by the PPS Property Fund Trust consist of PPS Centurion Square and
11 Eton Road, and were valued at 31 December 2018 by Mills Fitchet (Pty) Limited and Quadrant Properties
(Pty) Limited respectively.
Independent valuations were performed using the discounted cash flow of future income stream method.
The discounted cash flow method takes projected cash flows and discount them at a rate which is consistent
with comparable market transactions. Refer to note 34.5 for valuation assumptions. The opening carrying
value is depreciated and then adjusted to reflect market value at year end.
If the owner-occupied properties were stated on a historical cost basis, the amounts would be as follows:
Group
2018
2017
R'000
R'000
Cost
375 030
360 664
Accumulated depreciation
(12 098)
(11 238)
Net book amount as at 31 December
362 932
349 426
2. PROPERTY AND EQUIPMENT
(continued)