b'NOTE 8: INVESTMENT PROPERTY20222021$000$000Freehold land - at cost32,78813,591 Buildings - at cost94,62780,284 Less accumulated depreciation(6,454)(4,426) 88,17375,858 TOTAL INVESTMENT PROPERTY120,96189,449 Movements in Carrying Amount: Balance at the beginning of the year89,4497,472 Additions at cost1,46711,925 Additions through asset acquisition/business combinations16,74862,713Depreciation expense(2,028)(2,537) Transfers from PPE15,3259,876 CARRYING AMOUNT AT END OF YEAR120,96189,449 Accounting Policy Retirement living community assets are classified as investment properties as they are held to earn revenues and capital appreciation over the long-term. These assets are comprised of independent living units, common facilities and integral plant and equipment. Investment property is measured at cost less accumulated depreciation and impairment losses, including transaction costs. The buildings component are depreciated over a useful life of 40 years. Transfers to and from investment properties to property, plant and equipment are determined by a change in use of owner occupation. The existing carrying amount of property, plant and equipment is used for the subsequent accounting cost of investment properties on date of change of use. Any gain or loss on disposal of investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. Revision of useful lives of buildings On 1 July 2021 the estimated total useful lives of buildings were reviewed and revised.The net effect of the changes in the current financial year was a decrease in depreciation expense of $1.577 million. Assuming the buildings are held until the end of their estimated useful lives, depreciation in future years in relation to these buildings will be decreased in each financial year by $1.577 million.Impairment of Assets At each reporting date, management review a number of factors affecting investment property, including their carrying values, to determine if these assets may be impaired. If an impairment indicator exists, the recoverable amount of the asset, being the higher of the assets fair value less costs to sell and value in use is compared to the carrying value. Any excess of the assets carrying value over its recoverable amounts is expensed in profit or loss as an impairment expense.Page | 34'