NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued) for the year ended 31 December 2022 Owner-occupied property The land and buildings revaluation surplus / (deficit) represents the capital appreciation/(depreciation) on the owner-occupied properties. As the properties are held to back insurance policy liabilities, with discretionary participation features, the movement in insurance policy liabilities as a result of the revaluation is recognised directly in equity. 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 recovery through use. Owner occupied property is carried at fair value and is classified as level 3 in terms of the IFRS 13 hierarchy. All of the Group’s owner-occupied property consisting of office blocks situated at 6 and 7 Anerley Road, Parktown, and PPS Centurion Square were valued at 31 December 2022 by Quadrant Properties (Pty) Limited . 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 38.5 for valuation assumptions. The opening carrying value is depreciated for the year, and the year-end carrying value is 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 2022 2021 R’m R’m Cost 459 456 Accumulated depreciation (48) (39) Net book amount as at 31 December 411 417 2. Property and equipment (continued) 126 Notes to the Consolidated Financial Statements
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