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2 Basis of preparation
(a) Statement of compliance
The fnancial statements have been prepared in accordance with the recommendations of Statement of Recommended
Accounting Practice (“RAP”) 7 “Reporting Framework for Unit Trusts” issued by the Institute of Certifed Public Accountants
of Singapore, and the applicable requirements of the Code on Collective Investment Schemes (the “CIS Code”) issued by the
Monetary Authority of Singapore (“MAS”) and the provisions of the Trust Deed. RAP 7 requires that accounting policies adopted
should generally comply with the recognition and measurement principles of Singapore Financial Reporting Standards (“FRS”).
(b) Functional and presentation currency
The fnancial statements are presented in Singapore dollars, which is the Group’s functional currency. All fnancial information
presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.
(c) Basis of measurement
The fnancial statements are prepared on the historical cost basis, except for investment properties and investment properties
under development, and certain fnancial assets and fnancial liabilities which are stated at fair value as described in Note 3.
(d) Use of estimates and judgements
The preparation of fnancial statements in conformity with RAP 7 requires the Manager to make judgements, estimates and
assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgements about carrying amounts of
assets and liabilities that are not readily apparent from other sources.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised
in the period in which the estimate is revised, and in any future periods affected.
In particular, information about signifcant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most signifcant effect on the amount recognised in the fnancial statements are described in the following notes:
• Note 4 – Valuation of investment properties;
• Note 5 – Valuation of investment properties under development; and
• Note 33 – Valuation of fnancial instruments
(e) Changes in accounting policies
Identifcation of related party relationships and related party disclosures
From 1 April 2011, the Group has applied the revised FRS 24 Related Party Disclosures (2010) to identify parties that are related
to the Group and to determine the disclosures to be made on transactions and outstanding balances, including commitments,
between the Group and its related parties. FRS 24 (2010) improved the defnition of a related party in order to eliminate
inconsistencies and ensure symmetrical identifcation of relationships between two parties.
NOTES TO THE FINANCIAL STATEMENTS
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A DECADE OF ENABLING BUSINESSES