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The adoption of FRS 24 (2010) affects only the disclosures made in the fnancial statements. There is no fnancial effect on the
results and fnancial position of the Group for the current and previous fnancial years. Accordingly, the adoption of FRS 24 (2010)
has no impact on earnings per unit.
3 Signifcant accounting policies
The accounting policies set out below have been applied consistently by the Group to all periods presented in these fnancial
statements, except as explained in Note 2(e), which addresses changes in accounting policies.
(a) Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the fnancial and
operating policies of an entity so as to obtain benefts from its activities. In assessing control, potential voting rights that presently
are exercisable are taken into account. The fnancial statements of subsidiaries are included in the consolidated fnancial
statements from the date that control commences until the date that control ceases.
Transactions eliminated on consolidation
Intra-group balances and transactions, and any unrealised income or expenses arising from intra-group transactions, are
eliminated in preparing the consolidated fnancial statements. Unrealised losses are eliminated in the same way as unrealised
gains, but only to the extent that there is no evidence of impairment.
Accounting for subsidiaries
Interest in a subsidiary is stated on the Trust’s balance sheet at cost less accumulated impairment losses. On disposal of interest
in a subsidiary, the difference between net disposal proceeds and the carrying amount of the investment is taken to the Statement
of Total Return.
(b) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group at the exchange rates at
the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the end of the reporting period
are translated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is
the difference between amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and
payments during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated to the
functional currency at the exchange rate at the date on which the fair value was determined.
Foreign currency differences arising on translation are recognised in the Statement of Total Return, except for differences arising
on the translation of monetary items that in substance form part of the Group’s net investment in a foreign operation.
NOTES TO THE FINANCIAL STATEMENTS
ASCENDAS REAL ESTATE INVESTMENT TRUST
ANNUAL REPORT FY11/12
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