N o t e s t o t h e f i n a n c i a l s t a t e m e n t s
Year ended 31 March 2015
2 Basis of preparation
(a) Statement of compliance
The financial 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 Singapore Chartered
Accountants, 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. Under RAP 7, accounting
policies adopted should generally comply with the recognition and measurement principles of FRS.
(b) Functional and presentation currency
The financial statements are presented in Singapore dollars, which is the Trust’s functional currency. All financial
information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated.
(c)
Basis of measurement
The financial statements are prepared on the historical cost basis, except for investment properties and investment
properties under development, and certain financial assets and financial liabilities which are stated at fair value as
described in Note 3.
(d) Use of estimates and judgements
The preparation of financial 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.
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the most significant effect on the amounts recognised in the financial statements is included in the
following notes:
•
Note 3(j)
– Estimates of current and deferred taxes;
•
Note 33 – Valuation of investment properties;
•
Note 33 – Valuation of investment properties under development; and
•
Note 33 – Valuation of financial instruments
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