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 (continued)
(e) Changes in accounting policies
(i)
Subsidiaries
From 1 April 2014, as a result of the adoption of FRS 110
Consolidated Financial Statements
, the Group
has changed its accounting policy for determining whether it has control over and consequently whether it
consolidates its investees. Control exists when the Group is exposed, or has rights, to variable returns from
its involvement with the entity and has the ability to affect those returns through its power over the entity. In
the previous financial years, control exists when the Group has the ability to exercise its power to govern the
financial and operating policies of an entity so as to obtain benefits from its activities.
The Group does not hold any ownership interest in Ruby Assets Pte. Ltd. (“Ruby Assets”) and Emerald Assets
Limited (“Emerald Assets”). However, based on the terms of agreements under which these entities were
established, the Group receives substantially all of the returns related to their operations (as these entities
issue collateralised notes exclusively for the Group) and has the current ability to direct these entities’
activities that most significantly affect these returns. Accordingly, the Manager has determined that the
Group has
de facto
control over Ruby Assets and Emerald Assets since their incorporation on 18 February
2010 and 19 June 2004 respectively.
Accordingly, the Group consolidated Ruby Assets and Emerald Assets since their incorporation dates, and
restated the relevant amounts as if these investees had been consolidated from those dates. The quantitative
impact of the change is set out in Note 2(e)(iii).
(ii)
Disclosure of interests in other entities
FRS 112
Disclosure of Interests in Other Entities
sets out the disclosures required to be made in respect of
all forms of an entity’s interests in other entities, including subsidiaries, joint arrangements, associates and
unconsolidated structured entities. The adoption of this standard would result in more extensive disclosures
being made in the Group’s financial statements in respect of its interests in other entities.
From 1 April 2014, as a result of FRS 112, the Group has expanded its disclosures about its interests in
non-controlling interests (Note 19).
(iii)
Summary of quantitative impact
The following tables summarise the impact of the above changes on the Group’s Balance Sheets, Statements
of Total Return and Statements of Cash Flows. The changes in accounting policies had an immaterial impact
on earnings per unit for the current and comparative periods.
The Group has applied the transitional provisions of FRS 110, and has not included in the following tables the
impact of consolidating Ruby Assets and Emerald Assets on the Group’s Balance Sheets, Statements of Total
Return and Statements of Cash Flows as at and for the year ended 31 March 2015.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
