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
3 Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements,
and have been applied consistently by Group entities, 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. The Group controls an entity when it is exposed to, or has rights
to, variable returns from its involvement with the entity and has the ability to affect these returns through its power
over the entity. The financial statements of subsidiaries are included in the consolidated financial statements from
the date that control commences until the date that control ceases. The accounting policies of subsidiaries have
been changed when necessary to align them with the policies adopted by the Group. Losses applicable to the
non-controlling interests in a subsidiary are allocated to the non-controlling interests even if this results in the non-
controlling interests having a deficit balance.
Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as transactions
with owners and therefore no adjustments are made to goodwill and no gain or loss is recognised in profit or loss.
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the subsidiary, any non-
controlling interests and the other components of equity related to the subsidiary. Any surplus or deficit arising from
the loss of control is recognised in the profit or loss. If the Group retains any interest in the previous subsidiary, then
such interest is measured at fair value at the date that control is lost. Subsequently, it is accounted for as an equity-
accounted investee or as an available-for-sale financial asset depending on the level of influence retained.
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 financial statements.
Subsidiaries in the separate financial statements
Interest in a subsidiary is stated in the Trust’s Balance Sheet at cost less accumulated impairment losses.
(b) Foreign currency
Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of the Group entities 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. Non-monetary
items in a foreign currency that are measured in terms of historical costs are translated using the exchange rate at
the date of the transaction.
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.
ASCENDAS REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2014/15
