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 (continued)
(i)
Impairment (continued)
(ii)
Non-financial assets (continued)
Calculation of recoverable amount
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value
less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time value of money and
the risks specific to the asset or cash-generating unit.
Reversals of impairment
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that
the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
(j)
Taxation
Taxation on the returns for the year comprises current and deferred tax. Current and deferred tax are recognised in
the Statement of Total Return, except to the extent that they relate to items directly related to Unitholders’ funds,
in which case it is recognised in Unitholders’ funds.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively
enacted at the reporting date.
Deferred tax is provided using the balance sheet method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
•
temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit or loss;
•
temporary differences related to investments in subsidiaries to the extent that it is probable that they will not
reverse in the foreseeable future; and
•
taxable temporary differences arising on the initial recognition of goodwill.
The measurement of deferred taxes reflects the tax consequences that would follow the manner in which the Group
expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. For
investment properties and investment properties under development that are measured at fair value in Singapore,
the presumption that the carrying amounts will be recovered through sale has not been rebutted. This presumption
is rebutted for investment properties in the PRC held within a business model whose business objective is to consume
substantially all of the economic benefits embodied in the investment properties over time. Deferred tax is measured
at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and
assets, and they relate to income taxes levied by the same tax authority on the same taxable entity.
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