Our response
We have independently assessed whether the acquisitions should be accounted for as an acquisition of business or an acquisition
of assets based on the applicable accounting standards and the transaction documentation. We also assessed whether the
disclosures in the financial statements appropriately describe the judgements inherent in the accounting for the acquisitions and
meet the requirements of the relevant accounting standards.
Our findings
We found management’s basis in determining that the acquisitions undertaken by the Group during the financial year as asset
acquisitions to be appropriate. We also found the disclosures in the financial statements to be appropriate with respect to the
degree of judgement inherent in determining the basis for the accounting treatment adopted.
Responsibilities of management and directors of the Manager for the financial statements
The management of the Manager of the Trust (the “Manager”) is responsible for the preparation and fair presentation of these
financial statements in accordance with the recommendations of Statement of Recommended Accounting Practice 7
Reporting
Framework for Unit Trusts
issued by the Institute of Singapore Chartered Accountants, and for such internal control as the
management of the Manager determines is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the management of the Manager is responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the management of the Manager either intends to liquidate the Group or to cease operations, or has no
realistic alternative but to do so.
The responsibilities of the directors of the Manager include overseeing the Group’s financial reporting process.
Auditors’ responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional scepticism throughout
the audit. We also:
•
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal controls.
•
Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal controls.
Independent auditors’ report
.125
A-REIT ANNUAL REPORT
2015/2016
