Notes to the financial statements
Year ended 31 March 2016
2 Basis of preparation
(a)
Statement of compliance
The financial statements have been prepared in accordance with the 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. RAP 7 requires the
accounting policies to generally comply with the recognition and measurement principles of Singapore Financial
Reporting Standards (“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 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 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 note:
•
Note 4
–
Acquisition of investment properties through subsidiaries
Information about significant areas of estimation that have the most significant effect on the amounts recognised
in the financial statements is included in the following notes:
•
Note 3(i)
–
Estimates of current and deferred taxes
•
Note 33
–
Valuation of investment properties
•
Notes 32 and 33 –
Valuation of financial instruments
.152
A-REIT ANNUAL REPORT
2015/2016
