Notes to the financial statements
Year ended 31 March 2016
3 Significant accounting policies (continued)
(c)
Investment properties
Investment properties are properties held either to earn rental income or for capital appreciation, or for both,
but not for sale in the ordinary course of business. Investment properties are initially stated at cost, including
transaction costs, and are measured at fair value thereafter, with any change therein recognised in the Statement
of Total Return. Fair values are determined in accordance with the Trust Deed, which requires the investment
properties to be valued by independent registered valuers in the following events:
(i)
in such manner and frequency required under the CIS Code issued by MAS; and
(ii)
at least once in each period of 12 months following the acquisition of the investment properties.
Subsequent expenditure on investment properties is added to the carrying amount of the asset when it is
probable that future economic benefits, in excess of originally assessed standard of performance of the existing
asset, will flow to the Group. All other subsequent expenditure is recognised as an expense in the period in
which it is incurred.
When an investment property is disposed of, the resulting gain or loss recognised in the Statement of Total Return
is the difference between net disposal proceeds and the carrying amount of the property.
Investment properties are not depreciated. The properties are subject to continuing maintenance and are regularly
revalued on the basis described above. For income tax purposes, the Trust may claim capital allowances on assets
that qualify as plant and machinery under the Income Tax Act.
(d)
Non-current assets held for sale
Non-current assets comprising assets and liabilities, that are expected to be recovered primarily through sale
rather than through continuing use, are classified as held for sale. Immediately before classification as held for
sale, the assets and liabilities are measured in accordance with applicable FRSs. Thereafter, the assets or disposal
group, are generally measured at the lower of their carrying amount and fair value less costs to sell except for
non-current assets that are accounted for in accordance with the fair value model in FRS 40
Investment Property
.
Impairment losses on initial classification as held for sale and subsequent gains or losses on remeasurement are
recognised in the Statement of Total Return. Gains are not recognised in excess of any cumulative impairment
loss.
Non-current assets held for sale comprise property held for sale.
.156
A-REIT ANNUAL REPORT
2015/2016
