Annual Report 2025 141 Notes to the Financial Statements 31 December 2025 2.2 Functional and presentation currency The financial statements are presented in Singapore dollars (“SGD”), which is the Trust’s functional currency. All financial information presented in Singapore dollars has been rounded to the nearest thousand, unless otherwise stated. 2.3 Basis of measurement The financial statements are prepared on the historical cost basis, except for investment properties, investment properties under development, right-of-use assets and certain financial assets and financial liabilities which are stated at fair value as described in Note 3. As at 31 December 2025, the Group and the Trust’s current liabilities exceed its current assets by $2,008.3 million (2024 : $1,170.3 million) and $1,263.1 million (2024 : $654.0 million) respectively. Notwithstanding the net current liabilities position, based on the Group’s and the Trust’s existing financial resources, the Manager is of the opinion that the Group and the Trust will be able to refinance its borrowings and meet its current obligations as and when they fall due. 2.4 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, expenses and the disclosure of contingent liabilities at the end of each reporting period. 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 significant areas of estimation that have the most significant effect on the amounts recognised in the financial statements is included in the following note: • Note 29 (c) – Valuation of investment properties and investment properties under development Measurement of fair values A number of the Group’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. The Group has an established control framework with respect to the measurement of fair values. This includes a valuation team that has overall responsibility for all significant fair value measurements, including Level 3 fair values, and reports directly to the Head of Portfolio Management and Chief Financial Officer. The valuation team regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the valuation team assesses and documents the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of FRS, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reported to the Audit and Risk Committee. 2. Basis of Preparation (continued)
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